Governor Robert Bentley says the state of Alabama is in extreme need for money.
Bentley said his solution to the state's financial problems is a revenue-raising package he plans to present in March that, in his words, would cause him to pay more taxes.
Senator Arthur Orr said it's a difficult situation they'll be facing in March when the new legislative session begins, calling it an "uphill" financial challenge.
Orr said the first priority will be looking at cuts. Orr wants to see what cuts can be made to create a more financially efficient government. Another solution is to go through the tax code and evaluate every loop hole to see if it's still good policy in 2015.
Finally, Orr wants to look at the tax code.
"This is a crisis, and I would say that it is that," Orr said. "With that does come an opportunity and one of things we're doing in addition to looking at both budget cuts and addition to looking at un ear marking state revenues is looking at out tax code and going over it literally page by page. "
Bentley said the General Fund budget deficit ranges from $265 million to maintain the status quo to as much as $700 million to repay the state's debts.
He said the new Republican-controlled Legislature will have to either raise revenue or cut some states agencies to the point they won't be able to function.