Identical ARPA spending bills draw criticism from political group

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Identical American Rescue Plan Act spending bills are circulating in the Alabama House and Senate, and a public policy group says the state is not doing enough for its citizens.

Senate Bill 1, sponsored by Sen. Greg Albritton, R-Chatom, and Bill 1, sponsored by Rep. Steve Clouse, R-Dothan, were introduced in Wednesday’s special session convened by the Governor Kay Ivey.

The bills focus on how the state would spend its share of $443 billion in federal funding over the next four years. Each bill would include investments in broadband infrastructure, health care, support for clean water initiatives, replenishment of the Unemployment Compensation Trust Fund and boosting workforce development. work.

However, the Alabama Policy Institute said it would prefer direct relief to state residents when it comes to determining how federal funding will be spent.

“I think they’re missing the point,” said Justin Bogie, senior director of fiscal policy at the Alabama Policy Institute. “They are not looking for ways to reduce taxes for citizens. The state is in a hurry to spend the money. They’re going to do something in the next week or two, and they have until December 2024 to spend it. Why are they in such a rush to spend it? The CARES Act funding lasted six months and they did not spend it in any way during that time.

“The real story is Alabama’s lack of effort to consider reducing taxes in any way. The state posted record revenues in 2021 with a revenue surplus of over $1 billion. There are a few minor tax reduction bills that have been published, but nothing that contemplates reducing income tax.

The bills would ask the state to spend $443 billion in state fiscal coronavirus stimulus funds, including $80 million to support health care and related services through a reimbursement program, and An additional $51 million to support broadband expansion.

“I think everyone in Alabama agrees that broadband expansion is important,” Bogie said. “They’re spending $276 million on broadband, and it won’t do anything meaningful. It will take $4-6 billion to get Alabama where it needs to be on broadband.

The bills would also require up to $225 million to be spent on clean water initiatives with investments in water and sewer infrastructure, and an additional $120 million allocated for water system grants. water and sewer for projects in great need. Additionally, an additional $100 million would be used for matching grants for public water and sewer projects.

The unemployment fund would see an investment of $79.5 million, which would reduce employer rates for 2022 and bring it back to a fund balance close to where it was before the pandemic began.

The bills would also include a $30 million investment in rural hospitals and an additional $5 million to develop and use telemedicine. An additional $20 million would support emergency responders, including firefighters and ambulance services.

The bills would also create a joint legislative oversight committee, which would oversee how the funds are spent. The council would be created within 30 days of the passing of the bills.

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