The current state financial standpoint is a major contrast to what Senate Majority Leader Clay Scofield encountered when he took office in 2010.
During an informative presentation to the Business Council of Alabama on Tuesday morning, Scofield highlighted that current opportunities afforded by a $2.7 billion surplus in the Education Trust Fund shouldn’t be taken for granted.
“We were in severe financial problems, and the state had been running off stimulus dollar for those two years prior,” Scofield said reflecting on his first year in office.
Fast forward to today — the state has replenished rainy day funds, fully funded rolling reserves, paid off bonds, and appropriated $1.06 billion in federal ARPA money.
As a businessman, Scofield said when he faces upswings in profitability, he pays down debt, invests, and secures money aside for future uncertainty.
The legislature is taking a similar approach, particularly as it weighs investments that will reach all Alabamians in an direct way.
“And so in my opinion, these decisions are probably some of the most important that we will be making,” Scofield said. “And we have to get it right.”
“The thing that’s on everyone’s lips and minds is the surplus,” Scofield said. “So what’s on the table? All of the Senate signed on to the grocery tax cut that the lieutenant governor is supporting heavily.”
“The other obviously, is the rebate. The governor’s proposed an almost $1 billion rebate,” he said, pointing out fellow lawmakers are “softer” on the idea.
Scofield reflected back on the $1 billion shortfall he and colleagues walked into in 2010. He said first-time legislators are in a unique position.
“I told one of our new house members, that he had a hell of a time to come in, because when I came in, we had to figure out how to fill a billion dollar hole,” Scofield said. “And his first thought was how to invest a billion dollars.”
“But as we all know, in the business community,” Scofield said. “Those days will not always be bright and sunny.”
Grayson Everett is a staff writer for Yellowhammer News. You can follow him on Twitter @Grayson270 for coverage of the 2023 legislative session.
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