Alabama House advances tax rebates of $210 per taxpayer
The Alabama House of Representatives on Thursday unanimously approved a one-time rebate that would give $210 to single people and $420 to married couples. Alabama Gov. Kay Ivey and lawmakers proposed rebates to return money to taxpayers as the state sees a rare $2.8 billion education budget surplus but have quibbled over the amount. The proposed rebates are half the amount that Ivey proposed in her State of the State address earlier this year, but double what was approved in the Alabama Senate. “This will cover 1.9 million tax filers in the state, so it’s a lot of people that will benefit from this, certainly under the House bill, a lot more significantly than they would have under the Senate version,” Republican Rep. Danny Garrett, chairman of the House education budget committee, said. Representatives voted 101-0 for the legislation that now moves to the Alabama Senate. While the bill advanced without a dissenting vote, some lawmakers argued that the money will not go to those who need it the most — people who don’t file tax returns because they earn too little or are living off retirement benefits. The rebates would only go to people who filed tax returns for 2021. “That $420 will not make a difference in my life, but for that person that may be living from day-to-day on nothing but a Social Security retirement — that $210 or $420 will make a big difference,” said Rep. A.J. McCampbell, a Democrat from Livingston. Garrett said he understood the concerns, but said the legislation is essentially a refund to people who paid taxes. House Minority Leader Anthony Daniels, D-Huntsville, said he would have preferred the state to target the rebates to the people in the most financial need. But Daniels said he is glad the House increased the size of the rebate over the Senate proposal. The rebates would cost the state an estimated $546 million. Republished with the permission of The Associated Press.
Legislature to address budgets and grocery tax cut this week
The Alabama Legislature will meet on Tuesday, Wednesday, and Thursday this week for days 24, 25, and 26 of the 2023 Alabama regular legislative session. The 1901 Constitution of Alabama limits the regular session to no more than thirty legislative days, and the primary constitutional purpose of the session is to pass the state’s budgets. Alabama has two budgets: the state general fund (SGF) for non-education spending and the education trust fund (ETF) for education spending. Speaker of the House Nathaniel Ledbetter told reporters that he anticipates the House Ways and Means Education Committee will advance the 2024 education budget bills, including a large one-time supplemental appropriation for the current budget year, on Wednesday. If that happens, the Speaker intends to have the education budget bills on the floor of the House of Representatives on Thursday. Ledbetter said that he expects the House to address cutting the state’s four percent tax on groceries at that time. “I think we will see that come out next Thursday,” Ledbetter said of the bill cutting grocery taxes. House Bill 479 (HB479), sponsored by State Rep. Danny Garrett, is the bill cutting the sales tax on food. HB479, as introduced, would use the definition of food used by the Federal Supplemental Nutritional Assistance Program (SNAP). The legislation would cut the state groceries tax from 4.0 percent to 3.5% on September 1, 2023. The legislation also provides for conditional future tax cuts on food. On November 1, 2024, the rate would drop again to 3.0%, but only if net receipts to the ETF increase by 2.0% or more during the FY2024 fiscal year. In years where net receipts to the education budget increase by 2.0% or more, the tax on foodstuffs will drop .5% until it reaches a floor of 2.0%. If we have a robust economy, that could be reached as soon as November 1, 2026. If the economy stagnates and growth fails to reach 2.0% or more, there will be no tax cut that year. HB479 does not affect county or local governments’ existing sales taxes on food sales. It would be left up to the local governments whether or not they would follow the state’s example and reduce their own sales taxes – which in many jurisdictions are much higher than the state’s tax. Some The state brings in over $600 million from the sales taxes on food. HB479 could cut state revenues by over $300 million, with $75 million being felt in FY2024. “We will address the budgets on Thursday,” Ledbetter said. The FY2024 education budget that passed the Senate, Senate Bill 88, was $8,798,591,041. That is an increase from $8,261,590,649 in FY2023 2023 – a $537,000,392 ( 6.5% increase). The budget package that passed the Senate included a $2,787,667,309 supplemental appropriation, Senate Bill 87, in one-time money. “There will be some changes in the House side,” Ledbetter said. Senate President Pro Tempore Greg Reed told reporters that the general fund budget should be voted on by the Senate Finance and Taxation Committee on Wednesday and that budget will be addressed by the full Senate on Thursday. He also anticipates movement on cutting the grocery tax this year. The SGF budget that passed the House, House Bill 124, was $3,024,167,948, an increase of $169,030,561 – 5.92% – over FY2023. There is also a supplemental appropriation to the 2023 general fund of $201,738,865 – House Bill 125. Both budgets have already passed in their respective House of origin, but it is highly unlikely that the second house will pass both budgets without making changes. Both budgets will then have to go back to the House of origin for their consideration. It is likely that they will then vote to non-concur – in which case the differences will be resolved in conference committees before returning to both houses. Alabama is 49th in per capita taxation. High poverty and low labor force participation rates adversely affect total state revenues. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Alabama House votes to advance state cookie legislation
On Tuesday, the Alabama House of Representatives voted to pass legislation establishing the yellowhammer cookie as the official state cookie. House Bill 421 (HB421) is sponsored by State Representative Reed Ingram. Reed explained that legislation making the “Yellowhammer Cookie” the official state-designated cookie was brought to him by the Fourth graders at Trinity Presbyterian School in Montgomery. Katherine Bandy is a counselor at Trinity. “We are learning about state symbols and Alabama history,” Bandy said. “And we figured out that Alabama doesn’t have a state cookie.” Reed explained that the students resolved to fix this situation by holding a cookie contest. The fourth graders submitted cookies, and the seniors judged them. Ultimately the Yellowhammer Cookie was judged the best cookie to submit to the legislature. “We needed a state cookie,” Bandy said. Mary Claire Cook developed the winning recipe. Alabama Today asked Cook if making the cookie was something an ordinary person could do or if it required a factory to produce. “Anyone can make it,” Cook assured. “I make it myself.” The Yellowhammer Cookie contains oats and pecans and has a peanut butter filling. Bandy explained that those three ingredients are essential because they are grown here in Alabama by Alabama farmers. The pecan is already the official nut of Alabama, and the peanut is the official legume of the state of Alabama. Cook explained that she began this project with her grandmother. They looked up recipes and began substituting in Alabama ingredients before arriving at the Yellowhammer Cookie. The Yellowhammer Cookie was chosen over two dozen other submissions. The fourth graders from Trinity were on hand at the House gallery to watch the bill be debated on the Alabama House of Representatives floor. Ingram explained that the last state symbol passed by the legislature was the decision to make the sweet potato the official state vegetable. Speaker of the House Nathaniel Ledbetter recognized the fourth graders for their involvement in the legislative process. At Ledbetter’s request, the whole body gave them a round of applause in recognition of their work. State Rep. A.J McCampbell told Ingram, “Usually when you have a bill, I have got to scrutinize it. The only problem I have with this bill is that you are asking us to designate this the state cookie, and I have not had one. I need a cookie. Where’s my cookie?” Ingram said, “I think they can arrange that.” Rep. Danny Garrett told Ingram, “One thing I have learned about you other than you are a great legislator and a great man is that you know cookies.” Rep. Napoleon Bracy said, “I got into politics when I ran for president of the SGA.” “Students learn Alabama history in the fourth grade,” Bracy explained. Ingram said, “We had a big shout-out to George Washington Carver for his work with the peanut.” Ingram explained that the Yellowhammer Cookie “is kind of like an oatmeal cookie with peanut butter in the middle.” “Is this something that we can mass produce? Have we trademarked this?” Bracy said. “This is something they can talk about on Shark Tank.” “This is something great for these students,” Bracy said. “It is uncontroversial. A lot of times, the first two bills on the calendar are kind of divisive.” Rep. Mary Moore said, “I want to thank you for paying attention to young people. I appreciate you for highlighting Dr. Carver and his work.” Speaker Ledbetter thanked former Congresswoman Martha Roby for helping the children navigate the legislative process with their bill. HB421 was passed 103 to 0. It now goes to the Alabama Senate for their consideration. Ingram told Alabama Today that he thinks Senator Will Barfoot will carry the bill in the Senate. The Art of Alabama Politics Facebook page shared the recipe. Wednesday will be day 22 of the 2023 Alabama Regular Legislative Session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Alabama House passes two education bills
The Alabama House passed a bill that would create an education savings account program and another that would change the way the state manages charter schools on Thursday. House Bill 334, authored by Rep. Danny Garrett, R-Trussville, would create an education savings account program for students who are either homeless, have an individual education program, have a parent on active duty in the military, or had a parent die on active duty in the military. Individual education programs are drawn up for special education students who deal with a disability or impairment, home-bound students who deal with an illness or autism. The bill passed 99-5 and is headed to the Senate. HB334 is known as the Students with Unique Needs Education Scholarship Account program and would give these families $5,600 per year and would be capped at 500 scholarships in the first year, which would be 2024, and increase by 500 new scholarships annually. The measure was amended by Rep. Terri Collins, R-Decatur, to require standardized tests administered by their resident school districts for program participants. The bill met with opposition by Democrats, who argued against providing public funds to private schools in the education savings account that aren’t judged by the same accountability standards as public schools. “These are dollars that are designed for the public good,” said Rep. Artis McCampbell, D-Demopolis. “But if we are taking these dollars and actually putting them into the private sector and using a different measure, how is that a fair measure?” House Bill 363 is sponsored by Collins and would alter the way the state governs charter schools. The biggest change would be how funding would be disbursed to new charter schools. They would be funded during their first few years in operation based on anticipated enrollment and would also receive state funds in the same way as conventional public schools. The measure would change the appointment process for the state’s charter authorizer body, the Alabama Public Charter School Commission, and allow the commission to hire staff along with requiring commissioners to receive annual training. The bill would also change the processes of authorization and the review of applications. Alabama, which passed charter legislation in 2015, has only five charter schools. HB363 passed 76-25 and is headed to the Senate. Republished with the permission of The Center Square.
House passed legislation to expand the scope of practice of optometrists
On Tuesday, the Alabama House of Representatives passed legislation that would expand local optometrists’ services. House Bill 349 (HB349) is sponsored by State Representative Danny Garrett. “1995 was the last time we expanded our optometry law in terms of scope of practice,” Garrett said. “A lot of things have changed since 1995. Nobody had smartphones then?” Garrett said that many things have also changed in optometry over the last 28 years. “What this bill does is very strictly limited,” Garrett said. “It allows optometrists to perform three procedures they are already trained to do.” Followers of the Alabama Legislature know that optometrists and ophthalmologists have been fighting for decades over the scope of practice that the state of Alabama will allow trained optometrists to do. “I have been carrying this legislation for seven years,” Garrett said. Garrett explained that this was also about giving citizens access to healthcare as 57 counties have an optometrist practicing there, but only 23 counties have an ophthalmologist. “This is a turf thing,” for the ophthalmologists Garrett said. “We haven’t seen an increase in ophthalmologists in Alabama. I have never seen a plan to expand ophthalmology in Alabama.” Garret explained that this legislation would not allow optometrists to make injections in the eyeball or perform eye surgeries. Rep. Mark Shirey is an optometrist. “We have to be trained under an ophthalmologist,” Shirey said. “The vaccines were suggested by the ophthalmologists.” Rep. Thomas Jackson said, “I have to drive 102 miles to see an ophthalmologist even though we have several optometrists who practice in Thomasville and Clarke County.” House Minority Leader Anthony Daniels said, “I have been here ten years dealing with the scope of practice, and I have not seen any expansion of access to ophthalmologists.” “When you compare this with other states, this is actually the most restrictive bill to expand the scope of practice, and they are still not satisfied,” Daniels said. “We have groups out there who are opposed to things just to be opposed to it.” “I have heard more from the opposition than I have heard in the last eight months,” Daniels continued. “There are always going to be fear tactics used. This is just how some of these folks operate.” “If you are not going to recruit more specialists to the state of Alabama, then these are the things that we are going to look at to provide access,” Daniels said. “I think it is a great piece of legislation. It is more restrictive than what I expected, but it is a start.” Daniels said that the procedures, including corrective lasers, are fairly simple. “I might be able to do that, not that I am seeking to expand the scope of practice to myself,” Daniels said, “The insurance companies that provide the malpractice insurance are not coming out against this. That they are not opposing this legislation makes me wonder what is the real issue here.” “The optometrists will tell you that there are six or seven procedures that ought to be on here,” Garrett said. “This would just allow optometrists to do what they are trained to do it, albeit on a very restricted basis.” Rep. Barry Forte said, “I represent District 84. I represent a lot of poor folks. I have one constituent; she is over 70 years old, and she has to go all the way to Dothan to get this procedure on her eyes. She is 50 miles from Dothan. She has to pay somebody to drive her all the way to Dothan to get this procedure. She lives only half a mile from the doctor’s (optometrist) office. This is the best bill I have ever seen.” Rep. Danny Crawford explained that he had to go out of state for an eye procedure because his optometrist wasn’t allowed to treat the problem. Crawford said, “It (the procedure) took ten minutes. I had to go out of state.” Rep. A.J. McCampbell said, “You may not be able to see if you wait for five or six weeks, as Rep. Crawford said. I have people who struggle to go to the grocery store. It takes my people an hour drive to get medical procedures done that they need.” The House passed HB349 83 to 6. The legislation now goes to the Senate for their consideration. Thursday will be day 20 of the 2023 Alabama Regular Legislative Session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Alabama House passes bipartisan $45 million in tax cuts bill
On Tuesday, the Alabama House of Representatives voted to pass legislation eliminating all state income taxes on workers getting paid overtime. The sponsor estimates this amount to be a $40 million income tax cut for hourly workers. House Bill 217 (HB217) is sponsored by House Minority Leader Anthony Daniels. “This will put money back into the local economy because those workers will spend that money in their local areas,” Daniels explained. “This helps the hourly workers.” Daniels was asked what states have this. “This is a new idea that has never been tested, which is why we have a three-year sunset in case we need to go back and look at this,” Daniels said. “A lot of employers say that their employers will not work overtime because of the tax hit that they receive. This will allow companies to increased production with a smaller workforce.” Rep. Barbara Drummond said, “You have created a box that no one else has. I applaud you for bringing this bill.” Rep. Danny Garrett said, “The three-year sunset is so that we have an opportunity to evaluate it.” “I think this gets our labor force participation and productivity up,” Garrett said. Rep. Napoleon Bracy said, “In my day job, I have a responsibility to hire 1,200 people in the next three years. It is very hard to find them. The craft workers at our facility work Monday through Thursday ten hours a day. They are off Friday, Saturday, and Sunday. It is real hard to get them to come in on their off days because the tax burden is so heavy on them.” “The hospitals are real excited about this,” Bracy added. “This lets us get more from the workers that we already have.” State Rep. John Rogers asked, “How much is this going to cost the employer?” Daniels said, “This will cost the employer nothing. For the employee, they will see less money taken from their checks.” Rogers asked, “This will help us with corrections officers?” Daniels said, “This will encourage them to work longer hours because they get to keep more of that money.” House Majority Leader Scott Stadthagen said, “This is what we are down here for to make a difference.” “From what I am hearing along the borders, they are losing workers to other states,” Daniels said. “This will help with that.” The House voted to adopt the committee sub. State Rep. Paul Lee asked, “What does an employer have to do?” Daniels answered, “They just don’t collect the tax after the first forty hours. There are no fines or fees with this.” “This will not go into effect this calendar year,” Daniels explained. “This will go into effect in the next calendar year.” “The cost will be about $45 million,” Daniels estimated. The lost revenue will come from the education trust fund (ETF) budget. “The local economy will benefit more from this than the state,” Daniels said. What workers would have paid in income taxes will be spent at local stores and businesses, so that will bring in $1.8 million in additional sales taxes.” Lee said, “This is a very good Republican bill, and I appreciate you bringing it.” HB217 passed the House of Representatives 105 to 0. 100 members signed on as cosponsors of this legislation. This legislation will now go to the Senate for their consideration. Wednesday will be day 17 of the 2023 Alabama Regular Legislative Session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Legislature could address judge shortage this year Speaker Nathaniel Ledbetter says
The Alabama House of Representatives passed the largest state general fund budget (SGF) in state history on Tuesday. The over three billion SGF has nearly doubled since 2015 when legislators had to raid the state’s savings account – the Alabama Trust Fund – to keep Medicaid afloat and most non-education state agencies operable. Mental Health was cut dramatically in that period, as was maintenance on Alabama’s aging prison infrastructure. Both of those decisions have come with consequences moving forward. One area where those post-Great Recession general fund woes have had an enormous impact is on judges. The state’s population is now over five million. The state’s population has grown by over a million people since 1990, and the number of judges on the bench has not kept up. That growth has not been evenly distributed, however. Thirty-five years ago, Huntsville was a farming community with a military base and a NASA site. Today it is the largest city in the state. Baldwin County has boomed. Elmore, Shelby, Lee, Limestone, St. Clair, Autauga, and Dekalb Counties have all grown in that period at a faster rate than the state as a whole. Subdivisions now stand where cows once grazed. In 2015 judges, especially in those fast-growing counties, struggled with large caseloads. The judiciary needed more judges then, but the general fund had seen revenues decline by over 20% since 2008, so there was no money to give to the court system. The Legislature responded to those concerns by passing reallocation. The Courts were ordered that when a judge retires in an area like the Black Belt, Jefferson County, Montgomery County, or West Alabama, that judgeship would be abolished and reallocated to a growing area like Baldwin or Madison County. “That has not happened,” Speaker of the House Nathaniel Ledbetter told reporters on Tuesday. “Reallocation has not worked.” “There have been two or three vacancies that should not have been filled,” Ledbetter said. “My County (Dekalb) is 2.7 judges short,” Ledbetter said. “In 2015, we passed reallocation, and we were two judges short. Now we are almost three.” Chief Justice Tom Parker said in 2021 that the Judiciary system had done a study that showed that the state need 21 additional judges. While the general fund budget that passed out of the House on Tuesday had no funding for additional judges, House budget chair Rex Reynolds acknowledged that the state has an issue with growing case dockets and is working on the issue. “I am going to meet with the judges tomorrow,” Reynolds said. “There has to be something done,” Ledbetter said. “There is an appetite to fix it.” Reynolds said three bills have been introduced, including one by Sen. Sam Givhan, to address the judge shortage issue. “I am going to show them (the judges) the three bills and ask them which they like,” Reynolds said. “It is something we have got to look at,” Reynolds said. The state general fund budget passed on Tuesday includes a two percent pay raise for state employees and considerable increases in money for prisons and mental health. “I was excited to see it pass today,” Ledbetter said. “Chairman Reynolds and that committee has worked really hard.” Ledbetter acknowledged that even though the general fund is larger than ever,” It is hard to spread the money out and make everything happen.” The budget, including a sizable supplemental appropriation for this year, now goes to the Senate Finance and Taxation General Fund Committee – chaired by Sen. Greg Albritton. “Sen Albritton and he (Reynolds) have been working together since summer,” Ledbetter said. Reynolds said that if the Senate makes major changes to the budget, he will ask that the House non-concur. Ledbetter said that that would not be surprising. “Most of the time, the General fund and education budget go to conference committee,” Ledbetter explained. “Alabamians can be proud,” of the improvement in state budgets over the last several years, Ledbetter said. “When I first came in (2015), we could hardly pay the light bill.” Ledbetter predicted that the education budget will be out of committee in the Senate next week. “We will have it in the Senate next week,” Garrett said. “If not, then the following. Chairman (Danny) Garrett thinks it will be next week.” Ledbetter is the former Mayor of Rainsville. Alabama has an arcane budgeting system where over 90 percent of the money is earmarked. There are two separate budgets and billions of dollars outside of the two budgets making moving funds from where there is excess revenue to the greatest need difficult and sometimes constitutionally impossible. Thursday will be day 15 of the 2023 Alabama Regular Session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
House passes legislation requiring first graders to go to kindergarten or pass skills competency test
On Tuesday, the Alabama House of Representatives voted in favor of legislation requiring all incoming first graders to have either attended kindergarten or pass a test proving that they have the competency to enter first grade. Children who fail the test will be forced to attend kindergarten rather than first grade with their peers. House Bill 43 (HB43) is sponsored by State Representative Pebblin Warren, who has carried this legislation for the last few years. “I am back again. I am back with the kindergarten bill again,” Warren said. “This bill is what is referred to as a First Grade readiness bill.” “This issue has become a really important issue in the State of Alabama,” Warren said. “It is a tragedy that we would let a child reach third grade without being able to read competently.” “This bill does not make kindergarten mandatory,” Warren continued. “A child can attend kindergarten or may be in homeschooling, private schooling, or religious schooling. As long as they demonstrate competence, they can enter into first grade.” Rep. Mary Moore asked, “Will this make it mandatory?” Warren answered, “It does not make it mandatory, but the child must pass a skills competency test to be admitted into first grade.” “If their parents aren’t education-oriented, that is the group that is always going to be behind,” Moore said. “We need to make K-4 and K-5 mandatory instead of leaving that up to the parents.” “I agree,” Warren said. “It should be mandatory, but this is a process. This is our beginning step to making it mandatory.” “What I want to see is Alabama’s ranking improved,” Warren said. “It is that foundation that is going to build the foundation of Alabama.” “We need to go back to K to 8,” Moore said. “They get to sixth grade, and they have been left behind, and they just look for that crack to get out without even going to go to high school.” “We are not giving up. We are going to continue fighting,” Warren said. “I have prayed to God, asking him what I can do to get this bill passed.” “I think unless we are going back to a time where a three-year-old goes to pre-K, we need to get that four-year-old in K4,” said Rep. Kyle South. The House voted to adopt the substitute version of the bill that Warren had prepared in the Education Policy Committee in a 92 to 7 vote. Rep. Phillip Pettus said, “I would like to see us mandate kindergarten.” “If this goes through, let’s come back next time and mandate kindergarten,” Warren said. Rep. Danny Garrett said, “The synopsis says that this mandates kindergarten. A lot of people in my district do not want to be mandated kindergarten.” There was some discussion on whether or not a parent could enroll the child in first grade even if they did not pass the skills competency test that will be required for children who did not have kindergarten before first grade. Rep. Terri Collins stated, “I have an actual amendment that spells it out that if they are not ready for first grade that the child shall enroll in kindergarten.” “This is mainly those children who have never been in any kind of organized program before,” Collins explained. “They do not know their numbers. They do not know their letters. They are not ready for first grade.” “Legally, you have to go to school as a six-year-old,” Collins stated. “This amendment says that if that child comes to school as a six-year-old and is not prepared to start in first grade, then they will be enrolled in kindergarten. It will be the best thing for the child at that point.” Rep. Barbara Drummond asked, “Will the parent have the option of placing them in the first grade?” “No, they will start at the most appropriate place,” Collins answered. “This is a friendly amendment,” Warren said. Collins explained that the Alabama State Department of Education would write the first-grade readiness test. The House voted to adopt the Collins Amendment 92 to 5. The House voted to pass HB43 in a vote of 87 to 12. This is the fourth year that Warren carried similar legislation. It has not passed the Senate in the past. Governor Kay Ivey endorsed the bill in her State of the State speech. It has been referred to the Senate Education Policy Committee. Tuesday will be day 14 of the 2023 Alabama Regular Legislative Session. The Alabama Constitution of 1901 limits the legislature to no more than 30 legislative days in the regular session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Alabama House passes financial education legislation
On Tuesday, the Alabama House of Representatives passed legislation requiring Alabama public schools to teach public high school students about personal financial literacy. House Bill 164 (HB164) is sponsored by State Representatives Andy Whitt (R-Harvest). Rep. Whitt is a retired banker. “I have got story after story from thirty years of banking experience of young people who did not have a checking account,” said Whitt. “They go to convenience stores and check cashing places to get their paychecks cashed. One young fellow was working two hours a week just to be able to get his check cashed each week.” “In states with financial literacy, it has been shown that credit scores rise 20- or 30-points saving thousands of dollars on home mortgages,” Whitt said. Whitt said that the class would be “looking at high-interest loans – credit cards. Are there other options? It will look at the percent going into taxes. People don’t understand that when you get paid ten dollars an hour, you are not bringing home ten dollars an hour.” Whitt explained that HB164 gives schools flexibility in how this is taught to give the latitude to put it in a math class. “They have the ability to do that. It may be in a career tech class,” Whitt said. Rep. Roland Hollis said, “Thank you for bringing this. We have kids right now that cannot write a check.” Hollis is a businesswoman. “They need to know the business,” Hollis said. “We have kids who cannot even count the money back to you.” State Rep. Mary Moore said, “My concern is that the people who teach the curriculum; they have to be trained. You got some educators who do not manage their own money well, and they are going to teach children?” Whitt said, “This will be started in high school between the ninth and eleventh grade.” “I think you need to start in middle school,” Moore said. “The earlier you can start it, the better.” Whitt said there would be a test on financial literacy at the end of the instruction. “We are testing our little children to death,” Moore said. “And we are burdening our poor teachers with more paperwork than they can handle now.” Whitt said that this bill is just the start of the process and would bring other financial literacy bills in the future. “Orientation for junior colleges” is a possibility, Whitt said. “I hope this is my first step moving forward.” “This is important – very necessary,” said Rep. Danny Garrett. “A lot of people today don’t write checks. You are looking at EBT cards. They also tend not to carry cash. We are talking about 21st-century financial education.” State Rep. Thomas Jackson said, “Being an educator myself, how times have changed since I was in the classroom. People don’t want checks. They don’t want paper. People deal in electronic payments now.” Jackson said that many students come from poverty, so they have little experience managing money. “The reason they don’t know is that they have nothing to manage,” Jackson said. “Put money in the program and the experience and knowledge in how to get this off the paper and into the classroom.” Whitt said that the education would teach students about savings and investments. State Rep. Laura Hall asked if they would teach the students about Bitcoin. “Bitcoin – that is not covered,” Whitt said. “If you understand Bitcoin, let me know.” House Bill 164 passed the House 104 to 0. Ninety-eight members of the House signed on as cosponsors of HB164. The legislation now goes to the State Senate for their consideration. Tuesday was the eleventh legislative day of the 2023 Alabama Regular Legislative Session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Alabama legislature advances Governor’s “Gameplan” economic incentives package
On Thursday, both the Alabama House of Representatives and the Senate voted in favor of portions of Alabama Governor Kay Ivey’s “Game Plan” legislative package. “The Game Plan will position Alabama for a new era of vigorous growth, allowing us to continue our record-breaking economic development success while providing new levels of support for the state’s innovation economy,” said Gov. Ivey. “This package will benefit all Alabamians, those living in both urban centers and rural areas, and ensure our citizens are ready for high-paying careers.” “The Game Plan — our plan for Alabama’s continued economic success — had great momentum today in the Alabama Legislature,” Ivey wrote on Twitter. “I commend both the Senate and House for their work on this package of bills and look forward to their final passage. Let’s keep Alabama winning!” The House passed four-game plan bills on Thursday, while the Senate passed two more. The legislation from each now has to be considered by the second House. House Bill 257 (HB257) is sponsored by State Rep. Danny Garrett. HB257 creates the Alabama Site Development Fund. This legislation authorizes the State Industrial Development Authority to make site assessment grants and site development grants to private companies. The bill also provides for the criteria that must be met for grant approval, including changes to criteria based on economic conditions. It limits the funding that may be received by any site under the grant program. HB257 passed the House 105 to 0. HB257 has been referred to the Senate Fiscal Responsibility and Economic Development Committee, which is chaired by Sen. Garlan Gudger. Senate Bill 165 is sponsored by State Sen. Arthur Orr. It also addresses the creation of the Alabama Site Development Fund. SB165 appears to be the Senate version of HB257. SB165 passed the Senate by a vote of 30 to 0. The legislation has been referred to the House Ways and Means Education Committee – which Garrett chairs. House Bill 241 (HB241) is also sponsored by Garrett. HB241 extends the Alabama Jobs Act sunset date to July 31, 2028. It also increases the annualized cap on outstanding Alabama Jobs Act incentives by $25 million yearly for five up to $475 million. The bill increases the investment tax credit transfer time to provide that the first five years of the investment credit may be transferred by the incentivized company and applied by another person or company under the Alabama Jobs Act. It also extends the Growing Alabama Act sunset date to July 31, 2028, while increasing the annual cap on funding approved pursuant to the Growing Alabama Act incrementally to $35 million. The legislation transfers certain programs from the Growing Alabama Act to Innovate Alabama and creates the Sweet Home Alabama Tourism Investment Act. The Alabama Tourism Department is tasked with developing standards for the review and approval of certified tourism destination projects. HB247 passed the House 105 to 0. It has been referred to the Senate Finance and Taxation Education Committee, which Sen. Orr chairs. Senate Bill 151 (SB151) is sponsored by Sen. Garlan Gudger. SB151 would amend existing law on economic development to authorize the Joint Legislative Advisory Committee on Economic Development to conduct an economic incentive evaluation. It would also require the Department of Commerce to publish certain information regarding economic development incentives awarded under the Alabama Jobs Act. SB151 Passed the Senate 30 to 0. The legislation has been referred to the House Ways and Means Education Committee. House Bill 247 is sponsored by House Minority Leader Anthony Daniels. Under existing law, the Alabama Innovation Corporation is a public corporation created to support, financially and otherwise, growth in technology, innovation, and entrepreneurship sectors in the state. HB247 would change that to Innovate Alabama. Under existing law, the Alabama Innovation Corporation is also authorized to make Small Business Innovation Research and Small Business Technology Transfer Research matching grants to certain entities. To receive a grant, the entity must make its primary place of business in Alabama. The location of residency of one top executive must be in Alabama, and 75 percent of its employees must reside in Alabama for five years. This bill would add a one-year time frame for making Alabama the principal place of business, requiring the majority of top executives to reside in Alabama and a majority of employees to live in Alabama as a condition for receiving a grant. This bill would create the Innovating Alabama tax credit program to allow certain economic development organizations that create, operate, or support certain programs relating to technology accelerators and underrepresented companies to claim specified tax credits. This bill would also exempt working groups, task forces, and subcommittees of the Alabama Innovation Corporation from the Alabama Open Meetings Act. HB247 passed the Alabama House of Representatives 105 to 0. The bill has been referred to the Senate Finance and Taxation Education Committee. House Bill 240 is sponsored by State Rep. Cynthia Almond. HB240 requires the Alabama Department of Commerce to publish on its website certain information about economic development incentives awarded under the Alabama Jobs Act. It provides transparency to the awarding of incentives. HB240 passed the Alabama House of Representatives 105 to 0. It has been referred to the Senate Fiscal Responsibility and Economic Development Committee. Following passage of the six bills in their respective Houses of origin, Speaker of the House Nathaniel Ledbetter posted on Twitter. “The state’s economy is stronger than at any other time in our history, and we have an abundance of long-lasting, good-paying jobs,” Ledbetter said. “But while our state has already achieved remarkable milestones, Alabama is on the cusp of transforming its economy for generations.” “Growing Alabama’s economy through increased incentives and industry expansion is imperative to keeping our state the best place to live and work for its citizens,” Ledbetter added. “The Legislature is working for you, and we look forward to building on our progress.” As of Thursday, 542 bills have been filed in the 2023 Alabama Regular Legislative Session. Tuesday will be day 11 of the regular session. The Alabama Constitution limits the Legislature to no more
Alabama lawmakers advance economic development bills package
Alabama lawmakers advanced Thursday a package of economic development bills that would renew and expand the tax breaks and other incentive programs the state uses to lure industries. The Alabama House of Representatives approved the four-bill package that Republican Gov. Kay Ivey dubbed “the game plan” for economic development. The bills now move to the Alabama Senate, where a vote is expected next week. The bills were approved without a dissenting vote. The centerpiece of the package is a bill that reauthorizes and expands the Alabama Jobs Act, which gives tax credits for capital investments and cash rebates for job creation. The program is the state’s primary economic recruitment tool and will expire this year unless renewed. The legislation authorizes the program for another five years and incrementally increases the cap on incentives from $350 million for 2022 to $475 million for 2027. Ivey’s office has said the increase is needed to keep the state competitive for large projects. Republican Rep. Danny Garrett, the sponsor of the bill, said it is critical lawmakers continue the program along with companion bills that increase resources for site development. “It’s very critical that we renew this in order to keep track with what’s going on around the country,” Garrett said. “Eight years is a long time in the economic development world. In the past eight years, the world has changed. Economic incentives have been changed. What other states are doing has changed.” Alabama and other southern states have used large incentive packages, where state and local governments often work together to provide land, infrastructure work, worker training, tax breaks, and rebates to lure industries. In 1993, Alabama used a $253 million incentive package to bring Mercedes-Benz to the state and has since used multiple large incentive packages to entice auto manufacturers and other industries. The Alabama Senate approved a companion bill to create a program where local economic development organizations could seek financial help with site development. Senate President Pro Tempore said the bill is a “vehicle to allow the state to aid in helping with those ready sites.” The Senate also approved another bill to require the Alabama Department of Commerce to publish information about incentive agreements on its website. Those bills now move to the Alabama House of Representatives for debate. Republished with the permission of The Associated Press.
Alabama House passes tax cut legislation
On Thursday, the Alabama House of Representatives passed two bills that would cut taxes for virtually every Alabamian. The House voted to phase in cutting the income tax rate from 5.0 percent to 4.96%. The House also voted to increase the personal exemption that Alabamians take on their state income tax returns. Both bills, HB115 and HB116, were sponsored by State Representative Danny Garrett, who chairs the House Ways and Means Education Committee. House Bill 115 would phase in the cut in the state’s top tax rate (the rate that the vast majority of Alabamians pay) from 5.0% to 4.95%. Garrett explained that the cuts would be phased in over four years. 4.99%, 4.98%, 4.97%, 4.96%, and finally 4.95%. Garrett said that once fully implemented in 2029, HB115 would mean $58 million a year in savings for Alabama taxpayers. House Bill 116 eliminates the current 2% tax that people pay on the first $500 of taxable income for single people and $1,000 for married couples who file their taxes jointly. Garrett said that the legislature has already implemented several tax cuts, including the business privilege tax, increasing the size of the personal exemption, and reducing the threshold that businesses pay business property taxes. HB116 would go into effect in the 2024 fiscal year. Once fully implemented, its passage will cost the education trust fund (ETF) $25 million a year. If both of these bills pass, they will cost the ETF $82 million a year. The income tax provides over 80% of the revenue for the education budget. The Governor’s 2024 education budget request is $8.8 billion. $82 million a year would amount to less than a .92% cut in tax collections. Over the past several years, this has outpaced revenue projections. Even factoring in an economic downturn, over time, growth in tax revenues should still outpace the size of these two proposed tax cuts. Sen. Arthur Orr has introduced similar legislation in the Alabama Senate. Both SB47 and SB48 have received favorable reports from committees in the Senate and could be taken up by the full Alabama Senate as soon as Tuesday. Both bills passed the Alabama House of Representatives 105 to 0. Both now go to the Alabama Senate for their consideration, where they have been referred to the Senate Finance and Taxation Education Committee, which is chaired by Orr. There are also a number of proposals that have been introduced to cut or eliminate the state’s four percent sales tax on groceries. Orr’s Senate Bill 177 would gradually phase out the state tax on food. That bill has also been referred to the Senate Finance and Taxation education committee. The legislature will meet next Tuesday for the eighth legislative day of the 2023 Alabama Regular Legislative Session. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
