Lawmakers return to big decisions on prisons, budgets


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MONTGOMERY, Ala. (AP) — Alabama lawmakers return from spring break Tuesday with some of the biggest decisions of the legislative session in front of them, including votes on prison reform, schools and the perpetually troubled General Fund budget.

Senate President Pro Tem Del Marsh said senators will have likely vote this week on prison reform, a series of economic incentive bills and changes to a state program that helps some families pay for private school. House Ways and Means General Fund Chairman Steve Clouse said lawmakers are still mulling solutions for the perpetually cash-strapped General Fund budget.

Here's a look at what's ahead in the Alabama Legislature.

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PRISON REFORM

The Alabama Senate could vote Thursday on sweeping changes to sentencing and probation standards that are aimed at reducing prison crowding.

A large part of the proposal seeks to divert low-level property and drug offenders away from prison. The bill creates a new Class D felony category for drug possession and low-level property crimes. People convicted of those crimes would not be affected by the Habitual Offender Act, and could be steered toward community corrections programs.

Alabama prisons currently house nearly twice the number of inmates the facilities were originally designed to hold.

"It's simple. It's either we are going to do this, or we spend six, seven, $800 million dollars in new taxes on prisons or the federal court takes us over," Senate Judiciary Chairman Can Ward, R-Alabaster, said

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ALABAMA ACCOUNTABILITY ACT

Senators could also vote this week on an expansion of the Alabama Accountability Act, a state program that helps some families pay for private school with scholarships.

"I think we've gotten agreement on everything in the legislation we want to cover and are in a position to pass it next week," Marsh said. The program gives tax credits — a dollar-for-dollar reduction on your income tax bill — for donations to the scholarships and children in "failing" public schools have priority for the scholarships.

A compromise bill does not go as far as Marsh initially wanted to go in expanding the program, but he said it would increase the number of children served and tighten reporting requirements on the organizations that hand out the scholarships.

Marsh said the proposal would increase the yearly donation cap from $25 million to $30 million. Marsh had initially sought to raise the cap to $35 million. The proposal would also tighten income requirements for scholarship applicants to 185 percent of the federal poverty level.

Marsh said the bill will not expand the number of failing schools— which he proposed— or earmark a percentage of the scholarships for children in those schools — as some senators wanted.

"Right now the fact is we don't have enough data to verify how many are and are not from failing systems. What we decided to do is make sure we have the full accountability package in the bill that requires the reporting of where these children are coming from along with the audit capability to audit the scholarship granting organizations," Marsh said.

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GENERAL FUND BUDGET

The toughest issue of the session is still on legislators' plates, a problematic General Fund budget. Clouse, R-Ozark, said legislators have not reached a consensus on the size of a General Fund budget hole, let alone how to fill it.

Clouse said he and Senate Finance and Taxation General Fund Chairman Arthur Orr on Wednesday will distribute a draft budget that will show the cuts to state agencies if lawmakers do not find additional revenue.

"It's not trying to alarm anybody or be dramatic. ... It's important for them to get a realistic view point," Clouse said.

Bentley has proposed a $541 million tax package, but so far legislators are not embracing his proposal. The bulk of the money — $405 million — would come from two sources: Raising the tax on cigarettes by 82 cents per pack, as well as other tobacco products, and raising the sales taxes on automobile purchases from 2 percent to 4 percent.

"I'm getting real negative responses on it," Clouse said.

Clouse said the "most promising" of the governor's ideas is a proposal to raise tobacco taxes. However, Clouse said lawmakers are unlikely to go along with the size of the increase Bentley wants.

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ECONOMIC DEVELOPMENT BILLS

The Senate is expected to next week debate two bills that would revamp the incentives Alabama uses to entice companies to locate or expand in the state.

Senate Majority Leader Greg Reed, R-Jasper, said the legislation would make Alabama more competitive with neighboring southern states.

The heart of a three-bill package would require companies receiving incentives to deliver on job promises before collecting tax breaks and other benefits.

"I think that moving forward it's going to be beneficial," Reed said.

A separate bill would provide additional incentives for companies that create jobs in rural areas of Alabama.

Reed said the bills have widespread support. One issue is defining "rural county" in a way that benefits regions of the state actually needing assistance. In its current form, the bill defines a "rural county" as one having a population of less than 70,000. Reed said the figure could drop during Senate debate.

The third bill designed to incentivize existing business to expand in the state is already on governor's desk.

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