Medicaid cuts loom, payday reform falls just short as Alabama Legislature ends 2016 regular session

The Alabama Legislature’s 2016 regular session, which ended Wednesday, was more notable in many ways for what didn’t happen than for what did.

Lawmakers did not agree on a revenue solution to prevent devastating Medicaid cuts that would reduce health care access for hundreds of thousands of children, seniors, and people with disabilities in Alabama. Despite enormous public support, payday lending reform didn’t cross the finish line in the House. State education funding still hasn’t returned to where it was in 2008. And proposals to expand affordable housing and reform Alabama’s death penalty system gained little traction at the State House.

Still, progress was real on several of Arise’s priority issues. With minutes left in the session, lawmakers passed a bill to expedite voting rights restoration for thousands of Alabamians. Payday lending reform made it further in the Legislature than it ever has before, with a reform bill sailing through the Senate 28-1. And the new #IamMedicaid campaign continues to remind lawmakers and the public of the real human faces behind Alabama’s Medicaid debate.

Here is a recap of what happened on each of Arise’s issue priorities this session – and the action that may yet lie ahead on them this year.

State budgets

Deep Medicaid cuts in Alabama moved much closer to reality Tuesday when a bill that would have averted most of them died in a Senate committee. HB 569 would have used BP oil spill settlement money to help free up $70 million to go toward Medicaid’s $85 million shortfall, but the bill died when the Senate’s General Fund (GF) budget committee adjourned without voting on it. Committee chairman Sen. Trip Pittman, R-Montrose, ended the meeting after his colleagues voted 9-6 to side with a proposed substitute by Sen. Arthur Orr, R-Decatur. Orr’s plan would have reduced the amount of road money in the bill and distributed those funds to all areas of Alabama instead of just coastal areas. The substitute also would have increased the share of settlement money used for debt repayment, fully repaying the Alabama Trust Fund (which receives state revenue from oil and gas drilling) for money that the state borrowed to avoid massive GF cuts in recent years.

The Legislature may return later this year for a special session to address the Medicaid shortfall, but Gov. Robert Bentley said “everybody’s got to rest a little bit” before he makes that decision. Even though the regular session is over, lawmakers are expected to continue a series of weekly hearings on Medicaid’s funding structure and importance to the state’s health care system. Meanwhile, Alabama moves ever closer to a future when deep Medicaid payment cuts could prompt many pediatricians to leave the state and could imperil many of the rural hospitals and doctor’s offices upon which Medicaid patients and privately insured Alabamians alike depend. The cuts could end Medicaid coverage for outpatient dialysis and adult prescriptions and eyeglasses as well. Also on the chopping block could be the Program of All-Inclusive Care for the Elderly (PACE) in Mobile, which saves the state money by allowing participating seniors to live independently in their own homes instead of being sent to a nursing home.

The Education Trust Fund (ETF) budget drew many fewer headlines than the GF this year, but state education funding is still about 15 percent below its pre-recession level of 2008, adjusted for inflation. (Even the 2008 funding level was insufficient to meet many of Alabama’s educational needs.) The 2017 ETF budget includes a 33 percent boost in pre-K funding and provides a 4 percent pay raise for most K-12 teachers. Universities and two-year colleges also received slight increases.

Payday lending reform

Alabama’s payday reform movement enjoyed an unprecedented breakthrough in the Legislature this year when a reform bill passed 28-1 in the Senate, but the plan came up just short of final passage. SB 91, sponsored by Orr, was on the House calendar Tuesday but never reached the floor for a vote after a long day of filibusters. Orr’s bill would have given Alabama payday borrowers a more realistic path out of debt by slashing interest rates, allowing installment payments and giving borrowers at least six months to repay. (Current state law allows payday loans to carry interest rates of up to 456 percent a year.) Arise will work with Alabama Appleseed and other advocates to build on this year’s momentum and growing public support as the reform movement continues into 2017.

Voting rights

Alabama will speed up the voting rights restoration process for thousands of people if Bentley signs a bill that the Legislature passed Wednesday. With just minutes left in the session, the House passed SB 186, sponsored by Sen. Linda Coleman-Madison, D-Birmingham, and sent it to the governor. The clock struck midnight just before the Senate could consider another voting rights bill – HB 268, sponsored by Rep. Mike Jones, R-Andalusia – which would have clarified what counts as a “crime of moral turpitude” that bars someone from voting in Alabama. Other proposals to expand voting access, including multi-day voting and same-day voter registration, died in committee.

Death penalty reform

A bill to establish a state Innocence Inquiry Commission for death penalty cases – SB 237, sponsored by Sen. Dick Brewbaker, R-Montgomery – cleared the Senate this year but died Tuesday when the House Judiciary Committee didn’t vote on it. Other proposed reforms to Alabama’s death penalty system, including a three-year moratorium on executions, went nowhere. The U.S. Supreme Court on Monday ordered further review of Alabama’s capital sentencing scheme, which allows judges to override a jury’s sentencing recommendation. A state circuit judge in March declared Alabama’s judicial override system unconstitutional, but the state has appealed that ruling.

Tax reform

Alabama’s tax system will remain upside down for another year, as the Legislature declined to consider measures to end the state grocery tax or close corporate tax loopholes. A bill to increase the state property tax won Senate committee approval but went no further. A proposed 75-cent cigarette tax increase won the endorsement of the Alabama Health Care Improvement Task Force but was never introduced in the Legislature. Lawmakers did, however, enact new tax breaks for small businesses and for increased use of state port facilities. The Legislature also passed a bill – SB 208, sponsored by Orr – to require annual reports on whether tax incentives are producing their intended economic effects.

“Ban the box” legislation

SB 327, sponsored by Sen. Quinton Ross, D-Montgomery, won Senate committee approval on April 7 but never reached the Senate floor. The bill would have removed the criminal history checkbox from state job and license applications, removing a potential barrier to employment for thousands of Alabamians looking to rebuild their lives and provide for their families after serving their time for a criminal offense.

Housing Trust Fund (HTF)

A bill to increase the state mortgage recording fee and distribute some of the revenue to the state HTF died in a House committee. HB 341, sponsored by Rep. Patricia Todd, D-Birmingham, would have created a dedicated state funding source for the HTF, which could create thousands of jobs while addressing Alabama’s need for more than 90,000 affordable homes for residents with extremely low incomes.

Quick overviews of Arise’s 2016 issue priorities

Your time is important, and your voice for a better Alabama is essential. That’s why we’ve prepared these quick overviews to keep you up-to-date on what’s happening at the Alabama Legislature on Arise’s 2016 issue priorities. We’ll update this post as needed.

“Ban the box” legislation: ‘Ban the box’ law would help rebuild lives in Alabama — The “criminal history checkbox” on many standardized job application forms often keeps otherwise qualified employees from making it to the next stage of the hiring process, where they could explain their past face-to-face. This creates discouraging barriers to employment for people who are looking to rebuild their lives after serving their time and paying their debt to society. A growing national “ban the box” movement to remove those checkboxes from job applications is helping former inmates become productive members of society and provide for their families. It could do the same for thousands in Alabama. (The Senate Judiciary Committee on April 7 approved SB 327, which would “ban the box” on state job and license applications, but the Senate never voted on it.)

Death penalty reform: Death is different: Reforming Alabama’s capital punishment system — People accused of capital crimes deserve every possible safeguard to ensure the integrity of a conviction. This overview examines several bills that could lower the risks of errors and injustice and could bring Alabama law into compliance with U.S. Supreme Court rulings.

Health care: Medicaid RCOs: Better care, better health, lower costs — Medicaid’s promising new regional care organization (RCO) reforms are designed to keep patients healthier while cutting health care costs. Investing in preventive care now should pay off in fewer costly emergency room visits later. (The Legislature on April 5 overrode the governor’s veto to pass a General Fund budget that would force deep Medicaid cuts. Lawmakers may return later this year for a special session to address Medicaid’s funding shortfall.)

Housing: Home at last: The Alabama Housing Trust Fund — Alabama has a shortage of almost 90,000 affordable and available homes for residents with extremely low incomes. State funding for the Alabama Housing Trust Fund (HTF), created in 2012, could reduce this shortfall and make dreams of home a reality for tens of thousands of families, seniors, veterans, and people with disabilities.

Payday lending reform: SB 91: A step in the right direction for Alabama borrowers — Payday loans in Alabama carry astonishingly high interest rates: up to 456 percent a year. A Senate proposal would give payday borrowers a less expensive path out of debt by reducing the maximum interest rate and allowing borrowers to pay off their loan in installments over time. (The Senate passed the bill 28-1 on April 5. A House committee approved a different version of SB 91 on April 27, but the regular session ended without a House vote on either version.)

State budgets: Alabama’s education budget begins to rebuild, but General Fund struggles put Medicaid at risk — The usual contrast between Alabama’s starving General Fund budget and its slightly healthier but still inadequate Education Trust Fund budget is exceptionally stark this year. As education finally climbs back toward its 2008 funding level after years of enormous cuts, the latest General Fund shortfall threatens devastating Medicaid cuts with effects that could ripple through the state’s entire health care system. (The Legislature on April 5 overrode the governor’s veto to pass a General Fund budget that would force deep Medicaid cuts. Lawmakers may return later this year for a special session to address Medicaid’s funding shortfall.)

Tax reform: Cigarette tax for Medicaid: A win-win to improve health and fill Alabama’s revenue gap — The future of Alabama Medicaid is on the line as lawmakers confront yet another threadbare General Fund budget. Without significant new long-term revenue, Medicaid will continue to be at risk of cuts to vital services and doctor payments that could place the entire program — and Alabama’s entire health care system — at risk. A cigarette tax of 75 cents per pack could provide long-term revenue needed to avoid those cuts, while also reducing health care costs and saving lives in Alabama.

Voting rights: A menu of options to improve voting rights in Alabama — Our entire democratic system depends on how elections are structured and who can participate. When barriers exclude people from voting, they often lose faith in a system that doesn’t seem to value their voice in our society’s decision-making process. This overview examines several bills that would protect and expand voting rights, including proposals related to early voting, streamlined voter registration and voting rights restoration. (SB 186, which would expedite the state’s voting rights restoration process, has gone to Gov. Robert Bentley after passing the Senate on April 19 and the House on May 4. Different versions of HB 268, a bill to clarify which crimes are “crimes of moral turpitude” that permanently disqualify offenders from voting in Alabama, passed the House on April 19 and the Senate on May 3, but the plan died May 4 when the regular session ended before the House could vote on a proposed conference committee version.)

Posted March 7, 2016. Last updated May 5, 2016.

Death is different: Reforming Alabama’s capital punishment system

How sure are you that human beings will get it right every single time? A single small mistake in a death penalty case could result in an unjust execution – an error that can never be corrected.

People accused of capital crimes deserve every possible safeguard to ensure the integrity of a conviction. Several bills have been introduced this session to improve Alabama’s death penalty process by lowering the risks of errors and injustice.

What are the capital punishment reform bills?

SB 237, sponsored by Sen. Dick Brewbaker, R-Montgomery, is a bipartisan effort to establish a statewide Innocence Commission to examine capital convictions. The commission would evaluate whether errors occurred in any of the stages leading up to the conviction and sentencing. The Senate Judiciary Committee has approved the bill, and it awaits a vote by the full Senate.

Sen. Hank Sanders, D-Selma, also has introduced his usual slate of proposed death penalty reforms. SB 117 would end the process known as “judicial override,” in which judges in capital cases can disregard a jury’s recommended sentence of life imprisonment without parole and impose a death sentence. This bill is particularly important in light of a recent U.S. Supreme Court ruling (Hurst v. Florida) that casts new critical light on this practice. Adding extra timeliness to this debate is a Jefferson County circuit judge’s ruling on March 3 that Alabama’s capital sentencing scheme is unconstitutional. (The state is expected to appeal that ruling.)

Sanders also has introduced SB 153, which would place a temporary moratorium on death sentences and executions. Finally, two additional Sanders bills would bring Alabama law into compliance with U.S. Supreme Court rulings that forbid executions of defendants who were under age 18 at the time of the crime (SB 154) and forbid executions of defendants who have mental disabilities (SB 155).

What’s the bottom line?

Several bills offer a path forward on the rocky terrain of capital punishment in Alabama. With nearly 200 people sitting on death row in this state, it’s crucial that we soberly assess current laws and the risks of errors. Whether you’re for or against the death penalty, on this life-or-death issue, justice requires legislative reforms to Alabama’s capital punishment system.

‘Ban the box’ law would help rebuild lives in Alabama

How sure are you that human beings will get it right every single time? A single small mistake in a death penalty case could result in an unjust execution – an error that can never be corrected.

People accused of capital crimes deserve every possible safeguard to ensure the integrity of a conviction. Several bills have been introduced this session to improve Alabama’s death penalty process by lowering the risks of errors and injustice.

What are the capital punishment reform bills?

SB 237, sponsored by Sen. Dick Brewbaker, R-Montgomery, is a bipartisan effort to establish a statewide Innocence Commission to examine capital convictions. The commission would evaluate whether errors occurred in any of the stages leading up to the conviction and sentencing. The Senate Judiciary Committee has approved the bill, and it awaits a vote by the full Senate.

Sen. Hank Sanders, D-Selma, also has introduced his usual slate of proposed death penalty reforms. SB 117 would end the process known as “judicial override,” in which judges in capital cases can disregard a jury’s recommended sentence of life imprisonment without parole and impose a death sentence. This bill is particularly important in light of a recent U.S. Supreme Court ruling (Hurst v. Florida) that casts new critical light on this practice. Adding extra timeliness to this debate is a Jefferson County circuit judge’s ruling on March 3 that Alabama’s capital sentencing scheme is unconstitutional. (The state is expected to appeal that ruling.)

Sanders also has introduced SB 153, which would place a temporary moratorium on death sentences and executions. Finally, two additional Sanders bills would bring Alabama law into compliance with U.S. Supreme Court rulings that forbid executions of defendants who were under age 18 at the time of the crime (SB 154) and forbid executions of defendants who have mental disabilities (SB 155).

What’s the bottom line?

Several bills offer a path forward on the rocky terrain of capital punishment in Alabama. With nearly 200 people sitting on death row in this state, it’s crucial that we soberly assess current laws and the risks of errors. Whether you’re for or against the death penalty, on this life-or-death issue, justice requires legislative reforms to Alabama’s capital punishment system.

Bill to pause executions, create innocence commission clears Alabama Senate committee

Executions would stop in Alabama until at least June 2017 under a bill that the state Senate Judiciary Committee approved 10-0 Wednesday. The measure also would create a special commission to evaluate innocence claims in death penalty cases. (Read The Anniston Star’s coverage for more details.)

SB 237, sponsored by Sen. Dick Brewbaker, R-Montgomery, would set up the Innocence Inquiry Commission under the state Administrative Office of Courts, and would place a moratorium on all executions until June 1, 2017, while the commission is established.

Arise policy analyst Stephen Stetson testified in favor of a commission, calling it a “recognition of human frailty” in the justice system. The Attorney General’s Office testified against the bill Wednesday, as did a member of Victims of Crime and Leniency (VOCAL), a victims’ rights group.

The bill has bipartisan co-sponsorship from Sens. Vivian Figures, D-Mobile; Bill Hightower, R-Mobile; Del Marsh, R-Anniston; Greg Reed, R-Jasper; Rodger Smitherman, D-Birmingham; Larry Stutts, R-Sheffield; Ward, R-Alabaster; and Tom Whatley, R-Auburn.

Petitioners seeking relief from Alabama’s innocence commission would face an uphill battle, but the concept has gained traction in other Southern death penalty states. Texas created an innocence commission in 2015, while North Carolina’s was created in 2006. A commission would be particularly useful in Alabama, the only state in the nation without a state-funded program to provide legal assistance to death row prisoners.

By Stephen Stetson, policy analyst. Posted Feb. 24, 2016.

A big win for second chances: Alabama’s lifetime SNAP and TANF bans end

It’s a quiet win for thousands of Alabamians seeking to rebuild their lives and provide for their families: Alabama is joining the majority of U.S. states by allowing people with a past felony drug conviction to receive SNAP food assistance and TANF financial assistance, as long as they are otherwise eligible. The effective starting date for this change is Jan. 30, 2016.

The end of Alabama’s SNAP and TANF bans is good news for state budgets and for families. This policy change will help cut corrections costs in the cash-strapped General Fund budget by making it easier for released prisoners to reintegrate into the community, which will help reduce recidivism. Importantly, restoring SNAP and TANF benefits also will help prevent hunger and homelessness among some of Alabama’s most vulnerable families.

Read this fact sheet by ACPP policy analyst Carol Gundlach for the details.

A budget at last: What got cut, what didn’t, and what’s next for Alabama

Three times proved to be the charm Wednesday night as the Alabama Legislature finally passed a General Fund (GF) budget and accompanying revenue bills. Gov. Robert Bentley signed the budget Thursday morning, a mere two weeks before the start of the 2016 budget year.

Tax bills: What passed and what didn’t

Alabama faced a GF budget shortfall of nearly $260 million that was partially filled by a 25-cent-per-pack increase in the cigarette tax. Alabama Arise and health advocates had hoped for a much larger increase that would have raised more revenue and ensured a reduction in smoking, particularly among teens. Unfortunately, the tax approved was inadequate to meet either need.

The Legislature also passed two small provider taxes (each worth about $8 million) on pharmacies and nursing homes. These taxes were dedicated to the Medicaid program and helped save both promising new Medicaid reforms and Medicaid itself.

Facing opposition from ALFA, the Legislature failed to pass business privilege tax changes that would have raised $28 million by increasing taxes on the wealthiest corporations while cutting taxes for tens of thousands of small businesses. Separately, lawmakers also failed to eliminate the state income tax deduction for FICA (e.g., Social Security and Medicare) taxes, which would have raised nearly $200 million for education and other essential state programs.

Through a complicated linkage of bills, the Legislature transferred $80 million in use tax revenues (essentially a sales tax on out-of-state purchases) from education to the GF while also increasing the amount of education money available to public schools. Changes to the Rolling Reserve Act, which sets an artificial cap on annual education spending, replaced the lost use tax revenues by increasing the money available to schools for one-time infrastructure needs like books, building repairs, buses and technology. Alabama’s education funding still hasn’t returned its pre-recession 2008 level.

Altogether, the use tax transfer and the new taxes raised around $164 million. That was enough to prevent devastating cuts to crucial state services, but inadequate to truly fill the budget gap. The changes also were not nearly enough to solve the GF’s chronic shortfall.

Medicaid, DHR, mental health aren’t cut, but other important services are

Because new revenues were inadequate, not all state agencies received the money needed to maintain current service levels. The Department of Public Health was cut by nearly $10 million, of which $2.4 million came from AIDS medication assistance. The Alabama Department of Environmental Management was nearly zeroed out of the budget, endangering the state’s environmental protection and risking federal intervention.

The Department of Youth Services was cut by nearly 20 percent, which almost certainly will result in fewer community services for at-risk children and teens. Senior services also suffered a small cut, though it should not affect the Medicaid waivers that allow hundreds of seniors to live independently outside of nursing homes.

Other essential services survived without the devastating cuts feared earlier this year. The “Big Five” – Medicaid, mental health, corrections, trial courts and the Department of Human Resources – all were funded at or above 2015 GF levels.

Important reforms to Medicaid and the corrections system also will be able to continue. Lawmakers cobbled together additional money to support Medicaid’s transition to a regional care organization model designed to cut costs and keep patients healthier. The GF budget also funds new parole officers and community correctional services as alternatives to lengthy prison sentences.

The prison reform funding was good news on another front: It means Alabama will end its lifetime SNAP and TANF eligibility bans for people with a past felony drug conviction. Language ending the state’s bans on assistance under the Supplemental Nutrition Assistance Program and the Temporary Assistance for Needy Families program is included in the prison reform law that the Legislature passed earlier this year. With funding in place to allow the law to take effect, the SNAP and TANF bans will end Jan. 30, 2016.

Hope for the future

As the last late night of the session wrapped up Wednesday, there were some encouraging signs for the future. For the first time, the conservative supermajority in the Legislature was willing to consider raising taxes, and majorities in both the House and Senate actually voted to do so. Legislative floor debate included real, serious discussion of Alabama’s structural deficit and the need for comprehensive tax reform.

Most importantly, the organized voices of citizens and advocates for low-income Alabamians, seniors, children, and people with disabilities were loud – and effective – in their demand for new taxes instead of devastating cuts to life-saving state services. Constituent emails, telephone calls, postcards and face-to-face meetings with legislators helped to prevent those cuts. They also helped convince the Legislature, though reluctantly and inadequately, to raise tax revenue to support vital services that make Alabama a better place to live and work.

By Carol Gundlach, policy analyst. Posted Sept. 18, 2015.

What went well in 2015 — and the challenges that remain for Alabama

It’s over! But it’s not over yet. After approving a wholly inadequate General Fund budget that would jeopardize our state’s future, the Alabama Legislature ended the 2015 regular session Thursday. But Gov. Robert Bentley vetoed that budget, and he will call lawmakers back for a special session on the budget later this summer.

Arise members celebrated some big victories this year, but major challenges still remain. Here’s a quick review of how Arise issues fared:

Budgets and taxes: None of Bentley’s revenue bills passed. Without new revenue, vital services like Medicaid and public safety face devastating cuts that would hurt Alabama’s quality of life for years to come. Just a few examples:

  • Thousands of Alabamians would lose community-based mental health care services.
  • Medicaid would end coverage of crucial services like outpatient dialysis and prosthetics.
  • State prisons would be even more overcrowded and at greater risk of federal takeover.

But there was some good news, too. Lawmakers overwhelmingly approved a bill to save money and give Alabamians more choices in Medicaid long-term care services. The state will have a powerful new tool – a “tax expenditure report” – to determine if tax breaks are worth the cost. And a new prison reform law will help save money and reduce overcrowding – but it only takes effect if the state funds it.

Ending Alabama’s lifetime SNAP ban: Alabamians can celebrate a big win for second chances! The prison reform bill includes language ending the state’s lifetime SNAP and TANF eligibility bans for people with a past felony drug conviction. Thousands of people can regain SNAP eligibility on Jan. 30, 2016, if the prison reform law gets the money required for it to take effect.

Alabama Accountability Act: The Legislature approved major changes to the act. The new version allows more money that would have supported public education to go to private schools instead – but it also includes some of Arise’s recommendations for greater accountability and transparency.

Housing Trust Fund: A bill to fund affordable housing in Alabama encountered powerful opposition and did not emerge from committee. Supporters plan to meet with opponents to seek agreement before the 2016 session.

Payday and title lending reform: In a big win for consumers, the Alabama Supreme Court ruled the state Banking Department can create a single statewide database of payday loans. But much work remains in the drive for a 36 percent interest rate cap: No bills to regulate payday or auto title loans passed, but public pressure for reform continues to grow.

The regular session is over, but Arise’s work continues. Stay tuned for updates as we prepare for this summer’s crucial debates over our state’s future. Together, we can build a better Alabama for all!

By Kimble Forrister, executive director. Posted June 4, 2015. Updated June 12, 2015.

A quiet win: SNAP, TANF eligibility bans end under new Alabama prison reform law

Tucked away in the new prison reform law that Gov. Robert Bentley signed Thursday is a big win for second chances in Alabama: an end to the state’s lifetime eligibility bans for SNAP and TANF assistance for people with a past felony drug conviction. It’s a win on an issue that has been an Arise priority since 2013, and it means a fresh start for people who have served their time and are seeking to rebuild their lives.

For ACPP, it all started in 2013 when Jacquelyn Hardy of Birmingham made a passionate case for ending the bans at our annual meeting, where members vote each year on our issue priorities. Before Hardy’s presentation, few of us knew that Alabama bars anyone with a felony drug offense from ever receiving food assistance under the Supplemental Nutrition Assistance Program (SNAP) or cash assistance under the Temporary Assistance for Needy Families (TANF) program. Afterward, no one who heard her could forget.

Advocates found an ally in Sen. Linda Coleman, D-Birmingham, who agreed to sponsor a bill to end Alabama’s lifetime SNAP and TANF bans for people who have completed their sentence or are successfully serving probation or parole. Coleman’s bill passed the Senate easily in 2014 but died in the House after losing a procedural vote.

Supporters didn’t give up, and their persistence worked. This year’s big breakthrough came during Senate floor debate on SB 67, the prison reform bill sponsored by Sen. Cam Ward, R-Alabaster. Coleman offered language ending the SNAP and TANF bans as an amendment to Ward’s bill, and Ward agreed to support it. The Senate passed the prison reform bill, including the amendment, 32-2 in early April.

When the bill reached the House, Judiciary Committee chairman Rep. Mike Jones, R-Andalusia, helped ensure that the language ending the SNAP and TANF bans remained in the bill. The House passed the measure 100-5 on May 7, and the Senate signed off on the House version the same day.

The prison reform law is set to take effect Jan. 30, 2016, but one big hurdle remains: Alabama still has to pay for it. None of the bill’s provisions, including the end to the SNAP and TANF bans, can go into effect until the Legislature appropriates $26 million to fund the bill’s other reform measures.

Even though the SNAP and TANF provision is almost entirely a question of federal costs, it will go into effect only if the prison reform funding is approved. Ward insists leaders have assured him the needed money will be included in the General Fund (GF) budget – one of the few glimmers of hope in the protracted battle over a GF budget that desperately needs new revenue to avoid deep cuts to vital services like corrections and health care.

For thousands of people leaving prison, the restoration of SNAP and TANF benefits will mean a huge improvement in their ability to make a fresh start and support their families. Thanks to the support of lawmakers like Coleman and Ward and the determination of advocates like Jacquelyn Hardy, Alabama has achieved a policy change that will help families for decades to come.

By Kimble Forrister, executive director. Posted May 21, 2015.

Alabama would suffer for years to come under no-new-revenue General Fund budget

Alabamians’ quality of life would suffer for years to come if the no-new-revenue General Fund (GF) budget that the House’s GF budget committee approved Thursday becomes reality. The House is expected to vote Tuesday on the budget, which would slash vital services like health care, child care and public safety. The state’s promising new reforms of Medicaid and prisons would end, and services for low-income children could face devastating cuts.

With the Legislature’s regular session nearing an end, talk of one or more special sessions is running rampant, and the threat of deep cuts to services that make our state a better place to live and work is real. Here is a look at a few of the ways Alabamians would feel the cuts in their everyday lives:

Proposed budget cuts would end new Medicaid reforms and impose severe cuts to other health care programs. The proposed GF budget would reduce Medicaid funding by 5 percent. While the Medicaid agency has not specified what services would be reduced or eliminated, State Health Officer Don Williamson has said the cut would force Medicaid to abandon its new regional care organization model, designed to keep patients healthier while cutting costs.

Williamson said last month that a smaller 3 percent cut would force the agency to end coverage of outpatient dialysis, forcing kidney patients to be admitted to the hospital to receive routine dialysis. Medicaid also would have to eliminate hospice care coverage and stop paying for adult eyeglasses and prosthetics.

In addition, Medicaid would reduce reimbursement payments to doctors, which could mean fewer physicians treating Medicaid patients. Medicaid also would contract with a single provider of prescription services, likely forcing many local, independent pharmacies to close.

The committee’s budget would cut home health services for the elderly and disabled by more than 9 percent. Patients losing these services could be forced to enter much more expensive nursing homes, reducing patients’ independence and increasing costs to the struggling Medicaid program. Funding for life-saving HIV and AIDS medications also would be cut by 50 percent.

Proposed budget cuts would reduce community mental health services. In recent years, the Department of Mental Health responded to budget cuts by closing nearly every public mental health hospital. Many advocates applauded the new focus on less restrictive (and less expensive) community-based services.

But the 2016 GF budget proposal would reduce funding for those very services by 5 percent. Patients unable to receive mental health treatment may be forced into private hospitals, or they may end up incarcerated in local jails without access to needed counseling and medications.

Proposed budget cuts would devastate social services for low-income families and children. Together, the committee’s GF budget and the education budget awaiting House committee approval would reduce Department of Human Resources (DHR) funding by 14 percent.

DHR commissioner Nancy Buckner last month outlined draconian service reductions in the event of major budget cuts. These could include the elimination of the Temporary Assistance for Needy Families (TANF) program, which provides cash assistance and services for extremely low-income families, including more than 30,000 children.

Other cuts could include major reductions in child care assistance for thousands of working families, the elimination of adult day care services, and the elimination of child support collection services for more than 200,000 Alabama families. Because much state DHR funding is matched by federal money, the agency’s total cuts would be much larger than the lost state dollars alone.

The House committee budget would eliminate GF support for the Department of Youth Services (DYS), which provides supervision and services for youthful offenders and their families. The total reduction would be 12 percent, accounting for DYS funds in the education budget.

Like mental health, DYS has moved in recent years toward less expensive and more appropriate community services and has closed expensive residential beds for low-risk offenders. These community services would be cut under the proposed GF budget. With fewer residential beds, juvenile offenders would be left unsupervised or incarcerated in county facilities instead.

Alabama’s network of Community Action Agencies provides nutrition, housing, Head Start and energy assistance services to low-income people. The proposed GF budget would cut state funding for these services by 50 percent.

Proposed budget cuts would end prison reform and could risk a federal takeover of the state prison system. The committee’s GF budget would make devastating cuts to Alabama’s civil and criminal justice system, ensuring that the recently passed (and highly praised) prison reform legislation could not be implemented.

The state’s already reeling trial courts would face a 16 percent cut under the budget, leading to hundreds of layoffs. The budget also would cut juvenile probation services by nearly 40 percent and forensic sciences by 22 percent. These cuts could force courts to close at least two days a week, delay trials and hearings, and delay criminal cases that require DNA and other forensic evidence. The deep cuts also would result in more unsupervised juvenile offenders even as youth services are slashed.

Alabama’s prison system, already operating at nearly twice its designed capacity, would absorb a 5 percent cut under the proposed budget, increasing the risk of federal intervention. The budget also includes major cuts for the very programs needed for prison reform to succeed. The state’s drug court program would be cut nearly 40 percent. Community corrections, the alternative to imprisonment, would be cut by half. And parole services, essential for reducing recidivism, would be reduced by 14 percent.

Bentley has said he plans to sign the prison reforms that the Legislature passed last week into law. But before any of those reforms can be implemented, the governor’s office must certify that the Department of Corrections and the Board of Pardons and Paroles have enough money to move ahead with the changes. The proposed GF budget would derail prison reform by making this certification impossible.

Our state needs new revenue to avoid these cuts. Overall, the committee’s $1.64 billion GF budget falls more than $200 million short of the amount needed to prevent deep service cuts and invest in reforms. Lawmakers thus far have not considered Gov. Robert Bentley’s proposals to raise revenue and avoid those cuts, including increasing the state cigarette tax and automobile sales tax. Other tax bills that won House committee approval last week have stalled.

Alabama faces an important choice that will help determine what kind of state our children and grandchildren will inherit. Do we raise new revenue to protect vital services like health care and public safety? Or do we erode our state’s quality of life with devastating cuts to those services? The House committee’s budget would side with the latter option, and Alabama would suffer the consequences of that choice for years to come.

By Carol Gundlach, policy analyst. Posted May 15, 2015.