January 2024 Group Watch: News & Views from the State House

The Alabama Legislature is gearing up for its 2024 regular session, which convenes on February 6. House Speaker Nathan Ledbetter has shared his thoughts on the issues and topics that should take priority for the law-making body.

State budgets will for sure be on the agenda, and further decreasing the state sales tax on groceries will be considered as legislators review the education revenue numbers. Also, Governor Ivey has announced her intention to stand up to unions that have their sights set on Alabama automakers, saying her position protects jobs. 

And speaking of jobs, a few economic development wins for the state are bringing new employment opporunities.

We’ve got more information on all this, as well as other important #alpolitics topics below.

January 2024 Group Watch: Tweet of the Month

@thebloomgroup
Jan 18
Proposed Demopolis health care high school gets $26.4 million pledge.

January 2024 Group Watch: House Speaker Nathaniel Ledbetter Outlines 2024 Priorities

Alabama House Speaker Nathan Ledbetter stressed that issues preventing Alabamians from working and ways to improve workforce participation should take center stage during the legislative session, noting the need to “think outside of the box” for solutions. At a Montgomery Area Chamber of Commerce event, Leadbetter said he wants to continue to make Alabama a business-friendly state, and addressing issues in transportation, underemployment and child care is the way to do it. The workforce participation rate (percentage of residents working or looking for work) was 57.1 percent in November, compared to 62.8 percent nationwide. Alabama’s participation rate historically lags the nation. Ledbetter said there will also be focus put on education legislation and continuing support for existing programs such as Numeracy and Literacy Acts. 

January 2024 Group Watch: Sources Say Lottery and Gambling Bill Will Come Up this Session

While it remains in flux as details are hammered out, according to Representative Andy Whitt (R-Harvest), a lottery and gambling bill will come before and be debated in the House this session. Whitt is likely to be one of its sponsors, and he noted that this time around, bill sponsors and supporters are putting emphasis on finding middle ground and specifics that will make the legislation more palatable to more lawmakers, thus boosting chances of its passage. Read more here.

January 2024 Group Watch: Alabama National Guard’s New Leader On the Job

In a ceremony at the Alabama National Guard Joint Force Headquarters, Brigadier General David K. Pritchett officially assumed command of the Alabama National Guard. Pritchett was promoted after the retirement of former Adjutant General Major Sheryl E. Gordon, the first woman to ever hold the position. An Alabama native, Pritchett began his military career in 1988 with the U.S. Marine Corps before entering the Army Reserve Officer Program at Auburn University.  He was commissioned a 2^nd Lieutenant in the Alabama National Guard in 1991.

January 2024 Group Watch: State Ed Superintendent Calls for “Guardrails” on Any Voucher Bills

Legislation to offer parents and students broader school options , including the use of vouchers, is likely to come up during the 2024 session, according to Republican leaders and Governor Ivey. In response, State Superintendent of Education Eric Mackey has called for certain parameters and “guardrails” to be put in place, including ensuring money goes directly to schools, not parents. Read more here.

January 2024 Group Watch: Gov. Ivey Stands Up to Union

With The United Automotive Workers union ramping up efforts to gain power among non-union automakers, including those in Alabama, Governor Kay Ivey recently penned a op-ed noting the state’s track record of success and position as a worldwide leader in automotive manufacturing while making her thoughts on the union matter clear. Here’s an excerpt: “September 30, 1993 marked a watershed moment in Alabama history. That is the day Mercedes-Benz went against the grain and chose our state to be the home of their first U.S. manufacturing facility. It was a decision that changed the future of our state like no one could have imagined. Fast forward more than thirty years, and Alabama is a top five automotive manufacturing state with five world-class Original Equipment Manufacturers (OEM) – Mecedes-Benz, Honda, Hyundai, Toyota and Mazda. These manufacturers are key drivers of our economy, but who drives their success? The answer is almost 50,000 hardworking Alabamians in the automotive manufacturing sector. Alabama has become a national leader in automotive manufacturing, and all this was achieved without a unionized workforce.” 

January 2024 Group Watch: Education Revenues Remain Flat

State tax revenue into the Education Trust Fund continue to be down slightly in fiscal year 2024, as state budget leaders prepare for the legislative session just one month away. Lawmakers will learn next month if receipts are expected to rally enough in 2025 to drop another penny from the state’s sales tax on groceries. Total Education Trust Fund revenue was down $25.3 million or 2.5 percent in December when compared to a year prior. In the first three months of fiscal 2024, total revenues were $2.4 billion, down $29.2 million or 1.19 percent. Relative flatlined education revenue isn’t a tremendous concern for budget leaders as they planned to spend less on education than expected revenues this year. The Education Trust Fund collected a record $10.4 billion in 2023; the education budget for 2024 is $8.8 billion. Alabama is not alone in declining revenue in recent years. The Associated Press reported that some states are facing serious deficits as federal COVID-19 pandemic relief spending runs out. As a result, states are expected to pass fewer tax cuts during the 2024 legislative sessions. In The Alabama General Fund, which supports non-education state agencies, revenues continue to grow over 2023, largely due to earnings from high-interest rates. The General Fund is not expected to require additional growth to support 2024 expenditures.

January 2024 Group Watch: Primordial Ventures Building Manufacturing Facility in Birmingham

Alabama Commerce Secretary Ellen McNair announced that startup Primordial Ventures plans to launch a manufacturing operation in Birmingham to produce high-quality medical supplies and ensure a dependable domestic production pipeline for these goods. The company, a veteran and minority-owned company, plans to create 30 jobs at the Alabama production facility over a three-year period, with an average salary of $47,840. The facility is expected to begin operating early in 2024. Primordial Ventures’ primary focus is to manufacture and distribute supplies such as catheter kits, urine bags, cadaver bags and medical-grade tubing using high-density polyethylene, low-density polyethylene and polystyrene resins.

January 2024 Group Watch: Brasfield & Gorrie Investing in/Growing in Birmingham

Brasfield & Gorrie, one of the nation’s largest privately held construction firms, will invest $18.9 million to expand its national headquarters in Birmingham, choosing to grow in its hometown over other major markets where it operates. The expansion project adds a 28,500-square-foot, three-story building on its campus on the southside of Birmingham. The company provides general contracting, design-build, and construction management services for a wide variety of markets including healthcare, commercial, science and technology, institutional, federal, municipal, industrial, mission critical/data centers, infrastructure, and water/wastewater treatment. The company has been based at its current location since its founding in 1964, and the headquarters now houses more than 550 employees. It has offices in 12 other cities, including Atlanta, Dallas, Miami, Charlottee, Nashville and Orlando, with total employees exceeding 3,700. The Birmingham project’s job creation will take place over five years, and the positions will pay an average annual salary of $74,000.