The 2016 regular legislative session for the Alabama Legislature began last week. Balancing the state's General Fund budget and encouraging job growth are at the top of this year's agenda for Alabama Speaker Mike Hubbard, R-Auburn.
This year, the budget deficit measures in at more than $40 million. According to Hubbard, forcing state agencies to justify every dollar they spend will help close that gap.
"Our agenda is obviously going to have to be budget-focused," Hubbard said. "We are committed to a zero-based budgeting process to where we bring in the agencies and say, 'You have to justify every penny.' It's been a pretty effective process so far."
This time last year, legislators began deliberating to find a solution for a budget shortfall of more than $200 million. Mending the state's budget crisis required 10 months and two special legislative sessions in 2015.
Yet again, legislators are grappling with how to repair, or at least bandage, the state's crippled budget — adding to a saga going back nearly five years. State legislators have mostly refused to raise taxes, and have resorted to cutting funding for state agencies.
"I don't think there is any appetite for raising any more revenue, which means we're going to have to balance the General Fund with the money that we already have," Hubbard said. "That's going to have to be a combination of efficiencies and cuts."
Gov. Robert Bentley has proposed transferring $181 million in revenue from the state's Education Trust Fund to both balance the General Fund and finance budget increases for struggling state agencies, including the state's Medicaid and prison systems.
"It would [have an effect on higher education] if we took $180 million," Hubbard said. "I just don't see that happening. I've made it clear that I do not support taking money from education to balance the General Fund."
Transferring such a large amount from the fund that supports Alabama's public schools, community colleges and public universities is not an option for Hubbard this year.
"If you can sit here today and say we're spending too much money on education in the state of Alabama, then you might be able to look at (taking $180 million), but I don't think we can say that." Hubbard said.
Better funding for education could help the state solve issues in funding Medicaid and the prison system, according to Hubbard.
"I don't think that we're spending too much on education," Hubbard said. "Education is a huge part of solving the General Fund problem. The more you educate your citizens, the less problem you're going to have on that side."
According to an article by AL.com, Bentley is proposing to increase the state Medicaid agency's budget by more than $100 million and the state Corrections Department's budget by $20 million.
"When I was sitting in the State of the State address and I heard the governor talk about all of these programs he was going to do, all I could think was, 'My gosh. How are we going to pay for that?'" Hubbard said. "You know, $180 million coming out of education is a nonstarter."
Creating Jobs
Creating jobs and revitalizing Alabama's economy is also a major priority for House Republicans, according to Hubbard.
Hubbard supported a new tax credit proposed by Rep. Kyle South, R-Fayette, which is intended to incentivize small- and medium-sized businesses into hiring more employees.
"We have lots of things we can do for big businesses that we are trying to attract to come into the state, but not so much for the guys that are already here — the small businesses that make up the majority of businesses and employers," Hubbard said. "They're paying taxes. They're supporting the community they're in. They're the ones buying the ad in the school football program. We're going to do the same thing for them [that we've done for big companies]."
According to South's plan, businesses with less than 75 employees will receive a $1,500 tax credit for every employee hired with a salary of more than $40,000. The bill passed the House and is heading to the Senate.
The Alabama House Republican Caucus and Speaker Hubbard are also supporting a right-to-work amendment intended to reinforce Alabama's stance as a right-to-work state.
"Being a right-to-work state has given us a tremendous advantage over other non-right-to-work states," Hubbard said. "We believe that every Alabamian has a right to work. They shouldn't be forced to join a union or pay union dues. We think putting it in the constitution is something that would send a very strong message to business."
Corrections and Criminal Justice
Bentley introduced a bold plan to abandon all of Alabama's existing penitentiaries after building three new men's prisons and a new women's prison to replace the Julia Tutwiler Prison for Women.
A bond issue would be used to cover the costs of the new, modern prisons, which would add up to almost $800 million over many years.
"I've met with the commissioner of corrections, and I think that he has come up with a really innovative and bold plan," Hubbard said. "It's past time for us to just deal with it."
The state maintains numerous facilities that are nearly 100 years old. According to Hubbard, the Department of Corrections could finance the bond issue from the savings it would enjoy from building more efficient prisons.
"We've got prisons that were built in 1929," Hubbard said. "They're highly inefficient and extremely expensive to maintain and operate. We can't continue to put a Band-Aid on it. It's a serious problem."
Updating Alabama's entire prison system would shine a positive light on the state after many years of negativity, according to Hubbard.
"I believe the Justice Department and other prison advocates would look to Alabama and say, 'This is the way you need to solve your problems,'" Hubbard said. "'You can't just continue to put a Band-Aid on it.'"
Alabama has one of the highest rates of incarceration in the United States. Continuing to update sentencing laws and making smarter drug enforcement decisions could reduce the state's inmate population, according to Hubbard.
"What you don't want to do is take a drug offender, who basically is committing a crime on himself, and put them into the system," Hubbard said. "They become a felon. You teach them how to be a criminal in prison, and that's all they can do."
Birmingham became the first city in Alabama to pass an ordinance requiring employers to remove sections on employment applications that ask if the applicant has a criminal record. "Banning the box" is also an option, according to Hubbard.
"We passed an expungement bill last year," Hubbard said. "We should look at expanding that. For someone who gets out, it's a cloud hanging over them for the rest of their life. I think that (banning the box) is something we clearly need to look at as part of our reform package. I'm not opposed to that."
Education
According to Hubbard, Alabama has the best pre-K system in the country, and the state should continue to invest in it.
"I'm a big believer in funding what's successful and what works," Hubbard said.
In Bentley's State of the State address, he also called for increasing funding for Alabama's pre-K system. One of his guests was one of the first enrollees in Alabama's pre-K program.
"Pre-K works, and there are irrefutable statistics that say if you can get a child in a structured learning environment early, they have an exponentially higher chance of reading at grade level at grade three," Hubbard said. "Then they have an exponentially higher chance of graduating."
Dual enrollment at a state community college while also attending high school is also an education funding priority for Hubbard, as well as continued funding for the state's community college systems.
According to Hubbard, community colleges and technical schools provide valuable training for careers as electricians, plumbers, diesel mechanics and welders.
"We've gotten into this mentality that if you don't go to college, that you're a failure," Hubbard said. "That clearly is not the case. Electricians start out making about $80,000 per year, and they have a 100 percent chance of being employed."
Hubbard will also be supporting the Wired Act, which will bring broadband and wireless internet access to all of the state public schools. Alabama would be the first state in the country to do so. The initiative would cost $12 million, but the funding would come from existing funds from this fiscal year.
Trial
Hubbard is also preparing for his corruption trial, which is set to begin in March. Hubbard, who became speaker in 2010, is facing 23 counts of felony corruption charges.
According to Hubbard and his defense team, the accusations against him are politically motivated and intended to ruin his political career.
"I used to think I wanted to run for governor," Hubbard said. "I think a lot of the stuff that has been happening is other people trying to keep that from happening."
The embattled speaker said the trial will not affect his focus during the legislative session.
"I'm not going to allow anything to be a distraction to this session," Hubbard said. "I've committed that to the members of the House and to my caucus. It's not going to be a distraction. I'm looking forward to continuing to have the truth come out."
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