News Tough Economy Points To Legislative Budget Battles

Tough Economy Points To Legislative Budget Battles

Tough Economy Points To Legislative Budget Battles
January 26, 2009 |

With the State of Alabama facing 9 percent proration in its education budget and a hiring freeze for non-education personnel, the Alabama Legislature will be forced to make tough decisions when it convenes Feb. 3.Spending cuts; higher taxes and fees; and the taxation and expansion of gambling are all likely to be on the table as lawmakers grapple with how to balance budgets. Complicating their task will be a possible reorganization of the Senate and a struggling economy that can ill afford higher taxes on families and businesses.”This will likely be one of the most trying legislative sessions in many years for elected officials and grassroots organizations like the Alabama Farmers Federation,” said Federation Governmental Affairs Director Paul Pinyan. “Not only will there not be funds for new projects, we could very well see cuts for agencies and programs that serve our rural members. The tight budgets also will provide more incentive for lawmakers to raise taxes or to compromise their positions on gambling.”A move already is afoot to tax existing gambling operations. Under federal law, this could allow the expansion of Native American gaming centers from “bingo-style” operations to full-blown casinos. Meanwhile, advocates of higher property taxes will continue to push for a constitutional convention. That’s why, Pinyan said, it’s more important than ever for Federation members to make their voices heard.”When times are tough and money is tight, the loudest, most vocal groups get top priority. Our legislators will have to make difficult decisions to balance this year’s budget. They’ll either have to cut spending, raise taxes or both,” Pinyan said. “It’s our responsibility to make sure our elected officials understand how cutting essential services or raising taxes would impact our farms and families.”During the session, the Federation will publish printed and on-line legislative updates as well as action alerts through the Capitol Connection at AlfaFarmers.org. Members are encouraged to begin talking to their legislators now and continue to offer input on issues throughout the session.Late last year, the Department of Governmental Affairs polled county Federation leaders to establish priorities for the upcoming legislative session. Their priorities include: returning property reappraisals to once every four years; passage of the Family Farm Preservation Act; securing a bond issue to improve roads and bridges; incentives for the development and use of alternative energy; preserving sales tax exemptions for seed, feed and fertilizer; preserving funding for critical agricultural research and education programs; and making sure agriculture is given priority in any statewide water management plan.While property reappraisals and the Family Farm Protection Act have been priorities in past years, farmers expressed renewed interest in the state’s roads and bridges when surveyed.Nationally, America’s crumbling transportation infrastructure has become an Achilles heel for the economy and is a priority for the American Farm Bureau Federation. Here in Alabama, the deteriorating condition of roads and bridges was highlighted during educational workshops sponsored by the Federation following the passage last year of an exemption from federal motor carrier safety regulations. During those meetings, Department of Public Safety officials revealed farm trucks were prohibited from crossing many bridges that had fallen into disrepair.County officials say there are more than 1,500 bridges on Alabama county roads that have received failing grades under federal standards. This is particularly important to farmers because 80 percent of the $128 billion worth of commodities delivered annually from sites in Alabama is transported by trucks on the state’s highways.Pinyan said there is broad-based support for repairing roads and bridges, but like everything else this session, funding will be the issue. Still, state legislators must put Alabama in the best position for federal infrastructure funding from the Obama administration as Congress debates a new transportation bill this year that may require state matching funds.”Most lawmakers realize our state’s infrastructure is vital to our continued economic growth, but they differ on how to fund these improvements,” Pinyan said. “Our task will be to educate elected officials about this and other needs of farmers while standing firm in our opposition to higher taxes that would place an additional burden on cash-strapped farmers and families.”

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