Riley has presided over rise in loss of jobs

By By Bob Martin, The Alabama Scene
When Bob Riley took over as governor in January 2003 the unemployment rate in Alabama was 5.3 percent with 116,868 people out of work.
The rate jumped in December 2009 to 11 percent, the state’s highest in 26 years with 225,596 people unemployed; nearly double the number when the governor took office. When January’s numbers are reported the unemployment rate is expected to be approaching 11.3 percent, which will place Alabama near the top nationally in the jobless category.
Wilcox County is leading the state in unemployment with 24.5 percent; followed by Monroe County at 20.2 percent and Dallas County at 20.1 percent. The counties with the lowest unemployment are Shelby at 7.6 percent, Madison at 7.7 percent and Coffee at 8.1 percent
Expect the unemployment numbers to go much higher with the loss of some 4,000 jobs at the bingo and race track facilities in Macon, Houston, Lowndes and Greene Counties because of the governor’s raids on these businesses.
VictoryLand owner Milton McGregor handed out final checks to nearly 2,000 workers at the Macon County Courthouse last Friday after he closed the multi-million dollar entertainment facility at Shorter in fear of further raids by Riley’s anti-gambling task force. VictoryLand and the other venues, except for GreeneTrack, had shut their doors by the past weekend even though no judge or court in Alabama has determined they are doing anything illegal.
All counties in which these venues operate have constitutional amendments authorizing bingo. The Macon County amendment, as does the one in Greene County, provides that the sheriff will define the game of bingo.
At least two bills have been introduced in this legislative session to make the language even more clear and tax the facilities. One measure proposed by the Poarch Creek Indians would add two venues in the state to be decided by a newly-organized State Gaming Commission and protect the venues in Macon, Lowndes, Houston, Jefferson and the Mobile Greyhound Park, where the tribe is now the majority shareholder and tax these facilities at 28 percent of proceeds, 20 percent to the state and eight percent to the counties and cities. The bill does not propose a tax on the proceeds from facilities on their Indian lands at Atmore, Montgomery and Wetumpka.
Expect new jobless numbers to raise business taxes
Two weeks back I wrote that in January businesses across the state were hit with an unemployment tax rate increase of three to five times what they had been paying because of the rising number of jobless workers drawing unemployment benefits
The State Department of Industrial Relations (DIR) has been forced to increase the tax because Alabama is in debt to the Federal Government for its share of unemployment compensation to the tune of about $170 million and the debt continues rising every week.
Since September the state has not had the funds to pay its portion of unemployment benefits. I am told it is the first time since the early 1980’s, when unemployment rose to 14.5 percent, that the state has needed federal financial help for unemployment compensation payments. The debt is on track to double and maybe even triple over the next year and in September 2011 the feds are expected to start adding interest.
State officials have no clue as to how the money will be repaid. With the increased tax rates DIR projects it will collect close to $500 million this year, an increase from the $218 million last year. However, they expect to pay out about $700 million in benefits.
That unemployment fund deficit is going to just get bigger with the layoffs caused by Riley’s anti-bingo crusade. Taking the median of the range in weekly unemployment benefits, about $160, the 4,000 job losses at the bingo parlors and the racetracks will cost the unemployment compensation fund in Alabama about $33.3 million dollars over a 12-month period. If these job losses continue the state’s businesses can expect another big jump in their unemployment compensation tax next January due to the actions of Mr. Riley. Of course by that time the governor will be riding into the sunset on a trusty horse we shall call “Scout.”
Bob Martin is editor and publisher of The Montgomery Independent. Email Bob Martin at: bob@montgomeryindependent.com