House takes on workforce development bills
Five bills geared towards workforce development were passed in the House, from childcare and housing tax credits to a bill creating an alternative pathway to get an Alabama high school diploma.
The goal of the package is to increase Alabama's low labor force participation rate and improve workforce development programs.
House Bill 346 would create a housing tax credit to incentivize developers to construct multifamily rental housing opportunities that are in line with an existing federal program.
"One of the major issues with people not being able to either leave their Section 8 housing or move to another area for a job is their ability to afford housing," said Representative Cynthia Almond, R-Tuscaloosa.
Almond is sponsoring the bill. She said it complements the existing federal program that Alabama does not take advantage of because rent is too low. Almond said many states have similar programs.
- SEE ALSO: Lawmakers propose childcare, housing tax credits to improve workforce participation
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A committee substitute was offered and accepted.
Representative Curtis Travis, D- Tuscaloosa, said the bill is a good starting point but more needs to be done to get single-family housing built. He also disagreed with sunsetting the housing tax credit. To get the credit, applications must be submitted by September 2027.
The tax credit is annually capped at $5 million state-wide. A project cannot be awarded more than $2 million each year. The credit can be claimed for 10 years.
Representative Danny Garrett, R- Trussville, believed the sunset would allow the state to test out the program to see if it would work to increase labor force participation.
The housing tax credit was passed and goes to the Senate.
House Bill 358 would create employer and childcare provider tax credits. The goal is to incentivize employers to pay for employees' childcare and to aid childcare providers in making programs more accessible and affordable.
Three tax credits were included in the initial legislation.
- employer tax credit
- childcare facility tax credit
- nonprofit childcare tax credit
The bill was amended in committee.
The substitute offered on the floor put a cap on the employer tax credit of $600,000 per year for each employer. The employer tax credit for larger businesses would take care of 75 % of eligible expenses. For small businesses, the tax credit would cover 100% of eligible expenses. The amount allocated to the program has an escalating cap, starting at $15 million for 2025, and going to $20 million in 2027.
The initial bill had the program funds escalating until 2029 with a $35 million cap.
The substitute also changed the credit for nonprofit childcare to a grant program with the Department of Human Resources.
The substitute was passed in the house. It now goes to the Senate.
Senate Bill 247 is the Alabama Workforce Transformation Act. It adds responsibilities related to workforce development to the Alabama Department of Labor and renames the department the Alabama Department of Workforce. Programs related to the workforce now under the Department of Commerce would be transferred to the Alabama Department of Workforce.
The bill passed without amendments in the House. It now goes to Governor Kay Ivey to be signed.
Senate Bill 252 creates the Alabama Growth Alliance. The Alliance would be a public corporation governed by a board of public and private leaders. The alliance would be used to coordinate the development, track, as well as provide input and support for the state's long-term economic development strategy, annual objectives, and tactics to accomplish long-term goals.
A committee substitute was offered and adopted on the House floor.
An amendment was offered on the floor to exempt those on the alliance who are not public officials from submitting a statement of economic interest required by Alabama ethics law.
Representative Randall Shedd, R-Baileytown, said the alliance is for advisory purposes and no money is being spent.
"We are asking the private sector to come aboard and give us their greatest ideas. We are asking for expertise and advice only. Not spending taxpayer dollars. We don't want to discourage expertise," said Shedd.
Representative Thomas Jackson, D-Thomasville, said there should be transparency with the alliance and did not agree with the exemption.
Representative Juandalynn Givan, D- Birmingham, also spoke against the exemption. She pointed out other advisory boards that are subject to all ethics laws.
"I think it is a good conversation to have. The thing is, you look back and [the alliance] is not the only one who's got the exemption. There are other agencies that's got exemptions," said Speaker of the House, Nathaniel Ledbetter, R-Rainsville.
The amendment was ultimately adopted.
Represenative Jennifer Fidler, R-Fairhope, offered another amendment related to Alabama's natural resources and supporting ecotourism opportunities.
The amendment was adopted.
The bill as amended was passed. It now goes back to the Senate for concurrence.
Senate Bill 253 creates an alternative pathway for students to receive an Alabama high school diploma. The Alabama Workforce Pathways diploma has two fewer math and science credits. To replace the math and science credits, students will complete career and technical education courses in preparation for going directly to work.
If a student with a workforce pathways diploma wanted to go to a college or university, they would be eligible for admission to any postsecondary institution or public university in the state. However, higher education institutions and universities will maintain the ability to set their own admission requirements.
Representative Terri Collins, D- Decatur, offered an amendment to require the workforce curriculum developed by the Alabama State Department of Education to list required credits, courses, competencies, and experiences necessary to earn a diploma through the workforce pathway.
The amendment also requires an alternative assessment to be developed for students on the workforce pathway. When the assessment is developed, the student's academic achievement will be considered when assigning an academic achievement grade to the school or school system.
Collins' amendment also requires the ALSDE to create a specific seal to be placed on the diplomas earned by students on the workforce pathway.
"While it is the same diploma, it will have a distinction for the workforce path student," said Collins.
There was some concern the seal could hurt a student's ability to go to college if he or she decides to.
"We may have someone that heads down the workforce pathway and yet they get down there and decide they indeed want to go on to a different college. I don't want the designation to be something that would hinder their ability to go on and further their education," said Representative A.J. McCampbell, D- Demopolis. "I am afraid we are opening a pathway or a door where we are asking 13, 14, 15, and 16-year-old kids to make a decision about the rest of their lives along with their parent's input but they still haven't learned everything out there that they'd be interested in."
Collins said that is not the intent of the amendment. She read a segment from the bill.
"All K-12 students in this state shall earn the same high school diploma. That's in the bill and I want to agree with your point," said Collins.
The amendment was ultimately adopted.
The amended bill was passed and goes back to the Senate for concurrence.