During this week's broadcast of Alabama Public Television's "Capitol Journal," House Speaker Nathaniel Ledbetter (R-Rainsville) defended the legislature's decision to allow the 2023 overtime tax cut to expire.
In place of the overtime tax extension, lawmakers opted to cut the state's share of the so-called grocery tax from 3% to 2%, effective on September 1.
According to Ledbetter, given that the tax exemption exceeded the projected $30 million in revenue losses for the state, if extended, it would have come "out of the classroom," referring to the education budget.
"It's not easy, and the prime example is the overtime tax," he explained. "It's something that I supported. I thought it was a good bill. You know, the fiscal note we got was $30 million. Well, it wound up, it is going to be like $320 million. What people have got to understand is that $320 million comes out of the classroom. It comes away from students, teachers and schools across the state. We've got schools in our state that are in desperate repair as far as construction or the building. So, that money could be spent for a new classroom or it could be spent to update the classroom or tear down some of these old classrooms in rural Alabama."
"So it's not that easy," Ledbetter added. "If you just had all the money in the world, that would be great. But we don't. I think you've got to be fiscally conservative. I think that's why we're in the shape we're in from the budgetary standpoint. It's because we have been fiscally conservative. And that proves it, I think, with the two budgets we've had this year. But you've got to be mindful of that. You can't throw the baby out with the bath water, as the old saying is. So, I think it's important we understand, you know, if we went with the full implementation of the overtime tax, it would have been something that would have been taking away from education."
Jeff Poor is the editor-in-chief of 1819 News and host of "The Jeff Poor Show," heard Monday-Friday, 9 a.m.-noon on Mobile's FM Talk 106.5. To connect or comment, email [email protected] or follow him on Twitter @jeff_poor.
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