Campaign for Alabama - Frequently Asked Questions

 

1. Why does the state need more money?

 

·         Alabama is in the worst fiscal crisis since the Great Depression.

·         State indebtedness has doubled in less than 4 years, one time revenue has been used to pay recurring expenditures, federal courts have mandated costly improvements in state prisons & mental health and exploding health care costs for teachers, state employees & Medicaid recipients have substantially outgrown revenues. The current recession has hit Alabama’s unstable system and will force across the board drastic budget cuts without increased revenue.

                       

2. The deficit is only $675 million. Why does the governor’s proposal raise more?

 

·         Simply “filling the hole” means raising $675 million to address only this year’s crisis.  It won’t address any of our long term problems- but will ensure that Alabama stays at the top of the “bad lists” like infant mortality and illiteracy.

·         Making Alabama truly competitive for higher paying jobs requires strategically investing in education. “Filling the hole” without making improvements keeps Alabama permanently at the bottom of the economic ladder.

·         Alabama has moved from crisis to crisis for years. We have responded with band-aide solutions and every time we have found that our problems were delayed, but not solved.  If we “fill the hole” again, we will find ourselves back in this situation next year.

 

3. Can’t we get out of this crisis by cutting waste and inefficiency in government?

 

·         No. Governor Riley has already cut over $230 million from state government by reducing the number of state employees, selling off state cars, freezing pay raises & getting rid of pass through pork spending.

·         Unfortunately cuts are not enough. Additional revenue is required to fund basic state services and support any improvements in education.

·         So much of state revenue is currently earmarked for specific purposes that money can’t be redirected as needed.

 

4. Why send more money to Montgomery to be wasted or spent on pork projects?

 

·         Alabamians have rightly been cynical in the past about waste and abuse of taxpayer dollars. For the first time, the governor’s proposal includes major accountability reforms that require financial safeguards for local school systems, bans pass through pork projects, reforms tenure plans to make it easier to get rid of bad teachers & administrators, and requires teachers and state employees to start paying a portion of their health insurance costs.

·         New revenue will be set aside in a new fund and used for targeted investments like the Alabama Reading Initiative and college scholarships, not pork barrel projects. 

 

5. Won’t this plan hurt our senior citizens?

 

·         No. Seniors (over 65) will pay no state property tax on their homes.

·         Under the governor’s proposal, Alabama will have the best pension exemptions in the country for senior citizens. Defined benefit plans will be totally exempt from income tax while 401(k), IRA and all other pension plans will be exempt up to $40,000. No other state protects it seniors’ pensions as strongly as the governor’s proposal.

·         Social Security income is tax exempt under the governor’s proposal.

·         If we don’t pass the governor’s proposal, mandated cuts would force over 6,000 seniors out of nursing homes, 450,000 Medicaid recipients would lose access to health care and over 60 senior centers would be closed resulting in 800,000 fewer meals for seniors.

 

6. Some people’s taxes are raised while others get tax cuts. Isn’t the governor’s proposal unfair?

 

·         Our current tax system is out of balance. Alabama places the highest tax burden on the poor of any state while having the lowest overall taxes in the country.

·         The governor’s plan equalizes the tax burden so that everyone is paying their fair share.

 

7. Why not just cut spending instead of raising taxes?

 

·         To balance the state’s budget without more revenue, over 25 school systems would be forced into bankruptcy, 6,000 seniors would be forced from nursing homes, prisons would be closed and over 5,000 convicted criminals would be released. State trooper patrols would be cut by 1/3 and over 450,000 Medicaid recipients would lose access to health care.

 

8. Aren’t most people going to pay higher property taxes?

 

·         The average homeowner in Alabama who currently pays $22.58 per month will pay $7.00 a month more on an $80,000 home when the tax is fully implemented.

·         A business owner with a $1,000,000 property who currently pays $800 per month will pay an average of $250 more per month at full phase in.

·         The average tax per acre for farmers and timber owners will increase from $1.25 per acre to about $2.25 an acre using current use valuation. Over 95% of Alabama’s farmers and timberland owners will pay an average of $1.00 more per acre.

·         Alabama’s property taxes will still be lower than all of our surrounding states and still less than half of the national average.

 

9. What are some of the education investments proposed in the governor’s package?

 

·         All new education spending flows directly into the classroom:

o       Alabama Reading Initiative- ARI has been a national model for reading programs, yet we haven’t implemented it in all Alabama schools because of our funding crisis.

o       Alabama Distance Learning Program - By utilizing technology, this program would allow students anywhere in Alabama to take courses that may not be offered in their schools like foreign languages or advanced chemistry, physics, etc.

o       College Scholarship Program- A merit based scholarship plan that would provide college tuition for students who achieve academic excellence. Requirements for eligibility include: 3.0 GPA, ACT score of 20 or higher, completion of 18.5 core units.

o       Math & Science Initiative – Like the Alabama Reading Initiative, this program has a proven record of success in improving student achievement. The Governor’s proposal would expand this initiative to benefit more of our students.

o       Textbooks, Libraries, and Technology – A new structure would be implemented to provide adequate funds for student instructional resources.

 

10.  The Christian Coalition and other groups have come out against higher taxes and said that we should be better stewards instead of raising taxes. Is there a faith-based argument for reform?

 

·         If we follow the Bible’s teaching to help “the least of these” (Matthew 25:45), we must address our regressive tax structure, which places the highest tax burden on the poor of any state while having the lowest overall taxes in the country. The book of Micah also calls the believer to “do justice, and to love kindness, and walk humbly with your God” (Micah 6:8). The call for justice means that people of faith are obliged to seek proper treatment of the poor and most vulnerable. Believers in the words and deeds of Christ and the prophets will insist that Alabama’s government not balance its books on the backs of the poor.

 

11.  Does the governor’s proposal do anything that will actually help the average Alabamian?

 

·         The average Alabama family will pay lower taxes, have a better education system for their children and have the opportunity for higher paying jobs so that more of our children can stay in Alabama.

 

12.  If we’re facing such tough economic times, why add new programs like the college scholarship plan?

 

·         Education in Alabama will be transformed if students and families know that with hard work and achievement, children can have an opportunity that might have otherwise been impossible- a college education.

·         The college scholarship plan will help produce a better educated work force so Alabama can attract higher paying jobs and better address the challenges of economic uncertainty.