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Legislative Update - Week 14The 2012 regular legislative session ended just as it started with the focus on the General Fund budget funding crisis. A budget compromise was reached and approved by the legislature only minutes before the session ended. The Governor is expected to sign the budget. The General Fund budget, which is nearly 4% less than this year’s prorated budget, is a far cry from what we were dealing with when the session began. But please understand it is still a bad budget that is short of needed revenues. From a nearly $2 billion budget in 2008, the General Fund is now at $1.66 billion or a cut of $334 million (16.7%). One key legislator referred to this budget as a pig wearing lipstick. To prevent massive layoffs and drastic cuts in services, several budget maneuvers were used with no conscience until late Wednesday night. The moving parts that came together to make this budget possible are: an increase in court fees (HB 688 sponsored by Representative Mike Hill) which will prevent over 500 court employees, circuit court employees, and district attorney employees from being laid off. The Pardons and Paroles fee bill (HB 454 sponsored by Representative Randy Wood) will prevent the layoff of 37 employees, and a Constitutional Amendment (HB 734 sponsored by Representative Jay Love) will, over a three year period of time, transfer $145 million per year from the Alabama Trust Fund (oil and gas trust fund) to the General Fund. They will not have to pay back monies borrowed from the Alabama Trust Fund by the Special Education Trust Fund through the Rainy Day Account. Now the Constitutional Amendment needs to pass a vote of the people in August. If all of this works we will have a bad budget with limited layoffs and fewer cuts in critical state services. If the Constitutional Amendment fails the entire General Fund budget collapses leading to massive layoffs and drastic cuts in General Fund services. But, here comes the “rub.” Alabama still does not have enough money to provide essential General Fund services and compensate the state employees who provide these services daily. Alabama went to the edge, saw the bitter truth of massive layoffs and draconian cuts in General Fund services, and solutions were cobbled together at the last second. We nearly went over the cliff. The positive note that may have come out of this is the realization by many, although not nearly all, that there must be new revenue in the General Fund or we will be here again all too soon. Legislation Affecting State Employees 1) Senate Bill 388, sponsored by Senator Arthur Orr, (House companion bill HB508 by Representative Jamie Ison and Representative Mac McCutchen) reforms Alabama’s pension/retirement plan for new hires only. Senator Roger Bedford was able to get an amendment added to Senate Bill 388 that would require a 2/3 vote of both the House and Senate to increase the retirement age for new hires from age 62. Senate Bill 388 was signed by the Governor and is now law. 2) Senate Bill 376, sponsored by Senator Del Marsh, amends catastrophic sick leave/donated leave by limiting which employee can donate leave to another employee and implements a lifetime cap of 480 hours of donated leave received by an employee. ASEA, working with the sponsor of the bill, Senator Del Marsh, was able to get amendments to this legislation that would allow the State Personnel Board to approve the donation of leave in excess of 480 hours and the donation of leave from employees at equal or lesser pay grades. Both “waivers” are on a case by case basis. Also, ASEA was able to get an amendment on Senate Bill 376 which specifically clarifies that state employees with foster children in their care and custody can use sick leave for the care of said foster child. Additionally, ASEA was able to get an amendment to have sick leave donation include annual leave and comp time. These amendments would not have been possible without Senator Del Marsh and his willingness to work with ASEA on these issues. Senate Bill 376 was signed by the Governor and is now law. 3) Senate Bill 242, sponsored by Senator Tom Whatley, would allow state employees to withdraw from DROP early without penalty. This legislation is dead for this session. 4) House Bill 255, sponsored by Representative Jay Love (Senate companion bills SB265 and SB285 by Senator Jabo Waggoner and SB330 by Senator Billy Beasley) allows overtime pay up to 25% of salary to be counted toward retirement. A compromise was reached where overtime pay would be counted toward retirement at 20% rather than 25%. Senator Jabo Waggoner and Senator Billy Beasley agreed to move House Bill 255 rather than their respective bills. Senator Billy Beasley was able to get an amendment included that would expand the bill to include all public employees. House Bill 255 has been signed by the Governor and is now law. 5) House Bill 305, sponsored by Representative Richard Laird, provides that state employees shall not be prohibited from communicating with public officials. This legislation is dead for this session. 6) House Bill 101, sponsored by Representative Mike Jones, which would allow ABC employees to have part time jobs with an employer who has an ABC license is pending action on the Governor’s desk. 7) House Bill 136, sponsored by Representative Mac McCutchen, which raises the income level for filing requirements on Statements of Economic Interest filed with the Ethics Commission, is pending action on the Governor’s desk. 8) House Bill 180, sponsored by Representative Craig Ford (Senate companion bill SB215 by Senator Quinton Ross), which restores DROP, are dead for this session. 9) House Bill 183, sponsored by Representative Craig Ford, provides a COLA for state employees and education employees. This bill is dead for this session. 10) House Bill 381, sponsored by Representative Mac McCutchen, which allows for one year of hazardous duty credit for every five years of service as a correctional officer for calculating state employee insurance benefits, was signed into law by Governor Bentley. 11) House Bill 466, sponsored by Representative Jay Love, which allows for gifts to state employees of less than $25 annually, was signed by the Governor and is now law. 12) Senate Bill 51, sponsored by Senator Bill Holtzclaw, provides for a DROP-like program with certain restrictions for teachers. ASEA has been working with Senator Holtzclaw on similar legislation that would address state employees. This legislation is to be introduced with Senator Bryan Taylor sponsoring this legislation next session. Both bills will be introduced in the next legislative session. 13) House Bill 9 and House Bill 712, sponsored by Representative Joe Hubbard, and House Bill 27, House Bill 107, House Bill 244, and House Bill 725, sponsored by Representative Patricia Todd, would raise the tax on tobacco. Bill 712 and House Bill 725 create a “user fee” on tobacco. Each bill would generate between $220 and $260 million in new revenue. House Bill 712 earmarks these “user fees” to Medicaid and House Bill 725 would direct the “user fees” to the General Fund. The bills are dead for this session. 14) Senate Bill 450, sponsored by Senator Paul Sanford, which merges the Department of Industrial Relations and the Department of Labor, has passed and is pending action on the Governor’s desk. 15) Senate Bill 432, sponsored by Senator Dick Brewbaker (House companion bill HB 589 by Representative Joe Hubbard), which would allow state employees with certain restrictions to continue their insurance coverage after they leave state service, provided they pay the entire cost. This bill is dead for the session. 16) House Bill 590, sponsored by Representative Charles Newton, which would eliminate the affidavit requirement for state travel, is pending action on the Governor’s desk. 17) House Bill 562, sponsored by Representative Jim Barton, which allows for the transfer of ending balance tobacco settlement funds from Children First Trust Fund to other agencies passed the House and Senate but, failed to be approved. This legislature is in the Governor’s call for the Special Session. 18) House Bill 607, sponsored by Representative Jim Barton, which provides for the transfer of funds from certain state agencies to the General Fund, is pending action on the Governor’s desk. 19) House Bill 608, sponsored by Representative Jim Barton, which provides for the change in distribution of the scrap tire environmental fee from the Alabama Department of Environmental Management to the General Fund, passed the House but failed to receive approval in the Senate. 20) HB 692, sponsored by Representative Steve McMillan (SB 542 sponsored by Senator Tripp Pittman), which would allow for private development of Gulf State Park, is dead for this session. 21) SB 580, sponsored by Senator Roger Bedford (companion bill HB 781 by Representative Craig Ford) provides for revenues in excess of the appropriation cap (rolling reserve) for the Education Trust Fund to be transferred to the General Fund. Both bills are dead for this session. ASEA News
Download the 2012 ASEA Calendar (pdf 2mb)
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110 North Jackson Street : Montgomery, AL 36104 |
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