May 19, 2023

General Fund, Education Trust Fund Pass Early Friday Morning


After hours of debate, filibusters, voting and conference committees, the Alabama Legislature passed General Fund and Education Trust Fund budgets for fiscal year (FY) 2024 Friday morning. The Legislature gaveled into a new day at 12:01 a.m to pass the budgets and ensure a quick transition to the governor's desk. Alabama farmers were well supported in the budgets as all Alabama Farmers Federation priorities increased or remained level funded. 


The General Fund, HB124 by Rep. Rex Reynolds, R-Huntsville, totaled $3 billion and the Education Trust Fund, SB88 by Sen. Arthur Orr, R-Decatur, totaled $8.8 billion. Both bills passed after being sent to conference committees Thursday. The House unanimously passed both pieces of legislation shortly after the new day began. The Senate finished deliberations after 2 a.m. Friday.


This was a unique year for the budgets with record revenue in the state in addition to residual funds from the previous fiscal year to reappropriate.


Federation External Affairs Department Director Brian Hardin praised Senate and House leadership for their efforts to support farmers. 


“This year has been one of the more challenging years for the budgeting process,” Hardin said. “The Alabama Farmers Federation appreciates the work of Senate Finance and Taxation General Fund and Education committee chairmen Sen. Greg Albritton, R-Atmore, and Sen. Orr, R-Decatur; House Ways and Means General Fund and Education Committee chairmen Rep. Reynolds, R-Huntsville, and Rep. Danny Garrett, R-Trussville; and the Legislature to ensure priorities for Alabama’s farmers and landowners were supported."


Agriculture and forestry appropriations include:


 Education Trust Fund:

  • Alabama Agriculture in the Classroom, $100,000, unchanged
  • Alabama TREASURE Forest Association, $60,000, unchanged
  • FFA Affiliate Membership, $275,000, unchanged
  • Agriscience Education Program Improvement Specialist, $233,900, unchanged
  • North Alabama Agriplex, $58,000, unchanged
  • National Livestock Competition Coordinator, $250,000, unchanged
  • 4-H Youth Development and Animal Science Extension Specialist, $125,000, unchanged
  • Poultry Science Department at Auburn University, $250,000, unchanged 
  • Alabama Agricultural Experiment Station, $41 million, up $2.2 million
  • Alabama Cooperative Extension System, $43.1 million, up $2.3 million
  • Auburn Rural Health Program, $144,155, unchanged
  • Tuskegee University Rural Health Program, $89,815, unchanged
  • Rural Medical Scholars Program at the University of Alabama, $962,500, unchanged
  • Rural Health Program at UAH, $743,644, unchanged
  • Alabama Agricultural Land Grant Alliance (AALGA), $6.49 million, up $100,000
  • Soil & Water Conservation Committee Program, $2.8 million, up $150,000
  • Resource Conservation and Development (RC&D), $5.9 million, up $700,000
  • Liberty Learning Foundation, $700,000, up $100,000
  • Jones Valley Teaching Farm, $500,000, up $100,000
  • Career Tech Initiative, $36.1 million, up $11 million
  • College and Career Readiness Grants, $15 million, new
  • Irrigation Research & Outreach Initiative, $500,000
  • Farm to School Program, $400,000, up $100,000
  • HudsonAlpha Institute for Biotechnology, $1 million, unchanged


General Fund:

  • Sweet Grown Alabama, $300,000, unchanged
  • North Alabama Agriplex, $100,000, unchanged
  • Concentrated Animal Feeding Operations (CAFO), $575,000, unchanged
  • Forest Economic Development Specialist, $200,000, unchanged
  • Alabama Department of Agriculture and Industries, $18 million
  • Industrial Hemp Program, $50,000, unchanged
  • Resource Conservation & Development (RC&D), $6.9 million, up $1 million
  • Alabama Forestry Commission, $15 million, up $2.7 million
  • Soil & Water Conservation Committee Program, $3.6 million, up $449,000
  • People Against a Littered State (PALS), $200,000, up $50,000
  • Statewide Feral Swine Program, $650,000, new


In addition to passing the budgets, the Legislature passed SB 101 by Senate Finance and Taxation Education Committee Chairman Arthur Orr, R-Decatur, to create a rainy day savings account for education initiatives in the state. The creation of the Educational Opportunities Reserve Fund will allow lawmakers to save money on surplus revenue in the future.


Education Trust Fund Budget Breakdown


General Fund Budget Breakdown \


Alabama Taxpayers to Receive Rebates

Lawmakers approved a bill providing tax rebates to Alabama taxpayers Thursday. SB 86 by Sen. Arthur Orr, R-Decatur, will provide $150 to individuals and $300 to couples if signed by Gov. Kay Ivey.


The final bill was a compromise between earlier versions from both chambers. The funding will come from a rare surplus of $2.8 billion in the Education Trust Fund and will cost about $393 million.


The Senate passed the bill with a vote of 27-4, while the House voted unanimously 103-0 for the final version.

Grocery Tax Reduction Passes as Amended

Alabama legislators in the House of Representatives voted Thursday to begin reducing the state’s tax on groceries. HB 479 by Rep. Danny Garrett, R-Trussville, passed the House unanimously 103-0. 


The grocery sales tax bill would reduce the tax from 4% to 3% on food as defined by the Supplemental Nutrition Assistance Program Sept. 1 and would lower the rate to 2% Sept. 1, 2025, provided the Education Trust Fund revenue grows by 2%. If the ETF fails to grow by 2%, the tax would not reduce by a percentage point that year. 


The Senate previously passed similar legislation unanimously, with a different schedule for reaching the 2% level. HB 479 now goes to the Senate for consideration.


The House and Senate also passed a joint resolution Thursday to create a commission to investigate eliminating the grocery sales tax. HJR 243 by Rep. Penni McClammy, D-Montgomery, would establish the Joint Study Commission on Grocery Taxation to research a proposed elimination of the grocery sales tax. The commission will look at the effects of the tax reduction on poorer individuals and families in the state, hunger and malnutrition, food banks, nonprofits that provide food and the Education Trust Fund. 


The commission is required to submit a final report of its investigation no later than Nov. 1, 2026.

Rep. Van Smith, R-Billingsley, discusses HB 432 on the House floor Tuesday, May 23.

Driver's License Act

Legislation to help farmers who hire guest workers made headway in the House and Senate this week. HB432 by Rep. Van Smith, R-Billingsley, unanimously passed the House Tuesday. It was placed in the Senate Veterans and Military Affairs Committee where it received a favorable report and awaits a final vote in the Senate.


A companion bill, SB 266 by Sen. Billy Beasley, D-Clayton, was placed in the House Agriculture and Forestry Committee where it also received a favorable report and awaits a final vote in the House.


This bill would reduce the minimum time period an Alabama driver's license can be issued from 160 to 30 days. The change would allow a guest worker, whose arrival may have been delayed for various reasons, to obtain driver's licenses vital for the jobs they've come to the U.S. to perform.

Senate Agriculture, Conservation and Forestry Committee Portrait Presentation

Above: Committee Chairman Sen. David Sessions, Dr. Ernie Cebert, Dr. Olga Bolden-Tiller, Dr. Paul Patterson and Alabama Commissioner of Agriculture Rick Pate attended the portrait presentation.


Left: Sen. David Sessions and Dr. Olga Bolden-Tiller speak in the Senate Agriculture, Conservation and Forestry Committee room.

The Senate Agriculture, Conservation and Forestry Committee welcomed representatives from Alabama's land-grant institutions for a portrait presentation Wednesday. Dr. Olga Bolden-Tiller, dean of Tuskegee University's College of Agriculture, Environment, and Nutrition Sciences; Dr. Paul Patterson, dean of Auburn University's College of Agriculture; and Dr. Ernie Cebert, associate professor at Alabama A&M's College of Agricultural, Life and Natural Sciences, presented portraits of the historical buildings where their colleges are located.


Chairman Sen. David Sessions, R-Grand Bay, thanked the leaders for their donation to the committee room. Committee members discussed the importance of land-grant universities and the groups' contribution to agriculture.


Many members of Alabama's agricultural leadership attended the presentation organized by Alabama Farmers Federation Director of State Legislative Programs Russ Durrance. Present were Alabama Commissioner of Agriculture Rick Pate and Alabama Cattlemen's Association Executive Director Erin Beasley.


The presentation provided an opportunity for university leadership to interact with members of the committee and discuss important legislative directives.

Foreign Land Ownership Bill Heads to Governor's Desk

The Alabama Property Protection Act passed the Senate 26-7. HB379 by House Majority Leader Rep. Scott Stadthagen, R-Hartselle, would prohibit companies and governments of countries of concern found on the sanctions list of the Office of Foreign Assets Control from acquiring agricultural and forest property in Alabama or acquiring property within 10 miles of a military installation or critical infrastructure. This would include the nations of China, Iran, North Korea and Russia.


Originally, the bill was focused on preventing the Chinese government and its citizens in the U.S. from acquiring land in Alabama. A public hearing by the Senate Agriculture, Conservation and Forestry Committee revealed the negative impact the language had on students, college faculty, physicians and others who may be here legally as permanent residents.


Senate bill sponsor and Agriculture, Conservation and Forestry Chairman David Sessions, R-Grand Bay, told CBS 42,"my intent the entire time is to protect our agricultural land and our natural resources."


The bill was amended to focus on foreign countries hostile to the United States. Gov. Kay Ivey can sign or veto the bill.

Capitol Connection Legislative Review

Alabama Farmers Federation External Affairs Department Director Brian Hardin, Director of Agricultural Legislation Preston Roberts and Director of State Legislative Programs Russ Durrance sit down on this week's Legislative Review to discuss what's happened so far in this legislative session.

Joint Commission on Feral Swine Established

Feral swine has quickly become a problem for farmers all across Alabama. Crop damage, contaminated water and transmittable diseases are all consequences of feral swine and cost farmers millions of dollars in damages every year.


The House and Senate have listened to farmers and passed a joint resolution to create the Joint Study Commission on Feral Swine in Alabama. SJR 61 by Sen. David Sessions, R-Grand Bay, will establish the commission comprised of Senate Agriculture, Conservation and Forestry Committee leadership, House Agriculture and Forestry Committee leadership, the commissioner of agriculture and industries, and the commissioner of conservation and natural resources.


The commission will investigate the effects of feral swine on Alabama's economy and natural resources. The goal is to create permanent solutions to protect farmers, their land, livestock and property. The resolution requires the committee to present its final report before the fifth day of the 2025 regular legislative session.

Greene County Gambling Bill Passes Senate

SB 324 by Senate Minority Leader Sen. Bobby Singleton, D-Greensboro, is a constitutional amendment. It passed the Senate 24-1 Thursday allowing pari-mutuel wagering to be legalized in Greene County. Pari-mutuel wagering is a form of gambling most commonly used in horse racing. In 1971, the Alabama Supreme Court ruled pari-mutuel wagering is based on skill instead of chance. Games of chance are prohibited in Alabama.


General Counsel of the Southeast Law Institute Eric Johnston said the problem with this bill is it makes games of chance seem like skill-based games.


“While the legality of pari-mutuel wagering was based on traditional horse races, this bill provides that the wagering may be based on 'historical horse racing computerized machines' without regard to the type of graphics on the machine, whether the patron chooses a specific horse upon which to wager and whether he watches all or part of the race,” Johnston said. “There is absolutely no skill involved. The computerized machines allowed by this bill will completely be games of chance.”


The bill could be voted on for the first time in the House in the coming days. The Alabama Farmers Federation continues to oppose gambling in all forms. 


Voting for passage of SB 324 were: Sens. Greg Albritton, R-Atmore; Billy Beasley, D-Clayton; Lance Bell, R-Pell City; Clyde Chambliss, R-Prattville; Donnie Chesteen, R-Geneva; Merika Coleman, D-Birmingham; Linda Coleman-Madison, D-Birmingham; Chris Elliot, R-Josephine; Vivian Davis Figures, D-Mobile; Garlan Gudger, R-Cullman; Kirk Hatcher, D-Montgomery; Jay Hovey, R-Auburn; Andrew Jones, R-Centre; Steve Livingston, R-Scottsboro; Randy Price, R-Opelika; Greg Reed, R-Jasper; Clay Scofield, R-Guntersville; David Sessions, R-Grand Bay; Bobby Singleton, D-Greensboro; Rodger Smitherman, D-Birmingham; Robert Stewart, D-Selma; Larry Stutts, R-Tuscumbia; Jabo Waggoner, R-Vestavia Hills; and Jack Williams, R-Gilmer.


Those voting no or passed on the vote were: Sens. Gerald Allen, R-Tuscaloosa; Will Barfoot, R-Montgomery; Tom Butler, R-Madison; Josh Carnley, R-Enterprise; Sam Givhan, R-Huntsville; Keith Kelley, R-Anniston; Tim Melson, R-Florence; Arthur Orr, R-Decatur; Dan Roberts, R-Mountain Brook; Shay Shelnutt, R-Trussville; and April Weaver, R-Brierfield.

Bills in Brief


Economic Boycotting Bill - Legislation to protect Alabama businesses from being compelled to adopt ideological policies or being penalized for not ascribing to such standards could be voted on in the House of Representatives in the coming legislative days. SB 261 by Sen. Dan Roberts, R-Mountain Brook, can now be voted on in the House after being favorably considered by the House Financial Services Committee. The bill would prohibit government entities from entering into public contracts with companies that engage in economic boycotting; prevent companies from being required to engage in economic boycotting by a government entity or being penalized for failing to do so; and require the state attorney general to fight federal laws that would compel or penalize residents or companies for activities based on economic boycotting criteria. Changes were made to weaken the bill in the Senate to remove opposition from some business groups and others.


Limitation of Rollback Tax Bill - The Alabama Farmers Federation is monitoring SB 349 by Sen. Garlan Gudger, R-Cullman, which would change the tax look-back period for ad valorem taxes from a period of three years to one year. Under existing law, if an individual were to purchase a property valued in current use and convert its use to anything other than agriculture, they would have to pay the sum of the last three years of property taxes of the property’s fair market value rather than its current use value. This bill would change that period from three years to one year.


Yellowhammer Cookie Act - The Yellowhammer Cookie would be the official state cookie after HB 421 by Rep. Reed Ingram, R-Pike Road, unanimously passed the Senate. The legislation stemmed from a class project at Trinity Presbyterian School in Montgomery. The Yellowhammer Cookie contains both peanuts and pecans. Alabama Farmers Federation assisted the sponsor with language highlighting the significance of both agricultural commodities.The bill goes to Gov. Ivey for signing.


Rural Logging Support Act - SB 76 by Sen. Will Barfoot, R-Montgomery, and HB 189 by Rep. Joe Lovvorn, R-Auburn, both received a favorable report from their respective committees and can now be brought to the floor for vote after being passed in their chambers of origin last Tuesday. The legislation would designate the 15% of proceeds from state license tax now going into the General Fund for investment related to the forest products industry. This bill would direct a portion of the funds to the Alabama Forestry Commission for grants to support logging workforce development, research and implementation of technologies to promote forest product harvesting and transportation efficiency. The remainder would go to counties for maintaining and constructing rural bridges.


Rural and Community Fire Protection Development and Improvement Program - HB 455 by Rep. David Standridge, R-Hayden, which helps support recruitment and retention efforts of volunteer fire departments, passed the Senate Wednesday and now heads to Gov. Ivey’s desk for signature. This bill would create a mechanism within the Alabama Forestry Commission for the administration of grants to volunteer fire departments. The Rural and Community Fire Protection Development and Improvement Grant Program would be funded by the Rural and Community Fire Protection Development and Improvement Fund. The bill does not include funding; rather, it creates a system by which lawmakers can allocate resources and deliver grants. The Alabama Farmers Federation supports the bill.

Federation Leaders Visit State House

Shelby County Farmers Federation members visited the State House in Montgomery May 25.

Alabama Farmers Federation Area 7 Organization Director Guy Hall promoted Federation legislative priorities during a recent visit with Rep. Barry Forte, D-Eufaula.

The Legislature will reconvene on Wednesday, May 31, for day 28 of a possible 30. 

The House will convene at 1 p.m. while the Senate will convene at 3 p.m.


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Questions?

 Brian Hardin - Director, External Affairs Department

 Preston Roberts - Director, Agricultural Legislation

Russ Durrance - Director, State Legislative Programs

John Allen Nichols - Agriculture Counsel

Beth Chapman - Beth Chapman and Associates, LLC

Hayden Harris - Administrative Assistant

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