A controversial bill that could drastically change how sales taxes are distributed to schools in Alabama made its way out of a Senate committee on Tuesday, despite receiving more “No” votes than “Yes” ones.

The measure, SB270, has ignited fierce debate among Baldwin County officials and beyond, with tensions running so high that some are even discussing the possibility of splitting the county in two—a move not seen in Alabama since 1903.

The contentious vote took place after a public hearing where Baldwin County officials voiced their frustrations over the tax, which has been a point of contention for months.

The hearing was a dramatic prelude to a move by Sen. Chris Elliott, R-Josephine, the committee chair, who advanced the bill to the full Senate without a roll call vote. He cited time constraints, as members needed to attend a military appreciation meeting.

“I want to pass this bill,” Elliott told AL.com after the meeting. “The goal is to fix the problem we have in Baldwin County and to fix it in the future, statewide, so we don’t wind up in this mess again.”

His push for SB270 left many stunned, including Baldwin County officials, some of whom traveled over two hours for the hearing. Baldwin County Schools Chief Financial Officer John Wilson, who opposed the bill, was “shocked” by the process. “Why even call a public hearing if the chairperson can override everyone in the room?” he asked.

Sen. Greg Albritton, R-Atmore, another committee member who opposes the bill, noted it had been at least six years since a committee chair had advanced legislation despite fewer “Yes” votes.

“It’s very unusual,” he said, vowing to filibuster SB270 if it reaches the Senate floor. He said there were enough procedural tactics he could use to “wear out an entire day” of a Senate schedule if the bill reaches the floor.

Baldwin County School officials, who are deeply opposed to SB270, argue it would siphon off critical sales tax revenues, potentially causing severe harm to the state’s third-largest public school system. Baldwin County School Superintendent Eddie Tyler expressed his outrage, saying he was “embarrassed for Alabama, for Baldwin County, and for Senator Elliott.”

“Any civics student would be confused to hear a room full of senators vote ‘no,’ only for Chairman Elliott to declare that the measure passed,” Tyler said in a statement.

Fractured Baldwin

The bill itself seeks to prohibit counties from using any portion of their sales tax exclusively for county school board projects in areas served by a city school system. Two amendments introduced Tuesday would limit the bill’s scope to taxes approved before 1985 and exempt Jefferson County.

SB270 has led to fractured relationships in Baldwin County, with school officials and local lawmakers clashing over how sales tax revenue should be shared.

Elliott argues that the bill is a matter of “fairness,” saying city schools like those in Gulf Shores and Orange Beach should receive a share of the tax revenue now that they have their own school systems.

“The tactics used by the county school board are designed to preclude Orange Beach and Gulf Shores from receiving any portion of the tax revenue,” he said. “That is simply fundamentally unfair.”

However, Wilson – the Baldwin County Schools CFO – warns the bill could cost the system between $6 million and $7 million annually. The county’s schools depend on a sales tax generating $24 million per year, and losing 25% of those proceeds would have a devastating impact. The funds are currently pledged to finance the Baldwin Preparatory Academy, a $100 million career tech and vocational school that opened last August.

Elliott criticized the school system for using the sales tax revenue to fund the Baldwin Prep Academy, calling it “disingenuous.” He pointed to past negotiations between the county school system and Gulf Shores, suggesting the tax distribution was always expected to be revisited.

But Baldwin County School officials, including Wilson, argue that no formal agreement was reached during those talks.

“We never said nor expected that we would just give it away with nothing in return,” Wilson said. “We negotiated for years with Gulf Shores, and this tax was always a point of contention.”

The tax was originally approved in 1983 and initially diverted 55% of revenues to the county school system while 40% went to county government for road projects, etc.

In 2017, the allocation was swapped as part of an agreement for the Baldwin County Commission to permanently extend a separate sales tax rate to provide $40 million in revenues for the county school system. That money has helped the school system establish a capital program and build new schools at a time of rapid growth.

The battle over this tax distribution has gone to court. Gulf Shores filed a lawsuit in 2021 challenging the current distribution method, but the Alabama State Supreme Court dismissed the case in 2023. Now, with SB270 moving forward, Wilson claims it is another example of “strong-arm tactics” that undermine Baldwin County public schools.

The bill has garnered support from those who argue it’s a necessary change. Kevin Corcoran, president of the Gulf Shores City School Board, argued that “money should follow the child.”

He said, “I strongly believe this legislation will spare (other schools in Alabama) from the division Baldwin County is experiencing.”

Also agreeing with the city school officials was Andy Craig, former deputy state superintendent for administration and financial services with the Alabama Department of Education. He said there are merits for distributing taxes earmarked for schools to “follow the student.”

Local or statewide

But not everyone agrees. Bay Minette Mayor Bob Wills and Baldwin County School officials argue that SB270 should remain a local matter, not a statewide concern.

Elliott introduced local legislation in February allowing a portion of the sales tax revenues to be split among the three public school districts in Baldwin County. Only Rep. Frances Holk-Jones, R-Gulf Shores, has expressed vocal support for the local bills – SB135 and SB136.

The local bills require unanimous support among the senators who represent all or portions of Baldwin County – Elliott, Albritton and Sen. Vivian Figures, D-Mobile.

Committee members have said they felt the legislation was best situated as a local matter. Albritton has said that the local bills have no chance of being passed.

Elliott is undeterred. He said he wants to see the bills passed and moved along to the House for consideration.

He said lawmakers are “seeing the problems it’s causing in Baldwin County and the level of discord happening over a small amount of money and the problems rippling across other things.”

“When you don’t share and you’re not fair to children, it looks really bad,” Elliott said.

The situation is also sparking arguments over whether certain areas of the county are richer than others, and if the beach cities need the tax money.

Albritton argues the beach cities are building new schools and sports complexes, while the northern areas of the county are struggling to keep schools open. He has likened the situation in Baldwin County has “truly the haves and have-nots.”

Randy McKinney, president of the Orange Beach City School Board, said he was irritated over suggestions that beach cities were rich and did not need the sales tax revenues as much as the rest of the county.

He described a sizable portion of the beach population as working-class who are employed as part of the hospitality industry.

But the public debate in Baldwin County will have to continue in another venue.

Wills, the Bay Minette mayor, said he remains confused over the purpose of the public hearing before the Senate committee. At first, he thought he misheard Elliott say that SB270 had been forwarded out the committee despite not receiving a majority support.

“I’m still shocked, to be quite honest with you,” he said. The decision by Elliott “was totally contrary to what the committee did.”