November 2012 Group Watch: Alabama Focuses on Education Workforce Development

Alabama Secretary of Commerce Greg Canfield recently hinted at increasing collaboration between state education and economic development officials aimed at improving workforce development for industry. During an appearance in Birmingham, Canfield said he expects an announcement very soon from Governor Robert Bentley that will put the spotlight on the relationship between education and a ready workforce. Last year, the governor issued an executive order establishing the Alabama Economic Development Alliance, which Canfield chairs. The purpose of the Alliance is to improve workforce development for recruiting industry. According to Canfield, this is the first time in state history that the traditional economic development community and the education community are at the table together planning strategy. The governor pledged to not take a salary as governor until unemployment reached a suitable level.

November 2012 Group Watch: Alabama Will Not Set Up State Health Exchange

Alabama Governor Robert Bentley announced this week that the state will not establish a state insurance exchange under the Affordable Care Act. Bentley says the Affordable Care Act is neither affordable nor does it actually improve health care. The governor says his decision comes after speaking individually and in group settings with governors from across the country. The governor says he will not expand Medicaid under the current structure because the taxpayers cannot afford it. Under the Affordable Care Act, states have until November 16 to determine if they will set up their own exchange, or let the federal government form its own exchange. State officials predict participation in the exchange would have added a tax burden of up to $50 million on the people of Alabama.

October 2012 Group Watch: News & Views from the State House

So far, fall has been full of news on insurance, new voting districts and more.

• Governor Refuses to Comply with Health Care Exchange Deadline: Governor Robert Bentley announced that Alabama will not comply with a deadline in setting up state health insurance exchanges required under the Affordable Care Act. The U. S. Department of Health and Human Services asked states to submit lists of essential benefits that could be models for plans offered on the exchanges. The governor said the state would not submit the information because there had been a lack of guidance from the federal government. Bentley joins other GOP governors speaking out against or refusing to comply with various portions of the Affordable Care Act. The Act requires states to establish insurance exchanges, which are web-based marketplaces in which people can shop for health insurance plans. The exchanges are supposed to be operational by 2014. Health experts say if a state does not choose to comply the benchmark will be the largest small group plan in the state. In the state of Alabama that is presumed to be Blue Cross and Blue Shield of Alabama’s 320 Plan.
• State to Launch Insurance Verification System: TAlabama’s liability insurance law has been on the books for 12 years, yet 22 percent of drivers in the state are still uninsured; one of the highest rates in the nation. The state has been testing the Online Insurance Verification System since June; ahead of its implementation on January 1. Alabama will be the first state to use such a system.  State officials believe this system will lower the rate of uninsured dramatically, and the goal is to get the uninsured drivers in our state down below 10 percent. The new system will provide law enforcement a new tool to help catch those who try to break the law by using fake insurance cards. Starting January 1, you will not be permitted to register a vehicle in the state unless your insurance can be verified through the system or you can provide proof in person.
• Justice Department Approves New Legislative Districts: The U. S. Justice Department has cleared Alabama’s new legislative districts for use in the 2014 elections. The Justice Department has to review new political boundaries in the state to make sure they don’t violate the 1965 Voting Rights Act by disenfranchising black voters.  Attorney General Luther Strange expressed pleasure that the Department of Justice has approved the redistricting plans. Strange said he is proud of his staff for handling the matter so quickly and for achieving a desirable outcome. The Legislature drew new districts last year for Congress and the State Board of Education, which also received prompt clearance from the Justice Department. The New district lines are based on the 2010 census.

October 2012 Group Watch: Senate Switch

State Senator Jerry Fielding of Sylacauga recently announced he is joining the Republican Party. Fielding said he is distressed with the national Democratic Party moving further to the left and added that his political philosophy and moral values are more in line with Republican Party. The 35-member Senate now has 23 Republicans, 11 Democrats and one independent. Fielding served as a district and circuit judge as a Democrat for more than 20 years before being elected a state Senator. Fielding is described by Republicans as conservative, pro-business and a “perfect fit” to join their ranks. Republican Governor Robert Bentley issued a statement welcoming Fielding to the Republican Party.

October 2012 Group Watch: Roll Tide!

A south Alabama pilot was flying his twin-engine Cessna to see No. 1 Alabama play Ole Miss in Tuscaloosa when he experienced engine trouble and landed his plane in a cotton field in Selma. The four men aboard the plane reported they were going to stop in Selma for barbecue. After their plans were interrupted, they hitchhiked a ride to Montgomery, leaving the plane in the field. Upon arriving in Montgomery, they rented a car and drove to Tuscaloosa for the late evening game. Now that’s FAN LOYALTY!

September 2012 Group Watch

September’s been a busy month so far with announcements about new hires, new jobs and lower utility rates for businesses. Plus, a major issue is up for vote tomorrow. Will the people speak and what will they say?

• Proponents of September 18 Referendum Say Vote is Key: Proponents of using $437 million from a state trust fund to prevent deep budget cuts are encouraging a big voter turnout by people whose paychecks or loved ones will be affected by the outcome. Proponents, like Governor Robert Bentley, are aiming their pitch toward those who could be affected the most. He says he is counting on people such as the Alabama State Employees Association, hospitals and nursing homes to take the lead in turning out yes votes. At Manufacture Alabama, which represents many of the state’s largest industries, President George Clark is distributing material for his members to display in employee break rooms. Clark, a former state representative from west Alabama, sponsored legislation in 1981 that created what is now the $2.3 billion Alabama Trust Fund. According to Clark the money was set aside for use during tough economic times like these. If the constitutional amendment fails, he said states competing with Alabama for new industries will make sure those industries know Alabama is cutting state services. Single-issue elections such as this usually draw an extremely low turnout. Will this be different?
• New Community College Chancellor: The State Board of Education voted unanimously to hire Shelton State President Mark Heinrich of Tuscaloosa as head of the state’s two-year college system. The board president, Governor Robert Bentley, who is from Tuscaloosa, said he voted for Heinrich because he saw firsthand what he did at Shelton State after the Board named him president in 2008 following a corruption investigation. Heinrich, 59, received his bachelor’s and master’s degrees from Tennessee Tech University and his doctorate from the University of Alabama. The school board still must negotiate a contract with the chancellor, but Bentley said the salary is likely to be closer to the $198,000 paid to the state school superintendent than the $289,000 paid to the previous chancellor.
• New Auto Supplier: Governor Robert Bentley was recently in his hometown of Tuscaloosa to announce that a new auto supplier will create 100 jobs.  The governor joined Tuscaloosa officials for the announcement of the new supplier at the North River Yacht Club. According to the governor’s office, the supplier will invest $34 million and will supply products to the Mercedes-Benz assembly plant in Vance.
• PSC Extends Special Rates: The Alabama Public Service Commission voted unanimously to extend special electric rates that were started last year to stimulate the economy. Commissioners say the rates are designed to give businesses one more reason to create jobs during tough times. One of the special rates provides a one-year rate discount for a business that opens in a building that has been vacant for at least six months. The incentive applies to a new business or to a business that opens an additional location. Relocations don’t qualify. The other program is aimed at larger companies that invest enough money and create enough jobs to qualify for the state’s Capital Investment Tax Credits. The discount is for two years, with 10 percent off the base rate for the first year and 5 percent for the second year. The PSC extended the program from January 1, 2014 to January 1, 2016.

September 2012 Group Watch: Governor Seeks Hearing on Immigration Law

Alabama Governor Robert Bentley announced the State has filed petitions asking the full Court of Appeals to reconsider parts of two opinions issued in August regarding the state’s immigration law. The governor contends that the three-judge panel’s decision to strike three of the provisions, including those dealing with harboring, contracts and school data, are contrary to the U.S. Constitution. The governor said in a prepared statement that he was filing this request based upon principle, and as governor he has a duty to uphold and defend Alabama law. He added that the federal court should not restrain state governments in a way contrary to the U.S. Constitution.

September 2012 Group Watch: Principal Perspective

by Allen Sanderson

Our clients already know that The Bloom Group is a trusted source of information on all things political in our state, but we’re also delivering that info in ever faster and more convineient ways. We’ve got Group Watch, which highlights important, timely issues right in your inbox, but we’re also on Twitter, routinley “tweeting” the status of State House happenings when the Legislature is in session as well as links to articles and opinions of intertest all year round. If you’re not doing so now, I encourage you to follow us on Twitter by clicking here. It’s just one more way we continually connect you to the news you need to know.

September 2012 Group Watch: Football & Fortune

Fall in our area means the arrival of many things, not the least of which is SEC football. The tailgating, the roaring cheers in packed stadiums, and the rivalries all add up to a whole lot of fun being had on any given Saturday. But what does football have to do with leadership skills? If  you’re curious about how and where these two concepts meet, check out this article in Fortune magazine that delves into the mind of Alabama’s highly successful football coach Nick Saban and attempts to answer this question.

August 2012 Group Watch: News & Views from the State House

Kids are back in school all across the state, and education news tops the headlines coming out of the capital.

• 75 Percent of Schools Made Adequate Progress: The state Department of Education recently announced that Alabama’s schools and systems achieved adequate yearly progress. The “adequate yearly progress” standards measure how well schools are moving toward federal law’s goal of having all students proficient in math and science by 2014. Of its 1,365 schools, 342 failed to make adequate progress, down from 377 the year before. Only 26 of the state’s systems failed to make progress, down from 49 the year before. State School Superintendent Dr. Tommy Bice said the numbers are headed in the right direction and described the overall scores as “very encouraging.”
• Education Trust Fund Revenue on Track: TState Budget Director Bill Newton recently announced that education trust receipts are on target to meet spending for the current fiscal year, which ends September 30. He also predicted the General Fund, the major source of state money for non-education agencies such as prisons, Medicaid and Human Resources, should collect enough revenues to meet its trimmed spending target for the year without further cuts.  Finance officials say the growth in education revenue is currently at 5.9 percent. A growth rate of 5.6 percent for the year is needed to support appropriations for the year. The General Fund revenue grew by 18.5 percent in the current year, which factors in a $266.4 million windfall from the Alabama Trust Fund. The governor also trimmed General Fund obligations for the current year by prorating budgets 10.6 percent.
• Search for Leader of Two-Year Colleges Underway: The state Board of Education recently voted unanimously to interview eight persons recommended by a consultant (who reviewed 29 applications) for the head of the state’s two-year college system. Governor Robert Bentley, who chairs the school board, said the board will conduct the interviews over a two-day period later this month and then invite three back for a second interview in mid-September. The previous chancellor made $289,000 annually, but the board has not decided what to offer the next chancellor. All of the interviews will be held in Montgomery and are open to the public.