The legislature and governor spent 2012 wrestling
with the state of the general fund of Alabama. It has been an uphill battle
that will likely not dissipate or subside as we approach 2013.
The financial woes facing the State are almost as
devastating as a plague. This financial plague is not unique and limited to the
borders of Alabama. Most states are dealing with hard times due to the
prolonged national recession.
The difficult fiscal decisions being dealt with by
the governor and legislature are not their doing. They had nothing to do with
the national economy ravaging our state coffers. The storm clouds were on the
horizon for several years before they arrived in January of 2011.
Many observers predicted the impending financial
crisis. It was obvious that a train wreck was about to occur. The State had
been living on one time federal stimulus money for the last two years of Gov.
Bob Riley’s term. However, Riley ignored the impending financial crisis and
chose instead to play cowboys and Indians with the electronic bingo issue. His
only contribution to the looming financial Armageddon was to spend all of the
State’s savings accounts and rainy day funds as the State’s revenues dropped
precipitously and the federal manna from Heaven ended. Riley left town and the
new kid arrived just in time to take over a ship of state destined to sink.
Bentley’s walk into the governor’s office in January of 2011 was analogous to
walking onto the deck of the Titanic.
This financial dilemma was foreseeable. In fact, I
posed the supposition three years ago when all of the horses were lining up to
run for governor that because of the inevitable financial debacle awaiting the
new governor, that whoever won would be a one term governor. However, as is always the case, you are wiser
and more perceptive than folks give you credit for being. The average Alabama
voter realizes that Bentley did not create or cause the mess he is in with the
state budget. They believe he is doing all that he can to get the State back into
shape. The people trust him and are convinced he has their best interests at
heart. Indeed, Bentley has put his money where his mouth is. He has adhered to
the promise he made Alabamians when he ran. He has not taken one red cent in
salary during his first two years in office.
Bentley has adamantly clung to the premise that he
will not ask the legislature to raise any new revenue or taxes. It might be
added that the legislature is on the same page. They are not inclined to raise
taxes. Therefore, they are having to work to balance the state budget with cost
saving measures.
Gov. Bentley points to a litany of cuts that have
saved the state over $600 million in his first two years in office. Almost all
of the savings have come from a reduction in the number of state employees and
cuts to public employee benefits. Bentley says $180 million has been saved by
having 3,000 fewer state employees. Another $180 million was saved by changing
the pension plans for new state hires and another $180 million by requiring teachers
and other public employees to pay more toward their pension plans and $60
million was saved by reducing the amount the state pays toward health insurance
for state employees and teachers.
Obviously the governor and legislature have placed
the burden of the belt tightening on the backs of teachers and state employees.
This may not be enough. The 800 pound gorilla in the room is Medicaid. It is a
money eating monster that may eat the State out of house and home.
2013 looks to be more of the same. We will see. Happy New Year!
See you next week.
About the author: Steve Flowers is Alabama’s leading
political columnist. His column appears weekly in more than 70 Alabama
newspapers. Steve served 16 years in the state legislature. He may be reached
at http://www.steveflowers.us.
No comments:
Post a Comment