Published On: 03.24.15 | 

By: Keisa Sharpe

Bentley traveling state, pushing tax incentives

Bentley-Freightcar Alabama jobs

Gov. Robert Bentley kicked off a statewide tour Monday to drum up support for legislation he wants to see passed this session dealing with both economic development incentives and taxes.

Gov. Bentley BBA

Gov. Robert Bentley kicked off his state tour Monday, addressing the crowd at The Harbert Center in downtown Birmingham.

In a meeting organized by the Birmingham Business Alliance with about 100 business and community leaders at Birmingham’s Harbert Center, Bentley found a receptive audience when it came to improving the state’s economic development incentives.

Three of the five bills in the governor’s incentives package have been introduced this legislative session, with two more set to be introduced. Economic developers and the business community have been vocal supporters for the more modern incentives that focuses on job creation in addition to capital investment. You can read more about that package here.

However, even Bentley recognized finding support for his $541 million tax package among either the business community or the Legislature is a more challenging proposal. Bentley said the tax changes are as much a part of making taxes fairer in the state as they are about addressing a 2016 budget shortfall of more than $250 million.

Governor Bentley luncheon 2

Gov. Bentley joins Birmingham Mayor William Bell and Oxford Pharmaceuticals officials after the company announced, in November 2014, it would build its first U.S. manufacturing facility and create 200 jobs.

“There are a lot of unfair taxes out there, folks,” Bentley said. “There is a lot of taxing that is just not fair.”

From businesses that don’t pay state income taxes to an unidentified insurance company that is the only one to receive a special $40 million tax break, Bentley said he has worked with the revenue department to find the “least egregious” increases that would make taxes fairer.

Bentley said he ran on a “no new taxes” pledge in 2010 because the state’s budget problems were hidden under a $4 billion federal government bailout. However, that money is gone and the state has borrowed against its “rainy day funds,” leading to the projected $260 million shortfall next fiscal year.

“This is halftime in our eight-year administration,” Bentley said. “You win in the third and fourth quarters at a football game.”

Gov Bentley meeting biz execs

Gov. Bentley meeting with business executives across the state last November, including Alabama Power’s Chairman, President and CEO Mark Crosswhite.

Bentley said he believes all of the substantive cuts have been made in state government to save money and the only solution left is to raise revenue. That requires tax increases and he believes the public will support fair tax increases.

“I’m not trying to call it something other than taxes,” he said. “It is taxes.”

Bentley said he knows the Republican-led Legislature is not going to support his entire plan but he hopes they acknowledge that some new taxes are needed. He hopes the legislators will address the budget shortfall using his plan, one of their own or a combination of the two.

However, the need for additional revenues will not go away and neither will Bentley’s call for them, he said.

“Now we’ve got four more years to solve this problem and I’m telling you if I have to have 10 special sessions, we’re going to get it done,” Bentley said.

Bentley said in an interview after his address he would like to have the BBA endorse the tax plan.

“The BBA thanks Gov. Bentley for coming to Birmingham first and sharing his thoughts with the business community,” said Brian Hilson, president and CEO of the Birmingham Business Alliance. “We acknowledge the state’s financial realities and in the coming weeks we will review the proposal. Following that we will look forward to working with the governor and our legislative leadership as they address these challenges.”

The BBA has already endorsed the governor’s incentives package.

 

Mike Tomberlin