Riley administration struck deal with AEA chief Hubbert
before making call for special session

05/13/03

MONTGOMERY -- Gov. Bob Riley informed top members of the Alabama Legislature last Wednesday that he would ask lawmakers to convene a special session this coming Monday to consider a major tax and budget reform package.

But he didn't make those calls until after striking a deal with the state's most powerful lobbyist, Alabama Education Association chief Paul Hubbert.

Riley, a Republican, and his top financial lieutenant have been meeting for weeks with Hubbert and other special interest representatives, according to official schedules obtained by the Mobile Register. The administration has been fashioning a still undisclosed package that leading lawmakers say they expect to raise taxes by as much as $1.2 billion and institute a series of government accountability mea sures.

But legislative leaders say they still aren't privy to the details, and some of them are angry about it amid increasing tension about the state's $600 million shortfall, which amounts to more than 10 percent of Alabama's two primary budgets.

"I have not been consulted like I should have been, and that frustrates me," said Sen. Hank Sanders, a veteran Selma Democrat who chairs the Senate education budget committee. "Legislators should be a part of this deal."

The Register reviewed official schedules for Riley and Finance Director Drayton Nabers, between March 4, the start of the legislative session, and April 29. The administration turned over the documents after a public records request by the newspaper.

Riley's predecessor, Don Siegelman, a Democrat, refused through his aides to release a detailed copy of his official schedule, claiming that disclosure would hamper the governor's industrial recruitment activities.

David Azbell, Riley's press secretary, told the Register he omitted information about industrial recruiting and homeland security.

Nabers has met regularly with Hubbert, while the governor has welcomed among others Jerry Newby and Mike Kilgore of the Alabama Farmers Federation, commonly called Alfa; Joe Fine of Fine, Geddie & Associates lobbying firm in Montgomery, and officials from the Business Council of Alabama.

Appearing less frequently, or at least in smaller blocks of time, on the schedules are Senate President Pro Tem Lowell Barron, House Speaker Seth Hammett, Sanders and the other three legislative budget committee chairmen.

Azbell said a cursory review of the schedules provides only a glimpse of the administration's work and noted that many meetings covered other issues. "This has involved many people in the administration who have been meeting with the legislators."

Nonetheless, some political observers cast Riley's strategy as indicative of the Alabama's political power center: Any governor who hopes for reform must gain the approval of rich and powerful individuals and groups that have traditionally dominated state affairs.

"In Alabama, special interests have historically been very powerful and remain so today," said William Stewart, a retired political scientist from the University of Alabama and noted observer of Alabama government.

"The Legislature here has more of a role of ratifying agreements that are worked out elsewhere," Stewart said. "That's not a very favorable commentary on our process. ... One would hope that the Legislature would be the place where men and women debate on the best way to do things."

Said Azbell, "There are certain political realities in this state that the governor understands."

According to the schedules:

Riley met twice with Alfa's Newby and Kilgore, and he sat in on Alfa's April 23 board meeting. Alfa, which has typically opposed tax reform efforts, particularly those related to ad valorem tax, endorsed Riley and was among his strongest financial supporters, contributing more than $400,000 to his $12-million-plus campaign last year, according to documents in the secretary of state's office.

The governor dined or met three times with Fine, lead lobbyist for his Montgomery firm, arguably the most influential lobbying group in the state. Fine's 11 political action committees chipped in more than $935,000 to Riley's campaign. Fine met once with Nabers.

Riley met once with Business Council of Alabama President Bill Canary and board Chairman Mike Thompson. ProgressPAC , the political arm of BCA, endorsed Riley and donated at least $670,000 to his campaign.

Nabers met at least four times with Hubbert, including meetings in the Capitol and at Hubbert's AEA office in Montgomery. Hubbert supported Siegelman last year and did not direct significant money to the Republican's campaign, but AEA's principal PAC reported total expenditures of more than $5 million last year.

Nabers and Riley each attended the April 18 meeting of Campaign for Alabama, an independent group of business leaders, lead by former BCA President Bill O'Connor, that is a primary backer of tax reform.

The schedule reflected one meeting, a 30-minute time block on April 2, between Riley and Barron, who leads the Democrat-dominated Alabama Senate. Barron has attended dinners involving Riley and other senators. The Fyffe Democrat met twice with Nabers.

Hammett had three meetings with Riley, though two of them involved other people. He had six meetings with Nabers, including three brief gatherings by himself and two others involving at least one of the House budget chairmen: Reps. John Knight, D-Montgomery, and Richard Lindsey, D-Centre.

Lindsey is not shown meeting with Riley. His only meeting with Nabers was a joint session with Knight and Hammett. Knight is shown having dinner with Riley once and meeting with him one other occasion with Sen. Hinton Mitchem, D-Albertville. Knight and Mitchem chair their chambers' General Fund budget committees.

Knight met twice with Nabers, including the joint session of House leaders.

Sanders is shown on one meeting with Riley, though the schedules denotes that the discussion pertained to Riley's Black Belt Commission, to which he has appointed Sanders. He dined once with Nabers in a meeting the senator said was more of a "briefing" than a "consultation."

Mitchem met more with Riley and Nabers than any other legislative budget official. His met twice exclusively with the governor, and convened two other times with groups that included Riley. He met three times with Nabers.

Over the course of the Legislative session, Hammett has expressed seemingly increased angst at Riley's timetable. Last week, though, one day after Riley informed Hammett and Barron of his desire to begin a special session May 19, the speaker said, "I don't personally feel like I've been left out. ... The Legislature will have the final say."

For his part, Barron said he has always been welcomed by the governor: "Contrary to what I read in some newspapers, the governor and I have a very good working relationship."

Sanders, despite vocal criticism of the administration, said he had no problem with lobbyists: "They are going to be here, always, and they have valuable input."

Stewart, the political scientist, called Sanders' view "realistic," and he said the governor should be commended for recognizing how Montgomery works, even though Riley campaigned against what he described as "the Montgomery mentality." Change, Stewart said, would come through Riley's proposals, not necessarily how he puts them together.

"The substance may not reflect the traditional Montgomery way, but the process certainly does," Stewart said. "(But) I don't think he could even change it without following it first. He is doing what you have to do to change it."