>>> FROM OUR STATEHOUSE STUDIO IN MONTGOMERY, I'M TODD STACEY.

WELCOME TO "CAPITOL JOURNAL."

THE ALABAMA LEGISLATURE RETURNS TUESDAY FOR WHAT PROMISES TO BE A BUSY AND CONTENTIOUS WEEK OF SESSION.

THE HOUSE AND SENATE ARE MOVING AT A FAST PACE WITH ANOTHER THREE-LEGISLATIVE DAY WEEK EXPECTED.

THAT WOULD PUT LAWMAKERS AT SIX COMPLETED LEGISLATIVE DAYS BY THURSDAY AND, TECHNICALLY, 20 PERCENT FINISHED FOR THE 2024 SESSION.

ONE ISSUE THAT WE EXPECT TO SEE ON THE SENATE FLOOR THIS WEEK IS ABSENTEE VOTING.

THE REPUBLICANS HAVE MADE IT A PRIORITY THIS YEAR TO CRACK DOWN ON WHAT THEY CALL BALLOT HARVESTING, OR PAID EFFORTS TO COLLECT AND SUBMIT ABSENTEE BALLOTS EN MASSE.

LT.

GOVERNOR WILL AINSWORTH SAID HE EXPECTS THAT AND OTHER CONTENTIOUS ISSUES TO BE FRONT AND CENTER THIS WEEK.

>> I DO THINK THE SENATE IS GOING TO TAKE UP CONTROVERSIAL THINGS IN THE FIRST TWO WEEKS, AND THERE'S STUFF -- BALLOT HARVESTING?

YOU KNOW WE DON'T NEED PEOPLE GOING OUT AND HARVESTING BATTLES FROM PEOPLE.

IF YOU WANT 0 TO VOTE, YOU SHOULD GO VOTE YOURSELF AND WE DON'T NEED PEOPLE GOING OUT AND COLLECTING HUNDREDS OF BATTLE AND HE IS TAKING THEM N THAT'S NOT HOW THE PROCESS SHOULD WORK.

SO I SUPPORT THAT LEGISLATION.

I DON'T THINK IT SHOULD BE CONTROVERSIAL.

BECAUSE YOU KNOW -- BUT I'M SURE IT WILL BE.

BUT I THINK, YOU KNOW, CERTAINLY MY UNDERSTANDING AS THE FIRST FEW WEEKS IN THE SENATE THERE COULD BE SOME FIREWORKS.

>> DEMOCRATS HAVE BEEN FIERCELY OPPOSED TO REPUBLICANS ON THIS ISSUE, ARGUING THAT SUCH A LAW COULD MAKE IT HARDER FOR HE WOULDLY AND RURAL VOTERS TO CAST BATTLES.

A LONG DEBATE FULL OF FILL BESTERS HAS GENERALLY BEEN EXPECTED, BUT SENATE MINORITY LEADER BOBBY SINGLETON SAID HE'S BEEN IN TALKS WITH THE BILL'S EXPERIENCE ABOUT COMPROMISES THAT COULD LEAD TO DEMOCRATS EASING OFF THEIR OPPOSITION.

>> AND THOSE THINGS THAT HAS THE COUNTIES ON IT WHERE YOU CAN'T PAY SOMEONE FOR THEIR BALLOT, THAT'S ILLEGAL ANYWAY.

WE'RE FINE WITH THAT.

WE DON'T WANT TO SEE THAT ANYWAY.

WHILE I THING, AT THE END OF DAY IF THAT'S THE COMPROMISE THAT WE HAVE TO MAKE THAT IS THE COMPROMISE WE HAVE TO MAKE.

AND THE BATTLE IS STILL THERE AND PEOPLE CAN GET THEIR ASSISTANCE WHERE IT'S NEEDED.

>> ANOTHER ISSUE SET TO COME UP TOMORROW IS GAMBLING.

HOUSE BILLS 151 AND 152 ARE SCHEDULED FOR A PUBLIC HEARING IN THE HOUSE ECONOMIC DEVELOPMENT AND TOURISM COMMITTEE MEETING.

HERE IS ANOTHER QUICK OVERVIEW OF WHAT WE KNOW ABOUT THE GAMBLING BILLS.

>> THE PLAN WOULD SCRAP ALL OF ALABAMA'S EXISTING GAMBLING LAWS AND CONSTITUTIONAL AMENDMENT, INCLUDING THOSE LOCAL BINGO AMENDMENTS.

THEY BE THE PLAN WOULD INSTITUTE A STATE LOTTERY, EXPAND CASINO GAMBLING AND LEGALIZE SPORTS BETTING.

IT WOULD SET UP A COMMISSION WITH A STAFF STRUCTURE TO REGULATE THE INDUSTRY WITH COMMISSIONERS APPOINTED BY THE GOVERNOR AND LEGISLATIVE LEADERS.

11 TOTAL CASINOS WOULD BE ALLOWED UNDER THE PLAN INCLUDE INCLUDING THE THREE POARCH BAND OF CREEK INDIAN LICENSES AND YOU CAN APPLY FOR LICENSES IN MOBILE, GREEN, HOUSTON AND LOWNDES COUNTIES WHERE OF COURSE THERE ARE EXISTING GAMBLING OPERATIONS.

THERE WOULD ALSO BE AN ADDITIONAL LICENSE AWARDED PENDING 5-APPROVAL OF A COMPACT WITH THE POARCH CREEKS.

CASINOS WOULD BE TAXED AT 24 PERCENT AND SPORTS BETTING WOULD BE TAXED AT 17 PERCENT.

PROPONENTS ESTIMATE REVENUE TO THE STATED WOULD BE BETWEEN 8 HUNDRED MILLION DOLLARS AND A BILLION DOLLARS ANNUALLY.

WHERE WOULD THAT MONEY GO?

LOTTERY PROCEEDS WOULD ALL GO TOWARD A SPECIAL FUND, SET ASIDE FOR EDUCATION NEEDS.

CASINO AND SPORTS BETTING REVENUE WOULD BE PLACED IN A TRUST FOUND SHORE UP GENERAL FUND ACCOUNTS AND USED FOR EXPENDITURES LIKE HEALTH CARE AND MENTAL HEALTH CARE.

81 KEY VOTING BLOCK IS GRASSROOTS.

REPUBLICANS HAVE A SUPER MAJORITY IN THE HOUSE AND SENATE BUT THERE TENDS TO BE ENOUGH OPPOSITION FROM GAMBLING FROM REPUBLICANS TO NEED AT LEAST SOME DEMOCRATIC SUPPORT TO GET THAT 2/3 MAJORITY NEEDED TO PASS A CONSTITUTIONAL AMENDMENT.

IN FACT, THAT WAS THE SCENARIO BACK IN 2021.

DEMOCRATS THIS YEAR SAY THEY WILL NOT ALLOW THEIR VOTES TO BE TAKEN FOR GRANTED IN THE PROGRESSION AND ARE WATCHING CLOSELY TO SEE EXACTLY HOW THOSE, INCLUDING THOSE CONSTITUTIONAL AMENDMENTS WOULD WORK.

>> WHENEVER WE MAKE ANY DECISIONS AS GROUP, AS A CAUCUS, EVERY MEMBER IN OUR CAUCUS HAS AN INFLUENCE OPEN THAT DECISION AND WE'RE NOT TO MAKE ANY CHOICES IN CHOOSING WINNERS AND LOSERS.

WHATEVER COMES OUT WILL BE SUPPORTED AND VETTED BY THE MEMBERS OF OUR CAUCUS.

WE KNOW WE'RE NOT GOING TO GET EVERYTHING THAT WE NEED BUT WE HAVE TO UNDERSTAND THE ECONOMIC IMPACT OF THESE COMMUNITIES AND THE PROCESS AND HOW WE DEALT WITH THIS PROCESS IN THE PAST HAVE HAD AN IMPACT ON THE COMMUNITIES WITH GROWTH.

WE CAN'T TALK ABOUT, YOU KNOW, CHOOSING THIS GROUP OVER THAT GROUP.

FOR THESE COMMUNITIES HAVE HAD THESE OPERATIONS IN PLACE FOR SOME TIME AND WHEN ARE WE TO MAKE A CHOICE WHICH ONES STAY AND GO?

WE WILL LET THE MARKET DICTATE THAT BUT WE'RE GOING TO BE WITH OUR COLLEAGUES ON THIS ONE.

>> GOVERNOR KAY IVEY ANNOUNCED ANOTHER MILESTONE FOR THE STATE'S ECONOMY.

DATA FROM 2023 SHOWS THAT ALABAMA SHATTERED ITS PREVIOUS RECORD ON EXPORTS, REACHING AN IMPRESSIVE 27.4 BILLION DOLLARS IN GOODS AND SERVICES EXPORTED.

THIS REPRESENTS A SUBSTANTIAL 6 PERCENT INCREASE FROM THE PREVIOUS YEAR.

SINCE THE COVID-19 PANDEMIC ALABAMA'S EXPORTS HAVE SURGED BY NEARLY 43 PERCENT.

THE GOVERNOR'S OFFICE ATTRIBUTES MUCH OF THIS GROWTH TO A SIGNIFICANT RISE IN OVERSEAS SHIPMENTS OF ALABAMA-MADE VEHICLES, AEROSPACE PARTS, MINERALS AND METALS.

>> ALABAMA'S EXPORTS ARE NOW REACHING 190 COUNTRIES WORLDWIDE.

OUR BIGGEST RATING PARTNERS ARE GERMANY WITH 5.1 BILLION DOLLARS, CANADA WITH 3.9 BILLION DOLLARS, CHINA WITH 3.8 BILLION DOLLARS, AND MEXICO WITH 3.2 BILLION DOLLARS, AND FINALLY SOUTH KOREA WITH 1.2 BILLION DOLLARS WHICH IS UP 15 PERCENT FROM THE PREVIOUS YEAR WHICH IS A NOTABLE INCREASE.

TODAY IN THE STATEHOUSE A MEETING ABOUT THE PAST, PRESENT, AND FUTURE OF THE GROCERY SALES TAX.

LAWMAKERS LAST YEAR ENACTED A PLAN TO REDUCE STATE SALES TAX ON MOST GROCERY ITEMS FROM 4 PERCENT TO 3 PERCENT.

THE LAW ALSO SAID THAT THAT TAX COULD DROP FURTHER TO 2 PERCENT IF REVENUE GROWTH IN THE EDUCATION TRUST FUND GREW BY 3.5 PERCENT.

BUT RECENT BUDGET ESTIMATES SHOW THAT IS NOT THE CASE, MAKING THAT FURTHER REDUCTION IMPOSSIBLE THIS YEAR.

TODAY THE JOINT STUDY COMMISSION ON GROCERY TAXATION MET TO DELVE DEEPER INTO THE NUMBERS BEHIND THAT DECISION.

>> WE STILL HAVE THE OPPORTUNITY, BECAUSE THE LANGUAGE DIDN'T SAY THAT THAT PROVISION WENT AWAY AT THE END OF THIS YEAR.

IT SAYS YOU CAN SEE DO IT AGAIN WHEN WE START PHI ESTIMATES NEXT YEAR AND AT THAT TIME ESTIMATES ARE ABOVE 3.5 PERCENT WE ARE LOWER THE RATE BY THE EXTRA 1 PERCENT.

>> I THINK WE WILL KNOW MORE AS WE ENTER INTO THE FALL.

CERTAINLY THE FACT THAT GROWTH WAS SO MUCH SMALLER THAN ANTICIPATED THIS YEAR, AROUND 2 PERCENT OR A LITTLE BIT LESS THAN 2 PERCENT, THERE'S A POSSIBILITY IN MY MIND THAT IF WE HAD A LOWER THAN AVERAGE YEAR MAYBE NEXT YEAR WILL BE AT AVERAGE OR ABOVE.

>> WE NEED TO LOOK AT THOSE DIFFERENT ENTITIES THAT ARE BEING BROUGHT UP.

>> WE TALK ABOUT .

THE CHOICE SCHOOLS AND THE CHOICE AFFECTS 12 THOUSAND STUDENTS AND WE HAVE TO LOOK AT THAT AS COMPARED TO PENAL THAT ARE LIVING EVERY DAY AND NEED FOOD TO EAT.

AND WE'RE STILL SEEING INFLATION IN FOOD COST TOES AND THOSE ARE THINGS THAT WILL BE DISCUSSED THROUGHOUT THE SESSION.

>> COMINGS UP AFTER THE BREAK I'LL SIT DOWN WITH THOSE AUTHORS OF THE GROCERY SALES TAX CUT TO TALK ABOUT WHAT MIGHT BE HAPPENING NEXT ON THAT ISSUE.

WE WILL BE RIGHT BACK.

>> WELCOME BACK TO "CAPITOL JOURNAL."

AS WE HAVE JUST LEARNED THERE WAS A BIG MEETING TODAY IN THE STATEHOUSE ABOUT THE PAST AND FUTURE OF THE STATE'S SALES TAX ON GROCERIES.

JOINING ME NEXT TO TALK ABOUT IT ARE THE JOINT AUTHORS, THE CO-SPONSORS OF THE BILL REMOVING THAT 1 CENT SALES TAX, PENNY MCCLANY FROM MONTGOMERY, ANDRUW JONES FROM GADSDEN.

THANK YOU FOR COMING ON THE SHOW.

>> THANK YOU FOR THE INVITATION >> GOOD TO BE WITH YOU.

>> THE MEETING TODAY WAS WELL TIMED BECAUSE, AT THE BEGINNING OF THIS SESSION WE'RE LEARNING THAT THAT SECOND ONE PENNY REDUCTION ON SALES TAX ON GROCERIES ISN'T GOING TO HAPPEN THIS YEAR.

SO NOT SURPRISINGSLY Y'ALL HAVE A LOT OF QUESTIONS, YOUR COMMISSION MEMBER VERSE A LOT OF QUESTIONS.

BUT BEFORE BEGET TO THE CRUX OF THE MEETING WALK ME THROUGH AND REMIND OUR VIEWERS HOW WE GOT HAD TO THIS POINT.

YOU PASSED A LAW, A LOT OF DISCUSSION AND WHAT DID THAT LAW DO?

I WILL START WITH YOU?

>> FIRST OF ALL THE PEOPLE SPOKE.

THIS WAS REALLY A PEOPLE'S DEAL THEY VOTE OVERWHELMINGLY YOU HAVE THROUGHOUT THE STATE OF ALABAMA BIPARTISAN THAT THEY NEEDED SOME HELP WITH THEIR GROCERIES AND THAT WAS STARTING WITH TAKING A PERCENTAGE OFF OF THE SALES TAX.

WE WERE ONE OF THREE STATES THAT DOES NOT HAVE ANY TAX RELIEF ON GROCERIES TAX.

SO HE WEAVER WERE FINALLY MOVING UP IN PROGRESS WITH THE REST OF THE UNITED STATES AND GIVING THE PEOPLE SOME RELIEF.

AND I APPLAUDED OUR LEGISLATORS BECAUSE IT WAS UNANIMOUS IN BOTH HOUSES THAT THOSE THAT ISES WERE NEEDED AND WE WOULD START THIS REPEAL.

>> ONE OF THOSE BIPARTISAN ISSUES THAT WE SAW A COUPLE LAST YEAR THAT WERE REALLY INTERESTING.

THIS WAS RIGHT AT THE TOP OF OF THAT LIST.

THERE'S A REASON IT WAS BIPARTISAN BECAUSE IT TOOK SOME MANEUVERING, RIGHT, ESPECIALLY FROM THE BUDGET HAWKS, AND THEY REALLY WANT TO PROTECT THE EDUCATION REVENUE NOTING SALES TAX GOES TO EDUCATION SO IT WAS KIND OF A COMPLICATED LA FOR FOR HOW IT WOULD MOVE FORWARD.

CAN YOU EXPLAIN THAT A LITTLE BIT.

>> SURE, THE THE STATE SALES TAX ON GROSSES ARE IS 4 PERCENT AND THAT DOESN'T INCLUDE THE CITY OR COUNTY PORTIONS.

THAT 4 PERCENT WE DECIDED WE COULD AFFORD TO TAKE OFF 1 CENT INITIALLY, AND THEN WE LOOKED AT THE AVERAGE GROWTH OF THE ETF, THE EDUCATION TRUST FUND, OVER 6:51 PM.

WE FOUND IN AN AVERAGE YEAR THE GROWTH WAS ABOUT 3.5 PERCENT.

SO WE DECIDED THAT THE METRIC FOR THE NEXT 1 PERCENT TO COME OFF OF THE GROCERY TAX WOULD BE IF WE HIT 3.5 PERCENT GROWTH OR HIGHER.

SO THIS YEAR WE FELL SOMEWHERE -- THE AVERAGE OF THE TWO ESTIMATES THAT WERE REQUIRED WERE A LITTLE BIT LESS THAN 2 PERCENT SO WE'RE SHORT OF THE MARK THIS YEAR BUT WE'RE CONFIDENT WE WILL HIT THAT, MAYBE EVEN NEXT YEAR AND HAVE THE ADDITIONAL 1 PERCENT COME OFF THE GROCERY TAX.

>> WELL, IT LOOKED LIKE SOME FOLKS WERE PRETTY DISAPPOINTED THAT THIS WHAT IS NOT GOING TO BE THAT SECOND PENNY THIS YEAR.

TALK ABOUT THAT.

IS THERE DISAPPOINTMENT OR ARE YOU LOOKING TOWARD MORE OPTIMISM TOWARDS NEXT YEAR.

>> I THINK YOU HIT IT CORRECTLY I DON'T KNOW ABOUT YOU ALL BUT I DID FEEL DISAPPOINTED PERSONALLY AND SOME OF MY CONSTITUENTS WERE DISAPPOINTED AND THAT WAS THE REASON -- WE HAVE BEEN TO THE PRESENTATIONS THAT WE WANTED THE COMMUNITY TO KNOW AND THE TASK FORCE MEMBERS TO KNOW WHAT WAS BEING PROJECTED AND I WOULD BE TOLD THROUGH HEARSAY TO BE ACTUALLY ABLE TO DISCUSS IT AS A COMMITTEE.

AND WE WERE -- OTHER QUESTIONS CAME OUT TODAY QUESTIONING ARE THERE WAYS THAT WANT TO STILL POSSIBLY COULD CONSIDER RELIEVING OUR MEDICINE TAX SO -- >> IT COMES DOWN TO THE CLASSIC QUESTION OF TAXES.

ANYTIME YOU CAN'T YOU TELL A TAX THERE'S A REPERCUSSION IN THE BUDGET.

THIS IS A PERFECT EXAMPLE.

BUT IT SOUNDED ALSO LIKE FROM WHAT MR. FULLFORD WAS SAYING THAT THE HIT SO TO SPEAK TO THE EDUCATION TRUST FUND WAS NOT NEARLY WHAT PEOPLE FEARED.

TALK ABOUT THAT.

IF IT WASN'T THAT GREAT OF A HIT AND YET WHEE STILL DIDN'T HIT THAT MARK.

>> WELL, I THINK IN A LOT OF WAYS, TODD, WE'VE BEEN A VICTIM OF OUR OWN SUCCESS.

WE HAVE UNTAXED OVER TIME PAY.

THAT WAS A GREAT BIPARTISAN PIECE OF LEGISLATION AS WELL.

WE HAVE LOOKED AT OTHER TAX CREDITS AND TAX CUTS.

SO ALL OF THAT GOES INTO THE FORMULA THAT DETERMINES THE GROWTH GROWTH OF THE EDUCATION BUDGET.

SO BECAUSE WE HAVE BEEN CONSULTING TAXES OUR GROWTH NOT HIGH ENOUGH FOR US TO CUT TAXES FURTHER.

IT'S KIND OF IRONIC IN A WAY.

I WILL MENTION DESPITE YOU HEAR ONE PENNY AND ANOTHER PENNY, THIS COMBINED IS THE LARGEST TAX CUT IN ALABAMA'S HISTORY, 304 MILLION DOLLARS.

WE'RE TALKING ABOUT OVER A WEEK'S GROCERIES, TWO WEEKS BY SOME ESTIMATES SO ABOUT 3 HUNDRED 50 DOLLARS PER YEAR.

IT DOES HAVE A BIG IMPACT.

WE'RE LOOKING TO SEE HOW FOLKS ARE USING THAT MONEY AND WE EXPECT THAT A LOT OF THOSE FUNDS ARE BEING UTILIZED FOR ADDITIONAL PURCHASES, GOODS AND SERVICES, AND THUS, SOME OF THAT MONEY IS GOING TO BE COMING BACK INTO THE EDUCATION TRUST FUND BECAUSE PEOPLE SPEND THAT, IT GETS TAXED ON IF YOU BUY A TV, YOU'RE PAYING SALES TAX AND THAT COMES BACK TO THE EDUCATION TRUST FUND.

>> THAT'S A GOOD POINT.

AND I REMEMBER REPRESENTATIVE BADGES MAKING THAT POINT, ABOUT THE OVERTIME INCOME TAX CUT.

LIKE HEY THIS IS GOING TO HELP.

SO I WILL BE CURIOUS TO SEE THE NUMBERS COMING UP.

WE ARE AT THE BEGINNING OF SOME OF THESE LAWS GOING INTO EFFECT.

YOU KNOW ONE OF -- YOU TALKED ABOUT IMPACT ON FOLK'S BUDGETS AND FAMILIES HAVING WORN IN THEIR POCKET.

WHAT HAVE YOU HEARD FEEDBACK-WIDE, MAYBE YOU HAVE HEARD YOUR COLLEAGUES TALK ABOUT THEIR CONSTITUENTS WHEN THEY SEE ON THE GROCERY RECEIPT.

HAS THERE BEEN A TANGIBLE FEEDBACK SO FAR.

>> IT HAS BEEN ON MY SIDE.

I THINK THE BIGGEST TIME PEOPLE REALIZE THAT WE REALLY ARE HAVING A CENT OFF GROCERY TAX WAS THE FIRST DAY.

THERE WAS A LITTLE SMALL HICCUP IN THE STORES.

>> WALMART; RIGHT?

>> YES IT WAS.

BUT WALMART WAS QUICK TO GET ON BOARD AND MAKE THE CHANGES AND MAKE SURE THEY COMPENSATE THE CUSTOMERS FOR THEIR TIME.

SO THAT WENT VERY WELL.

THAT WAS THE ONLY ONE ACROSS THE STATE.

WITH THAT, IF YOU DIDN'T KNOW THERE WAS A PENNY OFF THAT DAY, I THINK THE WHOLE STATE OF ALABAMA REALIZED IT THAT DAY.

>> THAT'S RIGHT.

LIKE THAT WAS A BIGGER NEWS STORY.

BECAUSE IT'S WALMART, BECAUSE IT'S HAD A PROBLEM, A SNAFU, MAYBE A BIGGER STORIES THAN THE BILL PASSING TO BEGIN WITH.

SO IT ALMOST HELPED ADVERTISE THE LEGISLATION.

>> OH, YES THEY DID HAVE MEME GOING BACK WITH THEIR RECEIPTS AND ALSO GIFT CARDS THAT THE STORE GAVE AWAY TO CUSTOMERS.

>> HAVE YOU HEARD FEEDBACK YOURSELF.

>> I HAVEN'T HEARD A LOT OF FEEDBACK.

EVERYONE KNOWS THE SITUATION AT THE GROCERY STORE, YOU SEE SOMEONE HAVE TO PUT SOMETHING BACK, THEY'RE IN THE CHECK OUTLINE BECAUSE THEY CAN'T AFFORD SOMETHING IN THEIR CART AND IT'S OVER THEIR BUDGET.

I HAVE HEARD OF THOSE SITUATIONS.

YOU KNOW THOSE FOLKS HAVE HAD MORE MONEY HAD TO UTILIZE SO THEY'RE PLEASED THAT THEIR DOLLAR GOES A LITTLE BIT FURTHER EVEN THOUGH INFLATION IS TAKING UP EVEN MORE OF THEIR MONEY WHEN THEY GO TO THE CHECK OUTLINE.

WE'RE COME BALLOTING INFLATION.

ONE REASON FOCUS MAY NOT FEEL IT AS MUCH.

ALSO I HEARD FROM CONSTITUENTS WHO SAY WE WANT MORE.

AND I'M LIKING HOLD ON, THAT'S COMING.

BUT PROBABLY THE BIGGEST QUESTION I GUESS IS FOLKS JUST SAYING HEY, IS THIS OR THAT COVERED?

THEY ARE NOT STILL CLEAR ON WHAT ITEMS ARE COVERED OR NOT.

YOUR HOT DELI FOODS ARE NOT INCLUDED IN THE DEFINITION OF FOOD.

AND OTHER FOLKS WONDERING WHETHER THEIR ALCOHOL OR TOBACCO ARE GOING TO BE TAX FREE.

AND I TELL THEM, NO, JUST YOUR GROCERIES.

SO THERE'S STILL SOME EDUCATION TO COME.

>> TALKING ABOUT THE HIT TO ATF THEN IF THAT WAS PART OF IT.

TODAY'S MEETING BEGS THE QUESTION BECAUSE THERE'S NOT ANOTHER PENNY COMING OFF THIS YEAR.

IS THIS LAYOFF GOING TO BE TWEAKED AND CHANGED?

IS THERE GOING TO BE AN APPETIZE TIGHT TO DO THAT?

YOU HEARD SOME TALKING ABOUT LOWERING THE THRESHOLD OF GROWTH NEEDED 20 TRIGGER THE NEXT PENNY COMING OFF.

LOOK I KNOW IT'S PRETTY EARLY WHY THE SESSION BUT -- >> IT'S STILL WORTH DISCUSSING LIKE WE DID TODAY.

INITIALLY, THAT WAS AN AMENDMENT THAT WAS ADDED RITE BEFORE WE VOTED FOR THAT THRESHOLD, 3.5 PERCENT OFF THE NET.

AND SO THESE ARE QUESTIONS THAT WE'RE GOING TO CONTINUE TO WATCH, TOBACCO ASK QUESTIONS ABOUT AND SEE IF THERE'S SOMETHING THAT WE NEED TO AMEND THE LEGISLATION WITH.

>> SENATOR BO THERE BE AN AN APPETITE UPSTAIRS IN YOUR CAUCUS FOR DOING SOMETHING LIKE THAT?

THAT'S A PRETTY SIGNIFICANT CHANGE.

>> I THINK WE NEED TO WAIT AND SEE.

I THINK WE WILL KNOW MORE -- WE JUST HAVE A FEW MONTHS OF DATA RIGHT NOW BECAUSE THIS STARTED SEPTEMBER.

SO WE WILL KNOW MORE AS TIME GOES ON.

MAYBE INSTEAD OF YOU KNOW ADJUSTING THE PERCENTAGE MAYBE WE NEED TO AUTOMATIC ABOUT NET VERSUS GROSS RECEIPTS.

THAT WAS A BIG IMPACT IN SOME OF THIS.

SO WE WILL SEE.

MY HOPE IS THAT THE FACT THAT WE HAVE HAD A LOWER THAN AVERAGE GROWTH PATTERN THIS YEAR MEANS THAT NEXT YEAR WE WILL BE DUE FOR AVERAGE OR ABOVE AVERAGE GROWTH PATTERN WHICH THE POINT ABOUT CHANGE WILL BE MOOT BECAUSE WE WILL BE THERE AND WE WILL HAVE THE REQUIRED PERCENTAGE FOR US TO TAKE DOWN THE EXTRA PERCENT.

>> IT'S A GREAT POINT.

BECAUSE THE YEAR THIS HAPPENED, LAST YEAR, WAS PROBABLY THE HIGH-WATERMARK IN TERMS OF SALES TAX IN THE STATE, IN TERMS OF BUDGETS IN GENERAL IN THE STATE SO IT'S KIND OF HARD TO EXPECT A LOT OF GROWTH AT THAT POINT, YOU KNOW, AFTER YOU KNOW YOU'RE AT THIS -- THE TIDE IS HIGH.

SO TALK ABOUT THAT.

YOU'RE TALKING ABOUT A VICTIM OF OUR OWN DOES HE SAY.

ARE Y'ALL GOING TO BE TALKING TO, YOU KNOW, EXPERTS IN LSA TO YOUR FELLOW COLLEAGUES ABOUT WHAT IS THE RIGHT NUMBER?

IT SEEMS WHEN PEOPLE VOTED FOR THE BILL THEY DID WANT TO STEP IT DOWN.

BUT I GUESS THERE'S CAUTION WHEN IT COMES TO TO BUDGETS?

>> OUR BUDGET CHAIRMAN -- THEY'RE SUPPOSED TO BE VERY CONSERVATIVE BY NATURE AND PROTECT THE BUDGETS SO OBVIOUSLY WE WILL TALK WITH THEM AND WITH LT.

GOVERNOR AINSWORTH WHO WAS A BIG CHAMPION OF THIS LEGISLATION BECAUSE HE CERTAINLY WILL HAVE IDEAS AND THOUGHTS HE WILL WANT TO CONTRIBUTE TO THE DISCUSSIONS AS WE MOVE FORWARD.

BUT I THINK CERTAINLY WE ARE KNOW MORE AND LOOK AT THE DATA AND SEE WHAT THAT REFLECTS AND MAKE A DECISION FROM THERE ON WHAT WE IMMEDIATE TO DO.

>> SURE.

>> AND I KNOW FOR MYSELF AND OTHERS WE WOULD LIKE TO LOOK AT WHAT IS COMING FROM THE EDUCATION TRUST FUND.

WE LOOK AT THE MOBILITY OF SCHOOL CHOICE.

SO WE LOOK AT 1 HUNDRED MILLION DOLLARS COMING OUT FOR ROUGHLY 12 THOUSAND STUDENTS, AND THAT ALSO CAN AFFECT OUR NOT MEETING THAT THRESHOLD.

SO THOSE ARE THINGS THAT WE WANT TO LOOK INTO OUR EDUCATION TRUST FUND AND SEE WHAT IS COMING AND OUT OF THE EDUCATION TRUST FUND.

>> SO IT ALL COMES OUT IN THE WASH. LIKE YOU WERE SAYING EVERY TIME YOU CUT A TAX IT GETS THIS THAT GROWTH SO YOU'RE KIND OF IN A DIFFERENT SITUATION EVEN WHEN YOU WERE THIS ADVERTISEMENT LAST YEAR AND FIRST GETTING THIS BILL GOING.

>> YES.

>> LET ME JUST -- SPEAKING ON THE REVENUE SIDE, IF YOU GO BACK 10, 15, 20 YEARS ON THIS, EVERY TIME THIS WAS PROPOSED THERE WAS ALSO REVENUE ENHANCEMENTS ON THE OTHER SIDE, VARIABILITY GETTING BACK REVENUE.

A LOT OF TIMES IT WAS CLOSING THE FEDERAL -- ENDING THE FEDERAL DEDUCTION ON STATE TAXES.

>> AND THEY LOOKED AT THAT THIS TIME.

>> IS THAT EVEN PART OF THE DISCUSSION LOOKING AT THIS GOING FORWARD?

THOSE FEDERAL DID YOU EXPLAIN, OR ANYTHING LIKE IT?

>> I THINK THAT'S SOMETHING THAT THE TASK FORCE COMMITTEE -- THAT'S WHY WE'RE SET UP TO LOOK AT THOSE ALTERNATIVES.

AS YOU KNOW THIS DIDN'T JUST HAPPEN LAST YEAR.

THIS HAS BEEN A DISCUSSION FOR AT LEAST TWO YEARS BE WITH REPRESENTATIVE KNIGHT.

>> ALSO YOUR FATHER.

>> AND MY FATHER.

THANK YOU.

MY FATHER.

SO THIS IS DECADES OF WORK.

SO THAT'S WHY WE DID THIS JOINT REDS LOSE FOR THIS MEETING, THE COMMITTEE, SO THAT WE CAN FILE THOSE FINANCIALS AND DISCUSS WHAT OTHER AREAS THAT WE HAVE THAT WE CAN ENSURE THAT WE CAN CONTINUE TO REDUCE THE GROCERY TAX.

AND JUST AS WE WERE CREATED TO DO THIS WE WILL CONTINUE TO TAKE THAT DATA AS WE NEED TO AND SEE WHAT IS THE BEST WAY TO CONTINUE TO MAKE SURE THAT THE CITIZENS GET WHAT THAT I WANTED.

>> SENATOR, WHAT ABOUT MR.

YOUR SIDE OF THE AISLE?

TALKING ABOUT REVENUE ENHANCEMENT.

SOMETIMES THAT SOUNDS LIKE THAT ACCIDENTS AND MAKE PEOPLE NERVOUS?

>> JUST FROM DISCUSSIONS I HAVE HAD WITH COLLEAGUES IN THE SENATE, THERE'S DID I TO UNDERSTAND WHY WE WOULD NEED A REVENUE INCREASE WHEN OUR WEATHERRAL BUDGETS HAVE BEEN HEALTHY AND LOOKING SO GOOD.

CERTAINLY WE KNOW LEAN TIMES ARE AHEAD AND MORE FLAT GROWTH RATHER THAN THE GANGBUSTERS TYPE OF GROWTH THAT WE HAVE HAD IN RECENT YEARS, BUT MY PERSONALITY THOUGHT IS THAT WE CAN ABSORB THESE CUTS IN A SUSTAINABLE MANNER OVER ADVERTISEMENT WHICH IS WHAT THE WHOLE THRUST OF THE BILL WAS TO START WITH.

AS WE MOVED FORWARD AND WE ASSESS THE GROWTH THEN I THINK IT'S GOING TO NATURALLY WORK ITSELF OUT OVER TIME.

OF COURSE YOU MAY NEED TO REVISIT AND TALK ABOUT SOME DEFINITIONS IN THE BILL AND THE METRIC AND HAVE AN ASSESSMENT OF THOSE, BUT I THINK A SUSTAINABLE TAX CUT IS WHAT WE'RE AFTER FROM THE GET GO SO WE CAN PROTECT EDUCATION WHILE HELPING WORKING FAMILIES.

>> BUT IT'S SAFE TO SAY AFTER TODAY'S MEETING AND THE WORK YOU HAVE DONE, THE GOAL OF GETTING ALL OF THAT 4 PERCENT OFF IS STILL ALIVE AND WELL, JUST A LITTLE MORE COMPLICATED.

>> MOST DEFINITELY.

WE DIDN'T COME THIS FAR TO GIVE UP.

>> IT'S A TOP PRIORITY, I THINK IT'S FAIR TO SAY FOR BOTH OF US.

>> THANK YOU FOR YOUR WORK ON IT.

I KNOW IT'S COMPLICATED LEGISLATION BUT IT'S GOOD TO SEE BIPARTISAN TEAMWORK ON A BIG TICKET ITEM LIKE THIS.

THANK YOU FOR YOUR NAME AND WE WILL SEE YOU AS THE SESSION GOES FORWARD.

>> THANK YOU, TODD.

GREAT TO BE WITH YOU.

>> WE WILL BE RIGHT BACK.

>> THAT'S OUR SHOW FOR TONIGHT.

THANK YOU FOR WATCHING.

WE WILL BE BACK TOMORROW NIGHT AT THE SAME TIME WITH MORE COVERAGE OF THE ALABAMA.

LEGISLATURE RIGHT HERE ON ALABAMA PUBLIC TELEVISION.

FOR OUR "CAPITOL JOURNAL" TEAM AND ESPECIALLY RON RICHARDSON WHOSE SOUTHBOUND TODAY, I'M TODD STACEY.