Alabama House committee passes balanced budget relying on cuts, no tax hikes

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May 14, 2015

MONTGOMERY, Ala. — Alabama House General Fund budget chairman Steve Clouse (R-Ozark) conceded Thursday that the Senate would not approve his proposal to balance the budget through a combination $150 million in tax hikes and budget cuts. As a result, his committee passed a balanced budget relying entirely on cuts. 5 percent cuts were made to Medicaid, the Department of Mental Health, the Department of Human Resources and state prisons. Other state functions were cut by 9 percent.

However, Rep. Clouse said he and many of his colleagues were not happy with the budget and still believe the Senate should find a way to raise more government revenue.

“The House Republican Caucus recently offered a solution to the General Fund budget shortfall that included cost-cutting initiatives, agency consolidations, and a handful of targeted revenue measures, none of which were broad-based,” Rep. Clouse said. “The proposal would not have affected the vast majority of Alabamians, but level-funding of the budget would have been achieved.

“After discussions with the Senate, we have been told categorically that the House proposal had no chance of passage in that chamber, but no funding solution was offered in exchange by the senators.”

With only nine legislative days left in the regular session, members of both houses are beginning to feel the time crunch. Senate leadership is refusing to consider tax hike proposals from the Governor and the House, leaning instead toward government streamlining measures and/or passing a lottery and gambling expansion package.

By stripping tax increases out of the budget, Rep. Clouse said it is up to the Senate to come up with a revenue solution for the budget shortfall.

“With Gov. Bentley’s tax package generating little support and not a dime of guaranteed proceeds from any of the various gambling plans being floated,” he said, “much work remains to be done on the General Fund budget before the end of the legislative session.”

Gov. Bentley has said he will veto any budget that does not include significant increases in government revenue.