Bentley signs budget without 2% teacher raise, Legislature calls it fiscally responsible

Gov. Bentley signing bills in his office (Photo: Office of the Governor)
Gov. Bentley signing bills in his office (Photo: Office of the Governor)

MONTGOMERY — Gov. Robert Bentley on Friday announced he had signed the Education Trust Fund Budget as passed by the Legislature without a 2 percent pay raise for teachers, which has been the most contentious intra-party squabble of the 2014 legislative session.

The budget was passed on the final day of the session, effectively preventing the governor from being able to attach any Executive Amendments to the bill. He had announced in early March his intention to attach an Executive Amendment to the budget that would provide a 2 percent pay raise for teachers and support personnel. Legislative leaders maintained throughout the debate that there was not enough money available to fund the pay raise.

Gov. Bentley’s office then sent out a press release later in the month announcing an agreement with legislative leaders to sign the budget without the pay raise, but with teacher health insurance funded at a level of $780 per individual per month. That would ensure that teachers’ take-home pay would not go down as a result of rising healthcare costs brought on by the implementation of ObamaCare.

“Our teachers, support personnel and retirees work hard and do a great job to prepare our students for success,” Bentley said at the time. “Their take-home pay should not be reduced by inadequate funding for the health insurance program. I appreciate the House and Senate Leadership, especially Budget Chairmen Bill Poole and Trip Pittman, for working with me to reach a solution that will not require our active and retired education employees to pay more out-of-pocket for their health insurance.”

But a few days later as the sessions was nearing its conclusion, the governor appeared to reverse course, reiterating his intention to amend any budget that did not include the 2 percent raise.

Republican legislative leaders vocally criticized the governor for the move, which they considered to be reneging on their deal. Bentley contended that he was only sticking to his original position.

This morning, the uncertainty came to an end as Gov. Bentley announced he would sign the budget without the raise. He began his press conference by praising some of the work the Legislature had done this session.

But he was pointedly critical of the Legislature’s decision to adjourn early to keep him from amending the budget, and said their “attitude” would not make the pay raise possible.

“I am disappointed that the Legislature decided not to provide a pay raise for our hard working teachers and support personnel,” Bentley said. “It is clear to me that the Legislature has no intention of passing a pay raise for teachers and support personnel at this time. Therefore, I will not call a Special Session right now. However, I will keep a close watch on incoming revenues over the next few months, and will consider asking the Legislature to support a mid-year pay raise for teachers and support personnel if the revenues are there to support it.”

Legislative leaders applauded the governor’s decision to sign the budget. They had contended from the beginning that it would be fiscally irresponsible to tack on a pay raise for teachers at this time.

Here are the statements that went out from legislative leaders in the wake of Gov. Bentley’s announcement:

House Education Budget Chairman Bill Poole:

I’m very comfortable with the budget we passed. It’s fiscally responsible. It’s sustainable. And it doesn’t put us in jeopardy of going back into proration. It also funds PEEHIP for active and retired employees. I look forward to making sure we’re investing in our classrooms in future years.

Senate Education Budget Chairman Trip Pittman:

I am glad the governor signed the Education Budget. By doing so he lived up to the agreement that was made to full fund PEEHIP and support the ETF Conference Committee Report. He is a man of his word.

Senate President Pro Tem Del Marsh:

I applaud Governor Bentley for signing a fiscally-responsible education budget that protects against out-of-pocket health insurance premium increases for educators, which was largely caused by Obamacare.

It’s also equally important that we honor our commitment to repay the state’s debt. We have made significant progress in paying down the debt since taking office in 2010, and the appropriation in this year’s budget will ensure that more than 70 percent of that debt is repaid by the end of the next fiscal year. When voters allow government to borrow money in Alabama, they expect it to be paid back. We are continuing to fulfill our promise to do that with this budget.

House Speaker Mike Hubbard:

Unlike Washington, Republicans in the Alabama Legislature passed a balanced budget that provides needed funding for health insurance for education employees and retirees and prioritizes dollars that go directly into classrooms. I applaud Governor Bentley for signing this conservative and fiscally responsible budget.


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