(Audio above: Alabama Senate President Pro Tem Del Marsh comments on the Special Session on Yellowhammer Radio)
On Monday’s episode of Yellowhammer Radio, show host Cliff Sims asked Sen. Del Marsh (R-Anniston), the top-ranking Republican in the Alabama Senate, if he believes Gov. Robert Bentley has gathered enough support in the Legislature to advance his tax increase proposals.
“I do not,” Marsh replied, adding that Republicans in the Senate remain staunchly opposed to raising taxes at a time when Alabama’s economy is still struggling to get ramped up.
“Alabama has not been in a recovery mode since 2008,” he explained. “Since we had the real estate crisis, we have only had 0.7 GDP growth. If we’d had what surrounding states have experienced, we’d have 100 to 200 million more dollars… You do not tax your way out of a recession.”
Republicans leaders in both the House and Senate have assigned task forces to research possible budget solutions and plan to be ready to roll them out the first week of August. But whatever they come up with, Marsh said tax increases will not be involved, even the “sin taxes” some lawmakers have floated recently.
“We’ve got a host of things we’re doing, but they do not include a soft drink tax or even a cigarette tax because we believe we can get to where we need to be and set the stage for strong economic growth going forward, if we do it right,” he said.
“What we want to be able to do is show these facts to all our members and say, ‘Hey, we’ve got to stimulate this economy,’” he continued. “And here’s how we do it… We’re looking to move the Use Tax out of (the) Education (budget) and into the General Fund to give it a growth tax. We’re looking at the Business Privilege Tax — shift it to where the small guys out there have less burden, because we want to encourage small business growth. That’s where most of the growth comes from.”
Gov. Bentley’s call for a Special Legislative Session to address the General Fund budget expressly forbids lawmakers from taking up gambling proposals. Marsh, who has sponsored a gambling expansion plan, conceded it would not be the solution for the state’s budgeting woes.
“I do not think gaming is the solution to the General Fund, period,” he said. “What I do believe is that gaming is an industry that we are not receiving fair revenue from in the state. I could care less if we have it or if we don’t. But if we’re going to have it, we should get our revenue… The gaming facilities are here, we should be receiving it. I think gaming should be in the economic development and incentives conversation, not the solving the General Fund conversation. The solution we will propose in August will not have gaming as the savior for the General Fund. But I do think gaming is an issue we should be discussing and let the people of this state make a decision at some time whether we are going to have it or not.”
With the Governor and legislative leaders still seemingly far apart on their proposed solutions, Sims noted the possibility that no “fix” will garner enough support, leading to the legislature passing another budget relying almost entirely on cuts to balance. Gov. Bentley earlier this year vetoed the Legislature’s first budget, which cut most state agencies by nine percent and a handful of priority programs by five percent.
“The budget that y’all passed with the cuts, I’m a little bit confused about why conservatives are all wringing their hands in the Legislature,” said Sims. “[W]hen is the last time a Republican — a conservative — got beat for cutting government? Isn’t that what you’re supposed to do?”
Marsh agreed.
“I’m amazed at how many of my conservative friends are talking about raising taxes,” he quipped, before reiterating he does not believe any tax hikes will pass.
“Based on what I’ve seen in the study groups, we’re close to a solution,” he concluded. “Now, it may not be a solution the Governor likes. But at some point the Governor has to ask himself, how much does he want to push this issue? He’s not running for re-election. You’ve got a lot of those folks in the Senate and the House that are. I respect the Governor, but it’s a lot easier to talk about some of the things he’s talking about when you’re not running for re-election. And at the end of the day, I think these guys are going to hold firm and do what’s right, and that is not put this economy — which is stressed, at best — subject to more taxes, which is just going to slow it down.”
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— Elizabeth BeShears (@LizEBeesh) January 21, 2015
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