Alabama’s Governor Bob Riley spends time talking about investments in economic development activities as a way to offer opportunities to the “least of these.” But when he had the chance to put words into action, he chose otherwise.
Without any explanation, the Governor pocket vetoed legislation that would have created an Individual Development Account program. The proposed bill was enabling legislation only, and in recognition of the state’s current budget woes, no appropriation was sought for the current fiscal year. But advocates wanted to establish the program with the hope that a strengthening economy in the future would provide matching funds for the savings of low- and moderate income Alabamians. IDAs have proven a successful tool over the past decade in supporting the acquisition of assets by individuals and families who otherwise would be unable to do so. Alabama’s proposed legislation mirrored the federal Assets for Independence legislation that provides federal matching funds for IDAs, and would have provided the mechanism by which Alabama could have supported first time home buyers, small business development and postsecondary education.
Alabama offers virtually no form of needs-based financial assistance for postsecondary education, and it’s this asset for which it is most likely that Alabama’s state government could contribute. A portion of the small amount currently dedicated to needs-based assistance could be redirected to IDAs, in effect tripling the available funds for educational purposes by matching savers’ contribution and federal dollars.
But the Governor, for unknown reasons, made the decision not to invest in Alabama’s families. Arise has asked Riley to tell us what changes to the law would make it acceptable to him, and hope that he’ll provide a response. The Alabama Asset Building Coalition hopes to reach an agreement with the Governor this summer that will allow this needed measure to be approved in the next legislative session.
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