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Legislature told budgets are in good shape despite pandemic and economic downturn

Brandon Moseley

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(STOCK PHOTO)

Members of the Alabama Senate were in Montgomery Thursday for hearings on the budget, where Senators were told that both of the budgets are in good shape looking forward to 2021.

The meeting was chaired by Senate Finance & Taxation Committee Chairman Greg Albritton.

Kirk Fulford is the Deputy Director for the Fiscal Division of the Legislative Services Agency.

“I don’t know a better time to do this than in the middle of the biggest health emergency we have ever see and a recession,” Fulford said of the Senate decision to hold a budget hearing in July while the legislature is not in session. “I hope you hold more of these between now and the start of the next legislative session.”

“Both budgets you passed are in good shape looking forward to 2021,” Fulford said predicting that both the State General Fund (SGF) and education trust fund (ETF) would be able to avoid proration even if the economic downturn is protracted and state revenues experience no growth at all in fiscal year 2021, which starts October 1.

The state of Alabama uses a very arcane budgeting system where over 93 percent of revenues are earmarked and all the money goes into two budgets set by the Legislature (the ETF and SGF). There are also $billion of dollars in revenues to state agencies not included in the budgeting process. The state also collects another roughly $7.5 billion in federal dollars in a typical year, most of it in matching funds.

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Despite the economic crash that occurred in March due to the forced economic shutdown and the lingering economic costs to fight the spread of the coronavirus, Fulford said that he expected that both budgets will finish 2020 with growth. Much of that was due to the robust economy the state experienced from Oct. 1 to Feb. 28 before the coronavirus crisis and Fulford broke the state’s fiscal performance down for both budgets into separate income statements for the Oct. 1 to Feb. 29 period and the Mar. 1 to June 30 period.

The SGF, which funds non-education state agencies, budget was $2,151,954,704.

“Things were growing great through February,” Fulford said.

Since then the state’s lodging tax receipts have experienced a decrease of $7,4 million and oil and gas revenues are down $4.4 million; however the new Simplified Sellers USE Tax grew by $51 million thru June. More people are buying more of their stuff online and SSUT allows the state to collect much more taxes on those online sales.

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“The General Fund’s strength is built on several changes that have been made by the legislature,” Fulford said. “The state has not prorated the general fund budget since 2012.”

Fulford predicted that the state will not need to prorate the general fund, “Even if there is a recurrent COVID situation and even if there is another shutdown.”

Fulford praised the legislators for moving that growth revenue to the general fund. Prior to the redistribution of use taxes from the ETF to the SGF, use taxes brought in less than $one million to the general fund. The Simplified Sellers Use Tax and the Supreme Court ruling in Wayfair vs South Dakota changed all of that. In FY2019 the SSUT brought in $70 million. Fulford anticipates that it will bring in $125 million in FY2020 is complete.

In addition to the SSUT Fulford credited legislators for their conservative budgeting and for in 2012 the legislature changed how the Alabama Trust Fund pays out its oil and gas trust fund moneys from a market fluctuating model to a fixed payment model. The Alabama Trust Fund will pay $104 million for the SGF in the current year and $116 million for the next year.

Fulford predicted that the SGF will have 2021 receipts of $2.406,000 receipts with $46 million in growth in FY2021. Fulford said that the FY2021 SGF budget passed by the legislature is $170 million more than the FY2020, but $170 million less than the Governor had predicted in February. “It is still the highest general fund in state history.”

Fulford next broke down the ETF, the education budget.

“We were anticipating above average growth rate in 2020,” Fulford said.

The 2020 ETF budget estimated receipts of $7,582,260.

Fulford said that thru February the ETF receipts were up 8.04 percent primarily due to increase in income and sales tax revenues. From March 1 to June 30 revenues have declined by 17.83 percent versus the same period in 2019. ETF revenues in that period have declined by $405,862,551.

Fulford said that part of that is due to moving the payment dates back, both the income tax deadline of April 15 to July and the quarterly estimated payments.

“We will know more by the end of the month,” Fulford predicted, “We anticipate that a lot of that money will come in in July. We will know by the end of the month what those numbers look like.”

Despite the economic collapse total ETF growth for 2020 is 1.09 percent. Net receipts are $5,473,075 by the end of June. $58,980,858 in growth due to the large annual growth before the COVID-19 impact of $224.5 million.

Fulford said that a provision in the Rolling Reserve Act allowed the state Finance Director to transfer $301.6 million from the budget Stabilization Fund to alleviate cash flow problems in the ETF. The state may not need that money anymore by the end of July, depending on July receipts.

Citing the Rolling Reserve Act and the conservative budget passed by the legislature, Fulford predicted that the state an cover ETF next year even at zero growth in revenue.

State Finance Director Kelly Butler explained to the Senators how the CARES Act was being appropriated to the state. The estimated total allocation to Alabama was $4.100,738,000 for COVID-19 expenses. $1.9 billion was appropriated to the state to spend. $115 million had to go to Jefferson County leaving state government with $1.789 billion to appropriate. Butler explained that the money is very limited in what it can be spent on and the state has had to have guidance from federal officials on their latest interpretations of the CARES Act rules.

Fulford explained that the Payroll Protection Program has greatly benefitted state finances.

Alabama businesses received 7,878 loans thru the closing of the PPP program deadline on June 30.

“408,803 jobs were retained because of the loan program,” Fulford said. “The situation with our economy would be vastly different if that program had not been established.”

State Senator Jim McClendon (R-Springville) said that a record over 2000 people tested positive for coronavirus just today. If everyone follows the health protocols, that person and everyone in that household have to self quarantine for 14 days if they don’t have it and if they do get COVID-19 or have to care for someone with COVID-19 they could be out from work for over a month.

Fulford acknowledged that there was a “Trickle down effect to everyone in that household,” and that “Has an impact going forward and one that you have to pay attention to.”

“I am concerned about the long lasting effects of this virus,” Butler said. “We are going to have to learn to live with this virus until it is cured, an effective therapy is developed or a vaccine.”

Brandon Moseley is a senior reporter with eight and a half years at Alabama Political Reporter. You can email him at [email protected] or follow him on Facebook. Brandon is a native of Moody, Alabama, a graduate of Auburn University, and a seventh generation Alabamian.

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Longtime State Rep. Alvin Holmes has died

Montgomery Fire and Rescue responded to a call at Holmes’ residence on Saturday afternoon, and they found the 81-year-old unresponsive. 

Josh Moon

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State Rep. Alvin Holmes

Alvin Holmes, a 44-year veteran of the Alabama Legislature and one of the state’s most outspoken proponents for racial inclusion, has died. Montgomery Fire and Rescue responded to a call at Holmes’ residence on Saturday afternoon, and they found the 81-year-old unresponsive. 

Over a four-decade-plus career in the Alabama House of Representatives, Holmes was a lightning rod for criticism from his fellow white lawmakers and the white voters who elected them, as he repeatedly challenged the status quo and went headlong at biases and racism that prevented more Black Alabamians from serving in positions of power in the state. 

Holmes was a foot soldier in the Civil Rights Movement in Montgomery and led the charge on getting the Confederate battle flag removed from Alabama’s Capitol building. Holmes fought many of his battles, especially the early ones, by himself, and while to his friends he would admit that standing alone wasn’t always pleasant, he never showed such hesitation outwardly, seeming to revel in the hateful words and personal attacks from other lawmakers and the public. 

Many of the fights Holmes began were later finished in federal courtrooms, and they most often led to further advancements for Black Alabamians.

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Alabama Legislative Black Caucus holds meetings on racism in wake of George Floyd death

Eddie Burkhalter

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State Sen. Vivian Figures, D-Mobile, is the chair of the Alabama Legislative Black Caucus.

Members of the Alabama Legislative Black Caucus in recent months have been meeting with Gov. Kay Ivey, state law enforcement officials and others to voice their concern over systemic racism in Alabama, the group said in a statement Friday. 

Alabama Legislative Black Caucus members in June met with Ivey, and in follow-up meetings with other state officials and leaders of higher education, members discussed what they believe needs changing to battle racism in Alabama, according to the press release. 

“We are very appreciative of Governor Ivey and all of the officials with whom we have met thus far,” said State Sen. Vivian Figures, D-Mobile, chairwoman of the ALBC, in a statement. “Our dialogues have been very substantive and productive as the Caucus presented our concerns and recommendations. Our goal is to get to the root of and eradicate racism and anything that communicates hatred, bigotry or divisiveness within the State of Alabama. The tragic and senseless death of George Floyd caused us all to take a closer look at the systemic racism at work here in Alabama.”

ALBC members met with officials from Alabama Law Enforcement Agency, the Alabama Sheriffs Association, the Alabama Association of Police Chiefs and Katie Britt, president and CEO of the Business Council of Alabama along with BCA’s Executive Leadership Committee.

Members also met with The University of Alabama System Chancellor Finis St. John, and Jay Gogue, president of Auburn University. 

In the statement, ALBC members applauded the University of Alabama’s Board of Trustees for voting unanimously to rename Nott Hall — named for Josiah Nott, a doctor who believed in white superiority — Honors Hall. 

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“The University of Alabama had already started this endeavor before our meeting with them this past Tuesday,” said State Rep. A.J. McCampbell, D-Gallion, vice chairman of ALBC, in a statement. “That was a great first step and strong leadership was shown. We are looking forward to the other institutions of higher learning in Alabama to do the same as well. The Caucus also hopes that all members of the Alabama Legislature have been inspired to adopt and make meaningful changes in legislation that governs our state.”

Figures said the group of elected senators and representatives are holding these talks, with plans for others, “so that people will stop focusing on Alabama’s sordid past, and instead see a beautiful Alabama present, and the makings of a bright future for all Alabamians.” 

“During each of these meetings, our members have had the opportunity to voice what we feel the necessary changes should be. I just hope this openness to positive change continues throughout the upcoming 2021 Alabama Legislative Session,” said State Senate Minority Leader Bobby Singleton, D-Greensboro, in a statement. 

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State senator calls for Rep. Dismukes to resign over celebration of former Klan leader

“Since first being elected in 1996, I’ve had a policy of not publicly criticizing other elected officials, but at this time I am making an exception since Rep. Dismukes is MY state representative,” Chambliss wrote in a tweet. “He does not represent my views or the views of the vast majority of people in District 88.” 

Eddie Burkhalter

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State Sen Clyde Chambliss, R-Prattville, on Monday called for the resignation of Rep. Will Dismukes, R-Prattville.

State Sen Clyde Chambliss, R-Prattville, on Monday called for the resignation of Rep. Will Dismukes, R-Prattville, after posting to social media about attending a birthday celebration for Nathanial Bedford Forrest, a Confederate general and first Grand Wizard of the Ku Klux Klan.

Dismukes posted a photo of himself on Sunday speaking at Fort Dixie outside of Selma on Saturday, the same day that late Congressman and Civil Rights hero Rep. John Lewis, was honored in Selma. 

“Since first being elected in 1996, I’ve had a policy of not publicly criticizing other elected officials, but at this time I am making an exception since Rep. Dismukes is MY state representative,” Chambliss wrote in a tweet. “He does not represent my views or the views of the vast majority of people in District 88.” 

“The post is bad enough, the timing is even worse, but the real problem is that an elected official in 2020 would attend a celebration of the life of someone that led a group that terrorized and killed other human beings,” Chambliss continued in the tweet. “He has had 24 hours to understand why people are so upset, but his interview on WSFA a few moments ago confirms that he is lacking in understanding and judgment — he should resign immediately.” 

Dismukes in the WSFA interview told a reporter that he hadn’t thought about the memorial for Rep. Lewis and connected it to his attendance at the celebration for the Klan leader. 

Dismukes told WSFA that he won’t apologize for his family’s service in the “war between the states” that he said wasn’t primarily fought over slavery, that he’s not a racist but that he doesn’t see the need for the current racial reconciliation. 

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“We no longer drink from separate water fountains, and we no longer have segregated schools,” Dismukes told WSFA. “You know there’s abundant work opportunities for all colors, there’s abundant scholarship opportunities for all colors. So what are you asking that needs to be racially reconciled?”

Chambliss may be the first Republican lawmaker in Alabama to call for Dismukes’ resignation, but others have expressed concern over his social media post and attendance at the event. 

Alabama Republican Party Chairman Terry Lathan issued a statement addressing the post, and said he believes voters should decide whether Dismukes keeps his office. 

“While Rep. Dismukes has released a statement attempting to clarify his actions as a private citizen attending a celebration of the first Grand Wizard of the Klu Klux Klan, Alabamians hold their elected officials to a high standard of actions. So does the Republican Party,” Lathan said in the statement. 

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“Rep. Dismukes offered no explanation for why he participated in a birthday celebration of Nathan Bedford Forrest. Additionally, I find his statement to be shallow in understanding why his activities are deeply offensive to so many Alabamians. His constituents will be the final decision-makers of his political future.”

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Republicans are concerned by Rep. Dismukes’ Confederate social media posts

Brandon Moseley

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Rep. Will Dismukes, R-Prattville, is facing criticism for attending a birthday celebration for the first Grand Wizard of the Ku Klux Klan.

House Majority Leader Nathaniel Ledbetter, R-Rainsville, on Monday released a statement in response to a recent social media post by State Rep. Will Dismukes, R-Prattville, who was in Selma Saturday celebrating Confederate General and Ku Klux Klan leader Gen. Nathan Bedford Forest’s birthday over the weekend. This was while much of the rest of the state was celebrating the life of Alabama native and Civil Rights Movement legend Congressman John Lewis.

“The Alabama Republican Caucus is comprised of 75 men and women, each of whom have their own beliefs and principles that guide their lives,” Ledbetter said. “The personal beliefs expressed by any one member do not reflect the beliefs of the others, and their activities outside the Legislature should be considered their own, as well.”

“Several of our Republican Caucus members have reached out to me with concerns about the content and timing of a recent social media post by State Rep. Will Dismukes, and I, as a House member, share those concerns,” Ledbetter continued. “We live in a nation that guarantees each citizen the right to express the ideas they wish to share, and in the case of a public official, voters will ultimately decide if they agree with those ideas.”

Speaker of the House Mac McCutcheon, R-Monrovia, also released a statement regarding the controversial social media post.

“The Alabama House cannot police the beliefs, statements, and activities of its members outside the Legislature as that is a job best assigned to voters in each House district across the state,” McCutcheon said. “It is important to note, however, that I and many other members of the House devoted our weekend toward honoring an Alabama native and civil rights icon who dedicated his life to securing freedom, liberty, and equality for all Americans.”

“While Rep. Dismukes has released a statement attempting to clarify his actions as a private citizen attending a celebration of the first Grand Wizard of the Klu Klux Klan, Alabamians hold their elected officials to a high standard of actions. So does the Republican Party,” said Alabama Republican Party Chairman Terry Lathan. “Rep. Dismukes offered no explanation for why he participated in a birthday celebration of Nathan Bedford Forrest. Additionally, I find his statement to be shallow in understanding why his activities are deeply offensive to so many Alabamians. His constituents will be the final decision-makers of his political future.”

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“The Alabama of today was on full, honorable display as we paid humble tribute this weekend to the life of Congressman John Lewis,” Lathan continued. “That is the Alabama that we are proud of — showing the nation and world that we are one in the common goals of equality for all of our citizens.”

“It is one thing to honor one’s Southern heritage, however, it is completely another issue to specifically commemorate the leader of an organization with an indisputable history of unconscionable actions and atrocities toward African-Americans,” Lathan concluded. “I strongly urge his constituents to contact Rep. Dismukes to articulate and share with him their thoughts on his personal actions.”

On Sunday, Dismukes shared several pictures from the celebration of Gen. Forest’s birthday, with the caption: “Had a great time at Fort Dixie speaking and giving the invocation for Nathan Bedford Forrest annual birthday celebration. Always a great time and some sure enough good eating!!”

After the comments became a social media firestorm that has garnered press attention, Dismukes attempted to explain his position.

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“First and foremost, my post yesterday was in no way related to disrespecting the passing of Rep. John Lewis,” Dismukes said. “That wasn’t even a thought in my mind. That is not who I am as a person. I am a transparent person. To the point that as a public official I lay it all there for the people to see for better or for worse at times. My post yesterday was as usual me sharing a previous days events. The post was in no way intended to seem as if I was glorifying the Klan or any party thereof. The very atrocities and actions they committed are a disgrace to our country.”

“Also, we are all individual members that make up our legislature. I made a post independent of my colleagues,” Dismukes continued. “I made a post independent of my colleagues. My regret is that I have allowed them to be put in a negative light. If you disagree with me and my beliefs do not hold them under the same umbrella. I can live with a dislike for me, but not fellow members, or members of my own personal family. Our body as a whole is made up of some of the finest people I have ever had the honor of knowing and working with, both Democrat and Republican. I close by reiterating that my post was in no way glorifying the Klan or disrespecting the late Rep. John Lewis.”

The Alabama Democratic Party had already come out and demanded that Dismukes resign months ago when it became known that he, a minister, was chaplain for a Sons of the Confederacy chapter in central Alabama.

Dismukes is serving in his first term in the Alabama House. He briefly was a congressional candidate in Alabama’s 2nd District but dropped out of the race before the Republican Primary.

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