Issue: Budgets

Funding boosts bring opportunity to invest in Alabama’s future

By Carol Gundlach

Alabama’s broken tax system usually starves our state of money to fund basic responsibilities adequately. But 2022 may be different. Record tax revenues and a surge of federal recovery dollars could allow lawmakers to address longstanding state needs and inequities – if they have the political courage.

State revenues that pay for our schools, including income taxes earmarked for teacher salaries, went up 16% in 2021, according to the Legislative Services Agency. Internet sales taxes and other revenues for non-education programs grew more than 11% in 2021. Alabama also has received federal funds under the American Rescue Plan Act (ARPA) to aid recovery from the COVID-19 recession. Alabama has $580 million remaining in 2021 ARPA funds, plus another $1.06 billion coming in 2022.

Coming fast behind ARPA are federal infrastructure dollars for roads, bridges and public transportation. And if the U.S. Senate passes it, the Build Back Better Act will include new funds for child care, health care and senior services.

Transformative changes for a better Alabama

Legislators already have begun talking about how to spend this money. Alabama Arise believes wise use of these funds can make Alabama a better place for generations to come. Many of our recommendations are in our statement of principles for spending recovery dollars. A few key Arise recommendations include:

  • Untax groceries. Tax cuts should help struggling Alabamians who already pay a disproportionate share of state taxes. Ending the state grocery tax is a good place to start.
  • Expand Medicaid. Federal recovery dollars can help free up state money for Medicaid expansion. This would save hundreds of lives and ensure affordable health coverage for more than 340,000 Alabamians every year.
  • Make the criminal justice system more just. Legislators just made a misguided decision to spend $400 million of ARPA money on new prison construction. They now should invest in meaningful policy changes like sentencing reform and other alternatives to incarceration.

Alabama lawmakers have a chance to make far-reaching and lasting changes in 2022. Arise and our members will work hard to ensure they seize this opportunity.

A year to strengthen our communities

By Robyn Hyden

We can’t even begin to summarize all the momentous federal policy advances realized in 2021 in one newsletter. This year brought passage of the American Rescue Plan Act (ARPA) and the infrastructure package. It brought expansion of the Child Tax Credit. And we hope it will bring the forthcoming passage of the Build Back Better (BBB) Act. That means 2022 will be a year of working diligently to advocate for fair, equitable implementation of these new investments in Alabama.

ARPA provided millions of new dollars in incentive funding to support Medicaid expansion. It also provided $2.1 billion for state COVID-19 relief and $1.9 billion for local governments. Check out our ARPA toolkit at al-arise.local for resources to ensure ARPA funding goes to the priorities we all share to strengthen our communities.

If the Senate passes BBB this month, we anticipate more than 220,000 Alabamians gaining immediate access to no-cost health insurance via healthcare.gov for the next three years. Then the work of enrollment will begin! It’s not a permanent solution to our state’s health care coverage gap, but it would be a major step forward for Alabamians with low incomes. Stay tuned for alerts and ways you can support – and celebrate! – when the time comes.

Alabama Arise toolkit on the American Rescue Plan Act (ARPA)

By Alabama Arise

The American Rescue Plan Act (ARPA) is an unprecedented opportunity for local and state lawmakers in Alabama to invest equitably in an economic recovery that serves Alabamians of all backgrounds. ARPA provides $130 billion in federal funding directly to local governments. This level of aid will help communities across the country shape their recovery from the COVID-19 recession.

Below is a table of contents for the resources in this toolkit. Email info@alarise.org if you have any questions or recommendations for additional resources.

Six principles for allocating Alabama’s ARPA funding
Groups urge Ivey to drive transformative change with COVID-19 relief funds
Poll shows Alabamians support transformative uses of ARPA funds
The State of Working Alabama
Tell us about the priorities in your community!
Additional ARPA resources

To strengthen the common good: Six principles for allocating Alabama’s ARPA funding


The COVID-19 crisis has created enormous new challenges for Alabama, while shining a harsh light on long-neglected ones. To strengthen and expedite recovery, the American Rescue Plan Act (ARPA), passed by Congress in March 2021, is pumping $4 billion into Alabama’s economy through 2024. New funding at this scale can be transformative for our state, but only if we take a transformative approach to how we spend it.

Read more here.

2023 Update:

ARPA funding presents a powerful opportunity for Alabama. For the first time in many years, Alabama has more than enough revenue to maintain its bare-bones public services. That means instead of scrambling to avoid cuts, the legislative focus can be on strengthening investments in our state’s future.

Lawmakers entered a special session in March to allocate Alabama’s remaining $1 billion of ARPA funds. Alabama Arise will keep up the drumbeat for Alabama to use that money to fuel lasting change across our state.

Below is an update from the beginning of the legislative session on plans for the remaining ARPA funds.

Also:

On March 16, Gov. Kay Ivey signed HB 1 to end the special session she called to distribute the remaining federal funds that Alabama received under the American Rescue Plan Act (ARPA). This act provided states with federal funding to help cover losses and expenses incurred because of the COVID-19 pandemic. Lawmakers previously distributed the majority of the funds, leaving $1.06 billion to be allocated in this year’s special session.

Read more on our blog: Alabama lawmakers allocated the state’s final $1 billion of ARPA funds. What comes next?

2022 Update:

In a January 2022 blog post, we detailed six ways Alabama should use ARPA funds to build a better, more inclusive future. Read more here.

Later in January 2022, Arise executive director Robyn Hyden testified about our top ARPA priorities to members of the House and Senate’s General Fund budget committees. She recommended investments in public health, affordable housing, public transportation and technology improvements. Read her full testimony here.

2021-22 Special Sessions:

The Legislature allocated $480 million of ARPA funding to prison construction and health care during two special sessions in 2021. Lawmakers allocated another $772 million of ARPA money during another special session in January 2022. That money will fund a range of services, including hospitals, nursing homes, broadband expansion, and water and sewer improvements.

ARPA 101:

In a June 2022 blog post titled “ARPA 101: How the American Rescue Plan Act can build a more equitable Alabama,” Arise’s Rebecca Howard detailed what has happened so far with ARPA funds and how remaining funds can be used on initiatives such as affordable housing, public transportation and food security.

Groups urge Ivey to drive transformative change with COVID-19 relief funds

Alabama should build a more equitable and inclusive future by using federal COVID-19 relief money for transformational investments in public health and economic opportunity, according to a letter that 42 churches and organizations across the state sent to Gov. Kay Ivey in July 2021. Alabama Arise is among the groups that co-signed the letter. Read our news release here.

Poll shows Alabamians support transformative uses of ARPA funds

Alabama’s likely voters overwhelmingly support using federal COVID-19 relief funds to increase funding for mental health and rural hospitals, according to an Alabama Arise poll released in January 2022. Sizable majorities also approved of other potential uses of ARPA money to improve living conditions for children and families. Those proposals include expanding child care, establishing a state child tax credit and investing in affordable housing and public transportation. Read the full poll results here.

The State of Working Alabama

In The State of Working Alabama 2021, Alabama Arise explored COVID-19’s significant and negative impacts on the state’s workforce. We also looked ahead to outline a state and federal policy agenda for repairing the damage – not by repeating the policy mistakes of the past, but by charting a new path toward a more equitable economy marked by broadly shared prosperity.

Tell us about the priorities in your community!

Additional ARPA resources

Arise legislative recap: Nov. 9, 2021

By

Arise policy analyst Dev Wakeley looks back at the Alabama Legislature’s second special session, which ended last week. Dev discusses lawmakers’ actions related to redistricting and COVID-19 vaccinations, as well as federal relief funding for hospitals and nursing homes.

Recovering from Alabama’s costly mistake on COVID-19 recovery funds

By Dev Wakeley

This post originally appeared on the Economic Policy Institute’s blog.

When the Alabama Legislature gathered for a special session in September, it made a shortsighted and costly mistake. Lawmakers chose to allocate $400 million in American Rescue Plan Act (ARPA) money ‒ about 20% of Alabama’s federal COVID-19 relief funds ‒ to help finance a $1.3 billion prison construction plan.

Alabama prisons are decrepit, dangerous and massively overcrowded. The U.S. Department of Justice (DOJ) has sued the state over the unconstitutional conditions in the institutions. Moreso, raiding funds designed to help people and communities recover from pandemic-related economic distress will do nothing to make Alabama more humane and inclusive. That is particularly true when Black Alabamians are three times more likely to be incarcerated than white Alabamians due to discriminatory practices in policing and incarceration.

The state has a better path to build a more sensible criminal justice system and avert a looming federal takeover. New buildings to house the same old problems won’t get us there. Real change will require meaningful changes to sentencing and reentry policies.

Sentencing reform is vital to build a more humane criminal justice system in Alabama

Alabama’s sentencing scheme still relies on outdated ideas about punishment and limits availability of services shown to improve reentry. One example is the state’s Habitual Felony Offender Act (HFOA), which increases sentences for even minor offenses. Like other mandatory minimum laws, it is a relic of earlier racially motivated “tough on crime” practices and leads to higher rates of incarceration throughout the South.

The Legislature made minor improvements to the HFOA in 2015 but refused to make them retroactive. That failure has left hundreds of Alabamians still serving sentences for convictions that today would result in less time under current presumptive sentencing guidelines.

Alabama Arise supports full repeal of the broken HFOA. Until then, the state at minimum should ensure people aren’t serving wildly different sentences for the same conviction.

Those efforts have been an uphill battle for reform advocates. During September’s special session, lawmakers failed to pass a bill to allow some people to petition for resentencing under current standards. Legislators also have failed in recent years to expand medical release and releases for older people who have aged out of reasonable likelihood of recidivism. Efforts to expand and improve diversion programs have stalled as well.

All of these policies would save Alabama money in the long run. They also would demonstrate respect for the humanity of incarcerated people. But legislators have chosen not to act.

This persistent refusal to engage in meaningful reform may cost Alabama dearly. Failure to take even small steps to reduce overcrowding and improve atrocious conditions may spur the DOJ to conduct a wholesale takeover of the state’s prison system. If that happens, the Legislature will have only its own inaction to blame.

How federal aid should help Alabamians

The consequences of prioritizing bad spending go beyond federal intervention in the broken prison system. ARPA relief funds represent an opportunity to move Alabama forward in many areas that would increase opportunity and stability for people across the state.

Provide health care to hundreds of thousands of uninsured Alabamians

More than 220,000 Alabamians live in a Medicaid coverage gap. They make too much to qualify for Medicaid under the state’s bare-bones eligibility limits but too little to qualify for subsidized coverage through the Affordable Care Act. Another 120,000 Alabamians have stretched their finances seriously to pay for coverage they can’t truly afford.

Federal ARPA funds would allow Alabama to expand Medicaid. Alabama could use these dollars to meet other critical spending priorities. This would free up state funds to pay for the startup of an expanded Medicaid program to cover adults left out of coverage.

Update infrastructure and invest in equity

Alabama should use ARPA funds to update and expand infrastructure and support services. Economic fallout from the COVID-19 pandemic has placed a disproportionately heavy burden on women, Black Alabamians and communities with few resources upon which to fall back. Investments in child care, expanded early childhood education and long-term postpartum health coverage would deliver major improvements in quality of life for people hit hardest during the pandemic.

Federal relief should be used both to lessen the pandemic’s immediate harm and to break the pattern of long-term, intentional disinvestment in the Black Belt and other areas. Community-based organizations offer valuable connections and expertise to guide investment to where it is needed. The state should ensure these groups have the capacity and pathways to provide input on best uses for relief money.

Finish implementing solutions on housing and public transportation

ARPA funds also represent an opportunity to take steps forward where lack of political will has hindered full implementation of state solutions. Within the past decade, the Legislature created both the Public Transportation Trust Fund and the Affordable Housing Trust Fund (AHTF). It also has failed to provide a single dollar for either.

Transportation investment would improve quality of life for everyone. Robust public transit creates long-term, high-wage jobs and enables people to get to work reliably and inexpensively. It is a vital public good that helps older people and people with disabilities fully participate in public life.

Housing investment would help alleviate the state’s severe affordable housing shortage. State AHTF funding would increase community resilience by allowing struggling families to spend less of their incomes to keep a roof over their heads. It also could help speed up rental assistance and prevent evictions during future recessions.

Increase transparency and modernize technology

Alabama’s technological infrastructure has lagged behind contemporary standards. Early in the pandemic, this resulted in major delays of unemployment insurance payments. The patchwork of IT systems at all levels of state government has contributed to public confusion and delays. Technology investments would reduce duplication of effort and increase public access to the public’s information.

A new path forward

ARPA provides a generational opportunity to begin remedying policy shortcomings that have held back progress, perpetuated inequality and furthered Alabama’s history of racist policy choices. This chance is too valuable to waste by doubling down on past failures like foolish and overly punitive criminal justice policy.

The Legislature’s recent misuse of $400 million is inexcusable, but this bad decision has not blocked the path forward. The remaining ARPA funds are a chance to invest in adequate resources and transparent, responsive government. Our state must seize this opportunity to improve life significantly for every Alabamian.

Alabama Arise unveils members’ 2022 roadmap for change

By Chris Sanders

Sentencing reform and voting rights expansion are two key goals on Alabama Arise’s 2022 legislative agenda. Members voted for Arise’s issue priorities this week after nearly 300 people attended the organization’s online annual meeting Saturday. The seven issues chosen were:

  • Tax reform, including untaxing groceries and ending the state’s upside-down deduction for federal income taxes, which overwhelmingly benefits rich households.
  • Adequate budgets for human services like education, health care and child care, including Medicaid expansion to make health coverage affordable for all Alabamians.
  • Voting rights, including automatic universal voter registration and removal of barriers to voting rights restoration for disenfranchised Alabamians.
  • Criminal justice reform, including retroactive application of state sentencing guidelines and repeal of the Habitual Felony Offender Act.
  • Death penalty reform, including a law to require juries to be unanimous in any decision to impose a death sentence.
  • Payday and title lending reform to protect consumers from getting trapped in debt.
  • Public transportation to help Alabamians with low incomes stay connected to work, school, health care and their communities.

“Arise believes in dignity, equity and justice for all Alabamians,” Alabama Arise executive director Robyn Hyden said. “Our 2022 issue priorities would break down many of the policy barriers that keep people in poverty. We must build a more inclusive future for our state. And together, we will.”

Graphic listing Alabama Arise's 2022 issue priorities

The urgent need for criminal justice reform

Alabama’s criminal justice system is broken, and its prisons are violent and dangerously overcrowded. Exorbitant court fines and fees impose heavy burdens on thousands of families every year, taking a disproportionate toll on communities of color and families who already struggle to make ends meet. And Alabama needs investments in mental health care, substance use disorder treatment, community corrections and diversion programs to help stem the tide of mass incarceration.

Lawmakers’ plan to spend hundreds of millions of dollars on new prisons is not an adequate solution to these problems. Alabama must enact meaningful sentencing and reentry reforms to make its corrections system more humane and effective. Legislators took a good first step during this week’s special session by passing a bill by Rep. Jim Hill, R-Moody, to provide supervised release for everyone leaving prison in Alabama.

Many other needed changes still remain on the Legislature’s plate, however. One important priority is Hill’s proposal to allow judges to apply Alabama’s new sentencing guidelines retroactively. The House declined to vote on that bill this week, but Hill has promised to file it again in 2022. Hundreds of people would be eligible to apply for a reduced sentence if the measure passes.

Arise also will continue to work toward repeal of the Habitual Felony Offender Act (HFOA), the state’s “three-strikes” law. The HFOA is a driver of sentencing disparities and prison overcrowding in Alabama. The law lengthens sentences for a felony conviction after a prior felony conviction, even when the prior offense was nonviolent. Hundreds of people in Alabama are serving life sentences for non-homicide crimes because of the HFOA. Thousands more have had their sentences increased as a result. Repealing the law would reduce prison overcrowding and end some of Alabama’s most abusive sentencing practices.

Protect and expand voting rights so every voice is heard

Arise members provided a resounding endorsement of efforts to protect and expand voting rights in Alabama. This includes support of federal legislation to prevent voter suppression and strengthen the Voting Rights Act. And it includes calls for numerous state-level improvements to promote greater civic engagement and increase access to voting.

One such improvement would be automatic voter registration (AVR) across Alabama. AVR would use information the state already has to register or update registrations electronically for hundreds of thousands of Alabamians. Another important step would be to ensure people who struggle to make ends meet are not denied the right to vote simply because they cannot afford court fines and fees.

“Our ability to progress as a state will be limited as long as any person or group is unable to exercise their constitutional right to vote,” Hyden said. “We urge Alabama lawmakers to protect and expand voting rights by instituting automatic voter registration and lifting barriers to voting rights restoration.”

Thousands in Alabama at risk of homelessness after Supreme Court overturns eviction moratorium

By Dev Wakeley
Affordable housing advocates rally outside the Alabama State House in Montgomery in 2015.

Tens of thousands of Alabamians are at risk of losing their homes after the U.S. Supreme Court overturned the new Centers for Disease Control and Prevention (CDC) eviction moratorium on Aug. 27. This moratorium — the latest in a series at the state and federal level — would have allowed renters harmed by the COVID-19 recession more time to apply for and receive federal rental assistance funds through local agencies.

The moratorium’s end has increased the urgency for Alabama to ramp up distribution of that money. The state had distributed less than 3% of its federal rental assistance funds as of Aug. 30, according to the National Low Income Housing Coalition (NLIHC).

In Baldwin County, a COVID-19 hot spot, 86% of vetted applicants have been determined eligible for assistance. But only 5.8% of total applicants have received money. More than 1,000 households in that county alone now face eviction if their funds do not arrive before the eviction cases are heard. Removing the moratorium will fuel a harmful, avoidable increase in evictions leading into winter. This decision will put thousands of Alabamians at risk of homelessness or force people into already-crowded shelters while the delta variant rages through the state.

The full resumption of the eviction crisis magnifies the need for Gov. Kay Ivey to renew state-level eviction protections like those she instituted in April 2020. Alabama Arise also has asked courts to direct renters and landlords to available rental assistance when a landlord files for eviction. These steps could prevent many evictions even if Congress and state authorities continue their failure to protect renters.

Resources for immediate assistance

To seek help paying rent, check Arise’s rental assistance resource guide or the NLIHC’s website at nlihc.org/rental-assistance to find the local agency serving your area. If your landlord serves you an eviction notice, call Legal Services Alabama at 866-456-4995. If you become homeless due to eviction or another reason, call 2-1-1 for shelter referral and rehousing assistance.

Alabama Arise’s administrative advocacy: Big wins in the policy margins

By Robyn Hyden

Unlike legislative advocacy, administrative advocacy is an aspect of Alabama Arise’s work we don’t talk about often. Yet that’s where some of our biggest policy wins happen.

State agencies and leaders can accomplish some important policy changes via rule changes. Sometimes legislators pass policies with good intentions, but administrative barriers and red tape stop them from being fully effective. Our members and constituents often help identify barriers to remove.

Given the nature of Alabama politics, it’s strategically important at times to keep some changes under the radar. But in recent years, administrative action has led to big steps forward on some top Arise priorities:

  • Streamlining the process to access Medicaid, SNAP food assistance and TANF income assistance.
  • Creating more openings for Medicaid home- and community-based long-term care services.
  • Expanding the emergency flexibility of Medicaid and SNAP to respond to the COVID-19 pandemic via emergency waivers, and expanding the types of support available to TANF participants.
  • Stopping onerous Medicaid work penalty proposals.
  • Advocating for transparency and equitable distribution of federal COVID-19 relief funding.

As we see new opportunities to expand and shore up the social safety net this year, a portion of our policy advocacy work will continue to be this type of behind-the-scenes administrative analysis and advocacy.

One example we’re working on now: pushing the Alabama Housing Finance Authority to distribute federal rental assistance more quickly. We’re also working with local advocates to streamline how city and county aid gets out into communities.

If you see a way programs aren’t being implemented effectively in your community, let us know! We’re continuing to expand our ability to track and support this type of advocacy. And we’re looking for new ways to engage more directly impacted people in our feedback to state agencies and decision-makers.

Special session(s) ahead in Alabama? How Arise is preparing

By Chris Sanders

Alabama Arise’s work for equity, justice and opportunity persisted after the Legislature’s regular session ended. We’ll renew our commitment to those principles when Arise members choose 2022 issue priorities after the Sept. 25 annual meeting. And we’ll keep up the drumbeat when lawmakers return later this year for one or more expected special sessions.

Alabama’s overcrowded and antiquated corrections system – a decades-long humanitarian crisis – may prompt a special session this fall. Gov. Kay Ivey and many legislators hope to build and renovate multiple prisons. Alabama may seek federal permission to use COVID-19 relief money for those purposes.

Arise believes meaningful sentencing reforms should accompany any plan for new prisons. Repeal of the outdated Habitual Felony Offender Act would be one long-term step to reduce overcrowding. Parole reform and stronger investments in community corrections and reentry supports would help as well. Arise will advocate for these policy changes and others during any prison-related special session.

Redistricting is another likely focus of a special session. Legislators will use new Census data to draw new districts for the Legislature, state school board and U.S. House. Arise urges members to participate in public hearings that the Joint Reapportionment Committee will hold across Alabama this month. Click here for more information and a full hearing schedule.

Arise will continue advocacy on federal funds, too. We’ll support efforts to make recent Child Tax Credit improvements permanent. We’ll urge legislators to use federal relief money for Medicaid expansion, public transportation and other long-term investments. And we’ll seek to build on an August federal rule change that permanently boosted Supplemental Nutrition Assistance Program (SNAP) benefits.

42 Alabama groups urge Ivey to drive transformative change with federal COVID-19 relief funds

By Chris Sanders

To strengthen the common good: Six principles for allocating Alabama's American Rescue Plan Act funding

Alabama should build a more equitable and inclusive future by using federal COVID-19 relief money for transformational investments in public health and economic opportunity, according to a letter that 42 churches and organizations across the state sent to Gov. Kay Ivey this week. Alabama Arise is among the groups that co-signed the letter.

The American Rescue Plan Act (ARPA) will provide Alabama $2.3 billion of federal assistance for education and other vital services. Local governments across the state will receive another $1.7 billion.

Affordable housing, education, nutrition and public transportation are a few key areas of need identified in the letter. The letter urges Alabama to use ARPA funds to expand Medicaid, increase broadband internet access in underserved areas and increase funding for child care, early childhood education and mental health care, among other investments.

“New funding at this scale can be transformative for our state, but only if we take a transformative approach to how we spend it,” the letter says. “For too long, Alabama’s leaders … have settled for poor outcomes in health, education, community development and other measures of shared prosperity, because they thought we couldn’t tackle such deep problems. The pandemic is challenging us to reclaim – and redefine – the common good. ARPA funding gives us a rare opportunity to meet the challenge, if we’re willing.”

The full letter, “To Strengthen the Common Good: Six Principles for Allocating Alabama’s ARPA Funding,” is available here.

Principles for effective, transparent use of ARPA money

COVID-19 and its associated recession exacerbated preexisting racial, gender and regional disparities that prevent Alabama from reaching its full potential. Enduring recovery will require breaking away from a mindset of scarce resources and limited opportunities, the letter says.

The letter encourages state leaders to allocate ARPA funds using these six principles as a framework:

  1. Engage local communities at every step.
  2. Aim for equity in outcomes.
  3. Maximize well-being by addressing health in all policies.
  4. Invest in existing assets and capacities to help funds work faster, go further and avoid duplication.
  5. Think big and create a 21st-century infrastructure for the common good.
  6. Build public trust and engagement by following the highest standards of documentation, transparency and accessibility of information about funding awards and expenditures.

Investments to increase equity, expand economic opportunity in Alabama

ARPA funds offer the state an opportunity to lift communities toward better health and broadly shared prosperity. They also can help Alabama address chronic challenges in education, health care, housing and other quality-of-life measures. Among the letter’s key recommendations for allocation of ARPA funds:

  • Expand Medicaid to save lives and ensure health coverage for more than 340,000 Alabamians with low incomes.
  • Invest in mobile mental health crisis services and expand mental health crisis centers and school-based mental health services.
  • Increase funding for in-home early childhood education and in-home services for older adults and people with disabilities.
  • Provide funding for the state’s Housing Trust Fund and Public Transportation Trust Fund.
  • Promote equity in high-speed internet access by targeting earmarked broadband funding to help providers expand into underserved areas.
  • Invest in workforce development by creating subsidized apprenticeships, two-year scholarship programs and subsidized certificate programs for workers with low incomes.
  • Provide a grocery tax rebate and other cash assistance to households with low incomes.

“Recovery from COVID-19 will require Alabama to go beyond a return to an inadequate status quo,” Alabama Arise executive director Robyn Hyden said. “Our elected officials must make better policy choices now to build thriving communities in the future, and ARPA funds offer a powerful pathway to help make that vision a reality. We urge the governor to seize this opportunity to increase public trust and build a brighter, more equitable future for all Alabamians.”