Jackson County Legislative Delegation talks 2017 session

Rep. Tommy Hanes and Rep. Richie Whorton

By Danielle Wallingsford Kirkland
 Jackson County Legislative Delegation members, Sen. Steve Livingston, Rep. Tommy Hanes and Rep. Ritchie Whorton, hosted Coffee and Conversation at the Greater Jackson County Chamber of Commerce recently where they discussed the upcoming legislative session.

This year’s session is set to begin today. According to Livingston the biggest issue facing the state this year is the cost of Medicaid.

Holding up a print out of an 85 page Medicaid summary that he had received first thing Tuesday morning, Livingston told those in attendance that Medicaid — an insurance program for low income individuals that is funded by both federal and state dollars—has asked for a 10 percent increase.

“They are only asking for $865 million next year,” Livingston said, noting that this year’s budget allotted the program $785 million.

Livingston said if state legislators could figure out a way to curb Medicaid costs they could get the general fund under control and put money into other agencies.

“We have no control over anything we do inside Medicaid,” Livingston said. “Our hope is that President Trump will administer block grants to Medicaid that will send money down to states to allow us to have control over this.”

He added that lawmakers would like to put regional care organizations ­­— locally-led managed care systems that would provide healthcare services to most Medicaid enrollees at an established cost — in operation.

“… So we can start bending the costs down instead of having people go to the emergency room 141 times a year, bend the cost down and make them go see a doctor, make them do what they need to do. That’s the only hope we have,” Livingston said. 

Sen. Steve Livingston

Livingston said Medicaid consumes a little less than half of the state’s general fund budget.

Another big issue facing the state is prison reform, Livingston said.

According to Livingston, Alabama Department of Corrections Commissioner Jeff Dunn has proposed building four new men’s prisons and one new women’s prison at a cost of $800 million.

“By the time it is paid back, $1.6 billion is what it would cost Alabama tax payers,” Livingston said.

The debt would be paid through cost savings by scaling down on facilities, but specific details have not been given yet.

“We asked for some details and were told we would have that for the special session that was held back in the fall and that hasn’t shown up,” Livingston said.

Rep. Hanes said he is not in favor of prison reform bill that would cost the taxpayers that much money.

“We are going to have to do something or the Feds is going to step in,” Hanes said. “I don’t see the point in building four new mega prisons and closing down 12 small prisons because at some point those four new prisons are going to be full again.”

Hanes said he would like to see the type of prison reform that reduces the number of inmates and reduces sentencing for non-violent crimes.

“It seems like the state of Alabama is in to warehousing people, lock them up and throw away the keys and be done with it,” Hanes said.

Hanes said he recommends investing in inmates that are willing to learn a trade and become a useful citizen.

“If we are going to spend all of that money on them, let’s invest in the ones that are willing to better themselves,” Hanes said.

Livingston pointed out that sentencing reform in the state is beginning to reduce the number of inmates in the prison system.

“This time last year we were at 192 percent capacity,” Livingston said, adding that now the state is at 170 percent capacity. “What we have done is actually working.”

Livingston added,” In addition, we have a new attorney general that will be confirmed here in the next day or so that might not be putting as much pressure on his home state of Alabama to do something quickly. So, that’s two good things.”

Livingston said a gas tax will likely be proposed during this year’s regular session, which would help fund road and bridge projects across that state. The gas tax has seen no increase in Alabama since 1992, according to Livingston.

Hanes added that a concrete amount had not been set for the proposed gas tax increase.

Whorton said he would like to think outside of the box when it comes to increasing the state’s revenue.

“We need to look at the alternatives than just tax, tax, tax,” Whorton said. “I favor the Fair Tax … I think that would be a better way for the system to work.”

The Fair Tax, according to Forbes.com, would replace all existing income taxes  ­­­--as well as payroll taxes -- with a single consumption tax.

“You have a lot of folks that work jobs that pays taxes, but you’ve got a lot of folks out here that do a lot of work that don’t pay any taxes,” Whorton said. “You’ve got folks like house cleaners or drug dealers and they’ve got all this money coming in, but they don’t pay any tax. If you go to the consumption tax, if they buy something they are going to pay the tax and I think that’s the way we need to go.”

The delegation also mentioned a few issues specific to Jackson County.  

Among them was the fact that Google is coming on line, Livingston said.

“TVA has about got their substation built up there,” Livingston said. “As I understand it is the single largest substation that TVA has inside TVA.”

Livingston lamented the recent announcement of a partial closure at Bridgeport’s Beaulieu plant, saying it was “totally unexpected.”

“All in all it’s 359 jobs,” he said.

Livingston said despite the loss, there is good news in the fact that Franklin Haney’s company Nuclear Development, LLC., recently purchased the Bellefonte nuclear facility.

“The good news is if we get Mr. Haney in business we will have some eight to ten thousand construction jobs and 1500 to two thousand permanent jobs,” Livingston said.

When asked if the state would offer incentives to Haney, Livingston said, “I feel sure that Gov. (Robert) Bentley is going to come through with everything that he can. Franklin Haney gave Gov. Bentley some $290,000 in campaign contributions I believe, so I think he is obligated to him if you have ever heard the word obligated.”

*This story originally appeared in The Daily Sentinel.