MONTGOMERY — The Alabama House of Representatives passed a bill package on Wednesday to bolster the state's workforce development and increase opportunities for more Alabamians.
The package of bills includes changes to the Department of Labor, workforce diplomas, new housing tax credits, allowing cities and counties to partner to provide companies with local incentives, and childcare tax credits.
Gov. Kay Ivey joined lawmakers in rolling out the "Working for Alabama" package in March. The package is designed to solve one of Alabama's most significant economic challenges, its labor force participation rate, which is one of the lowest in the country. Almost half of the state's working-age individuals are neither employed nor seeking jobs.
"I'm proud of our members for coming together and getting these important bills passed in such a strong fashion," said House Speaker Nathaniel Ledbetter (R-Rainsville). "The Working for Alabama Package builds on our historic economic success by addressing many of the key challenges standing between our state and its full potential. I have no doubt that our efforts to support Alabama's working families and streamline Alabama's workforce development initiatives will take our state to new heights."
House Bill 346 (HB346), sponsored by State Rep. Cynthia Almond (R-Tuscaloosa), also called "the Alabama Workforce Housing Tax Credit Act," provides incentives for developers in constructing affordable workforce housing. The bill aims to reduce the cost of living, making it easier for individuals to relocate or enter the workforce.
House Bill 358 (HB358), Sponsored by House Minority Leader Anthony Daniels (D-Huntsville), is a childcare tax credit. The bill would provide a tax credit to certain employers, assisting employees in paying for childcare. Employees must make under $80.000 per year to qualify.
Senate Bill 247 (SB247), also called "the Alabama Workforce Transformation Act," sponsored by State Rep. Danny Garrett (R-Trussville), would rename the Department of Labor "The Department of Workforce" and rename the cabinet head position, the Secretary of Workforce. The workforce secretary will be the state's primary workforce development officer and will be responsible for making recommendations to the governor and the legislature. The bill would consolidate virtually all workforce-related state programs under the umbrella of the Department of Workforce.
"Alabama has one of the worst labor force participation rates in the nation, but by reducing government inefficiency, streamlining and making more effective our state's workforce development programs, and removing key barriers to entry, we're going to change that and get more Alabamians into the workforce and contributing to our economy," Garrett said.
Senate Bill 252 (SB252), carried in the House by State Rep. Randall Shedd (R-Fairview), also called "the Alabama Growth Alliance Act," establishes a public/private partnership between Alabama's industries and the state. The Act will create a non-profit corporation legally separate from the state, with board members appointed by the Governor, Speaker of the House and the Senate President Pro Tem., The Board of Growth Alliance will review the state's primary economic development incentives on a biennial basis and analyze the effectiveness of the incentives to create jobs, attract new business and encourage existing business expansions.
"By creating a structure for our state's workforce development efforts that tracks outcomes to ensure accountability and a plan that has private-sector input and is regularly updated to keep up with a changing global environment, we can have a more deliberate, intentional and effective approach to growing our economy," Shedd said.
Senate Bill 253 (SB253), also called "the Alabama Career Pathways Act," was carried in the House by State Rep. Kelvin Lawrence (D-Hayneville). The bill would enhance career and technical education opportunities for high school students who plan to enter the workforce immediately after graduation. Students enrolled in the Workforce Pathways diploma pathway shall only be required to complete two math and two science credits to earn their high school diploma instead of the four math and four science credits required of other students. Instead, those credits can be filled by completing career and technical education courses.
"It's a reality that not all Alabama high school students plan on attending college," Lawrence said. "The good news is the state of Alabama has a large number of high-quality jobs available that are well-paying and can give our youth the ability to pursue a great career for themselves and their families without a four-year degree. The Career Pathways Act will give those students the ability to graduate high school with a credential and immediately enter the workforce with a job that allows them to create a great future for themselves. This was a key recommendation that came out of the Lieutenant Governor's Commission on 21st Century Workforce, on which I served, and I can't wait to see the impact this bill will have on countless young Alabamians."
Several of the Senate bills were amended in the House, meaning the Senate must concur with the changes before going to Ivey's desk for a signature.
To connect with the author of this story or to comment, email craig.monger@1819news.com.
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