Rumors & Rumblings

“Rumors and Rumblings” is a weekly feature that runs each Wednesday. It includes short nuggets of information that we glean from conversations throughout the week. Have a tip? Send it here. All sources remain confidential.

1. ALGOP Chairman Race Update

Matt Fridy’s ALGOP Chairman campaign is said to have huddled Tuesday to get a fresh vote count. “They are over 200 solid, confirmed votes,” a source with knowledge of the meeting told Yellowhammer Tuesday night. If that’s the case, Chairman Armistead is facing an ever-increasing deficit in his attempt to gain a second term. Gov. Bentley and Lt. Gov. Ivey are continuing to make calls encouraging Executive Committee members to support Fridy’s candidacy.

2. Latest news out of D.C.

Harry Reid and his Democrat-controlled Senate have not passed a budget in four years, but they’ve been given a total pass by the mainstream media. The temporary debt limit extension proposed by the House GOP this week is built to force the Senate to do their job. Under the proposal, lawmakers’ pay would be withheld if their chamber fails to pass a budget by April 15.

Some critics of the plan have pointed to the 27th amendment which states, “No law, varying the compensation for the services of the Senators and Representatives, shall take effect, until an election of Representatives shall have intervened.” In layman’s terms, one Democrat said, “it appears that the 27th Amendment does not permit Congress to alter its pay in the midst of a current session.” Nothing says “Democrat” quite like getting paid whether you do your job or not.

Proponents of the plan say it would not violate the 27th Amendment because it only temporarily withholds pay. Members’ pay would be put in escrow starting on April 15 and become accessible once they pass a budget.

D.C. insiders told Yellowhammer they view this “no budget, no pay” proposal by House Republicans as a smart move that puts Reid on the defensive. It also potentially forces tough budget votes for Democrat Senate incumbents. That clearly helps the GOP fight in the 2014 mid-term elections.

Obama ultimately doesn’t want the cuts in social programs that would come with sequestration. So by changing the debate from debt limit to spending, Obama could be forced to come to the table and discuss entitlements.

Yellowhammer’s concern with the proposal is that it does not set a hard cap on the debt limit, opting instead to suspend the government’s $16.4 trillion debt limit until May 19. As a result, the debt limit is essentially raised to infinity between now and May 19.

The chess match continues.

3. Blue Cross Making Moves

Jeff Sommer was recently hired to be the new Governmental Affairs Manager at Blue Cross Blue Shield of Alabama. Sommer is coming off a stint in Attorney General Luther Strange’s office where he was Director of Constituent Affairs. His relationship with the AG’s office could potentially be an important piece of the Blue Cross governmental affairs strategy as the state of Alabama may soon be seeking several million dollars from BCBS as a result of a recovery audit performed last year.

According to Phillip Rawls of the Associated Press, “A state law enacted in 2011 lets the state government pursue recovery audits for money overpaid or paid in error to companies that do work for the state. The first claim involving Blue Cross and Blue Shield of Alabama is nearly complete and it has turned up more than $4.8 million that should be repaid to the state, according to the law’s sponsor and the state’s chief examiner.”

4. Coastal insurance reform playing a major role in SD 35 special election

Both the Hightower and Matranga campaigns have dropped new mail pieces focusing on coastal insurance reform.

[Click to Enlarge]

Hightower also vows in his new radio ad dropping today to “follow in Senator Ben Brooks’ footsteps to fight for true coastal insurance reform.” You can hear the radio at by clicking HERE.

In the Barton campaign ad below, Rep. Barton touts his record in the House saying he “led the fight on insurance reform.”

5. Rural Electric cooperatives to launch legislative app

The Alabama Rural Electric Association will soon announce the launch of an app to help Alabamians keep track of the legislature. According to insiders with knowledge of the app, they plan to release it just in time for the beginning of the 2013 Regular Session that convenes Tuesday, Feb. 5.

The app will have an interactive directory of members of the Alabama House of Representatives and Senate, a legislative committee list, and links to the most current legislative action. It will be priced at $4.99 and will downloadable on both the Apple App Store and Google Play.

Screen shots are below. [Click to enlarge images]