Issue: Budgets

Here’s what Alabama Arise heard from you in summer 2023!

By Presdelane Harris

Alabama Arise listens because we deeply value the input we get from members, partners and most importantly, those directly affected by the work we do together. We depend on what we hear to help guide our issue work and our strategies.

We held three statewide online events this summer: two Town Hall Tuesdays and one public transportation listening session. And we facilitated eight additional listening sessions around the state, engaging a total of about 375 people.

The town halls happened on July 18 and Aug. 8, and the public transit event was Aug. 9. Other meetings took place throughout the summer. This year we are sharing the direct notes and highlights from each of the meetings as recorded during the sessions.

Town Hall Tuesdays & Public Transportation Listening Session

  • Building on our vision: We had three breakout rooms during this session. We asked folks in each group to discuss their thoughts on current issues and to share other priorities they had. Here’s what we heard:

Group One: Participants generally thought Arise should continue working on the current issues. They noted that the issues are interconnected, and that makes it hard to prioritize. Concerns about criminal justice conviction practices were raised, along with the need for continued work on voting rights and Medicaid expansion. Other issues raised were the need for more affordable housing, paying a living wage versus a minimum wage, and the need to discuss the impact of the opioid epidemic on grandparents now raising children because their parents suffer with addiction. Participants also raised reapportionment as an important issue.

Group Two: Participants strongly believed all of the Arise priority issues are important and that we should continue to work on them. Some of the specific issues lifted up were transportation, voting rights, payday lending and Medicaid expansion. Some issues that are not current Arise priorities raised were housing, disability, mental health access and accountability and prison reform.

Group Three: Medicaid expansion received the most support for continued work. Several people voiced prisons and criminal justice as a concern, including the need for prison reform and bail reform. Voting rights and the concern about the many voter suppression bills was a high-priority topic. Participants discussed passionate concern about payday loans, and the group supported the present slate of issues.

  • Building on our hope: We had three breakout rooms during this session. We asked folks in each group to discuss what motivates them to act on issues and how Arise supports their actions. We also asked them to indicate their priority issues. Here’s what we heard:

Group One: 

  1. The discussion in the group was hot and heavy concerning voting rights and specifically the absentee ballot application. The group concluded that a no-excuse absentee ballot should be the norm and should be an Arise issue for 2024.
  2. The group felt strongly that the 2023 Arise slate of issues should all remain on the 2024 list of Arise priority issues. Medicaid is an issue we need to keep fighting for, they said.
  3. This group had a primary focus and lengthy discussion around voting rights.

Group Two: 

  1. All members of the group strongly believe all the Arise priority issues are important and that we should continue to work on them.
  2. Members also strongly believe affordable housing and public transportation should receive a strong voice like Medicaid expansion.
  3. Members said that to further our support of advocacy work, Arise can help unite nonprofits and grassroots organizations across the state to work together toward shared goals as opposed to working separately toward shared goals.
  4. Members lifted up our education and lobbying work as essential to connecting the people to those who represent them in the Legislature.

Group Three: Voting rights emerged as a strong theme from this group’s discussion. Participants stressed the importance of voter education and folks making the connection between voting and the policies elected officials make that impact their lives. Other voting themes included restoration of voting rights and engaging younger and BIPOC voters. Other issues raised were around public transportation and the need to fund mental health services. One participant expressed appreciation for the storytelling work Arise does related to Medicaid expansion and urged similar storytelling to help move elected officials around other Arise issues.

  • Public Transportation Listening Session: We had three breakout rooms during this session. We asked folks in each group to discuss what’s needed to improve public transit in Alabama, what strategies are needed to move the issue forward and how public transit impacts quality of life in their communities.

Group One: 

  1. Private companies like Uber and Lyft are not equipped to serve the disability community, group members said. This is very important when talking about transportation for the disability community wherever they may be, rural or urban. In other words, the private companies are not a viable resource, participants said.
  2. Rural linkage: Many rural counties have transportation-on-demand systems, but they only serve the county boundaries. Many health services reside in urban centers, and the rider needs to get from Blount County to UAB or Children’s Hospital in Birmingham. These riders are out of luck. Transfer hubs for rural to urban systems do not exist.
  3. A state transportation planning system is needed to coordinate all the existing public systems, rural and urban. Participants hoped Arise’s forthcoming transit study will shine some light on the need for a statewide public transportation planning entity.
  4. The group felt a need for massive public education around the benefits of public transportation. Somehow, Arise or a group of organizations should seek funding for an advertising budget, participants said.
  1. The real cost of owning a car versus using public transportation. This kind of information should be available to the public.
  2. The fact that public transportation is good for business development throughout the state should be targeted to legislators and local business councils and chambers of commerce.

Group Two: 

  1. This group believes public transportation is essential.
  2. There is a need for more hubs and covered stops for locations that already have public transportation in place.
  3. There is a need for more routes with more frequent buses each hour, as well as drivers who are paid livable wages.
  4. Specific strategies discussed included working with for-profits, chambers of commerce, small businesses and corporations to improve transportation for their employees. Participants also suggested surveying the need for transportation by including a question on applications to ask if transportation is needed.
  5. Public transportation impacts the quality of life across the board: health, food, employment, education, leisure, etc.
  6. People have a right to comfort, dignity, pride and independence that public transportation can provide.
  7. One member said reaching out to people who do not need or use public transportation is important to educate them that they can still benefit from it. It helps reduce traffic and road congestion, decreases likelihood of drinking and driving, and helps people out of desperate situations, which can help decrease poverty and crime.
  8. A member of the Alabama Institute for the Deaf and Blind shared how losing the ability to drive caused depression. But oppression is felt when there are no options for transportation other than relying on friends or family if you have them, or simply being unable to go to doctor’s appointments, shop for groceries or pick up medications when needed.
  9. Some members suggested a public Lyft/Uber service.

Group Three: 

  1. Needs: Money/state funding, alternative models, transit-oriented development at local levels, accessibility, buy-in from agencies like ALDOT, changed perception of public transit.
  2. Strategies/tactics: Collect public transit stories, share statistics on earning power with vs. without good public transit and other data relevant to workforce development, and highlight workforce development as a theme for legislative lobbying. Participants discussed a license plate fee, tire fee or special license plate (like public schools have, for example).
  3. Quality of life: A visually impaired participant described how a trip to the grocery store or polling place only a couple miles away is a $25 Uber ride one way. Another participant who works with clients described how their lack of access to public transit affects not just work but health appointments, visiting DHR to secure SNAP, applications for housing, etc. They also mentioned that even “low-cost” transit can be a barrier to low-income folks who may not have a dollar for a ride.

Additional listening sessions

Following are the brief notes/summaries from eight other sessions our organizers held during the summer. In general, all participants strongly affirmed Arise’s work on the current issue priorities. They also highlighted some other issues of concern.

  • Cullman, July 26 (Stan Johnson) – This was a well-informed group with a lot of comments and questions concerning criminal justice, public transportation, death penalty and new prison construction.
  • Opelika, July 26 (Formeeca Tripp) – This group discussed issues surrounding housing, transportation, food insecurity, health care and the legal system. Housing was a top issue.
  • Zoom, Aug. 3 (Formeeca) – A death penalty group discussed issues related to recent executions in Alabama, as well as upcoming executions nationwide. Participants said more attention and connections are necessary to bring more awareness to death penalty reform.
  • Tuscaloosa, Aug. 7 (Stan) – The most passionate suggestion from this meeting was the need for legislative action to provide funding for mental health.
  • Opelika, Aug. 17 (Formeeca) – Arise conducted listening sessions in the form of a series of small group meetings.

Group 1: Predominantly parents, people of the community and law enforcement. They supported all current issues but wanted to focus on housing and transportation.

Group 2: Predominantly school staff, counselors, superintendents, principals, resource providers, etc. They wanted resources for non-English-speaking families, housing, transportation and effective mental health services.

Group 3: Predominantly youth, teenagers and support staff. They wanted to learn more about their representatives and how to lift up their own voices, as well as better wages and job opportunities.

  • Montgomery, Aug. 17 (Formeeca) – This group discussed their strategic plan to add to the existing public transportation priority issue. They want to add a $1 fee to license plates to fund the Public Transportation Trust Fund.
  • Birmingham, Sept. 10 (Stan) – This group showed special interest in fair housing and criminal justice reform. Voting rights also was a concern to the group, specifically absentee voting bills that may be reintroduced in the upcoming session.
  • Auburn, Sept. 21 (Formeeca) – Students from an Auburn University class filled out a 2024 issue proposal survey form asking them to rank issues of priority. The top three issues that seemed to rank the highest were public transportation, voting rights and criminal justice reform.

At last: Alabama Arise members celebrate grocery tax reduction

By Chris Sanders

The grocery tax bill passed. After more than three decades of persistent advocacy, Alabama Arise members turned that longstanding vision into reality this year. Every Alabamian will benefit as a result, and the benefits will be greatest for families struggling to make ends meet.

This breakthrough highlighted a 2023 regular session during which Arise members made a difference on numerous priorities at the Legislature. Our advocacy helped an important criminal justice reform become law and helped block efforts to undermine voting rights.

What the grocery tax bill will do

Alabamians will begin paying a lower state grocery tax this Labor Day weekend. HB 479, sponsored by Rep. Danny Garrett, R-Trussville, will cut the state sales tax on groceries from 4% to 2% in two steps. The reduction will apply to all items defined as food under the Supplemental Nutrition Assistance Program (SNAP). When fully implemented, the law will save Alabamians the equivalent of about a week’s worth of groceries every year.

The first step will take effect Sept. 1, when the state grocery tax will drop from 4% to 3%. The next reduction, from 3% to 2%, will come in September 2024, as long as Education Trust Fund (ETF) revenues have grown by at least 3.5% over the previous year. If they haven’t, the reduction will occur in the first year when revenue growth does meet that threshold.

We were excited to see more than 120 people participating in Arise’s 2023 Legislative Day on April 11 in Montgomery. Arise’s longtime push to decrease the state sales tax on groceries took center stage, and our members’ energy was palpable. Our supporters’ passionate advocacy, this year and in so many previous years, got the bill across the finish line! Top photo: Arise members and supporters gather in front of the Alabama State House during our Legislative Day. Next: Arise’s McKenzie Burton (left) and Whitney Washington (right) pose for a photo with longtime Arise member Helen Rivas. Next: Policy analyst Mike Nicholson speaks about criminal justice reform. Next: Arise’s Robyn Hyden (right) and Carol Gundlach (left) and Anna Pritchett of AARP Alabama meet with Sen. Andrew Jones, R-Centre, to thank him for championing the fight to untax groceries.

HB 479 also allows (but does not require) cities and counties to reduce their sales taxes on groceries. The law allows localities that reduce their grocery tax to reverse some or all of that reduction later. But localities cannot increase local grocery taxes above their current rate.

Garrett’s bill emerged late in the session but quickly gained overwhelming bipartisan support. The House passed the bill 103-0 on May 25, and the Senate followed with a 31-0 vote June 1. Gov. Kay Ivey signed the bill into law June 15.

Garrett joined with Sen. Andrew Jones, R-Centre, and Lt. Gov. Will Ainsworth to guide HB 479 through the Legislature. But the bill’s passage also rests on the foundation laid by many other legislative champions through the years. They include former Rep. John Knight, D-Montgomery; former Sen. Hank Sanders, D-Selma; Sen. Merika Coleman, D-Pleasant Grove; and Reps. Laura Hall, D-Huntsville, Penni McClammy, D-Montgomery, and Mary Moore, D-Birmingham.

What comes next in our work to untax groceries

HB 479 is a watershed moment in Arise’s work for tax justice. That work will continue. The bill doesn’t eliminate the entire 4% state grocery tax, and it doesn’t replace the revenue. The state grocery tax is an important funding source for public education, bringing in about $600 million annually. That is about 7% of this year’s ETF budget.

“Revenues are strong enough for now to reduce the grocery tax without causing severe harm to education funding,” Arise executive director Robyn Hyden said. “But history tells us that good economic times won’t last forever.”

Legislators this year created a study commission to recommend sustainable ways to eliminate the rest of the state grocery tax. HJR 243, sponsored by McClammy, requires the commission to report its findings and recommendations by November 2026.

Arise will seize that opportunity to push lawmakers to close tax loopholes skewed in favor of wealthy people and highly profitable corporations. One such loophole is the state income tax deduction for federal income taxes (FIT). Alabama is the only state that still allows a full FIT deduction.

The state grocery tax is a cruel tax on survival that drives many Alabamians deeper into poverty. Arise is committed to building on this year’s success and ending this tax forever. With our members’ continued advocacy and support, that is another vision we’ll turn into reality together.

Arise legislative update: June 7, 2023

By Alabama Arise

The Alabama Legislature’s 2023 regular session has come to a close. Arise’s Akiesha Anderson takes us through some big wins – including reducing the state’s grocery tax! – and other highlights from the session. We want to thank you for speaking out to support good bills and oppose harmful bills. Please visit alarise.org and follow us on social media as we continue to bring you updates throughout the year on our work for a better Alabama.

Arise legislative update: May 30, 2023

By Alabama Arise

As the Alabama Legislature’s 2023 regular session begins to wind down, Arise’s Carol Gundlach looks at the House passage of HB 479, a major breakthrough on our longtime goal of reducing the state sales tax on groceries. She also discusses four major budget bills headed to the governor’s desk.

How will the grocery tax reduction law (HB 479) benefit every Alabamian?

By Alabama Arise

HB 479 by Rep. Danny Garrett, R-Trussville, is a grocery tax reduction law that will benefit every Alabamian. Gov. Kay Ivey signed it into law June 15 after it passed the House 103-0 and the Senate 31-0. Below is a look at the principles that make a grocery tax reform bill good, what the new law does and what Alabamians need next.

Alabama Arise supporters gather outside the State House in Montgomery during Arise’s Legislative Day on April 11, 2023. More than 100 Alabamians came to urge their lawmakers to end the state sales tax on groceries.

What makes a grocery tax reform bill good for Alabamians

  • Provides a tax cut for families with low incomes across Alabama (not just wealthy households).
  • Protects education revenue to ensure our children’s classrooms are adequately funded in the years to come.
  • Is broad enough to have a meaningful and long-lasting impact.
  • Provides an immediate grocery tax reduction.

Provisions of the new law

  • Provides a tax cut for all Alabamians, cutting the current 4-cent tax in half as soon as September 2024.
  • Limits detrimental impacts to the Education Trust Fund (ETF) by making this tax cut contingent on projected growth to the ETF.
  • Is a broad, long-term tax cut on a wide range of foods, not just a limited subset.
  • Provides an immediate grocery tax reduction beginning Sept. 1, 2023.

What we need next

  • A complete elimination of the state grocery tax, rather than just part of it.
  • An active replacement of grocery tax revenue in the Education Trust Fund budget, such as elimination of the state deduction for federal income taxes (FIT) and other reforms of Alabama’s upside-down tax system.

Why is HB 479 a good plan to untax groceries?

  • It provides a tax cut on groceries for families with low incomes across Alabama (not just wealthy households).

    • The sales tax on groceries is a cruel tax on survival, driving struggling Alabamians deeper into poverty. The 4-cent state grocery tax costs a family of four about $600 a year, based on estimates using the moderate-cost food plan from the USDA’s cost of food at home reports.
    • This law will reduce Alabama’s 4-cent state sales tax on groceries to 2 cents in two steps. The cut will be 1 cent in 2023 and another 1 cent in 2024, assuming that projected ETF revenues grow by at least 3.5%. If they don’t, the reduction will occur in the first year when revenue growth does meet that threshold. This reduction will be an important step toward eliminating this regressive tax that makes it harder for families to make ends meet.
    • What’s missing? An ideal grocery tax proposal would eliminate the state’s entire 4-cent grocery tax, rather than just half of it. This is a cause for which Alabama Arise will continue to advocate.

  • It protects education revenue to ensure our children’s classrooms are adequately funded in the years to come.

    • Lawmakers should ensure proposals to untax groceries protect funding for public schools while making life better for struggling families across our state. 
    • The law specifies that the second half of the tax cut will occur on Sept. 1, 2024, if projected growth in total net ETF receipts for 2025 is at least 3.5%. If not, the cut will occur in the first year afterward when receipts do grow by that amount.
    • What’s missing? Alabama ultimately needs a concrete replacement for grocery tax revenues in the ETF budget to ensure we are good stewards of our children’s school funding.
      • Phasing out the federal income tax (FIT) deduction, a tax loophole that overwhelmingly benefits the richest 10% of Alabamians, would allow the state to eliminate the entire state grocery tax sustainably. This policy solution also would protect hundreds of millions of dollars’ worth of education funding each year.

  • It is broad enough to have a meaningful and long-lasting impact.

    • This tax cut applies broadly to eligible foods under the Supplemental Nutrition Assistance Program (SNAP), rather than only foods eligible under the Women, Infants and Children (WIC) program. The SNAP definition covers more food items and will make implementation clear. This is a long-term solution, not a one-time or temporary fix.

  • It provides an immediate grocery tax reduction.

    • Beginning Sept. 1, 2023, the state grocery tax will fall to 3 cents. This 1-cent reduction could provide a family of four with an immediate annual tax cut of about $150.
    • As prices continue to rise on many of the essentials that folks need to survive, every dollar helps families across Alabama who are struggling now to make ends meet.

This fact sheet was updated on June 16, 2023, to reflect the final text of HB 479 as enacted.

Arise legislative update: May 22, 2023

By Alabama Arise

Arise’s Akiesha Anderson shares some good news from last week’s action at the Alabama Legislature. Those breakthroughs include the introduction of a House bill to reduce the state grocery tax, with nearly every representative joining as a co-sponsor. We also saw progress on several criminal justice reform bills, including the passage of SB 154, which will ensure far fewer Alabamians will have their driver’s licenses suspended due to inability to pay fines or fees.

Arise legislative update: May 15, 2023

By Matt Okarmus

Arise’s Akiesha Anderson breaks down recent developments at the Alabama Legislature, including the committee approval of a troubling bill that could redirect a large amount of public school funding to private schools. She also discusses legislation we’re excited about, including the continuing progress of a bill that would greatly reduce the number of driver’s license suspensions due to unpaid fines or fees.

Why Arise supports HB 479 / SB 257, a good plan to untax groceries in Alabama

By Alabama Arise

SB 257 by Sen. Andrew Jones, R-Centre, and HB 479 by Rep. Danny Garrett, R-Trussville, are grocery tax reduction bills that would benefit every Alabamian. Below is a look at the principles that make a grocery tax reform bill good, what the bills do and what Alabamians need next.

What makes a grocery tax reform bill good for Alabamians

  • Provides a tax cut for families with low incomes across Alabama (not just wealthy households).
  • Protects education revenue to ensure our children’s classrooms are adequately funded in the years to come.
  • Is broad enough to have a meaningful and long-lasting impact.
  • Provides an immediate grocery tax reduction.

Provisions of the Jones/Garrett legislation

  • Provides a tax cut for all Alabamians, cutting the current 4-cent tax in half over the span of four years.
  • Limits detrimental impacts to the Education Trust Fund (ETF) by making this tax cut contingent on growth in the ETF.
  • Is a broad, long-term tax cut on a wide range of foods, not just a limited subset.
  • Provides an immediate grocery tax reduction beginning Sept. 1, 2023.

What we need next

  • A complete elimination of the state grocery tax, rather than just part of it.
  • An active replacement of grocery tax revenue in the Education Trust Fund budget, such as elimination of the state deduction for federal income taxes (FIT) and other reforms of Alabama’s upside-down tax system.

Why is HB 479 / SB 257 a good plan to untax groceries?

  • It would provide a tax cut on groceries for families with low incomes across Alabama (not just wealthy households).

    • The sales tax on groceries is a cruel tax on survival, driving struggling Alabamians deeper into poverty. The state sales tax on groceries costs the average Alabama family approximately $600 a year.
    • This bill would reduce Alabama’s 4-cent state sales tax on groceries to 2 cents over a multiyear period. The cut would be 1/2 cent per year and ultimately would give the average Alabama family an annual tax cut of about $300. This reduction would be an important step toward eliminating this regressive tax that makes it harder for families to make ends meet.
    • What’s missing? An ideal grocery tax proposal would eliminate the state’s entire 4-cent grocery tax, rather than just a fraction of it. This is a cause for which we will continue to advocate.

  • It would protect education revenue to ensure our children’s classrooms are adequately funded in the years to come.

    • Lawmakers should ensure proposals to untax groceries protect funding for public schools while making life better for struggling families across our state.
    • The bill specifies that the tax cut would occur only if the growth in total net receipts to the ETF in the immediately preceding fiscal year was at least 2% more than the prior fiscal year.
    • What’s missing? Alabama ultimately needs a concrete replacement for grocery tax revenues in the ETF budget to ensure we are good stewards of our children’s school funding.
      • Phasing out the federal income tax (FIT) deduction, a tax loophole that overwhelmingly benefits the richest 10% of Alabamians, would allow the state to eliminate the entire state grocery tax sustainably. This policy solution also would protect hundreds of millions of dollars’ worth of education funding each year.

  • It would be broad enough to have a meaningful and long-lasting impact.

    • This tax cut would apply broadly to eligible foods under the Supplemental Nutrition Assistance Program (SNAP), rather than only foods eligible under the Women, Infants and Children (WIC) program. The SNAP definition covers more food items and would make implementation clear. This is a long-term solution, not a one-time or temporary fix.

  • It would provide an immediate grocery tax reduction.

    • Beginning Sept. 1, 2023, the state grocery tax would be reduced to 3.5 cents. Though the immediate reduction is small, this 0.5-cent reduction would provide the average Alabama family an immediate $75 annual tax cut.
    • As prices continue to rise on many of the essentials that folks need to survive, every dollar helps families across Alabama who are struggling now to make ends meet.

Arise legislative update: May 8, 2023

By Alabama Arise

Arise’s Robyn Hyden provides an update on recent action at the Alabama Legislature, including why we support the latest proposal to reduce the state grocery tax. She also discusses how lawmakers made positive changes to the Education Trust Fund budget and why we oppose bills that would limit voting rights and make life harder for unhoused Alabamians.

This is the moment: It’s time for Alabama to untax groceries

By Chris Sanders

Sen. Andrew Jones, R-Centre, filed legislation Thursday to reduce Alabama’s state sales tax on groceries. Jones’ SB 257 is co-sponsored by all 35 state senators. Alabama Arise executive director Robyn Hyden released the following statement Friday in response:

“Alabama Arise is thrilled to see widespread, bipartisan support from every senator for reducing the state sales tax on groceries. We support Sen. Andrew Jones’ legislation and appreciate the leadership that he and Rep. Penni McClammy have shown on this issue. It’s time for lawmakers to seize this opportunity to untax groceries and improve life for every Alabamian.

Sen. Andrew Jones, R-Centre, briefs Alabama Arise Action supporters about his efforts to untax groceries during Arise’s Legislative Day on April 11, 2023, in Montgomery.

“Reducing and ultimately eliminating the state grocery tax would make it easier for families to make ends meet. It would remove Alabama from the shameful list of three states with no tax break on groceries. It also would be an important step toward righting the wrongs of our state’s upside-down tax system.

“Alabamians with low and moderate incomes pay a higher share of their incomes in state and local taxes than the wealthiest households, and high sales taxes – particularly on food – are a major reason why. Quite simply, there are better ways for Alabama to raise revenue than taxing a necessity of life.

Alabama Arise supporters gather outside the State House in Montgomery during Arise’s Legislative Day on April 11, 2023. More than 100 Alabamians came to urge their lawmakers to end the state sales tax on groceries.

“It will be important, however, to ensure any grocery tax cut doesn’t harm our children’s education in the long term. The state grocery tax brings in more than $600 million a year for the Education Trust Fund. That’s about 7% of this year’s total ETF budget, making it a significant funding source for public schools.

“Revenues are likely strong enough for now to reduce the state grocery tax without causing severe harm to education funding. But history tells us that good economic times won’t last forever. Lawmakers should use the coming months to identify and agree to a lasting solution to replace the state grocery tax.

Sen. Merika Coleman, D-Pleasant Grove, advocates for her plan to untax groceries during Arise’s Legislative Day on April 11, 2023, in Montgomery.

“Arise is open to numerous ideas for replacement revenue. We continue to support Sen. Merika Coleman’s proposal to untax groceries and end the state income tax deduction for federal income tax payments. Alabama is the only state to allow this full deduction, which overwhelmingly benefits wealthy households. Closing this skewed loophole would protect funding for public schools and ensure Alabama can afford to end the state sales tax on groceries forever.

“Alabama Arise members have advocated for decades to end the state grocery tax, and the people of Alabama strongly support this effort. The time for excuses and delays is over. It’s time for our lawmakers to untax groceries.”