MONTGOMERY, Ala. -- Alabama lawmakers returned to Montgomery Tuesday under pressure to get a general fund budget approved before the fiscal year begins in three weeks.
State agencies will be without money to operate on Oct. 1 unless lawmakers can reach an agreement and end a stalemate over how to handle a projected $200 million shortfall in the general fund budget.
"Our backs are against the wall. You don't have the affordability of another special session. It's this one or bad things could happen," Senate Finance and Taxation General Fund Chairman Arthur Orr, R-Decatur, said
Gov. Robert Bentley and lawmakers began a second special with tempered expectations and the knowledge that they must get something approved. The governor is seeking $260 million in tax increases, half of what he sought during the regular session. Legislative leaders expressed cautious optimism that a few revenue measures would get passed, but not as much as Bentley wants.
The House General Fund budget committee on Wednesday morning will debate a series of tax bills including: a 25-cent-per-pack cigarette tax; raising the car rental tax from 1.5 to 2 percent; raising the car title fee from $15 to $28 and other measures. Bills that raise revenue by law must begin in the House of Representatives.
House Ways and Means Committee Chairman Steve Clouse, R-Ozark, said he had no predictions on what would be approved saying the situation has changed "hourly" as lawmakers have tried to broker compromises.
"I really don't have any expectations. We'll just see how the votes go," Clouse said.
Clouse said they are trying to find enough money to level fund essential services of state government including Medicaid, mental health services, prisons and courts - while cutting over agencies and functions.
Senate President Pro Tem Del Marsh said there was agreement in the Senate on smaller revenue bills such as the business privilege tax and a shift of a small amount of use tax funds that now go to education.
"The cigarette tax is the one that to me is the wild card. Unfortunately, it's one of the largest of the group. I'm still not convinced the support right now is there in the Senate," Marsh, R-Anniston, said.
The cigarette tax would raise about $66 million, Clouse said.
Bentley in June vetoed a cut-filled budget that lawmakers approved in the regular session. A first special session also ended without a budget when the House rejected a Senate-passed plan.
The Republican governor has been at odds with the Legislature over tax increases and Republicans in the House and Senate have also been unable to agree on taxes and cuts to balance the budget.
"We're down to the wire now. Everybody understands you've got to have a budget, even the governor. I think maybe everybody's expectations aren't as great for getting exactly what they want," Marsh said.