Print this story |
E-mail story |
This story has 3 comments Add your own |
iPod friendly | Bookmark this
What is this?
Amendment 1 up to voters
Published Saturday, October 25, 2008
Educators and Gov. Bob Riley are encouraging voters to support Amendment 1 at the polls Nov. 4 to prop up an education budget that may be hampered by low sales tax collections during the nation’s extreme economic downturn.
The amendment expands the rainy day account from $248 million to approximately $437 million, needed, said Riley, to help an already financially strapped Education Trust Fund. The ETF gets the majority of its funding from sales tax and income tax collections.
“You can borrow enough on a line of credit to get through this periods and then pay it back when the economy cycles back up,” Riley told the Birmingham News earlier this month.
featured advertising partner
If voters fail to pass Amendment 1, Riley said lawmakers might have to cut programs that assist school administrators and teachers with teaching reading, math and science classes.
Locally, Superintendent Mike Looney also asked voters to approve Amendment 1.
“I do believe we are facing proration. The passage of this amendment will change how much money we can borrow from the oil fund reserves. Right now, it is six percent of the 2002 budget,” Looney said. “With the passage of Amendment 1, this will be updated to six percent of the 2006 budget. I do encourage you to read up on this and consider voting for it.”
Others aren’t so sure approving Amendment 1 is the right thing to do.
Greenville Republican Tim James, who has announced his candidacy for Governor in 2010, said politicians in Montgomery would greedily drain the oil trust fund once given access.
“This perpetual trust, now grown to $3.3 billion, has yielded billions for worthwhile projects, and will continue to do so, unless voters approve Amendment 1 on November’s ballot,” said James.
“An outcome of Amendment One, if voters approve, will be a continuation of doubling Alabama’s state budget every 10 years. Once the politicians in Montgomery gain access to the Alabama Trust Fund, you can bet that the $3.3 billion trust fund balance won’t last long. Their appetite for spending could lead to higher taxes to pay for the new programs and a bigger state bureaucracy,” he said.
WOULD YOU LIKE TO SHARE THIS STORY?
Comments
Posted by INI (Rob Mello) on October 25, 2008 at 8:45 a.m. (Suggest removal)
I've a novel idea. Since the structure (used VERY loosely) of the Alabama Constitution is such that whenever there's a shortage of money education gets cut first, why don't we re-write the foolish document?
All the nonesense referendums that pertain to home rule and local issues I think we should vote no on EVERY amendment put forth until the Constitution gets teh re-write it so desperately needs. If dynamic/pro-active leadership doesn't come from the top, it's got to come from the bottom.
A snazzy logo might suffie to get it off the ground.
Maybe "NO dessert until you eat your veggies."
Posted by mlooney (anonymous) on October 28, 2008 at 8:26 p.m. (Suggest removal)
I understand how many people are skeptical on this issue. However, please consider what the ammendment really does. Bottom line - It allows us to borrow from a reserve account for a finite period of time. This will reduce our unexpected shortfall in revenue losses (i.e. proration). It provides us with SOME safety net for the shorfall from the budget that has already been approved. All school systems hired teachers and staff based on the budget passed by the legislature. Imagine examining your personal bank statement and making important financial decisions based on information your bank provides. Next you get notice of a banking error in the amount of 6%. What gets cut? The power? No- the food. Perhaps the repo man gets the buses. The truth is that it creates no new taxes, softens the sting of proration but still holds us accountable for staying within budget.
I agree the Constitution is problematic. Our method of funding schools makes about as much sense as removing a splinter with a buzz saw.
Posted by INI (Rob Mello) on October 28, 2008 at 10:34 p.m. (Suggest removal)
Right Mike. So, since getting the COnstitution re-written or making our "elected leadership" do what they should do...perhaps its' time for US to do something they cannot possibly ignore.
Post a comment (Terms of Use Policy)
(Requires free registration.)