This morning I took the time to sit-in on the House Economic Development & Tourism Committee meeting. ADO Director Greg Canfield was in attendance along with several members of his staff because some important economic development bills were coming up for discussion in the committee.
GOP leadership in the legislature are pushing an aggressive jobs agenda this session and creating a tax and regulatory climate that is competitive is one of their primary concerns. These common sense measures will attract new industries and encourage existing companies to expand and put more Alabamians to work. HB159 & HB160 are two bills that are seeking to do just that. However, the AEA is cranking up their fear mongering machine and blatantly misrepresenting the impact of these bills (shocker, I know).
In the email below that was sent out today to AEA membership, AEA Executive Secretary Henry Mabry makes the claim that these bills — which offer tax incentives to bring new high-wage jobs to the people of Alabama — will take money out of the education trust fund.
AEA representative Susan Kennedy was allowed to voice her opposition to the bill during the meeting. In short, she claimed that offering these tax incentives would account for hundreds of millions of dollars in losses for the education trust fund.
After she spoke, Rep. Alan Harper (who just became a Republican yesterday) dismantled Ms. Kennedy’s argument in about 15 seconds. He said, “Ms. Kennedy, do the jobs these bills are trying to create exist right now?” Ms. Kennedy conceded that they do not. “So how can you take money away that doesn’t exist?” No response.
And that sums it up. The legislature is trying to incentivize companies to create NEW jobs and hire Alabamians who will in turn go out and buy televisions and go out to eat which employs even more Alabamians who… You get the picture.
People need to understand that the AEA’s efforts do not only affect education issues, they affect economic development in Alabama as well.
URGENT! Contact your Representative now!
Take Action!
An extremely harmful bill that takes money out of the ETF will be voted on in the House tomorrow!
Dear Teacher, Education Support Professionals, and Education Retirees:
Gov. Robert Bentley introduced an Education Budget that diverts hundreds of millions of dollars from education for General Fund Agencies. He is no leader and has made it clear that he is against public education.
Governor Bentley also proposed “jobs” legislation that is nothing more than a way to constitutionally unearmark the income tax dedicated entirely for education and giveaway that income tax to any company he chooses doing business in the state.
His primary “Jobs” bills, House Bill 159 and House Bill 160, by Rep. Barry Mask of Wetumpka, are expected to be up for a vote on the floor of the House of Representatives on Thursday, January 9, which is tomorrow. We must block this legislation or the Education Trust Fund will lose hundreds of millions of dollars every year. Over time, the cost would be billions of dollars. This means to you No COLAs, No benefit increases, No classroom supplies, No textbooks, No professional development, and more pay-cuts.
This is the way it works:
Company applies for new tax giveaway.
Governor decides whether to give the money to the company.
Company is approved and then the workers personal state income tax goes into the pocket of the company owner instead of going to the Education Trust Fund.
Here is one math example:
Ten existing companies with 1,000 employees each
Up to $1,500 of employee’s income tax goes to their employer for each job assuming $50,000 pay.
$15 million a year goes to companies every year for 20 years
That is $15 million a year for just 10 companies. Two hundred companies mean $300 million a year going into the pockets of those companies while not requiring one new job created.
A $300 million loss in income tax is equal to a loss of over 3,000 teaching jobs, or an average pay cut of $2,000 to every education employee in the state.
… And this would be for just 100 companies. This legislation could mean many, many times the $250 million annual cost as time goes by.
Workers’ Individual State Income Taxes have no business being used for huge profit windfalls to companies of any size that do business in Alabama. If passed, this legislation would be devastating to our public schools and does nothing but kill jobs and compensation for public education.
It is critical that you contact your House members today to vote against this awful, awful legislation.
Call your House Member at 334-242-7600 or email them immediately by clicking on TAKE ACTION in the top right of this email alert!
This bill will come up for a vote tomorrow! Its URGENT that you contact your legislator now!
The Governor is wrong, Representative Mask is wrong, and the House will be wrong if these two bills are enacted. Please act now while you are reading this email.
Henry C. Mabry
AEA Executive Secretary & Treasurer
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