Jefferson County Community Service Fund: Difference between revisions

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In practice, members of the delegation have been able to personally deliver checks to recipient organizations, sometimes during public or press events during which they are publicly thanked for appropriating the funds. The fund has been described as a "slush fund" or "pork" by critics of the practice by which incumbent politicians accrue attention and gratitude from constituents.
In practice, members of the delegation have been able to personally deliver checks to recipient organizations, sometimes during public or press events during which they are publicly thanked for appropriating the funds. The fund has been described as a "slush fund" or "pork" by critics of the practice by which incumbent politicians accrue attention and gratitude from constituents.


In [[2023]] federal investigators uncovered an alleged kickback scheme involving the Jefferson County Community Service Fund. They charged Representative [[Fred Plump]] of conspiring with [[Varrie Johnson]], an aide to Representative [[John Rogers]], to direct funds to Plump's [[Piper Davis Youth Baseball League]]. Plump pleaded guilty to conspiracy and obstruction of justice. In his statement, he claimed that he gave half of the allocated funds back to Johnson in exchange for her help. Neither Rogers nor Johnson have been charged.
In [[2023]] federal investigators uncovered an alleged kickback scheme involving the Jefferson County Community Service Fund. They charged Representative [[Fred Plump]] (D-[[Alabama House District 55|District 55]]) of conspiring with [[Varrie Johnson]], an aide to Representative [[John Rogers]] (D-[[Alabama House District 52|District 52]]), to direct funds to Plump's [[Piper Davis Youth Baseball League]]. Plump pleaded guilty to conspiracy and obstruction of justice. In his statement, he claimed that he gave half of the allocated funds back to Johnson in exchange for her help. Neither Rogers nor Johnson have been charged.


==References==
==References==

Revision as of 14:29, 6 July 2023

The Jefferson County Community Service Fund is a fund from which members of the Jefferson County Delegation in the Alabama State Legislature can allocate money to community service projects and organizations at their discretion.

The fund was established by Act of Alabama 2015-226, a local act applying only to Jefferson County, which was sponsored in the House by Oliver Robinson (D-District 58). The law was partly intended to assuage the loss of revenues from the former Jefferson County Occupational Tax. The Community Service Fund act was signed into law by Governor Robert Bentley on May 27, 2015.

The law authorizes the the Jefferson County Commission to levy a 1% sales and use tax. The tax took the place of the 1% sales tax previously levied by the county to fund repayment of $1.05 billion of Limited Obligation School Warrants issued under the leadership of Jefferson County Commission president Larry Langford in 2004 and 2005.

Collection of the Education Sales Tax was ended at midnight on July 31, 2017, and collection of the new Special Revenue Sales Tax began at 12:01 AM on August 1. The change did not affect taxpayers as the overall rate remained the same, but did require businesses and other entities that collect sales and use taxes to file their returns differently. The tax generates approximately $130 million in annual revenues.

According to the law, the revenues from the tax first went to pay off the existing or refinanced school warrants, which has been budgeted at $26 million per year. Second, any remaining proceeds, up to $36.3 million, would go to the county's general fund. Third, the next $18 million would be set aside in a "2015 Sales Tax Fund" for distribution to public schools operated by or within the county. The Jefferson County Community Service Fund was then funded from the next $3.6 million raised. The next $2 million would go to the Birmingham Jefferson County Transit Authority (dropping to $1 million after ten years), and then $500,000 to the Birmingham Zoo, with any surplus amount (currently around $44 million) going back to the general fund.

The law also created a Jefferson County Community Service Committee to oversee allocations from the Community Service Fund. The four members would be residents and qualified voters in Jefferson County, chosen by the Democratic and Republican members of the House and Senate representing Jefferson County. By law, allocations from the fund can only go to support specific public purposes, including public facilities, public education, neighborhood organizations, performing arts, nonprofits that have been vetted by the United Way of Central Alabama for funding, law enforcement agencies, and programs providing assistance to low-income residents to pay sewer bills.

Under the rules adopted by the Committee on April 12, 2018, each grant must be for a minimum of $1,000. The form by which those recommendations are made includes attestations that the legislator, their family and their business associates will not benefit from the allocation; that other members of the delegation and their affiliates will not gain from the allocation; that the purpose is qualified under the law; and that the recipient is not an individual. Generally each Senator in the county delegation is allowed $243,000 to distribute as grants, and each Representative is allowed $100,000.

Once the legislators make their nominations, the Committee and an external fund administrator review them for compliance with the law. For administration of the approved grants, the Committee contracts with United Way of Central Alabama for staff support, and holds its meetings at their offices in Birmingham. It also employs attorneys Michael Brymer and Rick Stotser of Massey, Stotser & Nichols as legal counsel and engages Warren Averett to audit its financial statements. The cost of those contracts are generally covered by interest generated by the fund itself. Since October 2022 the fund has been administered by the Community Foundation of Greater Birmingham. The Committee publishes its allocations online and also distributes a newsletter to members of the delegation to keep them apprised of its activities and upcoming deadlines.

Jefferson County Community Service Committee

Controversies

In practice, members of the delegation have been able to personally deliver checks to recipient organizations, sometimes during public or press events during which they are publicly thanked for appropriating the funds. The fund has been described as a "slush fund" or "pork" by critics of the practice by which incumbent politicians accrue attention and gratitude from constituents.

In 2023 federal investigators uncovered an alleged kickback scheme involving the Jefferson County Community Service Fund. They charged Representative Fred Plump (D-District 55) of conspiring with Varrie Johnson, an aide to Representative John Rogers (D-District 52), to direct funds to Plump's Piper Davis Youth Baseball League. Plump pleaded guilty to conspiracy and obstruction of justice. In his statement, he claimed that he gave half of the allocated funds back to Johnson in exchange for her help. Neither Rogers nor Johnson have been charged.

References

External links

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