FROM OUR STATE HOUSE STUDIO IN MONTGOMERY, I'M TODD STACY.

WELCOME TO "CAPITOL JOURNAL."

THE LATEST UNEMPLOYMENT NUMBERS WERE RELEASED TODAY.

ALABAMA'S JOBLESS RATE FOR JULY REMAINED AT A RECORD LOW 2.6%.

THAT'S DOWN FROM 3.4% A YEAR AGO.

THE NUMBER OF PEOPLE COUNTED AS EMPLOYED REACHED A RECORD HIGH OF 2,232,543, WHICH IS AN INCREASE OF MORE THAN 65,000 PEOPLE OVER THE LAST YEAR.

COUNTIES WITH THE LOWEST UNEMPLOYMENT WERE SHELBY, MARSHALL AND CULLMAN COUNTIES.

THOSE WITH THE HIGHEST RATES WERE WILCOX, PERRY, AND LOWNDES COUNTIES GOVERNOR KAY IVEY SAID THE STATE WILL CONTINUE TRYING TO HELP CONNECT WORKERS WITH AVAILABLE JOBS AND CAREER TRAINING OPPORTUNITIES.

>>> ALABAMA'S STRONG ECONOMY IS BEING CREDITED FOR LIFTING THE STATE'S REVENUES TO UNPRECEDENTED HIGHS.

ACCORDING TO CHIEF FISCAL OFFICER KIRK FULFORD, RECEIPTS TO THE EDUCATION TRUST FUND ARE CURRENTLY MORE THAN $9.7 BILLION WHILE OBLIGATIONS ARE ONLY $9.2 BILLION.

THAT MEANS THE STATE RIGHT NOW HAS A MORE THAN $500 MILLION SURPLUS IN THE EDUCATION TRUST FUND WITH A MONTH AND A HALF REMAINING IN THE FISCAL YEAR.

THE GENERAL FUND IS ALSO BEATING EXPECTATIONS BY ABOUT 7.4% AND IS ABOUT $200 MILLION AHEAD OF SCHEDULE.

THE SURPLUSES HAVE SOME LAWMAKERS TALKING ABOUT OFFERING TAX RELIEF IN THE FORM OF REBATES DURING THE NEXT LEGISLATIVE SESSION.

I'LL SPEAK WITH MR. FULFORD AND STATE REPRESENTATIVE DANNY GARRETT ABOUT THESE BUDGET NUMBERS LATER IN THE SHOW.

ANOTHER TASK FACING LAWMAKERS NEXT SESSION IS REAUTHORIZING THE STATE'S ECONOMIC DEVELOPMENT INCENTIVE LAWS, WHICH ARE SET TO EXPIRE NEXT YEAR.

A SPECIAL COMMITTEE MET THIS WEEK TO DISCUSS POSSIBLE REVISIONS TO THOSE LAWS TO MAKE ALABAMA MORE COMPETITIVE WITH OTHER STATES IN THE PURSUIT OF MAJOR PROJECTS.

"CAPITOL JOURNAL'S" KAREN GOLDSMITH HAS THAT STORY.

>> WE WANTED TO FIND OUT HOW OUR INCENTIVES RANKED AMONG OTHER STATES.

WE HAVE ONE OF THE BEST AND WE HAVE TO GET IT REAUTHORIZED WE ARE COMPETING TO RECRUIT INDUSTRIES.

MY GOAL, AS CHAIR, IS TO HAVE THE BEST INCENTIVES PACKAGE IN THE SOUTHEAST.

>> HE TAPPED INDUSTRY EXPERTS INCLUDING THE ALABAMA COMMERCE SECRETARY GREG CANFIELD.

>> WE HAVE NEVER DESIRED TO HAVE A TOOL BOX OF INCENTIVES THAT WAS ABLE TO GIVE THE MOST MONEY AWAY IN TERMS OF INCENTIVES.

WE WANT A TOOL BOX THAT CREATED WEALTH FOR THE STATE, THAT HELPED TO RAISE THE LEVEL OF WAGE EARNING CAPABILITY FOR ALABAMA CITIZENS.

>> HE SAID THEY WANT THEM TO BE SUSTAINABLE, PROFITABLE AND PAY AS YOU GO.

THE TWO PLANS UP FOR REAUTHORIZATION ARE -- >> THE GROWING ALABAMA CREDIT IS REALLY DESIGNED ABOUT MAKING LAND AVAILABLE FOR ECONOMIC DEVELOPMENT, TO ATTRACT NEW INVESTMENT AND ATTRACT THE JOBS THAT COME WITH IT.

>> AND THE ALABAMA JOBS ACT GIVES COMPANIES AND INFRASTRUCTURE INVESTMENT CREDIT AND OF COURSE A JOBS CREDIT.

>> FOR EVERY NEW ALABAMA JOB THEY CREATE, WE'RE GOING TO LOOK AT THEIR PAYROLL FROM THE PREVIOUS 12 MONTHS AND GIVE THEM AN INCENTIVE BASED ON A SMALL PORTION OF THE PAYROLL.

>> HE SAID THE DATA SHOWS THEY ARE GENERATING POSITIVE OUTCOMES FOR THE STATE AND HE HAS RECOMMENDATIONS FOR ENHANCING BOTH, INCLUDING REMOVING THE ANNUAL CAP ON THE ALABAMA JOBS ACT.

>> WE HAVE A CAP THAT WE HAVE IN THAT PROGRAM OF $350 MILLION ON AN ANNUALIZED BALANCE.

ALL THAT MEANS IS THAT WE MAKE A COMMITMENT TODAY, WE ENTER INTO A CONTRACT WITH THE COMPANY, REGARDING THOSE INCENTIVES AND WE COUNT THAT AGAINST THE CAP.

I'M HERE TO SAY WE ARE BUMPING UP CLOSE TO THE CAP.

>> ANOTHER REASON HE RECOMMENDS REMOVING THE CAP ON THE ALABAMA JOBS ACT IS SOMETIMES BUSINESSES DON'T KEEP THEIR AGREEMENTS IN THEIR INCENTIVE PLANS.

THEREFORE, FORFEITING THE FINANCIAL INCENTIVE.

IN OTHER WORDS, THE MONEY WE SERVED FOR THE BUSINESS UNDER THE CAP IS NEVER USED AND THE STATE DOES NOT LOSE.

FOR "CAPITOL JOURNAL," I'M KAREN GOLDSMITH.

>>> THE ALABAMA WORKFORCE AND WAGE GAP TASK FORCE HELD ITS FIRST MEETING THIS WEEK.

THE GROUP IS CHARGED WITH FINDING EVIDENCE-BASED POLICIES THAT ADDRESS THE STATE'S DISPARITY BETWEEN WHAT MEN AND WOMEN ARE PAID FOR THE SAME JOBS.

MELANIE BRIDGEFORTH OF THE WOMEN'S FOUNDATION OF ALABAMA IS THE GROUP'‘S CHAIR.

>> WE HAVE THE A EIGHTH WIDEST AGE GAP NATIONALLY AND CURRENTLY WOMEN IN ALABAMA COULD EXPECT TO SEE EQUAL PAY BY 2089.

THAT'S A LONG TIME BUT WE KNOW WE CAN GET THERE A LOT SOONER.

HERE'S THE KICKER.

I LOVE THIS ONE SO I WANT YOU TO HONE IN ON THIS.

IF SINGLE WOMEN WERE PAID COMPARABLE TO MEN IN ALABAMA, WE WOULD REDUCE POVERTY BY HALF.

SO, YOU KNOW, POVERTY, AS YOU ALL KNOW IS A CHOICE, IT IS A POLICY CHOICE, RIGHT?

YOU CAN ADDRESS THESE ISSUES THROUGH POLICY.

WAGE IS A POLICY.

THERE ARE THINGS THAT INDIVIDUALS CAN DO BUT THERE ARE SYSTEMS THAT BLOCK INDIVIDUALS FROM REACHING THEIR FULL POTENTIAL AND THAT'S WHAT THE WORK OF THE TASK FORCE IS CENTERED ON, HOW TO REMOVE BARRIERS SO ALL PEOPLE IN ALABAMA CAN REACH THEIR FULL POTENTIAL.

>>> ALSO, ON THE ECONOMIC FRONT, THE CAPITAL CITY IS WORKING TO BRING NEW BUSINESSES TO OLDER PARTS OF TOWN.

IT'S A DIFFERENT APPROACH LEADERS HOPE WILL PAY OFF.

"CAPITOL JOURNAL'S" RANDY SCOTT REPORTS.

>> THIS IS SOMETHING THAT'S BEEN IN THE MAKING FOR QUITE SOMETIME AND I'M GLAD TO GET IT OFF THE GROUND.

>> MAYOR IS TALKING ABOUT A PROGRAM DESIGNED TO REVITALIZE WEST AND SOUTHERN PARTS OF CAPITAL CITY TO MOVE FORWARD.

>> WE WANT TO FOCUS ON I-65 CORRIDOR AND WEST MONTGOMERY AND SOUTH MONTGOMERY, NORMANDALE SHOPPING CENTER T OTHER CORRIDORS, 231, TROY HIGHWAY THAT WE THOUGHT NEEDED INTENTIONAL DEVELOPMENT.

>> THE MAYOR ORGANIZED A BUS TOUR FROM DOWNTOWN TO THE AREAS MENTIONED.

CITY LEADERS, BUSINESS OWNERS AND INVESTORS WILL SEE PLACES FOR POTENTIAL.

>> IT'S ONE THING TO HAVE A CONCEPT OR AN IDEA OR THE ENERGY BUT IF YOU DON'T HAVE THE EXPERTS IN THE ROOM AND THE PEOPLE WHO KNOW HOW TO GUIDE US ON WHAT NEEDS TO BE DONE AT A LOCAL, STATE AND FEDERAL STANDPOINT, IT REMAINS THAT.

IT REMAINS TALK.

>> THEY SEE A REGION THAT HAS ONE GROCERY STORE FOR HUNDREDS OF RESIDENTS.

SOME BUSINESSES, SOME NEIGHBORHOODS BUT ALSO VACANT LOTS.

AFTER THE TOUR, GUESTS SUCH AS LINDSEY EDWARDS, AN INVESTMENT OFFICER SAY THEY ARE OPTIMISTIC.

>> I'M A MONTGOMERY NATIVE AND KNOW THIS PART OF TOWN HAS BEEN DISINVESTED OVER TIME SO IT IS EXCITING TO SEE ENERGY AND MOMENTUM BUILDING.

WE KNOW THERE IS WORK AHEAD OF US BUT EXCITED ABOUT THE OPPORTUNITIES.

>> DISTRICT FOUR CITY COUNCIL WOMAN GRAHAM SAID THE POTENTIAL IS THERE.

>> IT IS VITAL TO THE GROWTH IN DISTRICT FOUR AND THE CITY OF MONTGOMERY.

AT THE END OF THE DAY WE HAVE BUSINESS AND INDUSTRIES COMING BUT THEY NEED TO SEE THE CITY REVITALIZING AND INVESTMENT IN THEIR COMMUNITY SO THEY KNOW IT IS WORTH IT.

>> FOR "CAPITOL JOURNAL" I'M RANDY SCOTT.

WE'LL BE RIGHT BACK WITH TONIGHT'S GUESTS.

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>> NEXT, I'M JOINED BY STATE REPRESENTATIVE DANNY GARRETT, CHAIRMAN OF THE HOUSE EDUCATION BUDGET COMMITTEE.

MR. CHAIRMAN, THANK YOU FOR COMING ON THE SHOW.

>> THANK YOU FOR HAVING ME.

>> GOOD TIMING BECAUSE THERE'S NEWS THIS WEEK.

YOU CAN ALWAYS COUNT ON MARY TO GET THE SCOOP.

THE STATE IS LOOKING AT A SURPLUS IN THE EDUCATION TRUST FUND.

REVENUE LOOKS REALLY STRONG.

THERE'S EVEN TALK IN THE UPPER CHAMBER ABOUT MAYBE SOME TAX REBATES THEY MIGHT WANT TO DO.

HOW LIKELY IS THAT FROM YOUR PERSPECTIVE?

>> WELL, THE STATE IS AWASH IN CASH.

THAT'S WHAT HAPPENED ACROSS THE COUNTRY.

MOST STATES ARE RUNNING HUGE BUDGET SURPLUSES BECAUSE OF THE FEDERAL HELP AND ASSISTANCE FROM COVID.

I SAW A SLIDE THAT SHOWS 30% OF THE AMOUNT, EQUIVALENT TO 30% OF THE U.S. GDP WAS PAID BY THE FEDERAL GOVERNMENT INTO COVID RELIEF AND HAS GIVEN STATES AN EXCESS OF A LOT OF CASH.

IN ALABAMA THAT IS CLOSE TO $60 BILLION ON FEDERAL INFUSION WE HAVE HAD IN THE STATE.

WE HAVE A LOT OF CASH AND HAVE NOT SPENT THE LAST COUPLE OF YEARS WHAT WE COULD HAVE SPENT ACCORDING TO THE BUDGET FORMULAS WE HAVE.

I THINK IT IS LIKELY -- WE WANT TO DISCUSS REBATES AND ARE LOOKING AT THE TAX STRUCTURE AND LOOKING FROM A LONG-TERM STANDPOINT WHAT MAKES SENSE.

IT IS SOMETHING WE WILL DISCUSS AND A LONG TIME BETWEEN NOW AND MARCH.

WITH INFLATION AND ALL OF THE OTHER UNCERTAINTIES OUT THERE, WE WILL HAVE TO BE MINDFUL THAT WE DON'T DO SOMETHING THAT IS PERMANENTLY GOING TO DAMAGE THE STATE DOWN THE ROAD.

IT IS ENOUGH MONEY THAT WE ARE GOING TO LOOK AT THOSE THINGS.

>> I GUESS THE REASON SOMEBODY WOULD SAY REBATE IS IT IS A ONE-TIME THING OPPOSED TO IF YOU CHANGE THE TAX CODE IT IS PERMANENT OR AT LEAST UNTIL YOU CHANGE IT AGAIN AND THAT AFFECTS BUDGETS LONG TERM.

>> RIGHT.

SOME PEOPLE BELIEVE WE SHOULD TAKE THE SURPLUS AND REBATE IT ALL TOGETHER.

THAT'S TAKING ONE-TIME MONEY AND AFFECTING YOUR PERMANENT REVENUE STREAM.

WE JUST HAVE TO BE CAREFUL THAT WE DO WHAT'S FISCALLY PRUDENT.

AND I THINK THAT'S WHAT WE WILL BE DOING.

>> THE SCHOOL YEAR IS JUST GETTING STARTED.

THIS YEAR, EVERY TEACHER IS GETTING A PAY RAISE WITH LARGER RAISES GOING TO THOSE WHO ARE MORE EXPERIENCED IN THE CLASSROOM.

THAT WAS THE BUDGET THIS PAST YEAR THAT YOU DID THIS PAST SESSION.

HAVE YOU HEARD FEEDBACK FROM EDUCATORS ABOUT THAT'S IMPACT AND IF IT HELPED TO KEEP TEACHERS IN THE CLASSROOM AND CREATE NEW ONES.

>> IT HAS BEEN EFFECTIVE SO FAR.

NOW WE HAVE A NUMBER OF TEACHERS WHO HAD ALREADY FILED RETIREMENT PAPERS WHEN THEY REALIZED THAT THE PAY RAISE WAS COMING AND THEY WERE GOING TO BENEFIT FROM THAT THEY PULLED THOSE PAPERS.

WE KEPT SOME TEACHERS AND RETAINED SOME TEACHERS.

WE HAVE A PILOT HUB TRYING TO GET INTO AREAS WHERE WE DIDN'T HAVE HIGHLY QUALIFIED, CERTIFIED TEACHERS FOR MATH IN ONE OF OUR RURAL COUNTIES.

I WAS TOLD TODAY THE PROGRAM, WE'RE MOVING TO ANOTHER LOCATION BECAUSE THAT SCHOOL WAS ABLE TO HIRE TWO HIGHLY QUALIFIED TEACHERS.

SO, IT IS MAKING A DIFFERENCE.

I HAVE HEARD STORIES OF TEACHERS WHO WERE COMING IN FROM OTHER STATES WHO WERE SET TO MOVE TO OTHER STATES.

WE ARE COMPETITIVE NOT ONLY WITH SURROUNDING STATES BUT WHAT IS IMPORTANT FOR TEACHERS IS WE ARE COMPETING IN THE PRIVATE SECTOR.

WE HAVE HAD TO ADJUST THE SALARY METRICS BUT IT HAS ALREADY HAD AN IMPACT AND AGAIN THE DEAL IS NOT TO GET JUST A BODY BUT A HIGHLY QUALIFIED PERSON.

WE ARE HAVING SUCCESS.

>> I SAW AT LAST WEEK'S BOARD MEETING, STATE SCHOOL BOARD MEETING SUPERINTENDENT MACKEY MADE A BUDGET REQUEST OF $800 MILLION, $799 MILLION ADDITIONAL IN THE BUDGET TO GO TO COUNSELORS, NURSES AND PRINCIPALS.

I REALIZE IT IS VERY EARLY IN THE BUDGET PROCESS, BUT IS THAT KIND OF WISH LIST FEASIBLE FROM A LEGISLATIVE STANDPOINT?

>> I HAVEN'T SEEN THE DETAILS OF HIS REQUEST OR KNOW WHAT HE IS TALKING ABOUT IN DETAIL.

THAT SEEMS ON THE SURFACE TO BE INCREDIBLY AMBITIOUS.

I ALWAYS WANT TO SEE THE INFORMATION BUT THAT IS A STARTLING NUMBER I WOULD SAY.

>> WELL, I KNOW YOU WORK WITH THE SUPERINTENDENT.

YOU WORK WITH PEOPLE ACROSS THE BOARD.

WHEN YOU HEAR FROM LOCAL FOLKS, WHETHER IT IS LOCAL PRINCIPALS, SUPERINTENDENTS OR TEACHERS THEMSELVES, WHAT DO THEY SAY THEY REALLY WANT AND NEED FROM MONTGOMERY?

>> WELL, I THINK ONE THING IS THAT ANY MONEY YOU PUT IN THE CLASSROOM, CLASSROOM SUPPORT.

WE HAVE SEEN EMPHASIS ON PUTTING FUNDS IN THE CLASSROOM.

OBVIOUSLY, HAVING THE PAY ISSUES ARE IMPORTANT.

I THINK SECURITY IS MORE IMPORTANT.

SOMETHING WE ARE HEARING ABOUT.

I THINK YOU WILL SEE THE LEGISLATURE ADDRESS THE SECURITY, MAKING SURE OUR SCHOOLS ARE SECURE.

MENTAL HEALTH HAS BECOME A PROBLEM NATIONWIDE IN A NUMBER OF AREAS AND WE HEAR ABOUT THAT IN THE SCHOOLS AND SPECIAL EDUCATION, SPECIAL NEEDS AREAS OF EDUCATION.

SO I HEAR MORE ABOUT THE SECURITY SPECIAL NEEDS AND HEALTH ASPECTS AND EVERYONE IS CONCERNED ABOUT SECURITY AS A PRIORITY.

>> I SAW A POINT FOR THE BCA CONFERENCE AND THOUGHT HOW IT WAS INTERESTING HOW EDUCATION KEPT COMING UP.

YOU SAW THE MAJORITY LEADER BRING IT UP.

HE WAS ASKED WHAT'S THE MOST IMPORTANT ISSUE FACING THE STATE AND HE SAID IMPROVING OR FIXING EDUCATION.

THAT WAS UNEXPECTED AND OUT OF THE BLUE.

OTHERS ECHOED IT.

AND THEN SENATOR MARSH HAD TOUGH WORDS ABOUT OUR PAST PERFORMANCE.

THE QUESTION IS THERE A NEW SENSE OF URGENCY AMONG YOUR COLLEAGUES ABOUT ADDRESSING EDUCATION?

THE READING BILL, THE MATH BILL, IS THERE A NEW SENSE OF URGENCY FOR IMPROVING EDUCATION?

>> WE ARE ALL AWARE OF THE EDUCATION GAPS IN THE STATE.

THEY DON'T EXIST EVERYWHERE BUT WHERE THEY DO THEY ARE PRETTY DIRE.

NOT ONLY DOES THE STATE NEED TO ADDRESS THEM ON A TARGETED APPROACH -- WE HAVE SEEN THE LAST COUPLE OF BUDGETS TRY TO DO THAT.

IF YOU LOOK AT THE COMMISSION REPORT PREPARED BY THE HOOVER INSTITUTION, STANFORD UNIVERSITY FOLKS INVOLVED IN THAT, A LOT OF VARIED PEOPLE WITH KNOWLEDGE OF WHERE IT IS GOING, THEY TALK ABOUT THE OPPORTUNITIES ALABAMA HAS BUT NUMBER ONE PROBLEM IS THE EDUCATION GAP.

THERE WERE FOUR PILLARS OF THE INNOVATION COMMISSION REPORT BUT THE FIRST PILLAR, THE PRIORITY PILLAR WAS CLOSING THE EDUCATION GAP.

THAT'S KEY TO US BASICALLY CREATING A WORKFORCE IN THE STATE, RETAINING A WORKFORCE, ATTRACTING PEOPLE INTO THE STATE.

PARTICULARLY INTO REMOTE AREAS.

PEOPLE ARE NOT GOING TO RELOCATE AND LIVE IN AREAS WHERE WE DON'T HAVE GOOD SCHOOL SYSTEMS, BUT I THINK THE EDUCATION AWARENESS OF HOW IMPORTANT, CLOSING AN EDUCATION GAP WAS EMPHASIZED IN THE COMMISSION REPORT WHICH IS SOMETHING THEY ARE LOOKING AT AND THE LEGISLATURE IS UNDERSTANDING THAT AND SEES THAT.

I AM VERY ENCOURAGED BY THE FACT WE ARE NOT JUST TAKING OUR DOLLARS AND DIVIDING IT BY 67 COUNTIES ACCORDING TO A FORMULA AND LOOKING LIKE YOU WOULD AT A BUSINESS, WHERE ARE THE PROBLEMS THE MOST SIGNIFICANT AND WHERE DO WE NEED TO DIRECT FUNDING OR OTHER RESOURCES SO SOLVE PROBLEMS?

SO CLOSING THE EDUCATION GAP IS CRITICAL.

THERE ARE A NUMBER OF WAYS TO DO THAT.

FINANCIALLY AND OTHER OPTIONS.

WE WILL BE LOOKING AT ALL OF THOSE IN THE YEARS TO COME.

>> YOU MENTIONED THE INNOVATION COMMISSION.

THAT LEADS TO MY NEXT QUESTION.

I KNOW THIS WEEK WE HAD THE COMMITTEE TASK FORCE LOOKING AT ECONOMIC DEVELOPMENT INCENTIVES AND THE FUTURE OF INCENTIVES.

THIS NEXT YEAR WILL BE ALABAMA JOBS ACT REAUTHORIZATION.

HAVE YOUR ECONOMIC INCENTIVE PROGRAMS BEEN PROFITABLE?

>> WHEN YOU LOOK AT SOME AREAS IT HAS BEEN EFFECTIVE AND SUCCESSFUL.

AS WE TRANSITION TO A KNOWLEDGE-BASED ECONOMY, THOSE WILL HAVE TO COUNT FOR WHERE THE ECONOMY IS GOING.

WHAT TYPE OF ECONOMY, BUSINESS DO WE WANT TO HAVE IN THE FUTURE TO COMPLEMENT THE ECONOMY AND IT WILL CHANGE WITH ROBOTICS AND OTHER TECHNOLOGY WILL CHANGE THAT.

YES, THEY HAVE BEEN EFFECTIVE.

I THINK WE NEED TRANSPARENCY.

AND I CAN TELL YOU YES THEY HAVE BEEN EFFECTIVE.

WHAT WE HAVE DONE IN THE PAST IS NOT NECESSARILY EFFECTIVE IN THE FUTURE AS THE ECONOMY TRANSITIONS TO KNOWLEDGE BASED AND MORE TECHNOLOGY.

WE NEED MORE TRANSPARENCY AND LOOK AT THESE THINGS CAREFULLY AND DOING WHAT WE CAN TO FOSTER THE GROWTH IN NUMEROUS SEGMENTS OF ECONOMIC DEVELOPMENT.

>> I SUPPOSE THAT'S ONE BIG REASON WHY IT REQUIRES REAUTHORIZATION, RIGHT?

I GUESS THE LAST TIME IS 2018, EVERY FIVE YEAR TYPE OF THING, DOES THAT GIVE THEM THE OPPORTUNITY TO SAY END THIS THING OR IF WE TWEAK THIS AND THIS -- WE HAVE LEARNED OVER THE LAST FIVE YEARS HOW THE ECONOMY HAS CHANGED AND NOW WE CAN DO IT DIFFERENTLY?

>> THE PAST SEVERAL YEARS THE LEGISLATURE HAS GOTTEN GOOD ABOUT BEING MORE FISCALLY RESPONSIBLE ABOUT THE DECISIONS WE HAVE MADE.

ONE THING WE HAVE DONE IS MAKING SURE ANY TAX INCENTIVE APPROVED HAS A SUNSET.

WE NEED TO EVALUATE AFTER FOUR OR FIVE YEARS IS THIS WORKING?

IT IS CREATING THE JOBS WE THOUGHT IT WOULD CREATE?

IT IS WORTH THE TAXPAYERS TO SUPPORT.

EVERY CREDIT WILL HAVE THE SUNSET PROVISIONS.

THAT GIVES US AN OPPORTUNITY TO REVIEW IT.

WE HAVE TWO NOW, THE GROWING ALABAMA JOBS ACT.

THEY HAVE BEEN IMPORTANT TO THE GROWTH UP TO NOW BUT I THINK WE NEED TO EXPAND THAT LOOK AND MAKE SURE WE ARE GETTING THE BANG FOR OUR BUCK FOR THESE INCENTIVES.

>> JUST THINKING YOU GO BACK 30 YEARS MERCEDES, AND THAT NUMBER RAISED EYEBROWS.

>> IT WAS THE TURNING POINT OR THE LYNCH PIN FOR THE ECONOMIC DEVELOPMENT STATE.

THAT WAS THE FIRST TIME WE HAD SOMETHING THAT SIGNIFICANT COME TO THE STATE.

IT'S BEEN A MODEL FOR WHAT WE HAVE DONE IN OTHER PLACES.

NOW WE NEED TO EXPAND THAT TO THE TECHNOLOGY AND SMALL BUSINESS AREAS, TO DIFFERENT TYPES OF BUSINESSES OTHER THAN TRADITIONAL MANUFACTURING.

THOSE ARE IMPORTANT BUT WHERE'S THE MARKET GOING?

WHERE'S THE ECONOMY GOING?

WE WANT TO PLAY ALONG WITH THAT.

THESE AUTOMOBILE MANUFACTURERS, AS THEY TRANSITION TO ELECTRIC VEHICLE MANUFACTURING, WHAT DO WE DO TO MAKE SURE THEY DON'T MOVE.

WE HAVE ADOPTED THE PHILOSOPHY OF PAY AS YOU GO.

WE WILL NOT GIVE THE INCENTIVES UP FRONT.

YOU EARN THEM BECAUSE YOU PERFORM BASED ON A PLAN AND THE LEGISLATURE HAS BEEN GOOD HOLDING PEOPLE'S FEET TO THE FIRE.

SO I'M ENCOURAGED AT THAT.

THE COMMISSION IS LOOKING AT ALL OF THESE AND TRYING TO MAKE GOOD DECISIONS AS FAR AS THESE TWO CREDITS AND ALSO LOOKING AT OTHER CREDITS, AS WELL.

>> WE WILL BE PAYING ATTENTION GOING FORWARD.

THANK YOU FOR COMING ON THE SHOW.

>> THANK YOU FOR HAVING ME.

>> WE'LL BE RIGHT BACK.

>> YOU ARE WATCHING ALABAMA PUBLIC TELEVISION.

>> NEXT I'M JOINED BY KIRK FULFORD, DEPUTY DIRECTOR OF THE LEGISLATIVE SERVICES AGENCY.

THANK YOU FOR COMING ON THE SHOW.

>> THANK YOU VERY HAVING ME.

>> YOU ARE THE BUDGET LEADER FOR THE LEGISLATIVE SERVICES AGENCY, THE LEAD BUDGET GUY IN THE STATEHOUSE.

TELL OUR AUDIENCE, THEY ALREADY SEE YOU ON OUR STORIES BUT TELL US WHAT YOU DO AND ABOUT THE LEGISLATIVE SERVICES AGENCY.

>> THANK YOU.

I'M SERVING AS THE LEGISLATIVE FISCAL OFFICER, WHICH MEANS I DO RENEW ESTIMATES.

OUR OFFICE DOES REVENUE ESTIMATES AND DRAFTING THE BUDGET FOR THE LEGISLATURE.

WE ARE RESPONSIBLE FOR CALCULATING THE CAP OR THE AMOUNT OF MONEY THAT WE CAN SPEND IN THE EDUCATION TRUST FUND EVERY YEAR.

BASICALLY ALL THINGS BUDGET AND MONEY THAT THE LEGISLATURE DEALS WITH OUR OFFICE HAS A HAND IN.

>> IT USED TO BE THE OLD LEGISLATIVE FISCAL OFFICE AND THEY COMBINED IT WITH THE LEGISLATIVE RESEARCH SERVICES TO COMBINE IT TO LSA.

>> YEAH.

>> WHEN DID THAT HAPPEN?

>> OFFICIALLY IN 2017.

WE WERE INFORMALLY DOING IT A COUPLE OF YEARS PRIOR.

IT SEEMS TO HAVE WORKED SEAMLESSLY.

WE HAVE A GREAT WORKING RELATIONSHIP UPSTAIRS AND STILL DO WHAT WE HAVE TRADITIONALLY DONE AS FAR AS THE MONEY AND THE BUDGETS AND STUFF, THE LEGAL DIVISION STILL DRAFTS BILLS BUT WE ALL WORK TOGETHER NOW OPPOSED TO BEING IN A STAND-ALONE OFFICE.

>> OBSERVERS WILL HEAR OR SEE TALK OF FISCAL NOTE.

YOU HAD A BILL, SOMETHING WITH MONEY, IT WILL HAVE A FISCAL NOTE ATTACHED.

THAT'S WHEN THEY COME TO YOU.

HOW DOES THAT PROCESS WORK?

>> EVERY GENERAL BILL THAT COMES OUT OF COMMITTEE IS REQUIRED TO HAVE A FISCAL NOTE ATTACHED TO IT.

IT IS AN ESTIMATE OF THE OVERALL FISCAL IMPACT OF THAT BILL ON STATE BUDGETS, ANY INDIVIDUAL FUND OR AGENCY.

WE HAVE TO DO THAT ON EVERY GENERAL BILL.

WE DON'T DO IT ON LOCAL BILLS.

THE RULES DON'T REQUIRE US TO DO THAT BUT IT IS A REALTIME-CONSUMING PROCESS AND SOMETHING WE HAVE ANALYSTS WORKING ON FROM THE TIME THE LEGISLATIVE SESSION STARTS UNTIL IT ENDS.

>> SOME LAWMAKER DROPS A BILL, MAY SEEM INNOCUOUS BUT YOU HAVE TO RESEARCH ON WHAT IS THE ECONOMIC IMPACT ON THE AGENCY OR FUND.

SOMETIMES IT IS ZERO BUT YOU HAVE TO FIGURE IT OUT.

IT TRAVELS ALONG WITH THE BILL, RIGHT?

>> THAT'S RIGHT.

IT IS ALSO CHANGED.

ANYTIME THERE IS AN AMENDMENT OR SUBSTITUTE TO THE BILL WE HAVE TO ADJUST THE FISCAL NOTE FOR ANY CHANGES RELATIVE TO THE NUMBERS ATTACHED TO THE BILL.

SO IT IS A CUMBERSOME PROCESS BUT SOMETHING THAT OUR ANALYSTS GET INTO AND THEY DO A REALLY GOOD JOB OF PRODUCING THE NUMBERS IN A SHORT TIME PERIOD MOST OF THE TIME.

I'M PROUD OF THE WORK THEY DO.

>> SOUNDS LIKE YOU ALL STAY BUSY IN THE SESSION.

>> WE DO.

>> YOU CREATED QUITE A STIR WITH YOUR PRESENTATION LAST WEEK WITH THE BUDGET HEARING.

WHEN YOU REVEALED BASICALLY THAT THE STATE BUDGETS ARE IN SURPLUS.

WALK ME THROUGH THOSE NUMBERS.

>> ON THE EDUCATION TRUST FUND, IT'S BIGGER THAN THE GENERAL FUND.

THE EDUCATION TRUST FUND HAS $9 BILLION.

THAT INCLUDES SUPPLEMENTAL APPROPRIATIONS AS WELL AS THE REGULAR BUDGET FOR THE CURRENT FISCAL YEAR.

RIGHT NOW WE HAVE AVAILABLE REVENUES OF $9.7 BILLION.

SO, WE HAVE MORE REVENUE THAN WE NEED TO FUND THE BUDGET ON THE EDUCATION TRUST FUND SIDE.

ON THE GENERAL FUND SIDE, IT IS A SIMILAR SITUATION.

WE HAVE $2.9 BILLION IN OBLIGATIONS.

WE HAVE 2.75 BILLION IN REVENUES WITH, BASED ON WHAT WE GOT LAST YEAR, OVER THE LAST COUPLE OF MONTHS WE ARE $280 MILLION AHEAD OF WHAT WE NEED TO FUND THE REMAINING PORTIONS OF THE BUDGET.

IT IS AN ODD SITUATION TO BE HONEST WITH YOU.

I HAVE BEEN AROUND 26 YEARS AND WE ACTUALLY EXPERIENCED A DRAMATIC DROPOFF WITH THE COVID PANDEMIC.

IN YEARS PAST, WHAT THAT WOULD HAVE MEANT IS WE WOULD BE TALKING ABOUT WHO GOT CUT AND HOW MUCH THEY GOT CUT.

CHANGES THAT WERE MADE AFTER THE LAST RECESSION REALLY PUT THE STATE'S BUDGETS IN POSITION TO WEATHER THE STORM AND ACTUALLY BE PREPARED TO HANDLE ANOTHER STORM IF IT COMES UP IN THE NEAR FUTURE AS SOME ARE EXPECTING.

>> YOU MENTIONED THOSE NUMBERS WHICH ARE JARRING BUT THE FISCAL YEAR ISN'T FINISHED YET.

SO THERE IS MORE REVENUE COMING IN.

>> RIGHT.

>> THERE'S BEEN A LOT OF TALK OF WHAT TO DO WITH THE SURPLUS.

HERE IN THE LEGISLATURE, THEY HAVE BEEN TALKING TAX REBATES AND STUFF LIKE THAT.

SAY NOTHING HAPPENS TO THAT MONEY.

WHERE DOES IT GO?

ROLLOVER TO NEXT YEAR'S BUDGET?

>> SO, UNDER THE ROLLING RESERVE ACT, IF WE HAD APPROPRIATED TO THE CAP, THE ROLLING RESERVE ACT CAP IT WOULD BE A WATERFALL APPROACH WHERE SOME WOULD GO TO A SAVINGS ACCOUNT OR ANOTHER FUND THAT COULD BE APPROPRIATED LATER.

WE DID NOT SPEND TO THE CAP WHICH MEANS ON THE ETF AND GENERAL FUND SIDE THE MONEY WOULD BECOME THE BEGINNING BALANCE FOR 2023, WHICH BEGINS IN OCTOBER.

UNOBLIGATED, UNSPENT AND UNACCOUNTED FOR IN TERMS OF WHAT WAS BUDGETED FOR THE FISCAL YEAR.

>> HENCE THE TALK OF TAX REBATES AND THINGS LIKE THAT.

WELL, IT'S BEEN A FEW YEARS, BUT YOU TALKED ABOUT THE SIMPLIFIED SALES AND USE TAX.

BASICALLY ENFORCING SALES TAX ONLINE, RIGHT?

>> RIGHT.

>> I GUESS IT WAS IMPLEMENTED IN 2015.

>> 2015.

WE PASSED AN ACT TO MAKE IT VOLUNTARY AT THAT TIME AND THEN THE WAYFAIR CASE MADE IT NO LONGER VOLUNTARY BUT MANDATORY.

TOTAL COLLECTIONS ARE $500 MILLION.

HALF TO THE LOCAL GOVERNMENT AND HALF TO THE STATE AND THE GENERAL FUND GETS 75% OF THE REVENUE THE STATE KEEPS.

THAT IS ONE OF THE CHANGES IMPLEMENTED AFTER THE LAST RECESSION THAT PROVIDED A GROWTH REVENUE FOR THE GENERAL FUND.

LAST YEAR THE REVENUE SOURCE GREW BY 40% AND THIS YEAR BY 20%.

SO IT'S STILL GROWING.

IT IS NOT GROWING AS MUCH AS IT WAS LAST YEAR BUT THAT'S TO BE UNDERSTOOD.

>> LAST YEAR BEING COVID, ONLINE PURCHASES.

LOOK, I WAS DOING IT.

I WAS ON AMAZON.

>> THAT'S RIGHT.

>> THAT'S A SIGNIFICANT REVENUE INCREASE FOR THE GENERAL FUND, WHICH REALLY OVER THE YEARS STRUGGLED IN TERMS OF GENERATING GROWTH REVENUE.

>> TRADITIONALLY THE GENERAL FUND HAS -- AND PRIOR TO 2010, WE LOOKED UNDER EVERY ROCK WE COULD TO SCRAPE ENOUGH MONEY TOGETHER TO FIND A BUDGET.

SINCE THE GREAT RECESSION, THERE WERE STRUCTURAL CHANGES MADE.

WE REALLOCATED REGULAR TAX MONEY TO THE GENERAL FUND AND IMPLEMENTED THE SIMPLIFIED SELLERS FUND WHICH IS A GOD SEND IN TERMS OF AN ONGOING RELIABLE REVENUE SOURCE THAT HAS GONE FROM ZERO IN 2015 TO THE THIRD LARGEST REVENUE SOURCE OF THE GENERAL FUND IN A SHORT PERIOD OF TIME.

>> CAN YOU BRIEFLY EXPLAIN.

I KNOW MOST VIEWERS UNDERSTAND WE HAVE TWO FUNDS.

MOST JUST HAVE ONE.

>> EDUCATION TRUST FUND CAME THROUGH 40 YEARS IT HAS BEEN AROUND FOR A WHILE.

>> WE ARE ONE OF ONLY THREE STATES THAT HAVE TWO BUDGETS AND FOUR THAT HAVE AN OCTOBER TO SEPTEMBER FISCAL YEAR.

WE ARE DIFFERENT IN THAT REGARD.

ANYTIME AN ISSUE POPS UP WITH REGARD TO THE ECONOMY, IN TERMS OF A GROWING ECONOMY, EXPEDITED RECEIPTS YOU WILL SEE IT IN THE EDUCATION TRUST BECAUSE THAT'S THE EASIEST REVENUE SOURCES TO POINT TO.

COUNTER TO THAT, ANYTIME THERE IS A SLOW DOWN YOU CAN SEE IT, AS WELL.

THOSE THINGS WE HAVE TO WATCH FOR ON THE EDUCATION TRUST FUND SIDE.

ON THE GENERAL FUND, IT'S A HODGEPODGE OF 40 DIFFERENT REVENUE SOURCES THAT COMPILE THE GENERAL FUND.

$2.6 BILLION IN ACTUAL REVENUES LAST YEAR.

THE BIGGEST IS INSURANCE COMPANY LICENSE AND PREMIUM TAXES.

A LITTLE OVER $300 MILLION BUT LIKE EVERYTHING AND THE KITCHEN SINK IS THROWN TO THE GENERAL FUND AND TO THE EDUCATION TRUST FUND.

TEN REVENUE SOURCES, 93%, 8.6 BILLION WE COLLECTED LAST YEAR WITH INCOMING SALES.

>> WHICH FLUCTUATES QUITE A BIT WITH THE ECONOMY.

SPEAKING OF THE ECONOMY, IT SEEMS LIKE IT IS REALLY HUMMING RIGHT NOW IN THE STATE.

SOME -- I GUESS YOU DESCRIBED IT AS A SUGAR HIGH BASED ON THE FEDERAL MONEY, NOT JUST PUT INTO THE BUDGET LIKE ARPA BUT FLOATING AROUND IN THE ECONOMY THAT FILTERS DOWN.

ARE YOU CONCERNED ABOUT THAT GOING AWAY AND LEADING TO A RECESSION AND IF SO WOULD THAT -- WHAT AFFECT WOULD IT HAVE ON THE STATE BUDGET?

>> YEAH.

SO, IT IS ALWAYS A CONCERN.

WE MONITORED THOSE THINGS EVERY DAY.

EVERY DAY THERE IS AN ARTICLE THAT COMES OUT ARE WE OR ARE WE NOT IN A RECESSION.

WE HAD TWO NEGATIVE GROWTH SESSIONS AND MOST CONSIDER THAT A RECESSION.

THE ECONOMISTS I HAVE TALKED TO ARE RELUCTANT TO GO THERE RIGHT NOW BECAUSE THE LABOR MARKET IS TELLING A DIFFERENT STORY.

WE HAVE THE LOWEST UNEMPLOYMENT WE HAVE EVER HAD AND THE LARGEST NUMBER OF PEOPLE WE HAVE EVER HAD WORKING, HISTORICAL IN THAT REGARD.

YOU CAN SEE THAT IN WITHHOLDINGS TAX PAYMENTS WHICH IS WHAT I LOOK AT FOR THE STRENGTH OF THE ECONOMY AND LABOR MARKET BECAUSE THEY ARE WITHHELD FROM PEOPLE'S PAYCHECKS.

>> WHAT DO YOU MEAN BY WITH HOLDINGS?

>> THE TAXES WITH HELD FROM AN INDIVIDUAL'S CHECK.

WEEKLY OR WHATEVER CYCLE THEY ARE ON AND THEY ARE SUBMITTED TO THE STATE ON A QUARTERLY BASIS OR SOMETIMES MONTHLY BASIS.

NORMALLY THE NUMBER HAS GROWN A LITTLE LESS THAN 4%.

I SAY IT IF IS GROWING MORE THAN 4%, THE EDUCATION TRUST FUND IS GOING WELL.

I SAY THAT BECAUSE THE INDIVIDUAL INCOME TAX IS THE LARGEST PORKS OF THE EDUCATION TRUST FUND AND THE LARGEST PORTION OF THAT IS WITHHOLDING TAXES.

IT IS 70% OF TOTAL INDIVIDUAL INCOME TAX.

SO, IF THAT IS GROWING BY MORE THAN 4%, IN MOST CASES IT TELLS ME THE EDUCATION TRUST FUND IS DOING WELL.

>> WHERE IS IT NOW.

>> THE END OF JULY 10%.

>> MORE THAN DOUBLE WHAT YOU CONSIDER GOOD.

>> AND LAST YEAR WAS OVER 7%.

IT PICKED UP.

DOES THAT MEAN THERE IS ANY LESS IMPACT IN TERMS OF INFLATION?

THERE'S NOT.

YOU AND I KNOW YOU GO TO THE GROCERY STORE AND YOU CAN BUY VERY FEW THINGS AND LEAVE KNOWING YOU PAID MORE THAN A YEAR AGO.

THAT IS SOMETHING WE ARE WATCHING AND SOMETHING OUR INDIVIDUAL TAXPAYERS AND CITIZENS ARE SEEING AND SOMETHING WE HAVE TO WATCH BECAUSE EVERY ONE OF OUR AGENCIES HAS TO BUY SOMETHING.

CORRECTIONS HAS TO BUY FOOD FOR INMATES AND THE CAPITAL PROJECTS GOING ON AND MATERIALS AND SUPPLIES RELATED TO THE CAPITAL PROJECTS HAS GONE UP AND TRANSPORTATION COSTS AND EVERYTHING THAT AGENCIES HAVE TO DEAL WITH HAS GONE UP.

IT'S A MATTER OF COST OF THEM DOING BUSINESS HAS INCREASED.

HAVE WE PROVIDED THEM ENOUGH TO COVER THE COST?

HOPEFULLY SO.

THAT IS SOMETHING WE ARE WATCHING AND PAYING ATTENTION TO.

WE MADE STRUCTURAL CHANGES.

THE LEGISLATURE MADE STRUCTURAL CHANGES AFTER THE LAST RECESSION THAT PUT US IN A BETTER FOOTING IN THE GENERAL FUND AND EDUCATION TRUST FUND TO WEATHER A STORM, SLOW DOWN OR RECESSION.

COUPLED WITH THE FACT THE BUDGETS HAVE BEEN CONSERVATIVE IN NATURE.

WE DIDN'T SPEND EVERYTHING WITH REGARD TO OUR REVENUE ESTIMATES AND LEFT MONEY ON THE TABLE BECAUSE THERE WAS SO MUCH UNCERTAINTY IN THE ECONOMY.

WHAT'S GOING TO HAPPEN COMING OUT OF COVID?

REMEMBER, I SAID OUR FISCAL YEAR IS OCTOBER TO SEPTEMBER.

WELL, THE IMPACT OF COVID STARTED ABOUT SIX MONTHS INTO OUR FISCAL YEAR.

SOME STATES HAD TO PUSH REVENUE SOURCES FROM ONE FISCAL YEAR TO THE NEXT.

WE DIDN'T HAVE TO DO THAT.

WE SAW A REDUCTION IN 2020 VERSUS A DECLINE IN 2020 THAT MOST OTHER STATES DID.

WE ACCESSED MONEY IN A RESERVE FUND TO ACCESS THE SITUATION.

WE DIDN'T HAVE TO CUT THE BUDGET UNLIKE SURROUNDING STATES.

AND FEEL MORE COMFORTABLE NOW THAN EVER FELT IN TERMS OF BEING ABLE TO HANDLE SOMETHING LIKE THAT IN THE FUTURE.

>> WE WILL BE WATCHING AS THE LEGISLATIVE SESSION IS SIX MONTHS AWAY.

WE WILL WATCH THE NUMBERS.

THANK YOU FOR COMING ON THE SHOW.

>> THANK YOU FOR HAVING ME.

>> WE'LL BE RIGHT BACK.

>> YOU CAN WATCH PAST EPISODES OF "CAPITOL JOURNAL" ONLINE ANYTIME AT ALABAMA PUBLIC TELEVISION'S WEBSITE APTV.ORG.

CLICK ON THE ONLINE VIDEO TAB ON THE MAIN PAGE.

YOU CAN CONNECT WITH "CAPITOL JOURNAL" AND LINK TO PAST EPISODES ON "CAPITOL JOURNAL'S" FACEBOOK PAGE.

>> ELECTRIC VEHICLES ARE MORE POPULAR AND AVAILABLE THAN EVER BEFORE.

JOINING ME NOW TO TALK ABOUT IT IS MICHAEL STALEY, PRESIDENT OF THE ALABAMA CLEAN FUELS COALITION.

THANK YOU FOR COMING ON "CAPITOL JOURNAL."

>> THANK YOU FOR HAVING ME.

>> TELL US MORE ABOUT THE CLEAN FUELS COALITION AND WHAT YOUR ORGANIZATION DOES FOR THE STATE?

>> WE ARE NONPROFIT ORGANIZATION BASED IN BIRMINGHAM.

WE HAVE A STATEWIDE FOOTPRINT AND WORK TO EDUCATE ABOUT ALTERNATIVE FUELS IN THE TRANSPORTATION SECTOR.

WE ARE PRIMARILY FOCUSED ON FUELS THAT ARE ALTERNATIVE TO PETROLEUM.

>> ELECTRIC VEHICLES HAVE GROWN IN POPULARITY.

YOU SEE COMMERCIALS FOR THEM.

IT IS REALLY POPULAR.

WHY IS THE ELECTRIC VEHICLE, THE USE, THE MARKET, THE INDUSTRY, WHY IS IT IMPORTANT PARTICULARLY IN ALABAMA?

>> I WOULD SAY FOR ALABAMA, FIRST, EVs ARE IMPORTANT FOR COMMUNITIES.

GOING BACK TO ONE OF MY FAVORITE MOVIES, FIELD OF DREAMS, IF YOU BUILD IT, THEY WILL COME AND COMMUNITIES NEED TO INSTALL ELECTRIC VEHICLE CHARGING THAT IS PUBLICLY ACCESSIBLE IF THEY WANT TO ATTRACT EV DRIVERS WHO ARE TRAVELING.

THE REASON IS BECAUSE IF PEOPLE ARE STOPPING TO FUEL OR REST AND THEY CAN CHARGE THEIR CAR, THEY ARE GOING TO SPEND MONEY AND THAT LEAVES MONEY IN THE COMMUNITY.

THAT'S ONE REASON.

THE SECOND REASON IS REALLY IMPORTANT FOR OUR STATE IS BECAUSE WE ARE THE NUMBER FOUR AUTO EXPORTING STATE IN THE COUNTRY.

MERCEDES IS PRODUCING EVs AND ALABAMA GRAPHITE PRODUCTS WILL BE PRODUCING GRAPHITE FOR BATTERIES.

THE FIRST GRAPHITE PRODUCED IN NORTH AMERICA WILL BE IN COULD YOUS IS A COUNTY AND BIRMINGHAM AUTO CAR MAKING ELECTRIC GARBAGE TRUCKS AND IN ANNISTON, NEW FLYER IS MAKING TRANSIT BUS AND THEIR BIGGEST COMPETITION IS IN CHINA.

THEY ARE MAKING TRANSIT BUSES THAT ARE ELECTRIC IN ANNISTON AND SENDING THEM AROUND THE COUNTRY AND THE WORLD.

OUR AUTOMOTIVE INDUSTRY AND OUR STATE ECONOMY IS REALLY GOING TO BE THE AUTOMOBILE MANUFACTURING OF THE FUTURE.

IN ADDITION TO THAT, ONE MORE THING, THE CENTER IN TUSCALOOSA, WE WILL HAVE SOME OF THE MOST ADVANCED RESEARCH AND DEVELOPMENT OUT OF TUSCALOOSA WITH THE AMP CENTER IN TUSCALOOSA.

>> SOUNDS LIKE WE ARE IN THE EV BUSINESS.

IT IS FUNNY BECAUSE THEY WERE TALKING ABOUT THIS AT THE INCENTIVES COMMITTEE MEETING THIS WEEK ABOUT WHAT ARE WE GOING TO BE ECONOMICALLY INCENTIVIZING FOR THE NEXT FUTURE BUT YOU ARE RIGHT, MERCEDES HAS BET ON ALABAMA IN TERMS OF PRODUCING BATTERIES HERE.

THAT'S REALLY INTERESTING.

WHEN IT COMES -- WE ARE HERE IN THE STATEHOUSE.

WE LIKE TO TALK ABOUT STATE POLICY.

WHAT, ON THE STATE LEVEL, HAS HAPPENED OR NEEDS TO HAPPEN IN ORDER TO SUPPORT THE EV INDUSTRY IN ALABAMA?

>> WELL, YOU KNOW, THERE'S A LOT OF TALK AND YOU CAN READ A LOT OF THINGS BUT ONE THING OUR LEGISLATURE IS DOING IS BEING SMART ABOUT HOW THEY APPROACH THIS.

THE FEDERAL GOVERNMENT WILL BE SENDING A LOT OF MONEY FOR CHARGING INFRASTRUCTURE ALONG INTERSTATES.

WE KNOW THAT IN ALABAMA THERE'S A LOT OF COMMUNITIES THAT ARE NOWHERE NEAR AN INTERSTATE.

IN ORDER FOR THEM TO GET THOSE OPPORTUNITIES, ALABAMA HAS A GRANT PROGRAM THAT WILL COMPLEMENT THE FEDERAL PROGRAM AND MAKE OPPORTUNITIES FOR COMMUNITIES THAT ARE ON THE INTERSTATE TO HAVE CHARGING INFRASTRUCTURE SO THAT TEN YEARS DOWN THE ROAD, AT LEAST, THEY HAVE GOT IT STARTED NOW AND THEY CAN BUILD IT OUT THEMSELVES, BUT TO HAVE THAT SEED TO GET STARTED IS WHAT THE STATE IS DOING AND INVESTING IN THAT INFRASTRUCTURE.

THAT'S FOR BUSINESSES IN OUR STATE.

THAT'S FOR GALS STATION OWNERS AND HOTEL OWNERS.

THAT'S FOR RV PARK OPERATORS.

FOR RESTAURANTS, RETAIL ESTABLISHMENTS.

SO THE EV CHARGERS CAN GO ALMOST ANYWHERE.

IT CHANGES THE PARADIGM OF HOW YOU THINK OF FUELING A VEHICLE.

>> SO A BUSINESS GOES ABOUT -- THEY WILL APPLY EITHER TO THE STATE OR THE FEDERAL GOVERNMENT FOR ONE OF THESE GRANTS?

>> IN BOTH CASES THE STATE OF ALABAMA WILL ADMINISTER THE FEDERAL FUNDS IN ONE PROGRAM AND A STATE PROGRAM AND PEOPLE WILL APPLY.

YOU CAN GO TO ADECA'S WEBSITE AND LOOK AT THE ELECTRIC VEHICLE INFRASTRUCTURE PROGRAM AND READ THE PLAN AND IT GIVES REALLY GREAT THOROUGH UNDERSTANDING OF WHERE THE DEMAND IS EXPECT TO BE AND PLACES WE DON'T WANT TO LEAVE BEHIND.

>> RIGHT.

IT IS ALL ABOUT THOSE CHARGING STATIONS.

WE WILL PUT UP A MAP ABOUT THAT, TOO.

THERE ARE DIFFERENT TYPES OF CHARGING STATIONS, RIGHT?

THERE IS A REALLY QUICK RAPID CHARGE, A SLOWER CHARGE.

MAYBE WE ARE MOVING MORE TO RAPID CHARGES.

>> 80 TO 90% OF PEOPLE WHO CHARGE AN EV DO IT AT HOME, OVERNIGHT IN YOUR GARAGE AND PROBABLY SPEND LESS THAN A THIRD ON FUEL FOR YOUR HOME.

WHEN YOU GO OUTSIDE OF YOUR NORMAL RANGE, WHEN YOU GO ON A TRIP OR TRAVEL OR CAN'T PUT A CHARGER IN YOUR GARAGE OR YOU NEED TO GO SOMEWHERE PUBLIC, YOU HAVE CHARGERS THAT YOU PAY TO USE.

THOSE ARE CRITICAL.

THAT'S THE BIGGEST BARRIER TO EV ADOPTION BECAUSE RANGE ANXIETY, THE FEAR THE CAR CAN'T MAKE IT WHERE YOU ARE GOING, THAT'S REALLY A THING OF THE PAST.

THE FIRST EVs HAD SHORT RANGES.

THE NEW ONES HAVE PLENTY OF RANGE BUT WHEN I DRIVE MY FAMILY TO NEW ORLEANS TO SEE MY WIFE'S FAMILY WE WANT TO MAKE SURE IF I'M DRIVING MY NEW ELECTRIC PICKUP THAT I HAVE ORDERED I CAN STOP AND CHARGE ALONG THE WAY.

ALABAMA, I BELIEVE THIS IS AN AREA WE SHOULD BE PROUD OF WHAT THE STATE IS DOING AND NOT OVERPREPARING BUT PREPARING JUST RIGHT.

>> I CAN IMAGINE TRAVELERS TO THE BEACH LOOKING FOR WHERE THEY CAN CHARGE.

I KNOW THAT CONGRESS HAS DONE SOME THINGS RECENTLY.

THERE WAS AN INFRASTRUCTURE LAW, A BILL SIGNED LAST WEEK THAT HAS SOME CLIMATE THINGS IN IT.

HOW I WAS THE WORK FROM THE FEDERAL GOVERNMENT, CONGRESS SPECIFICALLY AND ITS IMPACT ON THE ELECTRIC VEHICLE MARKET.

>> JUST LIKE ANYTHING, WHEN CONGRESS PASSES A LAW IT IMPACTS MACHINE PLANNING, MANUFACTURING AND EVERYTHING.

CONSISTENCY IS IMPORTANT.

THERE ARE SOME TAX PROVISIONS THAT HAVE CHANGED AND HOW THAT IMPACTS THE BOTTOM LINE FOR THE EV MARKET IS TO BE DETERMINED.

OVERARCHING, THE FACT REMAINS THAT EVs ARE POWERED BY 100% DOMESTICALLY PRODUCED ELECTRICITY.

THAT IS ENERGY INDEPENDENCE AND ALSO CONGRESS AND THE FEDERAL GOVERNMENT AS I SAID, THEY ARE INVESTING AND THE SEED MONEY TO DEVELOP A NETWORK OF CHARGERS AND THAT'S A GOOD THING TO GET THAT STARTED.

IT'S GREAT THAT ALABAMA IS COMPLEMENTING THAT AND MAKING SURE IT IS NOT JUST THE INTERSTATE WHERE WE HAVE THE OPPORTUNITY.

>> WHEN THE CONCEPT OF ELECTRIC VEHICLES COMING UP, ESPECIALLY IN CONTEXT WITH HIGH GAS PRICES YOU HEAR A LOT ABOUT STICKER SHOCK.

THESE AREN'T NECESSARILY WHAT THE MAIN STREAM CONSUMER CAN AFFORD.

WHAT WOULD YOU SAY TO SOMEBODY WITH THAT ARGUMENT?

>> LOOK, TODD, I WAS TALKING TO SOMEONE YESTERDAY.

THEY ARE WAITING TO TAKE DELIVERY OF A FORD F-150.

IT IS A CREW CAB PICKUP TRUCK THAT LOOKS JUST LIKE ANY OTHER FOUR-DOOR TRUCK.

IT WAS A BASE PRICE OF $40,000.

THEY ADDED ON $8,000 FOR SOME ADDITIONAL FEATURES, BUT THE POINT IS THAT'S NOT FAR FROM WHAT YOU WOULD EXPECT TO PAY FOR A FOUR-DOOR PICKUP TRUCK.

THE POINT I'M MAKING IS THE PERCEPTION THAT PEOPLE HAVE THAT AN EV LOOKS LIKE A CLOWN CAR, IT IS NOT SOMETHING I WANT TO DRIVE AND CAN'T AFFORD IT ANYWAY, THAT SHOULD BE A THING OF THE PAST.

PEOPLE SHOULD TAKE A CLOSE LOOK AT THE MODELS THAT ARE AVAILABLE AND THE PRICES.

TWO THINGS ARE HAPPENING.

THE PRICE PARODY IS COMING WHERE THE GAS AND EV CAR WILL BE THE SAME PRICE AND ESPECIALLY WHEN YOU LOOK AT THE LIFE CYCLE COSTS.

YOU ARE GOING TO SAVE MONEY WITH A LOT OF THE EV MODELS AND THE TIME IT TAKINGS TO CHARGE THE CARS WHEN YOU ARE ON A TRIP WILL REACH PARODY WITH A GAS STATION, FILLING UP A CAR WITH GAS AND THAT'S WHEN IT WILL JUST POP.

>> WHILE I HAVE YOU, I KNOW THERE IS A ELECTRIC VEHICLE SUMMIT HAPPENING IN BIRMINGHAM NEXT MONTH.

HOW DO FOLKS FIND OUT MORE ABOUT THIS AND REGISTER IF THEY WANT TO COME?

>> DRIVE ELECTRIC ALABAMA.COM IS WHERE TO GO TO CHECK IT OUT.

YOU CAN READ THE PROGRAM AND REGISTER.

THE EV SUMMIT IS A WAY TO BRING TOGETHER THE BUSINESSES WE HAVE ALREADY TALKED ABOUT, ALL THE COUNTIES AND THE CITIES AND THE FOLKS SAYING HOW DO WE PREPARE FOR THIS AND HOW DO WE GET THE MONEY?

WHAT GRANTS ARE AVAILABLE.

YOU CAN GO TO THE WEBSITE AND REGISTER AND SIGN UP AND YOU WILL LEARN WHY IT IS IMPORTANT FOR OUR STATE, WHAT ARE MANUFACTURERS DOING, WHAT ELECTRIC UTILITIES THINK OF THIS AND WHERE TO GET THE MONEY FOR A GRANT TO HAVE THE CHARGERS IN YOUR COMMUNITY.

BE ONE OF THE FIRST TO DO IT.

>> THIS REMINDED ME OF OUR OLD DAYS IN DC.

APPRECIATE YOU COMING ON "CAPITOL JOURNAL."

>> GREAT TO BE HERE IN MONTGOMERY WITH YOU.

THANK YOU, TODD.

WE'LL BE RIGHT BACK.

>> YOU CAN WATCH PAST EPISODES OF "CAPITOL JOURNAL" ONLINE AT VIDEO@APTV.ORG.

"CAPITOL JOURNAL" EPISODES ARE ALSO AVAILABLE ON APTV'S FREE MOBILE APP.

YOU CAN ALSO CONNECT WITH "CAPITOL JOURNAL" AND LINK TO PAST EPISODES ON "CAPITOL JOURNAL'S" FACEBOOK PAGE.

AND YOU CAN LISTEN TO PAST EPISODES OF "CAPITOL JOURNAL" WHEN YOU ARE DRIVING OR ON THE GO WITH "CAPITOL JOURNAL" PODCASTS.

>> A LITTLE SOMETHING DIFFERENT THIS WEEK.

IT'S THE START OF HIGH SCHOOL FOOTBALL AROUND THE STATE OF ALABAMA.

JOINING CHAP PILCHER.

>> IT IS A GREAT OPPORTUNITY TO STAY INVOLVED IN FOOTBALL WHICH I WAS FORTUNATE TO PLAY IN HIGH SCHOOL AND COLLEGE AND IN LAW SCHOOL I FOUND INTEREST IN BROADCASTING FOOTBALL GAMES AND GOT INVOLVED THERE.

THEY WANTED TO MOVE TO ALABAMA AND GOT INVOLVED WITH HOOVER HIGH SCHOOL AND CALLED GAMES FOR STANFORD AND UAV AND THIS YEAR TRANSITIONING TO THE HIGH SCHOOL AND NEW COACH EVANS AND NEW ATHLETIC DIRECTOR AND THEY KICK OFF THE SEASON THIS WEEKEND.

>> CRAZY TO THINK THAT HIGH SCHOOL FOOTBALL GAMES ARE BROADCAST.

SOME COLLEGES YEARS AGO WEREN'T BROADCAST.

>> IT HAS TRANSFORMED.

YOU SEE AS THE GAME OF FOOTBALL GROWS, NOT ONLY AT THE COLLEGE AND PROFESSIONAL LEVEL BUT THE HIGH SCHOOL LEVEL AS WELL.

YOU ARE SEEING A LOT OF GUYS WHO ARE GOOD BROADCASTERS ARE GETTING INVOLVED AT THE HIGH SCHOOL LEVEL.

THE LEVEL AND QUALITY OF THE HIGH SCHOOL BROADCAST HAVE GROWN UP AND IT IS NEAT TO BE INVOLVED IN THAT.

>> IT IS REALLY QUITE THE PAST TIME HERE IN ALABAMA.

HIGH SCHOOL FOOTBALL, FRIDAY NIGHT LIGHTS, NOT JUST FOR THE ATHLETES BUT FOR THE COMMUNITY.

THIS IS WHERE COMMUNITIES GATHER.

LOOK AT THE STATEWIDE TRENDS GOING ON.

I DON'T WATCH EVERY GAME BUT KNOW ENOUGH TO KNOW THAT THOMPSON HIGH SCHOOL IN ALABASTER IS THE BIG GORILLA IN THE ROOM.

>> WHEN YOU ARE TALKING HIGH SCHOOL FOOTBALL IN ALABAMA LIGHT NOW IT IS THOMPSON.

THE COACH HAS BUILT AN INCREDIBLE TEAM AND YOU HEAR HOW DID THEY GET TO THAT LEVEL AND IT IS THE WAY HE HAS GROWN THEM UP.

THE ENTIRE COMMUNITY HAS BOUGHT IN.

HE HAS WON CHAMPIONSHIPS IN THE PAST BUT THE LEVEL WHICH THEY ARE COMPETING IS SOMETHING WE HAVEN'T SEEN IN A WHILE.

WE HAVE HAD HOOVER MOST RECENTLY IN THE DYNASTY.

PRATTVILLE HAD A GREAT RUN DURING THAT TIME FRAME WHICH YOU ARE FAMILIAR WITH.

>> I WENT TO PRATTVILLE.

I THINK THEY WON A COUPLE IN A ROW.

HOOVER HAD THEIR OWN TV SHOW.

>> THAT WAS INCREDIBLE AND SOMETHING NO ONE HAD SEEN.

THEY HAD A CLOSE WILD GAME AGAINST AUBURN A COUPLE OF YEARS BACK BUT THE WAY THEY WON THEY WON IT AWAY.

THEY HAVE BECOME THE DOMINANT PROGRAM IN THE STATE OF ALABAMA.

>> LOOK AT THE OTHER CLASSIFICATIONS.

PIKE WON THE STATE CHAMPIONSHIP AND THEY WILL BUMP UP A YEAR IN CLASSIFICATION THIS YEAR.

WE HAVE SCHOOLS EVERY TWO YEARS THE AHSA REDOES CLASSIFICATION AND YOU SEE THEM MOVING UP AND DOWN.

IF YOU MOVE UP IT IS MORE DIFFICULT, LARGER SCHOOLS AND THEN THE MOVEMENT AMONG THE COACHES WE HAVE SEEN.

IT HAS ALWAYS HAPPENED BUT SEEMS LIKE IT HAPPENED A LOT THE LAST FEW YEARS THE WAY THE COACHES.

ONE GAME THIS WEEKEND GULF SHORES, HAD BEEN THE HEAD COACH AT LOUISIANA.

AND SAINT MICHAEL COACHED BY PHILLIP RIVERS, HALL OF FAME FACEBOOK.

THAT'S A GAME THIS WEEKEND IN HIGH SCHOOL FOOTBALL IN ALABAMA.

THAT IS INDICATIVE OF HOW IMPORTANT THE SPORT IS IN THE STATE.

>> I WAS GOING TO ASK THE COACHES, THE FACILITIES, ESPECIALLY THE BIG SCHOOLS HAVE BECOME MINIATURE COLLEGES.

I WENT TO PRATTVILLE AND WE ALWAYS HAD A GOOD PROGRAM AND THEY HAD A LOT OF SUCCESS AFTER MY DAYS EVERY TIME WE'D GET A GOOD COACH AND HE'D WIN A CHAMPIONSHIP, SOMEBODY WOULD PICK HIM UP WITH A BIG PAYCHECK, MORE MONEY.

SAME THING WITH FACILITIES.

YOU ARE SEEING BIG PRACTICE FACILITIES, BIG STADIUM IMPROVEMENTS.

IT IS BECOMING A MINIATURE COLLEGE WHICH IS CRAZY TO THINK ABOUT?

>> AND THE COMMUNITIES ARE INVESTING.

COOLS GET X NUMBER OF DOLLARS FROM THE STATE AND A LOT OF SCHOOLS FIND IT IMPORTANT.

I THINK YOU SEE THE COMMUNITY PRIDE THAT HIGH SCHOOL FOOTBALL DEVELOPS.

IT IS ON A FRIDAY NIGHT.

YOU ARE RIGHT, THE STADIUMS, NOT ONLY THE STADIUMS BUT THE LOCKER ROOMS.

A LOT OF SCHOOLS HAVE INDOOR PRACTICE FACILITIES.

THAT'S NOT UNCOMMON AT THE 7-A LEVEL.

IF YOU LOOK AT IT, A LOT OF THE SCHOOLS HAVE INDOOR FACILITIES AND THEY ARE GETTING BETTER AND BUILDING MORE FACILITIES EVERY YEAR.

>> THERE'S ONE TOP RECRUIT THAT PEOPLE ARE TALKING ABOUT.

THAT'S ANOTHER THING ABOUT HIGH SCHOOL FOOTBALL.

YOU ARE ALWAYS LOOKING FOR THE ONES THAT WILL GO TO THE NEXT LEVEL AND MAY WANT TO SEE YOU PLAY AT ALABAMA.

EARL WOODS, ONE OF THE TOP PLAYERS IN THE STATE, WHAT'S HIS STORY.

>> YOU HAVE ARTICLES THAT ARE WRITTEN, WHO'S MR. FOOTBALL COMING UP IN THE PRESEASON.

I THINK EARL WOODS STANDS OUT.

A QUARTERBACK AT HUEYTOWN, A GREAT SEASON LAST YEAR WHEN THEY WERE THE RUNNER UP FOR THE STATE CHAMPIONSHIP AND HE COMES BACK WITH A LOT OF EXPECTATIONS.

OUTSTANDING ATHLETE FOR A PROGRAM THAT HAS A LOT OF GOOD SUCCESS.

SO, IT'S A GOOD PROGRAM AND OUTSTANDING PLAYER.

WHEN YOU LOOK AT THE STATE OF ALABAMA, COLLEGE COACHES ARE FLOCKING HERE.

AUBURN, ALABAMA, THAT BREAKS UP A LOT OF TENSION BUT IF YOU LOOK UP AND DOWN THE BOARD, THE LEVEL AND THE NUMBER OF RECRUITS THAT GO TO DIFFERENT PROGRAMS, BOTH BIG AND SMALL, IT IS VERY IMPRESSIVE WHEN YOU TALK ABOUT THE OUTSTANDING HIGH SCHOOL FOOTBALL PLAYERS IN THE STATE.

>> THERE IS ALWAYS A POLITICAL ANGLE AROUND HERE AND THIS IS "CAPITOL JOURNAL" AFTER ALL.

AS WE HAVE TALKED ABOUT, YOU KNOW, FRIDAY NIGHT FOOTBALL REALLY BRINGS THE TOWN TOGETHER.

THAT'S AN OPPORTUNITY FOR THE POLITICIANS.

WE ARE IN AN ELECTION YEAR.

WHETHER YOU ARE A CURRENT STATE LEGISLATOR SEEKING RE-ELECTION OR MAYBE RUNNING FOR OFFICE FOR THE FIRST TIME, MAYBE NO BETTER PLACE THAN THE FRIDAY NIGHT FOOTBALL GAME TO SEE A HUGE SWATH OF THE TOWN.

>> IT ACTUALLY ADDS AN EXTRA LEVEL OF EXCITEMENT TO HIGH SCHOOL FOOTBALL IN ELECTION YEARS BECAUSE YOU SEE SO MANY CANDIDATES IN FRONT OF THE STADIUM PASSING OUT FLYERS, WALKING AROUND IN THEIR CAMPAIGN T-SHIRTS AND IT IS SOMETHING EXTRA.

YOU KNOW A LARGE NUMBER OF PEOPLE IN OUR COMMUNITY , MOST OF THEM LIKELY VOTERS, WILL BE AT THE GAME.

IT IS NOT UNCOMMON TO SEE CANDIDATES, CURRENT OFFICE HOLDERS STANDING OUTSIDE AND INSIDE THE STADIUM TALKING TO THEIR CONSTITUENTS.

>> LOOK, EVERYBODY WHO HAS WORKED IN POLITICS HAS DONE THE FRIDAY NIGHT FOOTBALL GAMES OR WHAT'S WORSE IS SATURDAY MORNING OR IN AUGUST WHERE YOU ARE STANDING OUT STUFF.

COMMON SIGHT.

CHAD, I HAVE ENJOYED THIS.

A LITTLE BREATH OF FRESH AIR FROM OUR NORMAL POLITICAL TALK.

TONIGHT BEGINS THE FRIDAY NIGHT FOOTBALL SEASON.

>> GREAT TO BE HERE.

>> WE'LL BE RIGHT BACK.

>> YOU CAN WATCH PAST EPISODES OF "CAPITOL JOURNAL" ONLINE ANYTIME AT ALABAMA PUBLIC TELEVISION'S WEBSITE APTV.ORG.

CLICK ON THE ONLINE VIDEO TAB ON THE MAIN PAGE.

YOU CAN ALSO CONNECT WITH "CAPITOL JOURNAL" AND LINK TO PAST EPISODES ON "CAPITOL JOURNAL'S" FACEBOOK PAGE.

>> THAT'S OUR SHOW FOR TONIGHT.

THANK YOU FOR WATCHING.

RANDY SCOTT TAKES THE CHAIR AS YOUR HOST NEXT WEEK AS I TAKE A FEW DAYS OFF.

THAT WILL BE FRIDAY NIGHT AT 7:30 RIGHT HERE ON ALABAMA PUBLIC TELEVISION.

FOR OUR "CAPITOL JOURNAL" TEAM, I'M TODD STACY.