MONTGOMERY – Governor Kay Ivey on Thursday issued the following statement in response to the passage of SB161, the FY 2020 General Fund supplemental appropriations bill that would appropriate federal CARES Act funds.
“Unlike other emergency relief bills that have been passed by Congress during recent disasters, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law by President Trump on March 27th with the clear intent of reimbursing only those expenses incurred due to the COVID-19 pandemic. Moreover, this obligation is for a period that begins on March 1, 2020, and ends on December 30, 2020, meaning if this money isn’t spent, not just allocated, by the end of this year, it goes back to the U.S. Treasury.
“Alabama’s total share of the CARES Act funds is a little over $1.9 billion. That’s a lot of money for sure, and if spent wisely, it could very well help us pay for many legitimate expenses incurred by cities, counties and the state, nursing homes and hospitals, schools and colleges — and other worthy expenditures – that are directly connected to COVID-19.
“This afternoon, I sent a letter to each member of the Legislature to inform them I intend to sign both the FY 2021 General Fund Budget and the FY 2021 Education Trust Fund Budget. Additionally, I will be proposing an Executive Amendment to SB161 to ensure that the CARES Act money is immediately put to use for the purposes Congress and President Trump intended.
“I have known many in the legislature for a long time and have built many lasting, true friendships. Like any working relationship, you will have occasional disagreements. Tension can be a good thing if you allow it to birth good ideas; we must not allow ego or personal agendas to outweigh the public good. My firm opinion remains that most members of the Legislature want to do the right thing while making certain this money helps the people of Alabama who have been harmed by this disease.
“There are over 10,700 people who have currently tested positive and 450 have died in the last two months from this disease. Also, over 450,000 people have filed for unemployment compensation, which is more than the last two years combined. While no one could have predicted COVID-19, it is easy to conclude this pandemic has touched every aspect of our daily lives.
“I look forward to working with the Legislature on Monday and in the days ahead.”
STATE OF ALABAMA ~ Executive Amendment
MESSAGE FROM THE GOVERNOR
May 18, 2020
Alabama Senate
Alabama State House
Montgomery, Alabama 36130
Ladies and Gentlemen:
I have reviewed Senate Bill 161 and believe that all federal CARES Act funds should be appropriated immediately.
For this reason, I am returning to you, the body in which it originated, Senate Bill 161 without my signature and with the below executive amendment:
Executive Amendment to Senate Bill 161
Please amend Senate Bill 161 on page 3 by deleting lines 9 through 22 in their entirety, and replacing it with the following language:
(b) Providedt however, this section shall not apply to the state Coronavirus Relief Fund amounts provided by the Congress of the United States to the State of Alabama from the Coronavirus, Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) not already expended prior to the effective date of this act or to any additional federal stimulus funds provided to the state to offset revenue losses or for purposes directly related to the coronavirus pandemic, other than additional funds provided directly for existing federal programs.
(1) The Coronavirus Relief Fund amounts provided by the Congress of the United States to the State of Alabama from the Coronavirus, Aid, Relief, and Economic Security (CARES) Act (P.L. 1 16-136) are appropriated to the Department of Finance to be used as follows:
a. Up to to be used to reimburse state agencies for expenditures directly related to the coronavirus pandemic.
b. Up to $250,000,000 to be used to reimburse local governments for expenditures directly related to the coronavirus pandemic.
c. Up to $250,000,000 to be used to support the delivery of healthcare and related services to citizens of the Alabama related to the coronavirus pandemic.
d. Up to $300,000,000 to be used to support citizens, businesses, and non-profit and faith-based organizations of the state directly impacted by the coronavirus pandemic.
e. Up to $53,000,000 for the reimbursement of equipment and infrastructure necessary for remote work and public access to the functions of state government directly impacted by the coronavirus pandemic, including the Legislature.
f. Up to $300,000,000 for expenditures related to technology and infrastructure related to remote instruction and learning.
g. Up to $200,000,000 for reimbursement of costs necessary to address the coronavirus pandemic by the Department of Corrections.
Up to for the reimbursement of costs necessary to ensure access to the
h.
courts during the coronavirus pandemic.
i. $5,000,000 to reimburse the State General Fund for supplemental appropriations to the Alabama Department of Public Health.
j. Up to $118,346,250 for any lawful purpose as provided by the United States Congress, the United States Treasury Department, or any other federal entity of competent jurisdiction.
(2) Any of the above funds may be used to provide a temporary loan to the Education Trust Fund and/or the State General Fund in the amount equal to delayed tax receipts due to changes in tax filing provisions implemented after the declaration of the public health emergency regarding COVID-19.
(3) Prior to any expenditure of more than $2,500,000 in any of the categories listed above, the Director of Finance shall provide fourteen days written notice to the Speaker of the House of Representatives, the President Pro Tempore of the Senate, the majority and minority leader of each house of the Alabama Legislature, and the Chair of each budget committee. This notice may be delivered electronically to Deputy Director of the Legislative Services Agency, Fiscal Division for distribution.
(4) In the event that any ofthe appropriations to any of the categories listed above needs to be adjusted for the utilization of available funds, the Director of Finance shall obtain unanimous approval by the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Chair of each budget committee of the Alabama Legislature to re-allocate funds within the categories listed above prior to any such reallocation.
(5) In the event the United States Congress, the United States Treasury Department. or any other federal entity of competent jurisdiction provides that the above appropriated funds may be used to offset lost revenues of the state, no further funds shall be allocated until such time that the Governor, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Chair of each budget committee of the Alabama Legislature convene and agree to a plan to allocate funds based upon estimates of lost revenues provided by the Director of the Department of Finance and the Deputy Director of the Legislative Services Agency, Fiscal Division.
Adoption of the above-proposed executive amendment will remove my objection to this bill.
Respectfully submitted,
Kay Ivey
Governor
STATE OF ALABAMA ~ Legislative Letter
May 14, 2020
Members of the Alabama Legislature:
As you prepare for your final legislative day of the 2020 Legislative Session on Monday, May 1 8 th, I wanted to let you and your colleagues know what some of my hopes are in terms of going forward.
I also feel it could be helpful to put some recent events that have occurred into perspective. My goal is not to reignite any tensions from the past few days but to, hopefully, help you better understand — at least from my perspective — what some of our goals and opportunities should be going forward.
I do this in the spirit of believing that trust is the glue for all relationships and truth and transparency build trust.
As elected representatives of the people of Alabama, your leadership will be key to ensuring our State’s success in the face of this global pandemic. This is especially true right now following the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act which was passed by Congress and signed into Law by President Trump on March 27, 2020.
The CARES Act was passed with the clear intent of reimbursing only those expenses incurred due to the COVID-19 pandemic. Moreover, this obligation is for a period that begins on March 1, 2020 and ends on December 30, 2020, meaning if this money isn’t spent (not only allocated, but spent!) by the end of this year, it goes back to the U.S. Treasury.
Let me be clear — I know the Alabama Constitution gives the Legislature the authority to appropriate funds. Again, I never had any interest in controlling where this money goes; I simply believe it should go where it can do the most good to help the most people who have been adversely affected by this deadly and costly disease. We have but one opportunity to get this right for Alabama.
From the beginning, it was my hope to work in a transparent manner with the Legislature to most expeditiously use the federal CARES Act funds for its intended purpose — to help state and local governments respond to the COVID-19 crisis in the most appropriate way possible. Not once did I, or my staff, imply that the Executive Branch would have sole discretion and authority over these funds.
Members of the Alabama Legislature
May 14, 2020
Page 2
The money belongs to the people of Alabama — not the Governor or the Legislature. It is not my desire to control a single penny and I insist that it be accounted for publicly. Furthermore, those who steer these funds must be held publicly accountable.
To this end, it is my intent to sign both the General Fund and Education Trust Fund for FY 2021. However, I will also be offering an Executive Amendment to SB161, the FY 2020 supplemental appropriations bill which would appropriate the CARES Act dollars. The purpose of this amendment is simple: To ensure that the CARES Act money is immediately put to use for the purposes Congress and President Trump intended.
We can all agree that we have recently lived through some challenging days. Since March, many tireless nights and long weekends have been spent studying data, soliciting input and considering options as we respond to the virus as well as its impact on our health and economy, and I intend to see this through.
We cannot turn back the clock on our response to this virus. Sadly, we will not bring back those who have died after contracting COVID-19; we will not bring back every shuttered business; we will not make every business, county, municipality or agency whole again; and the more than 450,000 newly unemployed and families that suffered will not recover overnight.
At this moment, my hope is that we can resolve to help our State and her people to make the best choice available by working together. To accomplish this, we must take a thoughtful, measured and collective approach in our handling of the federal funds Alabama has received to respond to this virus.
I value my relationship with each member of the Alabama Legislature, and I look forward to working with you in a transparent manner for the people of Alabama. Please do not hesitate to call my staff or me if you have any questions.
Sincerely,
Kay Ivey
Governor
Media Release/Office of Alabama Governor Kay Ivey
