>> FROM OUR STATE HOUSE STUDIO WELCOME TO "CAPITOL JOURNAL."

THERE ARE 12 MEETING DAYS LEFT IN THE ALABAMA LEGISLATURE'S REGULAR SESSION.

LAWMAKERS WILL RETURN TO MONTGOMERY TOMORROW FOR ANOTHER JAM-PACKED MEETING WEEK, BOTH ON THE FLOOR AND IN COMMITTEE.

ACCORDING TO LEGISLATIVE LEADERSHIP, THE PLAN IS TO MEET THE NEXT TWO WEEKS BEFORE TAKING SPRING BREAK THE WEEK OF MARCH 21.

THAT SHOULD MEAN THE SESSION WILL LAST THROUGH MID-APRIL, BUT ALL THAT IS SUBJECT TO CHANGE.

THIS WEEK, ALL EYES ARE ON THE HOUSE OF REPRESENTATIVES, WHERE THE EDUCATION BUDGET WILL BE ON THE FLOOR.

LET'S GO THROUGH SOME OF THE HIGH POINTS OF THE BUDGET.

GRAPHIC AT $8.1 BILLION DOLLARS IT WOULD SET A NEW SPENDING RECORD FOR EDUCATION IN ALABAMA, $500 MILLION OVER CURRENT YEAR SPENDING.

IT INCLUDES A 4 PERCENT PAY RAISE FOR TEACHERS AND OTHER EDUCATION WORKERS.

THAT SAME RAISE WAS EXTENDED TO COMMUNITY COLLEGE WORKERS AS WELL.

THERE'S A FOCUS ON TARGETING SPECIFIC PROGRAMS AIMED AT IMPROVING STUDENT ACHIEVEMENT, WITH FIRST CLASS PRE-K AND THE ALABAMA READING INITIATIVE BEING AMONG THEM.

MORE THAN $20 MILLION WOULD GO TOWARD A NEW PROGRAM INTENDED TO IMPROVE MATH INSTRUCTION IN LOWER GRADES.

THE BUDGET ALSO INCLUDES NEW INVESTMENTS IN WORKFORCE DEVELOPMENT.

END GRAPHIC STATE REPRESENTATIVE DANNY GARRETT CHAIRS THE EDUCATION BUDGET COMMITTEE.

HE'LL LEAD THE DISCUSSION ON THE HOUSE FLOOR TOMORROW.

LOOKING HEAVILY AT THE SCHOOLS THAT ARE UNDER PERFORMING, THE SCHOOLS THAT LACK RESOURCES, THAT LACK TEACHERS, THAT LACK MATERIALS ASSOCIATION THERE'S A FOCUS ON THE GOVERNOR'S BUDGET AND WHAT WE ADDED TO IMPROVE AND ENHANCE THE EFFORTS TO ADDRESS THOSE AREAS.

WE ALSO ARE HEAVILY FOCUSED ON TEACHER RECRUITMENT.

THAT'S A PROBLEM NATIONWIDE BUT WE HAVE TO SOME INNOVATIVE THINGS IN THE BUDGET TO ATTRACT PARTICULARLY STEM TYPE TEACHERS.

WE ALSO ARE FULLY FUNDING SOME OF THE PROGRAMS IN OUR SCHOOLS THAT ARE SO IMPORTANT -- READING AND FULLY FUNDING OUR MENTAL HEALTH COORDINATORS AND OUR TECHNOLOGY COORDINATORS.

WE'RE PUTTING A LOT OF EMPHASIS BEHIND WORKFORCE DEVELOPMENT SUPPORTING THE CREDENTIALING PROGRAMS THAT ARE UNDER WAY AT THE COMMUNITY COLLEGES, SUPPORTING THE DUAL ENROLLMENT.

ALSO WE LOOKED AT THE INSTITUTIONS AROUND THE STATE THAT HAD SOME SEVERE NEEDS AND LOOKED AT SOME OF THE HVCU'S AND WHAT WE IMMEDIATE TO DO TO HELP THEM SO I THINK IT'S A GOOD BUDGET.

>> IN THE SENATE, PRESIDENT PRO TEM GREG REED SAYS HE WANTS TO TAKE UP THE PRIORITIES OF INDIVIDUAL SENATORS IN THE COMING WEEKS.

WITH SO MUCH FOCUS ON THE BIG, OVERARCHING ISSUES RECENTLY, DISTRICT-SPECIFIC BILLS HAVEN'T HAD MUCH OF A HEARING.

>> WE HAVE HAD ROBUST COMMITTEE WORK.

WE'VE BEEN DEALING WITH SOME MAJOR PIECES OF LEGISLATION LIKE CONSTITUTIONAL GUN CARRY AND OTHER THINGS THAT WE HAVE WORKED ON.

WE FOCUSED ON THE BUDGET.

WE GOT THE BUDGET OUT.

SO WE'RE GOING TO BE FOCUSING ON THIS COMING WEEK ON LEGISLATION THAT'S COME THROUGH THE COMMITTEES THAT'S GOING TO BE VERY IMPORTANT TO INDIVIDUAL MEMBERS OF THE BODY.

REMEMBER, I TOLD YOU THAT ONE OF THE THINGS THAT WAS A PRIORITY FOR ME WHEN WE WERE COMING INTO THE SESSION WERE NOT ONLY THE BIG ISSUES THAT WERE IMPORTANT BUTT MAKING SURE MEMBERS HAD OPPORTUNITIES TO PROMOTE THINGS IMPORTANT IN THEIR INDIVIDUAL DISTRICT SO HE IS WE WILL BE LOOKING AT THAT IN THE TIME WE HAVE REMAINING TO ALLOW MEMBERS TO BRING FORWARD THINGS IMPORTANT IN THEIR DISTRICTS.

>> REED ALSO SAID TAX CUTS COULD BE COMING IN THIS LAST HALF OF THE SESSION.

THE SENATE LEADER SAYS HIS MEMBERSHIP IS LOOKING AT A PACKAGE OF BILLS THAT COULD CUT TAXES BY AS MUCH AS $135 MILLION OVERALL.

THAT INCLUDES ELIMINATING THE BUSINESS PRIVILEGE TAX.

>> A PACKAGE ON TAX RELIEF, BEING ABLE TO FIND WAYS -- ALABAMA'S ECONOMY IS STRONG.

OUR RECEIPTS HAVE BEEN INCREASED IN BOTH THE GENERAL FUND AND THE EDUCATION BUDGET.

SO IS THERE AN OPPORTUNITY FOR US TO GIVE A TAX BREAK TO THE PEOPLE OF THE STATE OF ALABAMA, GIVE RESOURCE BACK TO THE PEOPLE?

THIS TOTAL PACKAGE IS GOING TO HAVE FIVE BILLS, AND IT'S GOING TO BE FROM RETIREES TO WORKING FAMILIES TO BUSINESSES THAT ARE GOING TO BE IMPACTED AND AFFECTED.

.PACKAGE IS GOING TO BE AS BIG BASED ON ALL OF THE ELEMENTS THAT HE HAVE, $130 MILLION A YEAR IN TAX RELIEF COMING BACK TO THE PEOPLE OF ALABAMA.

THE MOST SIGNIFICANT ELEMENT OF THAT THIS WEEK WAS THERE WAS A BILL INTRODUCED BY SENATOR BUTLER FROM UP IN HUNTSVILLE AND THAT IS THE ELIMINATION OF THE BUSINESS PRIVILEGE TAX.

THAT'S BEEN AN ISSUE THAT HAS BEEN A HARD ONE FOR BUSINESSES TO FEEL GOOD ABOUT, AND WE HAVE HEARD OVER AND OVER AGAIN THAT WHY ARE WE PAYING THIS PRIVILEGE TAX TO BE A BUSINESS OWNER IN THE STATE OF ALABAMA?

>> HOUSE DEMOCRATS ARE CONTINUING TO PRESS THEIR TOP LEGISLATIVE PRIORITY: EXPANDING MEDICAID HEALTH SERVICES TO COVER MORE PEOPLE IN ALABAMA.

WITH THE INTRODUCTION OF ANOTHER WIDE-RANGING GAMBLING BILL, SOME HAVE WONDERED WHETHER NEGOTIATIONS ON THAT ISSUE MIGHT AGAIN INVOLVE THE MEDICAID EXPANSION QUESTION, AS IT DID LAST YEAR.

STATE REPRESENTATIVE JEREMY GRAY SAID HE WANTS TO WORK WITH REPUBLICANS ON THE MATTER.

>> I THINK IT'S ALWAYS OUR DEMOCRATIC PRIORITY TO EXPAND ACCESS TO HEALTH CARE, YOU KNOW, BUT THIS IS TWO SIDES OF THE AISLE, THIS IS SOMETHING THAT WE ARE ADVOCATING ON.

THIS IS HOW HALL IS TRYING TO DO THAT WITH HER BILL AND WE HAD SO MANY BILLS IN THE FOOTSTEP EXPAND MEDICAID AND MEDICARE BUT WE HAVE TO HAVE PARTICIPATION ON BOTH SIDES OF THE AISLE AND THIS IS A CALL TO HELP THE OTHER SIDE, AN OLIVE BRANCH TO HELP US HELP OURSELVES AT ALABAMIANS.

>> GAS PRICES ARE AT A 14-YEAR HIGH.

IN ALABAMA, THE AVERAGE PRICE FOR A REGULAR GALLON OF GAS IS THREE DOLLARS AND 91 CENTS, ACCORDING TO TRIPLE A.

THAT'S BELOW THE NATIONAL AVERAGE OF FOUR DOLLARS AND SIX CENTS.

THE LAST TIME GAS PRICES WERE THIS HIGH WAS IN 2008.

EXPERTS EXPECT THE TREND TO CONTINUE AS THE WAR IN UKRAINE RAGES ON AND THE UNITED STATES CONSIDERS LIMITING OR BANNING THE IMPORT OF RUSSIAN OIL.

I'LL SPEAK WITH COMMERCE SECRETARY GREG CANFIELD IN MORE DETAIL ON THIS SUBJECT LATER IN THE SHOW.

A BILL PENDING IN THE HOUSE HEALTH COMMITTEE WOULD REQUIRE WOMEN PRIOR TO AN ABORTION TO CALL A STATE 1-800 NUMBER TO FIND OUT WHAT RESOURCES MIGHT BE AVAILABLE IF THEY DECIDED NOT TO HAVE THE PROCEDURE.

HOUSE BILL 401 CREATES A “PREGNANCY LAUNCH PROGRAM” WITHIN THE DEPARTMENT OF PUBLIC HEALTH TO LINK WOMEN WITH MEDICAL ASSISTANCE AND POSTPARTUM SUPPORT.

THE “EVERY MOTHER MATTERS ACT,” FROM REPRESENTATIVE CHARLOTTE MEADOWS IS BASED ON A SIMILAR BILL PASSED LAST YEAR IN ARKANSAS.

THE CHAIRMAN OF THE COMMITTEE SAID SOME FISCAL QUESTIONS NEED TO BE ANSWERED BEFORE THE BILL CAN BE CONSIDERED FOR A VOTE.

>> FINALLY, OUR HEARTS ARE WITH SENATOR DAN ROBERTS TONIGHT UPON THE PASSING OF HIS WIFE, ANNE GRIGGS ROBERTS AFTER A TWO-MONTH BATTLE WITH COVID-19.

ROBERTS IS A FREQUENT GUEST ON CAPITOL JOURNAL AND RECENTLY SHARED HOW THEIR FAITH HAD GIVEN HIM GREAT COMFORT DURING THIS DIFFICULT TIME.

>> I WILL TELL YOU THIS.

SHE BELIEVES IN THE LORD GOD.

SHE BECAME A CHRISTIAN EARLY ON IN LIFE, AND HER LIFE MOTTO IS "JESUS IS ENOUGH."

AND WE TRUST THE LORD GOD WITH MY WIFE.

>> WE'LL BE RIGHT BACK.

>> NEXT I'M PLEASED TO BE JOINED BY GREG CANFIELD SECRETARY OF COMMERCE FOR SURE THE STATE OF ALABAMA.

MR. SECRETARY, THANK YOU FOR COMING ON "CAPITOL JOURNAL".

>> THANK YOU.

YOU CAN CALL ME GREG.

>> IT'S BEEN A LONG TIME AND I'M GLAD TO SEE YOU AGAIN.

YOU ARE THE STATE'S TOP ECONOMIC DEVELOPER.

YOU HAVE NOTCHED SOME BIG SUCCESSES IN RECENT YEARS, MAZDA TOYOTA COMES TO MIND.

BUT THEN TWO YEARS AGO COVID HITS AND EVERYTHING CHANGES.

I WOULD IMAGINE IN YOUR LINE OF WORK, TOO.

SO HOW DID THE ECONOMIC DEVELOPMENT WORLD CHANGE DUE TO COVID AND SPECIFICALLY ALABAMA'S APPROACH?

>> WELL, AS YOU MIGHT EXPECT, IT WAS AT LEAST TEMPORARILY A RADICAL CHANGE.

WE WENT FROM BEING VERY FOCUSED ON RELATIONSHIP BUILDING BY IN SITE ON SITE VISITS.

THAT MEANT VISITING A LOT OF COMPANIES AND A LOT OF THEIR OPERATIONS ACROSS THE U.S.

BUT ALSO GLOBALLY BECAUSE WE -- WE FIND OURSELVES IN ALABAMA AS A REAL GLOBAL PLAYER THESE DAYS WITH A LOT OF GLOBAL INTERESTS IN MAKING INVESTMENTS IN OUR STATE.

SO WE HAD TO LEARN HOW TO DEVELOP AND NURTURE THOSE RELATIONSHIPS DIGITALLY.

SO ALL OF OUR TRAVEL WAS PRETTY MUCH CURTAILED THERE FOR AT LEAST SIX MONTHS.

SO WE DID IT LIKE EVERYBODY ELSE.

WE DID A LOT OF TEAMS AND ZOOM CALLS.

BUT BUSINESS WENT ON.

WE LEARNED HOW TO CONDUCT BUSINESS AND HAD SITE SELECTION VISITS.

SOME OF THEM WERE DONE DIGITALLY, REMOTELY.

SOME WERE DONE IN PERSON.

SO WE STILL ACCEPTED MEETINGS.

AND THERE'S A LOT -- STILL A LOT OF INVESTMENT OPPORTUNITY COMING OUR WAY.

SO ALL IN ALL WE LEARNED TO MANAGE AND COPE, BUT IT WAS KIND OF A -- OH, PROBABLY FOR THE 1ST TWO MONTHS THERE IT WAS KIND OF DICEY.

>> OH, SURE, TONS OF UNCERTAINTY.

NOBODY KNEW HOW LONG IT WAS GOING TO LAST OR HOW LONG IT WAS GOING TO LAST.

AND ON THE TAIL OF THIS WE GET OTHER PROBLEMS -- INFLATION, SUPPLY CHAIN, NOW GAS PRICES.

ARE THOSE CHALLENGES TO RECRUITING JOBS OR ARE THOSE MORE SHORT-TERM WHEREAS Y'ALL ARE LOOKING LONG-TERM?

>> THE INTERESTING THING ABOUT WHAT IS HAPPENING IN THE ECONOMY, PARTICULARLY AS A RESULT OF COVID, THE SUPPLY CHAIN WAS PARTICULARLY TAXED.

SO AROUND THE WORLD YOU SAW CHALLENGES IN SUPPLY CHAIN.

SO THERE'S AN BE BIG MOVEMENT AND A LOT OF INTEREST IN DOING WHAT IS CALLED LOCALIZING OR REGIONALIZING THE SUPPLY CHAIN.

THAT MEANS OPPORTUNITIES FOR ALABAMA, AS COMPANIES AND THEIR SUPPLIERS LOOK AT BRINGING SOME OF THEIR CRITICAL SUPPLIER NEEDS AND THE SUPPLIER OPERATIONS CLOSER TO THEIR OPERATION HERE IN ALABAMA.

>> OKAY.

SO WE'RE ALL STUCK AT HOME FOR COVID AND START ORDERING THINGS ON AMORTIZE AND SO MUCH IS COMING FROM CHINA AND THE INTERNATIONAL PLACES I GUESS THE LINE JUST SORT OF GOT TIGHT?

>> THEY DID.

YOU HAD SHIPPING ISSUES.

YOU HAD ISSUES AT THE PORTS PARTICULARLY ON THE EAST COAST AND THE WEST COAST, WHICH INTERESTINGLY IS CREATING SOME OPPORTUNITIES FOR US HERE AT HOME AT THE PORT OF MOBILE.

SO A LOT OF THE SUPPLY CHAIN DISRUPTION WAS JUST IN THE AVAILABILITY OF EVERYTHING FROM TRUCK DRIVERS TO WORKERS AT THE PORT TO OFF-LOAD AND ON LOAD CONTAINERS AND GOODS COMING OFF OF SHIPS AND ALSO THE SUPPLY CHAIN THEMSELVES IN DIFFERENT PARTS OF THE WORLD HAD A LOT OF LABOR DISRUPTIONS DUE COVID.

>> I MENTIONED MAZDA TOYOTA, WHICH IS COMING ONLINE, AND IT'S AMAZING TO SEE THAT DEVELOP IN JUST A SHORT AMOUNT OF TIME.

BUT ALABAMA'S GOT SUCH A STRONG FOOTPRINT IN THE AUTOMOTIVE INDUSTRY AND YET WE'RE SEEING THIS TURN TOWARD ELECTRIC VEHICLES.

I KNOW MERCEDES IS BIG ON THIS.

HONDA HAS MADE A BIG COMMITMENT, HYUNDAI HERE IN MONTGOMERY.

WHAT IS ALABAMA'S FUTURE IN TERMS OF THE ELECTRIC VEHICLE TURN IN THE AUTOMOTIVE INDUSTRY?

>> WELL, WE BELIEVE ALABAMA'S FUTURE IN THE ELECTRIFICATION OF VEHICLES IS LOOKING PRETTY STRONG.

YOU POINTED OUT THE FACT THAT MERCEDES-BENZ HAS INVESTED OVER A BILLION DOLLARS IN ALABAMA ALONE JUST TO PREPARE FOR THE ASSEMBLY OF BATTERIES, AND JUST A COUPLE OF SHORT WEEKS WE WILL BE CELEBRATING THE OPPOSING OF THIS FACILITY AS WELL AS HAVING MERCEDES AND ALABAMA FOR 25 YEARS.

BUT IT'S NOT GOING TO STOP THERE WITH JUST MERCEDES.

OF COURSE HYUNDAI IS REALLY TALKING ABOUT A GREAT DEAL OF EXPANSION ON EV'S AS IS TOYOTA AS IS HONDA AND MAZDA, OUR NEWEST INTEREST IN THE MARKET.

I THINK ALABAMA IS POSITIONING ITSELF.

WE'RE PLAYING CATCH UP AS IT RELATES TO JUST THE INFRASTRUCTURE NEEDED FOR ELECTRIC VEHICLE CHARGING.

BUT THAT PLAN HAS BEEN PUT TOGETHER.

THE GOVERNOR TASKED ADECA WITH DOING THAT AND THE TEAM FROM ADECA HAS WELL AS INPUT FROM MY PARTICIPATION IN THAT, WE HAVE COME UP WITH A PLAN THAT SHOULD ALLOW ALABAMA TO BE CAUGHT UP.

WITH WHERE WE NEED TO BE TO HANDLE MORE ELECTRIC VEHICLES WITH THE ROADS WHICH IT'S COMING.

>> CAPACITY HAVING THE CHARGING STATIONS, EVEN IN THE REBUILD ALABAMA PLAN WAS THAT MAKING SURE THERE'S PAIRS TEE IN TERMS OF TAXES AND ALL OF THAT.

I WANTED TO CHANGE GEARS HERE REAL QUICK.

WE HEAR TALK IN THE LEGISLATURE ABOUT IMPROVING WORKFORCE.

GOVERNOR IVEY HAS A LOT OF EMPHASIS ON WORKFORCE DEVELOPMENT, MORE SKILLS, MORE CREDENTIALS.

YOU AND YOUR TEAM ARE THE ONES THAT HAVE TO SIT ACROSS FROM THE CEO'S, THE SITE DEVELOPERS, THE PROJECT DEVELOPERS.

HOW IMPORTANT IS WORKFORCE TO THOSE FOLKS ACROSS THE TABLE?

>> IT'S REALLY INTERESTING.

WHEN I STARTED IN THIS ROLLOVER 10 YEARS AGO, I WOULD SAY THAT WORKFORCE AVAILABLE WAS TYPICALLY RANKED NUMBER 4, NUMBER 5 ON THE LIST.

TODAY IT'S NUMBER ONE ON THE LIST.

SO WE WORKED REALLY CLOSELY -- I THINK ONE OF THE THINGS THAT WE HAVE DEVOTED A LOT OF NOTORIETY WITHIN THE INDUSTRY FOR IS THE STATE THROUGH COMMERCE AND THROUGH THE GOVERNOR WORKS PRETTY CLOSING I WILL WITH THE COMPANIES WITHIN DIFFERENT INDUSTRY SECTORS.

WE LISTENED TO THESE COMPANIES, THE ALABAMA WORKFORCE COUNSEL HAS BEEN A BIG PART OF THAT BECAUSE IT'S LED BY A LOT OF INDUSTRY LEADERSHIP FROM AROUND THE STATE, DIFFERENT PARTS OF THE STATE.

AND THE FACT THAT WE HAVE REGIONALIZED WITH SEVEN REGIONAL WORKFORCE COUNSELS, WE HAVE GOTTEN CLOSER TO THE ACTUAL COMPANIES FROM AROUND THE STATE.

WE HAVE THE RIGHT SOUNDING BOARD, AND WE CAN NOW, BECAUSE OF THAT REGIONALIZATION, WE ARE ABLE TO BETTER CONNECT WORKFORCE DEVELOPMENT AND EDUCATION WITH THE LOCAL EDUCATORS, THE LOCAL SYSTEM WHETHER IT'S COMMUNITY COLLEGE, WHETHER IT'S K THROUGH 12, AND ALSO CONNECT JOB SAKERS TO THE OPPORTUNITIES AND THE SKILLS DEVELOPMENT PROGRAMS AVAILABLE TO THEM TO MAKE THEM PREPARED FOR THE NEXT LEVEL JOB THAT INCREASES THEIR WAGES AND THEIR EARNING CAPACITY.

>> SPEAKING OF THE LEGISLATURE, A LOT OF PEOPLE IN THIS BUILDING ARE REALLY HAPPY RIGHT NOW BECAUSE THE BUDGETS ARE FLUSH AND THERE'S BEEN A LOT OF TALK ACROSS THE BUDGETING PROCESS.

THE REVENUE HIGH THIS YEAR BUT THEY TALKED A LOT ABOUT HOW PRORATION HAS NOT BEEN IN EFFECT FOR 10, 12 YEARS.

SO FOLKS -- TO THE POINT WHERE FOLKS WHO ARE NEW TO POLITICS DON'T KNOW WHAT THAT MEANS.

ESSENTIALLY IF THE LEGISLATURE WOULD OVERBUDGET AND THE REVENUE DIDN'T GET THERE, CUTS TO EDUCATION, CUTS TO OTHER PROGRAMS, PINK SLIPS.

AND THEY EVEN SAY, IT'S ROLLING BE RESERVE ACT WHICH PASSED IN 2011, YOU'RE THE SPONSOR OF THAT LAW.

HOW IS -- WHAT'S IT LIKE LOOKING BACK SEEING THE FRUITS OF YOUR LABOR THAT BUDGETING HAS GOTTEN MORE STABLE IN THE LEGISLATURE.

>> WELL, I WOULD BE LYING TO SAY I AM NOT PROUD.

I WOULD SAY THAT THE ROLLING RESERVE ACT ITSELF WAS A LABOR OF LOVE.

IT WAS ONE OF THOSE IDEAS THAT GREW IN ME AS I BEGAN TO LOOK AT HOW OUR BUDGETING AND THE FACT IT WASN'T WORKING.

EVERY 3RD YEAR, WE WERE EXPERIENCING PRORATION AND THAT WAS REALLY HAVING SOME NEGATIVE IMPACTS ON SCHOOL SYSTEMS.

AND I CAME FROM REPRESENTING A DISTRICT THAT HAD STRONG SCHOOL SYSTEMS AND I HAD GREAT RELATIONSHIPS SCHOOL BOARDS AND SUPERINTENDENTS AND I HAD HEARD WENT HORRIBLE IMPACT TAKING PLACE WHEN A SCHOOL SYSTEM WAS TOLD MID-YEAR THAT THEY HAD TO MAKE A 10 PERCENT CUT, WHICH HALFWAY THROUGH THE YEAR IS TAKING A 20 PERCENT CUT IN THEIR BUDGET.

AND YOU JUST CAN'T OPERATE THAT WAY.

AND THE ROLLING RESERVE ACT WAS A WAY TO SMOOTH OUT THE REVENUE FORECASTING BY USING A 15-YEAR GROWTH RATE AND ESTABLISHING A CAP THAT FORCED SPENDING IN A SUSTAINABLE WAY, AND ALSO SET ASIDE A ROLLING RESERVE TO SET UP PRORATION FOR THE FUTURE.

AND I'M HAPPY TO SAY, SINCE ITS PASSAGE, KNOCK ON WOOD, WE HAVE NOT HAD PRORATION.

SO I AM PROUD OF THE FACT IT'S WORKING.

>> THEY WERE CALLING IT A RADICAL IDEA A WHILE AGO.

>> IT'S TAKEN THREE YEARS TO TAKE THAT RADICAL IDEA AND BRING IT TO REALITY BUT I HAD A LOT OF SUPPORT ALONG THE WAY THAT BUILT PARTICULARLY FROM ALL PARTS OF THE STATE, SCHOOL BOARD, SCHOOL SUPERINTENDENTS, PARENTS, EVEN STUDENTS.

IT WAS A VERY REWARDING PROCESS.

>> JUST HAPPY TO TAKE A VICTORY LAP ON THAT.

IT'S BEEN A LONG TIME.

>> ONE OF THE THINGS I WANTED TO TALK ABOUT IS DISCUSS THE SITUATION IN UKRAINE BECAUSE YOUR JOB HAS JUST A GLOBAL SCALE.

THE LAST TWO WEEKS HAS SEEN UNPRECEDENTED NUMBER AND LEVEL OF SANCTIONS PUT ON RUSSIA, ITS ECONOMY, IT'S ABILITY TO CONDUCT BUSINESS INTERNATIONALLY, EVEN IN IT'S CURRENCY.

SO GIVEN YOUR SCOPE GLOBALLY IN ECONOMICS CAN YOU GIVE US AN IDEA OF THE REAL WORLD IMPACTS OF THESE ECONOMIC SANCTIONS MIGHT HAVE?

>> SO IT IS UNFORTUNATE THAT WE AS A GLOBAL ECONOMY ARE COMING OFF THE THROWS OF REBUILDING FROM THE PANDEMIC, WE'RE NOW SEEING THE IMPACT FROM THIS VERY AGGRESSIVE MOVE BY RUSSIA AND PRESIDENT PUTIN TO HAVE THIS UNWANTED INCURSION INTO THE UKRAINE AND THE IMPACT IS GOING TO BE FELT FOR A LONG TIME.

YOU KNOW.

INTERESTINGLY, THE IMPACT IS GOING TO BE MORE SERIOUS IN THE EUROPEAN COUNTRIES AND THE SURROUNDING BALTIC COUNTRIES WHERE OIL AND NATURAL GAS FROM RUSSIA ARE A BIG COMPONENT OF THE ENERGY EQUATION THERE.

EVEN IN THE U.S., WE BUY RUSSIAN OIL AND NATURAL GAS.

ONE OF THE TOP IMPARTS FROM RUSSIA HAPPENS TO BE PLATINUM.

IT'S A VERY IMPORTANT COMPONENT OF OUR AEROSPACE AND AVIATION APPLICATIONS.

SO THE SANCTIONS THAT HAVE BEEN PLACED ON RUSSIA ARE HAVING AN IMPACT.

AND THEY HAVE HAD AN IMPACT MORE THAN ANYONE HAS SEEN BEFORE BECAUSE OF THE FACT THE U.S. AND THE EUROPEAN UNION AND CANADA AND OUR OTHER ALLIED COUNTRIES HAVE ACTUALLY COLLABORATED AND WORKED WELL TOGETHER TO ENFORCE THESE SERIES OF SANCTIONS.

AND WHEN YOU -- THEY'RE ALL DESIGNED TO SHIELD THE WEST FROM AS MUCH OF THE IMPACT AS POSSIBLE AND THAT'S WHY THE SANCTIONS HAVE NOT TOUCHED OIL AND NATURAL GAS EXPORTATION FROM RUSSIA, BUT I THINK THAT THAT'S BIGGEST CONSIDERATION NOW.

THIS IS ABOUT CHOKING OFF RUSSIA ABILITY TO CONDUCT BUSINESS FINANCIALLY IN THE GLOBAL MARKET.

IT'S BUILT AND DESIGNED TO PUT PRESSURE ON THEIR ABILITY TOO SEEK LOANS.

WE KNOW RUSSIA HAS BEEN IN A RECOVERY NOR A LONG TIME AND EVEN THOUGH RUSSIA HAS MADE EFFORTS TO SHIELD THEMSELVES BY SHIELDING SOME RESERVES, THE ACTIONS TAKEN RECENTLY THAT HAVE CHOKED OFF ABOUT 50 PERCENT OF THE FOREIGN RESERVE OF THE NATIONAL BANK IN RUSSIA ARE REALLY HAVING AN IMPACT.

AND I THINK THE QUESTION IS, IS THIS GOING TO BE ENOUGH TO COUNTERACT THE ACTIONS TAKEN BY PUTIN OR IS IT GOING TO TAKE MORE SERIOUS MEASURES.

>> IT STRIKES ME THAT -- LET ME ASK YOU THIS.

YOU MENTIONED THE IMPACT ON THE RUSSIANS.

AS THIS GOES ON, SHOULD AMERICANS -- SHOULD ALABAMIANS EXPECT SOME ECONOMIC PAIN OF OUR OWN AS THIS WAR CONTINUES?

>> WE'RE ALREADY SEEING THAT.

IF YOU GO TO THE GAS PUMP TODAY, YOU'RE ALREADY SEEING THE FACT THE FACT THAT ON FEBRUARY 22 WHEN THIS ALL STARTED TAKING PLACE.

THE U.S. AND SOME OF OUR ALLIES REACTED THE SAME DAY WITH SANCTIONS, BECAUSE OF THE DEPENDS OF THE EUROPEAN COMMUNITY AND TO SOME EXTENT THE U.S. ON RUSSIAN OIL AND GEORGIA GAS, WE SAW THE PRICE ON THE BARREL OF OIL GO SHOOT UP ABOVE A HUNDRED DOLLARS AND IT'S WAY ABOVE THAT AT THIS POINT.

SO I THINK WE'RE SEEING THAT.

THE REST OF THE WORLD IS KIND OF INTERESTING.

THE UKRAINE IS CONSIDERED THE BREADBASKET FOR THAT PART OF THE WORLD AND A LOT OF THE BALTIC STATES, A LOT OF THE EUROPEAN COMMUNITIES DEPEND ON WHEAT FROM THE UKRAINE.

WELL, UNFORTUNATELY DUE TO THIS INVASION AND INCURSION, THAT WHEAT MAY STAND FALLOW IN THE FIELDS, WHICH THAT WILL JUST DRIVE UP PRICES NOT JUST IN THAT AREA BUT WE'RE ALREADY SEEING FOOD PRICES IN THE U.S. JUST DUE TO COVID-RELATED SUPPLY DISRUPTIONS.

NOW, YOU TAKE THE FACT THERE MAY BE MORE LIMITED AVAILABILITY OF A STAPLE GRAIN LIKE WHEAT IN THE WORLD MARKET PLACE AND WE WILL SEE THAT IMPACT HERE IN THE U.S. AS WELL.

>> YOU MENTIONED GAS PRICES AND OIL HAS BEEN A BIG ISSUE THAT HAS BEEN BROUGHT UP BECAUSE OF THIS.

AND SPECIFICALLY DOMESTIC AMERICAN ENERGY MUCH OF THE BIDEN ADMINISTRATION REVERSED A LOT OF THE TRUMP POLICIES AND MADE IT CLEAR THEY DO NOT WANT TO INCREASE OR RAMP UP AT ALL AMERICAN PRODUCTION OF FOSSIL FUEL ENERGY, PIPE LINES, THINGS LIKE THAT.

GIVEN THIS SITUATION IN RUSSIA AND OUR DEPENDENCE NOT JUST ON RUSSIA BUT MIDDLE EASTERN, VENEZUELA, PROBLEMATIC AREAS FOR SURE, SHOULD THE BIDEN ADMINISTRATION REVISIT THEIR OIL POLICIES DOMESTICALLY.

>> I THINK IT WOULD BE WISE TO DO THAT.

I THINK WE ALL UNDERSTAND THAT OIL AND NATURAL GAS ARE CRITICAL INTO THE WORLD ECONOMY AND THEY'RE CERTAINLY CRITICAL IN THE U.S. ECONOMY.

EVEN THOUGH WE HAVE TO PUSH TO ELECTRIFICATION OF VEHICLES THAT'S GOING TO TAKE SOME TIME TO BE ABLE TO SORT OF WEAN OURSELVES AWAY FROM AS MUCH OF A DEPENDENCY ON FOSSIL FUELS BUT WE'RE STILL GOING TO HAVE A NEED FOR FOSSIL FUELS THROUGH TIME BECAUSE NOT EVERYBODY EVERYTHING IS GOING TO RUN ON BATTERY.

BUT AT THE END OF THE DAY, THIS IS ABOUT THE SHORT-TERM PERIOD: AND IN IN THE SHORT RUN TO LIMIT THE COUNTY OF IMPACT ON OUR ECONOMY AND GET HOLD OF INFLATION, I THINK IT WOULD BE WISE FOR THE PRESIDENT TO ENCOURAGE MORE EXPLORATION OF OIL AND GAS IN THE U.S. WE HAVE THE RESERVES.

WE OUGHT TO TAKE ADVANTAGE OF THAT AND SHIELD OURSELVES FROM THE IMPACT OF THE PRICE PRESSURES THAT WE'RE SEEING ACROSS THE GLOBE.

>> YOU HAVE BEEN GENEROUS WITH YOUR TIME.

THANK YOU FOR COMING IN AND EXPLAINING SOME OF THESE REALLY EXCEPTION OF EXCEPTIONAL ISSUES TODAY.

>> GLAD TO BE HERE.

IT'S ALWAYS GOOD TO BE ON THE SHOW.

ALWAYS GOOD TO SEE YOU.

>> WE WILL BE RIGHT BACK.

>> AND THAT'S OUR SHOW FOR TONIGHT.

THANK YOU FOR WATCHING.

WE WILL BE BACK TOMORROW AT 10:30 ON APT WITH MORE COVERAGE FROM THE LEGISLATIVE SESSION.

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