Alabama legislature inches toward budget reform that could avoid significant

Several lawmakers Yellowhammer spoke with Monday said the proposed cigarette tax increase is the most likely of the tax bills to pass, although any tax increase will face obstacles in the Senate.

Senate President Pro Tem Del Marsh, R-Anniston, said Monday the Senate wanted to make the transfer immediate, double that number and leave the obligations in the education budghet.

The use tax, which is a tax on goods and equipment purchased by Alabamians outside of the state, brings in roughly $225 million annually and increases by a few million dollars each year. “The difference, in a nutshell, is what is the amount of the use tax transfer”, Marsh said. Instead they are willing to put this on the back of school children.

Senators approved the transfer of education funds by a 19-11 vote. Bobby Singleton, D-Greensboro, whose attempt to filibuster the move was cut off by the Republican super majority.

If the House and Senate managed to agree to a $100 million use tax transfer, the new revenue into the General Fund would total about $182 million.

Alabama lawmakers are resuming budget talks after a late-night meeting failed to get an agreement. The committee was unable to broker a compromise Monday night and will resume discussions on Tuesday.

“Education is not fully funded as it is”, said Kennedy, who serves as AEA funding and revenue manager.

State lawmakers are pushing to hammer out an operational budget that will let state agencies keep functioning after October. 1, and they’re running out of time.

But lawmakers had even less success in solving the problem in the first special session and left town without passing any budget. Numerous tax increases proposals that passed the House last week could be up in the Senate Tuesday.

Sen. Trip Pittman, R-Montrose, the chairman of the Senate Finance and Taxation Education committee, said he could not accept a $100 million use tax transfer.

Orr said he was aiming for a budget to provide level funding to prisons, Medicaid, the Department of Mental Health, the Department of Human Resources and court system while cutting other general fund agencies by about four percent.