Gov. Robert Bentley and Republican legislative leaders announced on Monday the State of Alabama has reached over a billion dollars in annual savings since they took office in 2011, reaching the goal a full year earlier than expected.
“Alabamians elected us to make state government more efficient and live within our means without raising taxes or cutting essential services,” Gov. Bentley said. “State government was broke when Republicans entered office in 2011, but together with Legislative leaders, we took a serious look at how we could find savings in state government. Today, I’m honored to announce that we have found over $1 billion in annual savings that will allow us to be better stewards of taxpayer money and operate state government.”
Here is a list of the different areas where Republicans say savings can be seen, totaling to $1.137 billion:
• Pension Reform Measures: $345.6 million (average annual savings)
• Workforce Right-Sizing: $160.7 million (annual savings)
• SEIB/PEEHIP Employer Premiums: $118.8 million (annual savings)
• DROP Repeal: $58.5 million (annual savings)
• Indigent Defense Reform: $15.3 million (annual saving)
• Various Bond Refinancings: $20.4 million (average annual savings)
**Nearly $245.3 million total over the life of the bonds**
• Agency Streamlining and Realignment: $49.5 million (annual savings)
• Prescription Drug Exemption: $200 million (annual savings)
• Contract Renegotiations: $28.8 million (annual savings)
• Merit-Raise Freezes: $139.7 million (annual savings)
“To reach this milestone in three years is the result of strong leadership and commitment by Governor Bentley, Pro Tem Marsh, Speaker Hubbard, the Legislature, and state employees to create a more efficient and accountable government that maximizes every tax dollar collected and spent,” Lt. Gov. Ivey said. “Early on I was asked to chair the Commission on Improving State Government and I am pleased to be a part of these sustainable changes that were implemented to help reduce costs and improve operational efficiency. Streamlining state government will be one of the key legacies of this administration’s first term.”
Speaker Hubbard said he believes Alabama Republicans have proven themselves to be good stewards of the taxpayer’s money, but added they have more work to do.
“Under Republican majority leadership, Alabama lawmakers have put the state on a path to save taxpayers more than $1 billion,” Hubbard said. “When Republicans took over the Legislature for the first time in 136 years, we promised to make tough decisions and live within our means, just like every household in Alabama, and we’ve taken that vow seriously. I’m proud of our success to date, but we are continuing our efforts to streamline and right-size government without raising a single dime of taxes.”
“Unlike the reckless, out-of-control spending we see in the federal government, Alabama has set a strong example for how to cut spending and run a more efficient, cost-effective government,” Sen. Marsh added. “Thanks to Governor Bentley, Lt. Governor Ivey and Republicans in the Legislature, we have reduced government spending by $1 billion and given Alabamians the lean and cost effective government we promised them in 2010.”
Democrats shot back that the savings are little more than “smoke and mirrors” and said Republicans are hurting government employees.
“[M]aybe the Republicans in Montgomery think that 10,000 people losing their jobs and our state government nearly collapsing is something to brag about, but I do not!” Said House Democrat Minority Leader Craig Ford.
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