Blackwell talks state budget, JeffCo sewer to Leeds Chamber

Published 10:00 am Tuesday, October 4, 2011

With many concerns on the political horizon after the last legislative session and Jefferson County’s financial woes, there was plenty of information to be discussed when Sen. Slade Blackwell, R-Vestavia Hills, addressed the Leeds Chamber of Commerce in September.

With the meeting occurring less than 24 hours before the Jefferson County Commission voted to accept a sewer debt settlement, Blackwell noted that the ongoing crisis was a great concern to Leeds, as well as the rest of Jefferson County.

If all went well, Blackwell said an end to the sewer crisis was in sight.

“This can literally be resolved in about four months,” Blackwell said, noting that when the Jefferson County Commission decided on a course of action, the legislature could possibly take action on forming an independent sewer board, which would take control of the sewers out of the hands of politicians and put it instead into the hands of those who are trained and experienced in handling the intricacies of sewer operation.

He also shared information on the Northern Beltline, a 52-mile loop that would link Bessemer to Clay on I-59.  Blackwell noted that the project will generate more than $7 billion in revenue, 70,000 jobs and $155 million in new taxes during the 22-year construction period.

After it’s up and running, he said it would generate $2 billion in economic improvement, with 20,000 jobs and $54 million in new tax revenue.

The $3 billion project will require a 20 percent match from the state, with 80 percent coming from the federal government.

“Basically, it’s a gift from the federal government,” Blackwell said.

And with a new fiscal year bringing new budget worries, any money from the federal government is welcomed.

Blackwell said 84 percent of the Alabama state budget is earmarked, which gives the legislature no latitude as far as funding levels for certain programs. The national average is about 24 percent of pre-determined spending.

“The people in Montgomery already decided where the money will be going, and I don’t think that’s a very good idea,” Blackwell said.

He also reminded voters that it’s tough to reduce the budget when nearly 60 percent of the state’s yearly expenditures are spent on corrections and Medicaid alone.

One-time funds will be used to cut budgetary shortfalls during the next fiscal year, but Blackwell said we’ll begin the next budget cycle with $240 million in the hole.

Nearly all of the general fund line items have been cut over the last years, and Blackwell said a $400 million rainy day fund is now gone, as well.

However, he said due to a new law passed in the previous legislative session, budgeting woes should decrease beginning with the next budget cycle.

Revenue forecasts that are the basis for budgets will now be based on a 15-year historical average, rather than traditional forecasts which were easily inflated and not always accurate.