Governor Robert Bentley will deliver his state of the state address tomorrow.
The big issue is will likely be a half billion dollar tax hike. Bentley announced his plan on Friday and his annual speech will be his first big opportunity to sell it to what may be a skeptical Republican majority in the state house and senate.
Four hundred million dollars of the proposed tax hike would come from raising taxes on cigarettes and new car purchases. A pack of cigarettes would go up by eighty two cents. Buying a new car would be taxed by two to four percent.
The Alabama Legislature has voted to extend two taxes that support the state Medicaid program.
The assessments on nursing homes and hospitals were due to expire this year, but the Senate gave final approval Thursday to bills that extend the nursing home tax for two years and the hospital tax for three years. The bills passed the House earlier and now go to the governor to be signed into law.
Senate budget committee Chairman Arthur Orr of Decatur says the bills were critical to maintaining Medicaid services for low-income Alabamians.