March 10, 2023

Ivey State of State Emphasizes Economy, Education

Alabama Gov. Kay Ivey kicked off her second full term and the 2023 Legislative Session Tuesday night with a State of the State address emphasizing economic development and education. 


“We have an opportunity during this Legislative Session to continue making progress for Alabama families,” Ivey said. “We must be prudent and wise with our folks’ hard-earned dollars. We must support a strong economy in Alabama so Mom and Dad can provide for themselves and their children. We must support these hardworking parents. We must ensure our children have the opportunity to receive a quality education no matter where they live. And we must prioritize the safety of our children and our communities. I believe Alabama can accomplish these goals and more because we believe in the power of strong families.”


Ivey cited conservative fiscal policy for helping the state avoid proration during her administration. She called on the Alabama Legislature to leverage the state’s strong financial position this year to repay money borrowed from the Alabama Trust Fund and provide one-time rebates to taxpayers of $400 per individual and $800 for joint filers.


Ivey credited the Alabama Jobs Act, which is set to sunset, for helping create 78,000 jobs and $42 billion in economic investment. She proposed renewing these economic incentives through a playbook for economic success she dubbed “The Game Plan.” The governor also proposed a $200 million grant program for locally owned businesses called “The Main Street Program.”


Following up on a pledge in her inaugural address, Ivey announced she would sign an executive order Wednesday calling for a 25% reduction in state regulations over the next two years. 


During her address, Ivey announced a special session of the Legislature, beginning Wednesday, to allocate about $1 billion in federal money from the second round of the American Rescue Plan Act. She called on lawmakers to invest in “major and needed endeavors like expanding broadband access, improving our water and sewer infrastructure and investing in our health care – including telemedicine.”


On the education front, Ivey proposed requiring kindergarten for all students; funding for additional reading and math coaches; increasing the starting salary for teachers; providing startup funds for new charter schools; and creating a new Alabama School of Healthcare Sciences in Demopolis.


“As we look ahead to a future filled with rich opportunity and great possibility, I pledge that we will build on our roots by focusing on getting the hard work done today, while never forgetting that our work now matters most to our future generations,” Ivey said. “The people of Alabama deserve our very best. Future generations of Alabamians deserve our hardest work today. This is our opportunity. So, let’s not waste a moment." Read Gov. Ivey's full State of the State address.

Gov. Ivey Issues Executive Order to Cut Red Tape

Alabama Gov. Kay Ivey followed through on an inaugural pledge Wednesday by issuing an executive order calling for a 25% reduction in state regulations by March 2025. 


“Sometimes, the best thing government can do is just get out of the way and allow the people to handle their business,” Ivey said. “In many cases, government regulations that were necessary a decade ago have outlived their usefulness, and it’s time for that to change. This order directs state executive branch agencies to find where they can better serve our people, and I look forward to seeing its impact result in positive changes soon.”


Executive Order 735 places a moratorium on new rulemaking by executive branch agencies and establishes goals for the reduction in discretionary regulatory restrictions on citizens and businesses contained in the Alabama Administrative Code.


Alabama Farmers Federation and Alfa Insurance President Jimmy Parnell praised Ivey’s conservative leadership. 


“We appreciate Gov. Ivey’s commitment to smaller government and greater economic freedom for Alabama farmers, families and businesses,” Parnell said. “Under her leadership, Alabama has added 78,000 new jobs, improved infrastructure and strengthened the state’s rainy day accounts. This executive order is another common-sense step to keep Alabama growing and working.”


Ivey outlined three phases of the Red Tape Reduction Initiative. Phase 1 requires executive agencies to inventory existing administrative rules with anticipated completion by September 2023. Phase 2 directs agencies to develop a plan to reduce regulations by March 2024. Implementation of the plans would occur during Phase 3, set for March 2024 through March 2025. Read more.

ARPA Funds Targeted to Water, Broadband, Healthcare

The Alabama Legislature convened Wednesday for a special session aimed at allocating about $1 billion in federal money from the American Rescue Plan Act (ARPA).


Bills introduced by the General Fund committees of the Senate and House of Representatives show lawmakers prioritizing water and sewer infrastructure; broadband expansion; and reimbursement of healthcare costs — similar to the first installment of ARPA relief money. 


HB 1, by House Ways and Means General Fund Committee Chair Rex Reynolds, R-Huntsville, would set aside $400 million for water and sewer projects; $260 million for broadband; and $340 million for COVID-related expenses incurred by hospitals, nursing homes, Veterans’ Affairs facilities and mental health services as well as expansion of telemedicine. Another $55 million would be allocated toward programs negatively impacted by the pandemic including food banks and senior services. 


In addition to ARPA spending, the Legislature will consider bills during the special session to use a projected budget surplus to repay money borrowed from the Alabama Trust Fund. Reynolds and Senate Finance and Taxation General Fund Chair Greg Albritton, R-Atmore, are sponsoring bills to use $60 million to satisfy the debt incurred in 2012. The state originally borrowed $437 million from the oil and gas lease fund to meet budget shortfalls. The Legislature is required to pay off the debt by 2026. The special session bills would allow the state to meet that obligation early.


The ARPA and loan repayment measures are expected to work their way through the legislative process next week, with the Legislature returning to its regular session work the week of March 20.

Scofield Talks ARPA, Budgets During AgCast

Alabama Senate Majority Leader Clay Scofield, R-Guntersville, joined Alabama Farmers Federation State Legislative Programs Director Russ Durrance in the studio Monday for a conversation about the legislative session. The interview aired Wednesday on the Federation’s Alabama AgCast and is available here.

Leading Alabama to Provide Legislative Updates

A new social media platform aims to share updates from the Alabama Legislature by working closely with the offices of Speaker of the House of Representatives Nathaniel Ledbetter (R-Rainsville) and President Pro Tem of the Senate Greg Reed (R-Jasper). 


Leading Alabama launched Wednesday on Facebook and Twitter, featuring a video from Ledbetter and Reed. The Twitter channel articulates the platform’s mission of "sharing Alabama success stories that are moving our state forward."


To view the video and follow Leading Alabama, check out their Facebook and Twitter channels.

Capitol Connection | Alabama Farmers Federation | (334) 288-3900 | AlfaFarmers.org


Questions?

 Brian Hardin - Director, External Affairs Department

 Preston Roberts - Director, Agricultural Legislation

Russ Durrance, Director, State Legislative Programs

John Allen Nichols, Agriculture Counsel

Beth Chapman, Beth Chapman and Associates, LLC

Hayden Harris, Administrative Assistant

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