Accountability before tax increases
08/10/03
As a sixth generation Alabamian, I have a great love for our state and its
people. Like many of you, I have long dreamed of our state reaching its full
potential economically, educationally and culturally. It was because of that
dream that I took a five-year leave of absence from my business career in the
late 1980s to join the Cabinet of the first Republican governor in Alabama this
century. In order to pursue my dream for a better Alabama, I ran for and was elected
to the Alabama Senate in 1994 and 1998. It was during the eight years I served
in the Senate that I came to realize the state could not realize its full
potential until certain reforms took place. And, government reform had to come
first. As the Republican nominee for lieutenant governor last year, I ran alongside
our Republican nominee for governor, Bob Riley, with both of us campaigning to
reform government and oppose new taxes until government was reformed. I cheered Gov. Riley on when he said on March 4, in his State of the State
speech: "I will not entertain the idea of additional taxes until we reform the
policies and practices that have created the problems we face today. Too many
small businesses and citizens are burdened by our tax structure, and higher
taxes should be considered only as a last resort, not the first." Just two months after the above statement, Riley proposed not only the
largest tax increase in Alabama history, but six times the largest tax increase
ever in Alabama. This year, Alabama taxpayers sent $5.4 billion in state tax dollars to
Montgomery to be spent on government functions, including education. If Riley's
$1.2 billion tax increase is approved by the voters, the Legislature will have
22.2 percent more to spend once this plan is implemented. And not one penny has
been earmarked for education or any other program. In other words, it will be up
to the Legislature to start from scratch and write the spending plan for this
$1.2 billion windfall. `Free money': State Sen. Roger Bedford, D-Russellville, co-chairman of the General Fund
budget-writing committee, who has been known to be pretty loose with taxpayers'
money, was remarkably candid in an article in the July 13 issue of the Decatur
Daily. He was quoted as saying, "This is free money, unearmarked, and it can be
spent on anything that the Legislature deems appropriate, whether the governor
supports it or not." This undisputed "king of pork" knows of what he speaks and will be one of the
primary legislators who will determine how this money is spent. During my five years in the executive branch of government and eight years in
the legislative branch, I have seen the bureaucracy in Montgomery grow at
unprecedented rates. But, we have seen nothing compared to the growth we will
see in government if this plan passes. This $1.2 billion tax increase is bigger
than the entire General Fund budget, which funds all state agencies other than
education. This is an unprecedented move to grow government at an alarming rate.
Voters are right to question why Riley is asking for an additional $1.2
billion if he says he needs only $675 million to meet the temporary shortfall in
the budget (caused by fiscal mismanagement in government and a slowdown in the
economy). And, we must remember that this additional $1.2 billion would not be a
one-time windfall. It continues year after year after year, and once the economy
begins to grow, so will the amount of money being sent to Montgomery. Unfortunately, proponents of this tax increase have attempted to scare
Alabamians by saying that if this tax package doesn't pass, the state will
release thousands of prisoners into our neighborhoods and that our elderly will
be kicked out of nursing homes and put out on the street. This kind of scare
tactic is all too familiar. It is what the national Democrats have used against
Republicans for years. Many areas to cut: The proponents of these taxes have carefully selected the areas they think
our citizens are most vulnerable and are trying to alarm them by saying these
would be the first areas cut. Believe me, there are many other areas that should
be cut first, like $43.6 million that the Legislature has appropriated for
themselves in this year's budget. During a year when the state is in a financial
crisis, lawmakers increased spending on themselves by $5.4 million, a 14 percent
increase. The Legislature could also consider repealing a law they passed in May that
increases spending for schoolteachers by $150 million, even when lawmakers knew
they didn't have the money to fund this increase. Unfortunately, many in government find it easier to ask you for more money
than cut government. When the Legislature goes back into special session in
September, the governor and lawmakers could do the state and its citizens a huge
favor by immediately tackling the structural problems with government, and then
Alabamians will be much more likely to vote for new taxes when they see that
responsible action has been taken in Montgomery to reform government.