Alabama House, Senate clash over aid for state and education retirees

A bill that would provide money for retired state and education employees led to a lengthy debate between Republican and Democratic senators Wednesday.

HB 201, sponsored by Rep. Steve Clouse, R-Ozark, would create a process to create an annual procedure for the future benefit increases to state and education retirees. Education retirees have not had a cost-of-living adjustment (COLA) in benefits since 2007.

The bill passed on a previous roll of 33-1 after the Senate adopted a substitute to allow direct appropriations to the fund from the Legislature and provide retiree benefits. But the House voted 102-0 to reject the changes and send the bill to a conference committee. 

“Years ago, we passed a mechanism for COLA’s for education employees, but it had to be $100 million,” Clouse said. “Of course, we never put any money into it. We were hoping that the gaming bill would start providing some revenues in there to be able to do stuff like that for education and state employees, so obviously that’s not going to provide any revenue here, but we still have that mechanism in place.”

The Senate budget chairs Sen. Greg Albritton, R-Atmore, and Sen. Arthur Orr, R-Decatur, raised concerns about the bill on the Senate floor.

Albritton debated Sen. Clyde Chambliss, R-Prattville, who handled the bill in the Senate, at length over the measure with Albritton.

“The difference that comes into play here between a COLA and a trust fund is that a trust fund can grow in assets and the COLA can grow in expenditures,” said Albritton.

Albritton said that cost of living adjustments could be more expensive than expected.

Chambliss had offered his own substitute which Orr and Albritton had spoken about. Chambliss said his substitute used both mechanisms.

“So what happened in committee is that there was a substitute that basically hijacked this whole bill and threw that mechanism out, it threw it in the trash and put in a mechanism for bonuses,” he said.

Orr later said that “probably you’re looking at the culprit of the hijack of your bill” to Chambliss. 

In recent days, Orr has criticized the House for removing $5 million intended for a trust fund for state retirees..

Chambliss, shortly after Orr began speaking, yielded his microphone to Sen. Rodger Smitherman, D-Birmingham, who supported the bill.

Smitherman filibustered at length and said he supported retirees.

“The two whips going to hook up together,” he said. We’re going to whip this one in line.”

Smitherman and Chambliss serve as whips for their respective parties. 

Sen. Merika Coleman, D-Pleasant Grove, joined Smitherman for discussion. She said that if gambling, a major topic of discussion in the session and supported by all Senate Democrats, had passed, then the funding would be available and not a discussion.

“The potential for revenue that we could have had, we could have shifted some other things around and then we wouldn’t even be talking right now,” she said. 

Chambliss had moved to carry the bill over at the call of the chair, and the bill was later brought back with the Chambliss substitute. It was adopted 33-1. Albritton was the sole no vote.

“I think I’m okay with it, but at the same time they want to go to conference and continue talking about it,” Clouse said.