Alabama Lawmakers Face Spending Decisions on Surplus, Rescue Funds - Alabama News

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Alabama Lawmakers Face Spending Decisions on Surplus, Rescue Funds - Alabama News
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Alabama lawmakers face decisions on a budget surplus and pandemic relief dollars as they return to Montgomery today for a legislative session where nearly one in four members is newly elected. alnews alpolitics alabamanewsnetwork

Lawmakers must decide how to use the remaining $1 billion from the American Rescue Plan Act — the relief plan approved by Congress to help the country climb out of the coronavirus pandemic — and an unusual $2.7 billion surplus in the state education budget. Tax rebates and tax cut proposals will be introduced, Republican lawmakers said.

Alabama lawmakers are expected to take up a $500 million tax rebate proposal as they see a rare budget surplus. Rebates of $200 for single taxpayers and $400 for married couples, with the possibility of more for families with dependents, are under discussion, Republican Sen. Arthur Orr, who chairs the education budget-writing committee said.

Orr said tax cuts will also be up for discussion. However, Reed said lawmakers must exercise caution because “we have to be very cognizant nationally that a recession is, more than likely, on the way.” “It’s a very regressive tax. You are punishing the poor, the poorest among us,” Democratic Rep. Prince Chestnut said of the state sales tax on food.

“That’s what Medicaid Expansion really is— providing healthcare for the working poor, people who have one or two jobs,” House Minority Leader Anthony Daniels said. He said it would also help small business owners who struggle to provide health insurance for employees.

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