Please excuse multiple copies of this notice and please pass it along.
The story below talks about contingencies that may be necessary if the
tax package fails.

Should the Tax Reform package not be passed the state may be looking at
closing a number of essential services. Alabama is required by its
constitution to have a balanced budget based on previous year tax
receipts. This means as much as 675 million dollar cut form this year's
budget. This amounts to nearly 20% of the entire state government
operating expenses. More critically, this means the loss of Federal
money since the state would not be able to pay the match required to
draw down those Federal dollars.
____________________________________
Steve Hamerdinger
Director, Office of Deaf Services
ALDMHMR
100 North Union, Montgomery, AL 36130
(334) 353-4301 (TTY)
(334) 242-3643 (Voice)


State may dismantle agencies

By Mike Cason <mailto:mcason@...>
Montgomery Advertiser
Gov. Bob Riley said Thursday that some state agencies could face closure
if voters reject Amendment One on Sept. 9.
Riley did not name any agencies, but said he has instructed Finance
Director Drayton Nabers to make contingency plans for the amendment's
possible failure.
The governor projects a $675 million budget deficit for next budget
year, which starts Oct. 1. His tax plan would raise $703 million next
year to close the deficit and $1.2 billion a year by the time it's in
full effect in 2008.
"I told Drayton that I want you to go through this and give me the
options of departments that we can literally cut, stop the whole
department," Riley said. "We're getting to the point today, if that were
to happen, we've got to make a judgment of the level of criticality on
individuals' lives."
State Personnel Director Tommy Flowers said his office is reviewing the
procedures for employee layoffs with some agencies. Flowers said none
have submitted layoff proposals. He said those dependent on the state
General Fund are most at risk.
Riley said the $1.2 billion General Fund faces cuts of about 19 percent
if the amendment fails. The largest such agency is the Department of
Corrections.
"They also probably have the least wiggle room of anybody," Flowers
said.
Nabers said there will be layoffs if the amendment fails. Some agencies
would feel the sting more than others, he said.
"There will be a reduction in head count," Nabers said. "It will not be
uniform from agency-to-agency. There are some agencies where we simply
cannot afford to reduce employment, such as (the Department of)
Corrections."
As finance director, Nabers oversees the state's budget division that
prepares the recommended budget for all state agencies.
Besides layoffs, at least one state department head is worried about a
temporary shutdown. The Legislature will meet in special session after
Sept. 9 to pass spending plans for the budget year that starts Oct. 1.
Lee Warner, executive director of the Alabama Historical Commission,
said he has advised his employees to be prepared in case lawmakers can't
agree on a budget.
"We're preparing a layoff plan, but we're not to the point where we can
make decisions," Warner said. "We've also tried to help ourselves and
our employees be prepared if there is no budget. All we've said is,
'Stop going out to dinner, don't buy new shoes and for heaven sakes,
don't buy a car, because if we don't have a budget Oct. 1, you don't get
paid and I don't either.'"
The commission has about 125 employees.
State Rep. John Knight, D-Montgomery, who chairs the House General Fund
budget committee, said the possibility of a shutdown is real.
"In case we don't pass a budget, I don't know of any provision for any
agency to be able to operate," Knight said. "The question is, if the
amendment doesn't pass, what will the budget look like. You'll see
people with different priorities. It would be a tug-of-war in the
legislative process."
Riley said he would not ask lawmakers to raise taxes if the amendment is
rejected. The Legislature can raise some taxes, including sales taxes,
without voter approval. Knight said that was unlikely.
"I don't think it would be advisable for the Legislature to say that we
know better than the people of the state if they should vote it down,"
Knight said.
Mac McArthur, executive director of the Alabama State Employees
Association, said he supports the amendment and is working to help pass
it. But he said he's prepared to lobby the Legislature for tax increases
and gambling bills to raise revenue if the amendment fails.
"The day it doesn't pass, you'll see me fighting like hell to get some
revenue to try to keep state services and save jobs," McArthur said.


____________________________________
Steve Hamerdinger
Director, Office of Deaf Services
ALDMHMR
100 North Union, Montgomery, AL 36130
(334) 353-4301 (TTY)
(334) 242-3643 (Voice)



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