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Alabama lawmakers want to prioritize essential services as COVID funds disappear • Alabama Reflector

Published

3 months ago

February 3, 2025

Staff Editor

alabamareflector.com – Alander Rocha – 2025-02-03 06:57:00

Alabama lawmakers want to prioritize essential services as COVID funds disappear

by Alander Rocha, Alabama Reflector
February 3, 2025

Amid the loss of federal COVID relief funds and a likely decline in at least one state revenue stream, legislators say they want to prioritize critical services as they get ready to put the state’s two budgets together in the 2025 session.

Rep. Rex Reynolds, R-Huntsville, chair of the House Ways and Means General Fund Committee, said that although he expects the General Fund budget to come in around $3.7 billion for fiscal year 2026, which starts October 1 — a $400,000 increase from the previous year — $275 million has already been set aside for conditions line items from the previous budget, including $200 million for prisons, $50 million for prison personnel, and $35 million for the State House.

COVID funding and historically high income and sales tax revenues left state coffers flush over the last several years, allowing legislators to pass supplemental funding bills near the start of the legislative sessions. But Reynolds said he expects reduced supplemental appropriations — if any — as the budget-making process for the General Fund starts in the House this year. With uncertainty around what may happen to interest on state accounts and an expectation that it might decrease, Reynolds said that although the General Fund is strong, future revenue projections are affected by these factors.

“We’ll be back to basic budgeting, prioritizing the most critical services we provide as a state,” Reynolds said in a phone interview.

The Alabama Legislature begins its 2025 session on Tuesday.

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Kirk Fulford, deputy director of the Legislative Services Agency’s (LSA) Fiscal Division, said in an email Thursday that “interest on state deposits is what is concerning.”

The General Fund, which draws from more than 40 revenue streams, saw interest earnings on state deposits rise from roughly $19 million in 2021 to more than $557 million in 2024, driven by high cash reserves and elevated interest rates. The Federal Reserve has decreased interest rates by a single percentage point, and, further cuts may occur depending on economic policies set by the new administration.

“The last time the Federal Reserve reduced interest rates by over 1% in 2020, we saw a reduction in interest on state deposits to the General Fund by over 45% over a 6-month period following the reduction, and we had far less money invested the than we do right now,” Fulford said. “It is potentially a big deal.”

He added that a similar rate reduction in 2020 led to a more than 45% decline in interest earnings over a six-month period, despite the state having fewer funds invested at the time.

Medicaid costs are also a concern, with significant anticipated increases despite the removal of over 300,000 people from the program’s rolls after pandemic-era policy kept states from disenrolling recipients. Reynolds is waiting for further details from the Alabama Medicaid Agency on expected costs, but lawmakers are expecting a substantial increase in the state’s share of the Medicaid program, which could top $1 billion for the first time in history.

The number, while large, would only be a fraction of the total program; the federal government is expected to pay about 73% of the cost of Medicaid in 2026, according to KFF.

Sen. Greg Albritton, R-Atmore, chair of the Senate Finance and Taxation General Fund Committee, voiced the same concerns, saying they are “going to be trying to hold the reins on any supplementals and things that might be proposed” because of the expected increase in the Medicaid Agency budget.

“We’re not having to take from anybody yet. But if our revenue, which is flat now, takes a dive of any type, it’s going to put a squeeze on everybody,” Albritton said.

On the education side, Sen. Arthur Orr, R-Decatur, chair of the Senate Finance and Taxation Education Budget Committee, said that although he is expecting a supplemental appropriation bill of around $500 million, budgeting for the 2026 fiscal year will also be tighter than in previous years in which Alabama received significant federal financial aid.

“We’re now kind of trending back to the norm, and we’re going to have to make decisions and set priorities,” Orr said.

Orr said his top priority this session will be advancing a hybrid funding model for public schools, which would allocate more resources for students with special needs, English learners, and those from low-income backgrounds.

He also said that lawmakers will consider whether to extend or modify the state’s tax cut on overtime pay, which is currently set to expire in June. That tax cut ended up decreasing revenue to the state by more than the initial projection of $34 million, at $230 million from January 2024 through September 2024, Fulford said.

Minority Leader Rep. Anthony Daniels, D-Huntsville, defended the extension of an overtime tax and said he’ll push to extend it, citing a 13.65% increase in corporate tax receipts and a 1.92% rise in individual income tax receipts, totaling $191 million and $130 million, respectively. He further argued the overtime bill has boosted productivity and workforce participation, leading to economic benefits, adding that the $230 million cost is offset by increased consumer spending and productivity gains, totaling over $450 million.

Blue Cross Blue Shield proposed establishing an “ALLHealth plan” aimed at providing private health insurance to up to 330,000 eligible Alabamians, either through ALLHealth or premium assistance for employer-provided insurance using Medicaid expansion funding.

Albritton, although skeptical about the program’s reliance on federal funds, said it is worth considering because “it’s not a government plan” and the state “can’t afford Medicaid as it is hardly.”

“There are several things that are positive about it. My concern is how much it’s going to cost … I just don’t know that we’re capable of handling that program without having monies for it,” Albritton said.

With Alabama’s prison population rising and crime legislation on the horizon, Albritton said there is a need for a balanced approach to crime legislation.

“We don’t want to make felonies of everything that’s a misdemeanor,” he said. “I don’t want to put people away when we don’t have to.”

Mental health services are another key concern. Legislators are looking for ways to support existing crisis centers, though they do not plan to fund a new one in the next fiscal year, and address the long-term care gap.

“The budget will be tight. We will not be adding any additional crisis centers. We’ll better focus on our services this year, still looking at what we can do long term for long term beds,” Reynolds said.

Despite expecting a slowing economy, legislative leaders remained optimistic about the budgets’ overall economic health.

“Even with the decline in revenue in the General Fund, we’ll still see one of the largest General Funds in the history of Alabama, so I feel like our economy remains strong,” Reynolds said.

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Alabama Reflector is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Alabama Reflector maintains editorial independence. Contact Editor Brian Lyman for questions: info@alabamareflector.com.

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News from the South - Alabama News Feed

Alabama Legislature sends 2026 ETF, General Fund budgets to Gov. Kay Ivey

Published

1 day ago

April 30, 2025

Staff Editor

alabamareflector.com – Alander Rocha – 2025-04-30 07:01:00

by Alander Rocha, Alabama Reflector
April 30, 2025

The Alabama Legislature Tuesday gave final approval to the state’s two budgets for the 2026 fiscal year, but not without a battle.

The Alabama Senate passed a $3.7 billion 2026 General Fund budget late Tuesday night on a 30-0 vote after an hours-long slowdown.

HB 186, sponsored by Rep. Rex Reynolds, R-Huntsville, would provide a 10% increase ($347 million) over the current budget for the 2026 fiscal year, which starts October 1.

“In many cases, you had a reduction in what your request had been. Everyone of us had that … so we’re in a dichotomy here where we have the largest budget we’ve ever had, and yet, we have the tightest constraints and control that we’ve had in recent memory,” said Sen. Greg Albritton, R-Atmore, who chairs the Senate Finance and Taxation General Fund Committee, pointing to Medicaid’s significant budget increase that will bring its budget to over $1 billion.

Sen. Rodger Smitherman, D-Birmingham, asked for the 125-page funding bill to be read in its entirety Tuesday afternoon, which delayed the vote by hours. He said after the Senate adjourned that he didn’t want controversial bills to be passed without deliberation, and that he was afraid the Senate would move to adopt a different set of bills to consider.

“[The House] did have a second calendar, and it was going to be the same thing here in terms of the desire to have a second calendar, and I thought that we need to just work on that particular calendar,” Smitherman said after the Senate adjourned.

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The Alabama Medicaid Agency, which provides health insurance for over 1 million Alabamians, nearly all children, elderly citizens and those with disabilities, will get $1.179 billion from the state, a $223.8 million (19%) increase over this year. Ivey requested $1.184 billion in February, about $5 million more than what the House approved.

The Alabama Department of Corrections, which administers the state prisons, will get a $90.1 million increase (11%) to $826.7 million.

The Alabama Department of Human Resources, which provides child and adult protective services, enforces child support payments and administers food and family assistance, will get $148.9 million from the state in 2026, a $4.7 million (3%) increase from the current budget.

The Alabama Department of Mental Health, which provides mental health care services in the state, will get a $4.7 million increase (2%) to $244 million. The Legislature cut the funding from Ivey’s recommendation by $3.7 million.

But senators also appeared to want to send a message to the Alabama Board of Pardons and Paroles, which has drawn mounting criticism from Democratic and Republican senators over low parole rates and what senators consider a lack of responsiveness to their questions about the parole process. The Senate cut the board’s funding from $94.5 million to $90.6 million, a 4.1% decrease.

In addition, Sen. Clyde Chambliss, R-Prattville, added an amendment to make funding for the Board of Pardons & Paroles conditional on the board developing parole release guidelines. The amendment passed on a 27-0 vote.

“What they do, as y’all know, they adopt guidelines. Those are supposed to be updated and revised. They have not done that,” he said.

The board has faced backlash after parole rates declined significantly after 2017, when members granted parole to about 54% of applicants. The rates fell as low as 7% at times, according to an analysis by the ACLU of Alabama in 2023, but rebounded to slightly more than 20% within the past year.

The Senate also passed HB 185, also sponsored by Reynolds, which would appropriate $50 million in American Rescue Plan Act (ARPA) funds to the Department of Finance and provide over $12.6 million to the Unified Judicial System.

“This bill is supplemental monies just taking federal money and appropriating it,” Albritton said.

The House concurred with the changes late Tuesday evening, sending the bill to Gov. Kay Ivey.

The Senate also concurred with House changes to SB 112, sponsored by Sen. Arthur Orr, R-Decatur, a nearly $10 billion 2026 Education Trust Fund budget (ETF).

The House changes added $17.6 million to the budget, bringing it to a 6% increase over the 2025 ETF budget. The budget does not contain pay raises for teachers in the 2025-26 fiscal year, which starts Oct. 1. But it includes a $99.2 million increase for the Public Education Employees’ Health Insurance Plan, as well as funding for workman’s compensation for education employees and paid parental leave.

The Senate also concurred with the ETF supplemental funding bills, including SB 113, also sponsored by Orr, a $524 million 2025 supplemental appropriation for education that passed the House with an amendment changing language to clarify dual enrollment programs funding.

The Senate also concurred with House changes to SB 111, sponsored by Orr, which would appropriate $375 million over three years to implement changes to the state’s school funding formula.

The House added an additional $80 million from the Education Opportunity Reserve Fund to the Creating Hope and Opportunity for Our Students’ Education (CHOOSE) Act Fund, a voucher-like program that gives tax credits for non-public school spending, including private school tuition. The first-year cost estimate will go from $100 million to $180 million, an 80% increase. Over two-thirds of applicants to the program are already in private school or are homeschooled.

The story was updated at 10:30 a.m. to include comment from Sen. Rodger Smitherman, D-Birmingham, regarding the procedural delay.

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The post Alabama Legislature sends 2026 ETF, General Fund budgets to Gov. Kay Ivey appeared first on alabamareflector.com

Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.

Political Bias Rating: Centrist

The content primarily reports on the legislative proceedings and budget approval in Alabama, focusing on the specifics of the Senate’s actions, including discussions and amendments. The tone is factual, without clear support or opposition to any political party or position. It details the actions of both Republican and Democratic senators, presenting them neutrally. The mention of funding allocations, including increases for Medicaid and the Department of Corrections, appears to be a straightforward report on the outcome of legislative decisions, without showing favor to any side. The coverage adheres to neutral, factual reporting rather than offering an ideological stance.

News from the South - Alabama News Feed

Bail reform bills moving through Alabama Legislature in final days of session

Published

2 days ago

April 29, 2025

Staff Editor

alabamareflector.com – Ralph Chapoco – 2025-04-29 07:01:00

by Ralph Chapoco, Alabama Reflector
April 29, 2025

Two bills that would change Alabama’s bail system are working their way through the Legislature in the waning days of the 2025 session.

The Senate Judiciary Committee hosted a public hearing Wednesday for HB 42, sponsored by Rep. Chris England, D-Tuscaloosa, which gives judges the authority to allow defendants to pay a portion of their total bond to be released from pretrial detention.

HB 410, sponsored by Rep. Shane Stringer, R-Citronelle, which was approved by the House Judiciary Committee, modifies the composition of the Alabama Professional Bail Bonding Board, expands the exemptions for the fees that bail bond companies must pay the court, increases penalties for bail jumping and adds more regulations for bail bond companies when they operate in another state.

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A message was sent to Stringer Monday seeking comment.

HB 42 has passed the House and is awaiting a vote in the Senate Judiciary Committee. The House is scheduled to vote on HB 410 on Tuesday. England’s bill adds three words, “a part of” back into an Alabama statute that were removed when the same Legislature enacted the Alabama Bail Reform Act of 1993.

The removal of the words meant judges in the state could not allow defendants to pay a percentage of their bond to get release from pretrial detention.

“What that translates into is a large amount of money that would normally go to the court system, instead of going to the court system, it goes to a bondsman,” England said to the committee Wednesday.

People can secure their release after an arrest if they pay a bail bond company. The premium, which is typically 10% of the total amount of the bond, is paid to the bail bond company, which then must ensure the individuals go to their court appearances.

The money that people pay when released on a percentage bond would be retained by the court and kept if defendants fail to appear for their court dates.

The Alabama Bail Bond Association has been a vocal opponent of the bill, speaking out against the legislation at a March public hearing and the House Judiciary Committee considered it then and eventually approved the bill a week later.

Victor Howard, vice president of the Alabama Bail Bond Association and bail bond company owner, said that enacting the legislation would reduce accountability for defendants to appear for their court dates.

Chris McNeil, the president of the Alabama Bail Bond Association, suggested Monday in an interview that the rates that people would not appear for court would increase. He also cited records from the Alabama Administrative Office of Courts saying that people who paid cash to be released from pretrial detention in 2022 and 2023 had a failure to appear (FTA) rate of 55%.

“The court just can’t function when you have a failure to appear rate of 55%,” McNeil said Monday. “The bonding companies were averaging about a 14%-15% failure to appear rate. And were able to trim that rate by returning defendants back to court.”

England told the committee that the numbers do not present a fair comparison to percentage bonds.

“The numbers are obviously going to be off because there are more people on smaller offenses with cash bonds versus somebody who is on a large bond with a bondsman,” England said to the committee on Wednesday. “Obviously, there is going to be a higher number of FTAs on smaller cases, traffic tickets, because they all count.”

Jerome Dees, policy director from the Southern Poverty Law Center, supported the legislation.

“The vast majority of times when there was an FTA that was ultimately secured, and the defendant showed up in court, it largely was due to law enforcement bringing that individual in and not the bail bond company,” he said to the committee on Wednesday. “That is not to say that it never happened, but the vast majority of time it was law enforcement bringing that particular individual in.”

McNeil said in an interview Monday he supports HB 410, Stringer’s bill.

“It expands the Alabama Professional Bail Bonding Board by adding a sheriff to the board, adding a layperson, so I think that is very important,” he said.

It also states that any fees that bail bond companies pay to the court that have not been deposited within 90 days and that have an expiration date “shall be deemed uncollected” and will no longer hold the bail bond company responsible for making the payment.

The bill also exempts bail bond companies from fees that the courts or district attorneys have not attempted to collect past one year from the original due date.

HB 410 also adds more conditions such that the bail bond company will not pay a fee, known as forfeiture, to the court when in cases that the defendant fails to appear in court.

McNeil said the bill would cancel that forfeiture payment if someone was not placed in the National Crime Information Center and failed to appear in court, or if the bail bond company brings back a defendant that the jail refuses to accept.

The bill also addresses instances when an individual travels out of state and enhances the penalty for bail jumping, going from a Class A misdemeanor to a Class D felony, punishable by up to 5 years in prison and a $7,500 fine.

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The post Bail reform bills moving through Alabama Legislature in final days of session appeared first on alabamareflector.com

Political Bias Rating: Center-Left

The content focuses on legislative efforts to reform Alabama’s bail system, highlighting a bill sponsored by a Democratic representative aimed at allowing partial bond payments to reduce the financial burden on defendants. It presents arguments from both supporters and opponents, including the bail bond industry’s concerns and civil rights advocacy perspectives. The article leans slightly left by emphasizing criminal justice reform and the perspective of proponents seeking to reduce penal system inequities, yet it maintains a generally balanced tone by including conservative viewpoints and the legislative process details.

News from the South - Alabama News Feed

7-Year-Old Calls 911, Helps Save Family Member's Life | April 28, 2025 | News 19 at 10 p.m.

Published

2 days ago

April 28, 2025

Staff Editor

www.youtube.com – WHNT News 19 – 2025-04-28 23:17:38

SUMMARY: Seven-year-old Maddux Kendrick from New Market showed remarkable bravery by calling 911 when his stepmom, Megan Douglas, who has epilepsy, suffered a seizure on New Year’s Day. While playing video games and watching TV, Maddux noticed Megan fell and was having a seizure. Calmly, he first called Megan’s mother and then 911, providing precise information and helping the operator monitor Megan’s breathing until EMTs arrived. His quick thinking likely saved her life, as she later had another seizure and might have suffered worse alone. Maddux received a Good Samaritan Award for his courage and presence of mind, making his family very proud.