The Post Online - Lindsey looks back on legislative session

May 12, 2008

Lindsey looks back on Legislative session

CENTRE – Dist. 39 state Rep. Richard Lindsey, D-Centre, spoke exclusively with The Post last week about the progress the state Legislature has made so far this session and what they hope to accomplish in the one day that remains.

Lindsey said the Alabama Senate worked into the evening hours on May 8 to try and pass dozens of bills. Hundreds of pieces of legislation have been stonewalled by bickering factions of senators since the current session began in February.

Lindsey said the most important bill he is looking forward to seeing the Senate vote on when the Legislature meets for the final time on May 19 is the state's $6.3 billion education budget. Lindsey is the chairman of the House education budget committee.

“The thing that the education budget hinges on is House Bill 350, which will close a tax loophole that out-of-state corporations use to avoid paying income taxes in Alabama,” he said.

Lindsey explained that companies including Wal-Mart, Lowe's, Home Depot and Target run profits generated in Alabama through a series of self-owned corporations, then charge themselves astronomical rental fees on their own buildings. The phony overcharges allow the companies to claim a negative profit margin for the year and avoid paying state sales taxes.

“It's not fair to businesses that are based in Alabama because they have to pay the taxes,” he said. “We want to change that because if we don't we're going to have a $67 million shortfall in the education budget.”

Lindsey said another education-related issue the Legislature is dealing with as they close in on the final day is funding for secondary education. Because of the declining economy, the proposed education budget is $375 million less than the current budget. Lindsey said secondary education spending has been cut by 11 percent -- compared to only 2.5 percent for K-12 schools and 8 percent for two-year colleges -- because universities have more avenues other than state funding to turn to for income.

“K-12 schools really have no other way to generate revenues other than what they are given by the state,” Lindsey said.

Lindsey said he'd also like to see an education-related bill of his creation pass this time around.

“The bill will allow annual contributions to the Alabama College Education Savings plan of us to $5,000,” he said. “But we'll have to pass a companion bill that will make up that income in order to pay for it.”

Lindsey said he's hopeful the bill the Legislature will eliminate the state's sales tax on food.

Another bill of local interest did not pass on Thursday, but Lindsey said that does not mean the bill is dead.

The bill would allow a voters to hold a referendum to approve alcohol sales in any town in Alabama with a population of 2,500 or more. Towns such as Cedar Bluff that do not meet the population requirement but already have legalized alcohol would be grandfathered in and allowed to continue sales.

“It's still out there and eligible to be passed on the final day,” he said.

Lindsey said the ongoing battle with Exxon Mobil over tax payments for off-shore oil drilling has been poorly handled by Gov. Bob Riley.

"The governor should have been out using his bully pulpit to generate support for the legislation we've been trying to pass to stop Exxon from making what we consider illegal deductions that prevent them from paying taxes they rightly owe the state," Lindsey said. "If he had done a better job the legislation would have had a lot more support in the Legislature."

Lindsey said he believes Riley will have to call the Legislature into special session sometime before September in order to replace millions that are missing from the state's general fund because of the loss of revenue caused by Exxon's accounting practices.