Recent editorials from Alabama newspapers:
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Dec. 15
The Times Daily (Florence) on how Alabama scored in financial literacy report:
Most Alabamians are financially illiterate.
That’s a harsh assessment, a harsh truth, but one that needs to get our attention.
The Champlain College’s Center for Financial Literacy this week released its 2016 National Report Card. For Alabamians, it was a report card that, if in physical form and issued to each individual, would have stayed hidden in the backpack for as long as possible.
Alabama was graded an overall D. The report includes state grades for literacy categories that include financial knowledge, credit, saving and spending, and retirement readiness and investing, among other categories. What happens when we don’t understand these categories or don’t make wise financial decisions will have a direct effect on our economy.
With employee pension plans disappearing or being replaced by contribution retirement programs, planning for a good financial future is squarely in the hands of each individual. If more and more of our nation’s population can’t or won’t save and prepare for the future, the likelihood grows that there will be more individuals needing state and federal services to help them have a roof over their heads and food in their pantry.
One clue that Alabamians - and Shoals - residents are in financial trouble can be measured by the proliferation of payday lending and auto title loans dotting our business districts. The success of these businesses is a strong indication that not enough people have emergency savings. By this report’s standards, individuals who are financially savvy should be able to come up with $2,000 for an emergency without having to borrow that money.
One conclusion in the Center’s report is that there are not enough high schools teaching personal finance classes, and that most young people rely on their parents for financial advice and guidance. But if mom and dad were never taught good financial practices, an educational gap has formed before the child has even started school.
“We must give individuals the knowledge and skills that can help them solve financial problems or prevent difficult financial situations from occurring,” is one important truth in the report.
Here are sobering statistics from the report: according to the national Foundation for Credit Counseling’s 2016 Consumer Financial Literacy Survey, 26 percent of adults nationwide have not saved anything for retirement, 31 percent have no savings other than retirement savings, 60 percent do not have a budget and 22 percent do not pay their bills on time. We hazard a guess that those percentages are higher for Alabamians. Our grade was a D, remember.
Individuals can be financially solvent in most income ranges if they are taught early and often how to respect money and how to make it work for the future. We are woefully failing our population, and economic future, when we leave these lessons to chance.
Online:
https://www.timesdaily.com
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Dec. 27
The Gadsden Times on an additional gasoline tax in Alabama:
It doesn’t matter that “tax” is a three-letter word. Every time it circulates through the auditory canals of most Alabamians, an extra letter resonates profanely.
Voters here are resistant to paying taxes, and politicians are reluctant to levy them, regardless of the budgetary issues the state has faced for years. The last two governors who tried hard got slapped down.
So it’s kind of significant that the Alabama Association of County Commissions is trying to marshal support for an additional 3-cent gasoline tax in the state. (The current Alabama gasoline tax is 20.01 cents a gallon.)
The subject was discussed last week at a work session of the Etowah County Commission. Commissioners said the association is asking commissions throughout the state to pass resolutions supporting a gasoline tax, to use as ammunition to get the tax considered by the Legislature.
The money would go toward an outwardly righteous cause - additional improvements to the state’s infrastructure through a new incarnation of the Alabama Transportation Rehabilitation and Improvement Program.
ATRIP has been one of Gov. Robert Bentley’s most successful ideas. Through the issuance of Grant Anticipation Revenue Vehicles, or GARVEE bonds, which are secured by future federal funds, a billion dollars has been made immediately available for road and bridge upgrades throughout the state. Etowah County has claimed its share for some much-needed work.
Ideally, the gasoline tax would be used to repay a new 14-year, $1.2 billion bond issue to continue those improvements, and would contain a “sunset clause” that would make the tax go away after those 14 years.
No one can dispute the need for more road and bridge work in Alabama. All it takes is a road trip across the state (again, there are plenty of local examples).
The price of gasoline remains low, which is why the tempting notion of a tax has lit gleams in the eyes of politicians of all levels, from small towns to D.C.
Our concerns remain the same, though. Three percent wouldn’t injure anyone’s wallet right now; it would amount to 54 cents for an 18-gallon fill-up. However, a blow-up in the Middle East, a hurricane in the Gulf of Mexico or an accident or disruption along the oil distribution chain could change those circumstances in a hurry. No one can say with certitude that gasoline is going to remain cheap.
We also take the idea of a “sunset clause” in a tax not just with a grain, but with a shovelful or two of salt. Once levied, taxes rarely go away; another need is found for the money.
We’re neither advocating nor opposing a gasoline tax at this point. We simply believe, and have consistently said, that even if a cause is righteous, every angle must be considered.
We also don’t think the “considering” should be limited to politicians. Weigh the angles and let the association, the commission and the local legislative delegation know what you think. Are you willing to contribute to improving Alabama’s infrastructure, or would you prefer to keep the change?
Online:
https://www.gadsdentimes.com
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Dec. 26
The Times Daily (Florence) on developing a water management plan:
The prolonged drought is highlighting just how valuable water is, not only to the environment but to the ability to grow food.
Yields for some crops were not so good this year as the temperature rose and the sky refused to open.
State Sen. Arthur Orr, R-Decatur, is talking about ways to get water from Alabama’s larger rivers to farmers for irrigation. He sponsored a bill a few years ago that provides tax breaks to those who install irrigation or drill wells for the crops. But he thinks more can be done to help farmers weather the drought.
Current state law allows farmers and landowners whose property is contiguous to a body of water to access it. Orr wants to explore ways for farmers whose property isn’t on the water to get to it.
Richard McNider, distinguished professor of science at the University of Alabama in Huntsville, says only 3 to 4 percent of the water flowing through the state is used. He said the Alabama, Tennessee and Tombigbee rivers enough water to withdraw some or irrigation.
Orr said some rivers, such as the Cahaba, would not be a part of the access plan because of their flow or to protect them from damage.
That could prove to be a boon for struggling farmers. It could, without a careful strategy, also be a recipe for disaster.
Alabama has a very diverse ecosystem that supports thousands of species of animals and even more plants. They depend on a balanced environment that supports that diversity, and any changes could be detrimental to their survival.
Environmental advocates have called for a statewide water management plan for years. Industries have drawn, used and discharged water for decades with only a minimum of management, much of which has come from the federal Environmental Protection Agency.
The world’s population is still growing, and the demand for more food will increase, making access to water for agriculture vitally important. Alabama has an opportunity to development a water management plan that meets those demands while preserving the environment
Online:
https://www.timesdaily.com
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