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

WELCOME TO "CAPITOL JOURNAL."

LEGISLATIVE LEADERS CONCLUDED THEIR INFORMAL BUDGET HEARINGS THIS WEEK.

THIS SERIES OF MEETINGS HAS FEATURED STATE AGENCY HEADS DISCUSSING THEIR FINANCIAL SITUATIONS, INCLUDING ANY PROBLEMS THEY MAY BE FACING.

THIS WEEK FEATURED THE DEPARTMENT OF HUMAN RESOURCES, THE DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES AND THE DISTRICT ATTORNEYS AROUND THE STATE.

R COMMISSIONER DISCUSSED STRUGGLES THEY ARE HAVING WITH PERSONNEL.

SHE SAYS THEIR BIGGEST CHALLENGE IS RECRUITING AND RETAINING EMPLOYEES IN THE SOMETIMES DIFFICULT JOBS.

THE DEPARTMENT OVER ALL HAS A 20% TURNOVER RATE AND SPECIFICALLY WITHIN THE CHILD WELFARE DIVISION, THEY'RE SEEING A 46% TURNOVER RATE.

BUCKNER SAYS COMPETING WAGES FROM OTHER EMPLOYERS AND THE DANGEROUS NATURE OF THE JOB ARE KEY FACTORS.

>> I HAD ONE WE WERE GOING TO HIRE AND SHERWIN-WILLIAMS, HIRED HER OUT FROM UNDER ME.

THEY WERE GOING TO TEST HER MORE TO TEST PAINT THAN WE COULD PAY HER AS A SOCIAL WORKER.

THIS PAST YEAR I HAD A WORKER STABBED IN THE OFFICE.

IT'S NOT UNCOMMON IF YOU GET BIT BY DOGS IF YOU ARE GOING TO PEOPLE'S HOUSES.

SOMETIMES YOU DON'T SEE THAT DOG THAT'S ON A CHAIN, THAT IS UNDER THE HOUSE UNTIL YOU GET ON THE PORCH.

I HAD A WORKER THAT GOT BIT BY A 15-YEAR-OLD YOUNG MAN.

SHE HAD TO GO TO THE ER.

SHE HAD SO MANY BITES AND BRUISES ON HER.

I HAD ONE THAT GOT SLAPPED TO THE GROUND.

THEN YOU PROBABLY READ ABOUT THE SUPERVISOR THAT NOT JUST HIT BY A CAR BY ACCIDENT BUT THE GUY BACKED UP, WAS GOING TO RUN OVER HER.

SHE SUFFERED A LOT OF INJURIES.

SOME SHE WILL CARRY WITH HER THE REST OF HER LIFE.

WHEN YOU GRADUATED FROM SCHOOL AND NEVER SEEN A BABY DIE, IT'S TRAUMATIC.

>> LAWMAKERS SAID AFTERWARD THEY WOULD BE LOOKING IN TO PAY RAID FOR DHR EMPLOYEES IN THE NEXT BUDGET.

HIRING AND RETENTION ARE CHALLENGES FOR STATE PROSECUTORS.

BARRY MATSON OF THE ALABAMA DISTRICT ATTORNEYS ASSOCIATION SAID PROSECUTORS THROUGHOUT THE STATE HAVE A DISPROPORTIONATE CASELOAD TO ATTORNEY RATIO.

THAT'S SPREADING DISTRICT ATTORNEY OFFICES THIN.

DISTRICT COURT CRIMINALS 142,000 CASES, 17,000 JUVENILE AND 310,000 TRAFFIC CASES PENDING IN 2020 IN ALABAMA.

I HAVE 278 FULL-TIME PROSECUTORS, 278.

WHEN I GO OUT IN PUBLIC AND ASK HOW MANY PROSECUTORS DO YOU THINK WE HAVE IN ALABAMA, IF WE HAVE 65 OR 80,000 FELONIES A YEAR AND THEY SAY A COUPLE THOUSAND.

WHEN I TALK TO COUNTERPARTS IN OTHER STATES, THEY CAN'T BELIEVE TWO THINGS -- THAT WE HAVE 278 FULL TIME PROSECUTORS AND WE HAVE TO GO OUT AND RUN A SMALL BUSINESS TO FUND OUR OFFICES.

THEY CAN'T UNDERSTAND THAT THEM D.A.

'S HAVE TO RUN A SMALL BUSINESS OUT OF THEIR OFFICES TO FUND 70% OF THEIR OPERATIONS OR THAT OUR CASE LOAD IS 1900 PER PROSECUTOR.

>> MATSON REFERRED TO SMALL BUSINESSES BECAUSE ONLY 35% OF A DA'S BUDGET COMES FROM THE STATE GENERAL FUND, WHERE AS THE REST COMES FROM COURT COSTS, FEES AND FINES AND LOCAL SOURCES.

>> COMMISSIONER CHRIS BLANKENSHIP OF THE DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES ALSO PRESENTED BEFORE LAWMAKERS.

HIS AGENCY IS PREPARING FOR A MAJOR UPGRADE OF STATE PARKS AFTER VOTERS APPROVED A BOND ISSUE OF UP TO $80 MILLION TO FUND IMPROVEMENTS.

HE TOOK THE OPPORTUNITY TO UPDATE LAWMAKERS ON ALL THE VARIOUS PROGRAMS THE AGENCY OVERSEES.

>> WE HAVE 21 STATE PARKS AND 48,000 ACRES AROUND THE STATE AND HOST 6.2 MILLION PEOPLE.

THAT'S A 20% INCREASE SINCE THE PANDEMIC IN THE AMOUNT OF VISITATION TO OUR PARKS.

AS YOU SEE, WE HAVE TWO CAVE PARKS, 40 WILDLIFE MANAGEMENT AREAS THAT WE MANAGE.

700,000 ACRES, 12 SHOOTING RANGES AROUND THE STATE.

20 COMMUNITY ARCHERY PARKS.

WE LEAD THE COUNTRY IN ARCHERY PARKS.

I THINK THE NEXT CLOSEST STATE IS KENTUCKY AND THEY HAVE TEN.

23 PUBLIC FISHING LAKES, 150 BOAT RAMPS IN FRESH AND SALT WATER.

ALABAMA HAS THE LARGEST NUMBER OF AQUATIC SPECIES IN THE UNITED STATES AND IN ALABAMA THE LARGEST ARTIFICIAL REEF PROGRAM IN THE COUNTRY.

REALLY IN THE WORLD.

>> THIS BUDGET MEETING WAS THE LAST WORK IN THE STATE HOUSE FOR A LONGTIME ALABAMA LAWMAKER WHO IS LEAVING AFTER A CAREER SPANNING 50 YEARS.

STATE REPRESENTATIVE LYNN GREER SAID IT'S BITTERSWEET TO BE RETIRING BUT THAT THE STATE IS IN BETTER FINANCIAL SHAPE THAN HE'S EVER SEEN.

>> IT'S TOUGH TO FACE BECAUSE I HAVE ENJOYED IT DOWN HERE.

TRIED TO DO THE BEST I COULD AND PASS GOOD LEGISLATION.

SOME WE COULDN'T PASS BUT SAVE ALABAMA RIGHT NOW, I HAVE BEEN ON THE GENERAL FUND BUDGET COMMITTEE FOR YEARS AND WE ARE IN BETTER SHAPE THAN WE HAVE BEEN IN TIME.

I'M GLAD ABOUT THAT.

>> WHEN DID YOU FIRST GET ELECTED.

>> IN 1974 I SERVED A COUPLE OF TERMS AND THEN THE ALABAMA COMMISSION I CAME BACK AND CAME BACK IN '10 AND BEEN HERE EVER SINCE.

>> GOOD NEWS ON THE EDUCATION FRONT.

ALABAMA STUDENT TEST SCORES ON READING, MATH AND SCIENCE ARE UP ACROSS THE BOARD COMPARED TO LAST YEAR.

STATE SUPERINTENDENT ERIC MACKEY ANNOUNCED THE IMPROVED SCORES AT A STATE BOARD OF EDUCATION MEETING THIS WEEK.

THE ALABAMA COMPREHENSIVE ASSESSMENT PROGRAM FROM THE SPRING SHOWS MATH SCORES IMPROVED IN ALL GRADES TESTED WITH 30% OF STUDENTS OVERALL MEETING PROFICIENCY.

YOU CAN SEE THAT THE PROFICIENCY DROPS FROM GRADE TO GRADE.

FIFTY PERCENT OF STUDENTS WERE PROFICIENT IN ENGLISH LANGUAGE ARTS, WHICH A 3% INCREASE FROM 2021.

IN SCIENCE, THE OVERALL PROFICIENCY RATE FOR THE STATE INCREASED BY 4% FOR A TOTAL OF 36% OF STUDENTS CONSIDERED PROFICIENT.

MACKEY NOTED THAT WHILE THE SCORES ARE HEADED IN THE RIGHT DIRECTION, THE LOW PROFICIENCY NUMBERS SHOW MUCH MORE WORK IS NEEDED TO IMPROVE STUDENT LEARNING.

>>> PUBLIC LIBRARIES CAN PLAY A KEY ROLE IN PREPARING STUDENTS FOR SCHOOL AND SUPPORTING THEIR LEARNING WHILE IN SCHOOL.

THE ALABAMA PUBLIC LIBRARY SERVICE RECENTLY TRAINED 86 LIBRARIANS IN AN EDUCATION PROGRAM SPECIFICALLY FOR THAT PURPOSE.

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

>> THE ALABAMA PUBLIC LIBRARY SERVICE RECEIVED A GRANT TO PARTICIPATE IN THE REIMAGINING SCHOOL READINESS INITIATIVE.

IT'S PURPOSE IS TO HELP LIBRARIANS, WHO IN TURN HELP PREPARE CHILDREN 0-8 FOR SUCCESS IN SCHOOL LIFE.

>> THE PROJECT WAS ORIGINALLY CONCEIVED BY THE BAY AREA DISCOVERY MUSEUM AND IN SAN FRANCISCO, CALIFORNIA.

IT WAS BASED ON RESEARCH THEY DID THEIR VERY RESEARCH-DRIVEN ORGANIZATION.

>> THEIR RESEARCH YIELDED SIX KEY FINDINGS SPLIT INTO THREE CATEGORIES THAT THEY CONCLUDE MATTER MOST FOR CHILD SUCCESS.

>> TALK AND PLAY, BODY AND BRAIN AND SCIENCE AND MATH.

>> FROM THERE, A FREE TOOLKIT OF MULTIPLE ACTIVITIES WAS DEVELOPED AND LIBRARIANS WERE TRAINED.

THEY EXPLAIN HOW A LIBRARIAN MAY USE THE REIMAGINING SCHOOL READINESS CONCEPT TO SPARK LEARNING.

>> FOR INSTANCE STORY HOUR.

STORY HOUR IS SOMETHING ALL LIBRARIES DO AND THAT THESE CONCEPTS CAN BE ADDED INTO STORY HOUR VERY EASILY.

READING A BOOK AND WHAT DO YOU THINK WILL HAPPEN NEXT?

AND TO SEE THEIR EYES AND THEIR BRAINS START TO MOVE -- AND THEIR PARENTS PICK UP ON THESE THINGS THROUGH WATCHING THEIR CHILDREN.

IF YOU HAVE A REPETITIVE PHRASE -- I ALWAYS LET THEM KNOW IN THE BEGINNING, OKAY, WHEN I STOP YOU ARE GOING TO SAY THAT PHRASE.

SO IT MAKES THEM STOP AND REMEMBER.

>> THE TOOLKIT INCLUDES POSTERS TO HELP PARENTS START CONVERSATIONS WITH THEIR KIDS FROM AGE 0-8.

>> TELL ME MORE ABOUT YOUR DRAWING.

INSTEAD OF SAYING, OH, YOU PAINTED THE SKY GREEN.

TELL ME ABOUT YOUR DRAWING.

TELL ME WHAT YOU DID.

TELL ME WHY YOU USED WHAT YOU DID AND LET THE CHILD COMMUNICATE THAT TO YOU.

IT'S MAKING IT SO THINGS ARE MORE CHILD DIRECTED INSTEAD OF PARENT DIRECTED.

>> 86 ALABAMA LIBRARIANS HAVE RECEIVED THE REIMAGINING SCHOOL READINESS TRAINING.

TO FIND OUT IF THERE IS ONE NEAR YOU, ACT THE ALABAMA PUBLIC LIBRARY SERVICE AT 800-7323-8459.

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

>> STATE AND LOCAL LEADERS BROKE GROUND THIS WEEK ON THE BIRMINGHAM RECOVERY CENTER, WHICH WILL HELP SERVE THOSE WITH SUBSTANCE ABUSE ISSUES IN THE AREA.

MENTAL HEALTH COMMISSIONER KIM BOSWELL SAID THIS RECOVERY CENTER AND OTHERS LIKE IT WILL MAKE A BIG DIFFERENCE FOR CARING FOR THOSE DEALING WITH SUBSTANCE ISSUES.

>> WE ARE REALLY EXCITED TO SEE THAT EXPANSION AND TO SEE THE GREAT WORK THAT'S GOING ON IN BIRMINGHAM.

>> THE RACE TO THE BOTTOM TO PROVIDE THE LOWEST COST AND HIGHEST VOLUME SERVICES DOES NOT LEAD THE WAY TO LASTING HEALING AND CHANGE.

IF WE ALL DO BETTER, THAN THE STANDARD OF CARE GETS RAISED FOR EVERYONE.

WITH THESE THREE NEW FACILITIES, TREATMENT JUST GOT BETTER IN THE STATE OF ALABAMA.

>> THE GENERAL ELECTION IS JUST 60 DAYS AWAY, AND ALABAMA IS PREPARING BY TRYING TO RECRUIT AND TRAIN POLL WORKERS.

"CAPITOL JOURNAL'S" RANDY SCOTT HAS MORE.

>> WE PUT OUT AN APB TO MAKE SURE THAT PEOPLE KNEW WE NEEDED POLL WORKERS.

>> THE NATION AND ALABAMA SECRETARY OF STATE ARE LOOKING FOR PEOPLE TO TAKE UP THE CALL, THE CALL OF BEING POLL WORKERS.

IN THIS CASE FOR ALABAMA'S 1980 POLLING SITES.

>> THEY CHECK THE VOTERS IN WHEN THEY COME TO THE POLLING SITE.

THEY CHECK THEIR I.D.

AND MAKE SURE THAT INDIVIDUAL IS THE INDIVIDUAL REFLECTED ON THAT QUALIFIED VOTER I.D.

AND THEN THEY CHECK WHERE THEY ARE SUPPOSED TO GET A PARTICULAR BALLOT FOR A PARTICULAR AREA TO VOTE IN THE JURISDICTION WHERE THEY LIVE.

>> MAKING SURE VOTING RUNS SMOOTHLY AND CITIZENS GET A CHANCE TO CAST THEIR BALLOTS IS A TOP JOB FOR THE SECRETARY OF STATE'S OFFICE.

TO GET THAT DONE THE SECRETARY IS PUTTING OUT A CALL FOR MORE POLL WORKERS TO HELP KEEP VOTING ON TRACK.

>> A POLL WATCHER IS AN INDIVIDUAL WHO'S TRAINED AND COMPENSATED FOR WORKING ELECTIONS AT THE LOCAL LEVEL IN EACH OF OUR POLLING SITES ON ELECTION DAY.

>> SECRETARY SAYS IT WILL BRING NEW WORKERS IN THE SYSTEM.

HE SAID THANKS TO LEGISLATION PASSED MORE PEOPLE WILL HAVE A CHANCE TO SERVE.

YOU CAN FIND CONTACTS TO THE SECRETARY OF STATE AND PROBATE JUDGES AT WWW.ALABAMAVOTES.GOV.

>> IN 2019, BEFORE WE KNEW THE COVID WAS GOING TO COME INTO EXISTENCE, WE HAD PASSED LEGISLATION TO ENABLE 16 AND 17-YEAR-OLDS TO WORK IN THE POLLS.

IT'S STILL IN PLACE TODAY AND PERMANENTLY.

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

>> WE WILL BE RIGHT BACK WITH TONIGHT'S GUESTS.

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

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KEEP UP WITH WHAT'S HAPPENING WITH "CAPITOL JOURNAL."

>> NEXT I'M JOINED BY BILL POOLE FINANCE DIRECTOR FOR THE STATE OF ALABAMA.

THANK YOU FOR COMING ON THE SHOW.

>> THANK YOU, TODD, NICE TO SEE YOU.

>> A COUPLE OF THINGS I WANT TO TALK TO YOU ABOUT.

YOU ARE THE FINANCE DIRECTOR AND WEAR MANY HATS, ONE IS AN ORGANIZATION BORN OUT OF LEGISLATION TWO OR THREE YEARS AGO TO ENCOURAGE INNOVATION AND ENTREPRENEURSHIP.

LAST WEEK YOU ALL ANNOUNCED THE FIRST OF THE GRANTS, INNOVATION GRANTS THAT HAVE GONE OUT.

WALK ME THROUGH HOW WE HAVE GOTTEN TO HERE WITH THE ALABAMA INNOVATION CORPORATION?

>> I THINK IT IS AN EXCITING TRANSFORMATIVE OPPORTUNITY FOR ALABAMA.

WE KNOW THE TRAJECTORY OF THE WORLD IS CHANGING AND IT WILL BECOME MORE TECHNOLOGY AND RESEARCH AND KNOWLEDGE BASE DRIVEN.

THAT'S AN UNDISPUTED FACT.

WHAT WE NEED TO ACCOMPLISH IS SUSTAIN SOME OF THE FANTASTIC THINGS WE HAVE ACCOMPLISHED FROM AN ECONOMIC STANDPOINT AND CONTINUE ON THAT TRAJECTORY BUT DIVERSIFY AND ADDRESS THOSE ECONOMIC OPPORTUNITIES, WHICH ARE OPPORTUNITIES FOR GROWTH IN ALABAMA.

EVERY PART OF THE STATE, URBAN, RURAL, NORTH, SOUTH, EAST, WEST, WE HAVE A LOT OF ACTIVITY AND ASSETS.

GOVERNOR IVEY HAD THE FORESIGHT TO FORM THE INNOVATION COMMISSION.

SHE BROUGHT TOGETHER PUBLIC AND PRIVATE SECTOR LEADERS AND TASKED THE GROUP WITH STUDYING AND EVALUATING OUR INNOVATIVE SECTOR OF OUR ECONOMY AND IDENTIFYING OUR STRENGTHS AND WEAKNESSES AND WHERE ARE OPPORTUNITIES AND MAKE RECOMMENDATION.

THAT COMMISSION ISSUED ITS REPORT AND THAT RESULTED IN A VARIETY OF LEGISLATION THAT I THINK THE LEGISLATURE -- I'M PLEASED AND EXCITED -- REALLY EMBRACED AND RECOGNIZED THIS IS AN IMPORTANT AVENUE FOR ALABAMA.

THE INNOVATION CORPORATION WAS ESTABLISHED TO CREATE THE PERMANENT ENTITY.

IT'S A FIRST OF ITS KIND IN ALABAMA PUBLIC-PRIVATE PARTNERSHIP.

THERE'S SOME BASELINE FUNDING ESTABLISHED TO BEGIN THIS EFFORT AND IT IS AN EXCITING EFFORT.

THERE ARE A LOT OF PRIORITIES.

IT SPEAKS TO GROWTH IN THAT AREA BUT ALSO TO THE THINGS THAT ARE IMPORTANT FOR ALABAMA FROM AN ECONOMIC STANDPOINT.

ONE THING THAT CAME UP CONTINUOUSLY IS AVAILABILITY AND ACCESSIBILITY OF OUTDOOR RECREATION TO RECRUIT AND RETAIN TALENT IN ALABAMA.

RETAINING MORE GRADUATES WHETHER HIGH SCHOOL, TWO OR FOUR-YEAR GRADUATES IN THE STATE.

HAVING JOB OPPORTUNITIES IN THESE SECTORS THAT ARE ATTRACTIVE SO OUR BEST AND BRIGHTEST DON'T HAVE TO MOVE TO ATLANTA, TAMPA OR ORLANDO FOR JOBS.

THEY CAN STAY HERE IN ALABAMA.

WE CAN RECRUIT COMPANIES.

THE OVERALL OBJECTIVE IS TO ADVANCE OUR ECONOMY INTO THOSE AREAS AND WE HAVE ASSETS ALL OVER THE STATE.

WE NEED TO REALLY HARNESS THOSE, BE STRATEGIC ABOUT THOSE AND IMPLEMENT AND PURSUE THOSE INTENTIONALLY.

I THINK WE ARE ON THE PATH TO REALLY GETTING STARTED ON THAT.

IT IS VERY EXCITING.

>> THE FIRST ROUND OF GRANT RECIPIENTS WERE 30 SMALL BUSINESSES THROUGHOUT THE STATE.

THEY RECEIVED GRANTS UP TO $250,000.

WHAT WAS THE COMMISSION OR THE CORPORATION LOOKING FOR IN CANDIDATES TO RECEIVE THESE GRANTS?

>> THIS WAS A FIRST ROUND OF GRANT AWARDS.

SO, WE WERE VERY EXCITED ABOUT IT.

WE ISSUED $4.5 MILLION IN GRANTS.

I'LL SPEAK SO SOME OF THE SPECIFICS OF THOSE BUT WHAT WAS REALLY EXCITING IS THAT WE SAW APPLICATIONS FAR OUTSTRIP AVAILABLE FUNDS.

WHAT THAT TELLS US IS HERE IN ALABAMA, WE HAVE A LOT OF SMALL, ENTREPRENEURIAL STARTUP COMPANIES ALL THE OVER THE STATE THAT ARE ENGAGED IN CUTTING-EDGE RESEARCH.

A LOT OF THESE WE DIDN'T FULLY KNOW ABOUT BUT WE ARE BOLTING ON TO A FEDERAL PROGRAM.

THERE IS A FEDERAL SBIR, SMALL BUSINESS INNOVATION GRANT AND WE ARE PROVIDING STATE FUNDS IN ADDITION TO FEDERAL GRANT FUNDS.

A NUMBER OF OTHER STATES HAVE DONE THIS.

THIS IS GROUND BREAKING FOR US.

SOME OF OUR SISTER STATES IN THE SOUTHEAST ARE DOING THIS BUT IT HELPS OUR SMALL BUSINESSES WHO ARE PEER TESTED, COMMERCIALLY VIABLE, EMERGING TECHNOLOGY CONCEPTS THAT HAVE BEEN TESTED.

THESE ARE AVAILABLE.

IT LETS THEM BE COMPETITIVE HERE IN ALABAMA AS IT RELATES TO OTHER COMPANIES IN THE SOUTHEAST.

IT MAKES ALABAMA AN ATTRACTIVE PLACE FOR THEM TO BE OPPOSED TO MOVING HEADQUARTERS OR LOCATIONS TO OTHER STATES.

WE SAW A VARIETY OF EXCITING COMPANIES THAT ARE ENGAGED IN THESE TECHNOLOGIES.

30 BUSINESSES AWARDED GRANTS, NINE MINORITY OR WOMEN-OWNED BUSINESSES.

INNOVATE ALABAMA WILL HAVE ANOTHER ROUND, $5 MILLION GRANT OF GRANTS THAT OPENS NEXT MONTH, THE FISCAL YEAR, WE WON'T AWARD THEM THAT QUICKLY BUT WE WILL HAVE ANOTHER ROUND AVAILABLE.

COMPANIES IN PHASE ONE OR TWO OF THEIR PROCESSES CAN APPLY.

GO TO INNOVATEALABAMA.ORG TO LEARN MORE ABOUT IT.

WE WANT TO MAKE SURE SMALL BUSINESSES KNOW ABOUT THIS OPPORTUNITY.

WE WANT TO HELP THEM GROW THEIR BUSINESSES IN ALABAMA.

>> LIKE YOUR SAID 30 COMPANIES, TOO MANY TO LIST BUT I WILL PUT THEM ON THE SCREEN.

INTERESTING COMPANIES.

I'M READING ABOUT THEIR GROUNDS.

>> FASCINATING, CUTTING-EDGE EMERGING TECHNOLOGIES.

IN ALL TYPES OF SECTORS.

IT IS HARD TO SUMMARIZE SAY A LOT OF THEM ARE DOING THIS OR THAT.

IT WAS EXCITING TO SEE THESE APPLICATIONS AND KNOW THAT KIND OF EFFORT IS OCCURRING INSIDE OF ALABAMA.

>> YEAH, THAT IS EXCITING.

APPRECIATE THE EXPLANATION AND SEEMS LIKE A WORTHWHILE EFFORT.

SWITCHING GEARS I WANT TO GET AN UPDATE ON ARPA, THE AMERICAN RESCUE ACT.

I KNOW YOU HAD AN OVERSIGHT COMMITTEE MEETING TO UPDATE THE LEGISLATURE ON THE ALLOCATION OF THESE FUNDS.

THAT WAS A MONTH AGO.

WHERE ARE WE NOW?

HOW MUCH OF THE FIRST ROUND HAVE BEEN ALLOCATED TO FAR?

>> I'M GOING TO USE ROUND NUMBERS BUT THEY APPROPRIATED ABOUT 600 MILLION, WHICH WAS THE FIRST TRANCHE, WHICH IS THE FEDERAL TERMINOLOGY.

WE HAVE SUBSTANTIALLY DISBURSED THOSE FUNDS.

HEALTHCARE FUNDS HAVE BEEN DISBURSED TO HOSPITALS.

THE RURAL HOSPITAL GRANTS HAVE BEEN DISBURSED TO HOSPITAL, FIRST RESPONDER AND VOLUNTEER FIREFIGHTER GRANTS HAVE BEEN DISBURSED.

BROADBAND AND WATER AND SEWER FUND WERE LARGE AMOUNTS.

THOSE ARE BEING ANNOUNCED ON THE WATER AND SEWER SIDE.

WE THINK THAT WILL ACCELERATE.

THEY ARE COUPLING IN SOME OTHER FEDERAL FUNDING.

WE ARE SEEING A LOT OF AWARDS ON THE SEWER AND SEWER SIDE.

THOSE ARE INFRASTRUCTURE PROJECTS.

YOU INSTALL THOSE AND LAST FOR DECADES.

THEY SERVE OUR CITIZENS AND FACILITATE ECONOMIC GROWTH AND SANITARY WATER AND SEWER.

THOSE ARE GOOD.

WE WILL SEE THOSE CONTINUE TO ADMINISTER.

WE HAVE A COUPLE OF SMALL AMOUNTS OF FUNDS WE ARE WINDING DOWN TO THE END USERS.

WE SHOULD HAVE THAT COMPLETE IN THE NEXT 30 TO 60 DAYS.

WE REALLY DEPLOYED THE FUNDS INTO THE FIELD VERY QUICKLY.

I APPRECIATE THE LEGISLATURE'S APPROACH TO DISBURSEMENTS AND THE GOVERNOR'S LEADERSHIP.

THE GOVERNOR MADE CLEAR, WE NEED TO INVEST THESE DOLLARS IN INVESTMENTS THAT MATTER AND LAST AND CREATE A TURN.

NOT JUST IN A WHIMSICAL WAY.

THESE ARE ONE-TIME FUNDS AND WE NEED TO INVEST THEM WISELY.

I THINK THESE HAVE BEEN VERY WISE INVESTMENTS.

WE HAVE SOME EXCITING, I THINK VERY EXCITING ANNOUNCEMENTS ON THE HORIZON, PARTICULARLY ON THE BROADBAND FRONT.

IT WILL BE A BIG FIRST STEP THAT WILL FORESHADOW NEXT STEPS AND PUT US IN A GOOD PLACE IN THAT REGARD.

I THINK THAT ALABAMA HAS HANDLED THESE FUNDS VERY WISELY TO THIS POINT.

I'M VERY PLEASED WITH THE PROGRESS.

>> THESE FEDERAL FUNDS, PART OF THE LAW SAID IT HAD TO BE SPENT BY 2026, CORRECT?

>> THAT'S CORRECT.

>> I'M THINKING IN THE GRAND SCHEME OF THINGS IT IS NOT THAT LONG.

IT MAY SEEM FAR OFF BUT WHEN YOU TALK ABOUT THE INFRASTRUCTURE PROJECTS OWN THE SCOPE OF THEM, THAT'S GOING TO BE HERE BEFORE YOU KNOW IT.

ARE YOU WORRIED THAT ALABAMA WON'T HAVE TIME TO SPEND THESE FUNDS?

IF SO, IS IT WORTH ASKING CONGRESS TO EXTEND THE DEADLINE?

WE ARE COGNIZANT OF THE TIMELINES.

WE ARE CONCERNED AND AWARE ABOUT THEM.

WE ARE NOT WORRIED AT THIS POINT IN TIME.

NOW, AS THE SECOND ROUND OF ARPA FUNDS ARE ADMINISTERED BY THE STATE, THOSE TIMELINES WILL BE MORE ACUTE AND THE INVESTMENTS THAT WILL BE MORE CHALLENGING AS IT RELATES TO THE SUPPLY CHAINS AND THE AVAILABILITY OF NOT ONLY THE SUPPLY COMPONENT BUT THE LABOR COMPONENT IS THE BROADBAND AND THE WATER AND SEWER SIDE.

IF YOU THINK OF WATER AND SEWER, YOU HAVE TO ENGINEER YOUR PROJECT.

THAT TAKES TIME.

THEN YOU HAVE TO CONTRACT.

WE HAVE TO GO THROUGH THE PUBLIC WORKS PROCESS AND CONTRACT FOR THE WORK.

THOSE TAKE TIME AND ARE COMPLICATED.

ONE OTHER THING TO NOTE WHICH UNDERSCORES YOUR QUESTION IS A LOT OF STATES ARE SPENDING THEIR ARPA MONEY ON BROADBAND, WATER AND SEWER.

SO IT IS HARD TO GET SUPPLIES.

INFLATIONARY COSTS -- WE ARE WORRIED ABOUT THE INFLATIONARY COSTS.

WE WILL NOT BE ABLE TO BUY WITH THESE DOLLARS WHAT WE COULD HAVE BOUGHT TWO YEARS AGO.

WE CAN'T CHANGE THE CIRCUMSTANCES AND HAVE TO OPERATE WITH THE FUNDS UNDER THE TIMELINES DICTATED BY THE U.S. CONGRESS AND WE WILL DO THAT.

>> EVERYONE SAYS IT IS TOO EARLY TO TALK ABOUT THE NEXT TRANCHE OF FUNDS BUT ONE THING I TOOK AWAY IS THAT THERE IS STILL A LOT OF DEMAND OUT THERE BEYOND WATER AND SEWER.

DO YOU EXPECT IT TO BE -- GOING FORWARD, THE SECOND ROUND, MORE WATER AND SEWER PROJECTS?

>> I THINK IT IS ON THE TABLE AND HAS TO BE STRONGLY CONSIDERED.

REQUESTS FAR, FAR OUTSTRIPPED AVAILABLE FUNDS, EVEN WITH THESE SIGNIFICANT AMOUNTS OF ONE-TIME FUNDS.

IT'S PRETTY SHOCKING.

YOU HAVE HIGH-GROWTH AREAS THAT HAVE BIG NEEDS.

YOU ARE CURRENT COMMUNITIES THAT NEED UPGRADES.

THEY HAVE OLD SYSTEMS.

THEIR TREATMENT PLANTS AND PUMP STATIONS ARE AGING.

THEN YOU HAVE A LOT OF RURAL AREAS THAT, WITH THE MORE SPARSE POPULATION HAVE DIFFICULTY FINANCING THEIR PROJECTS.

WE HAVE AREAS, PARTICULARLY IN THE BE BLACK BELT THAT THE SOIL WON'T PERT.

THE TYPICAL SYSTEM DOESN'T WORK IN THOSE SOILS.

THAT CREATES A LOT OF CHALLENGES AND WE HAVE SEWER ISSUES.

CLEAN WATER IS NOT AS CHALLENGING BUT THE SEWER DISCHARGE IS CHALLENGING IN THOSE RURAL AREAS.

THE DEMANDS ARE SUBSTANTIAL, THE PROJECTS COMPLEX AND EXPENSIVE.

I HOPE WE CONTINUE TO INVEST -- BECAUSE THOSE ARE INVESTMENTS THAT LAST FOR DECADES IF NOT GENERATIONS.

THEY ARE THE BACKBONE OF -- IF YOU DON'T HAVE CLEAN WATER AND SEWER, YOU DON'T HAVE ECONOMIC DEVELOPMENT, YOU DON'T HAVE QUALITY OF LIFE.

ALL OF THOSE THINGS THAT WE OFTEN TAKE FOR GRANTED BUT WE HAVE TO UPKEEP THOSE SYSTEMS.

I THINK BETWEEN WATER, SEWER AND BROADBAND, I HOPE WE SEE A TARGETED FOCUS ON THOSE AS WELL AS HEALTHCARE ISSUES WILL BE OBVIOUSLY ON THE FOREFRONT AS WELL AS A VARIETY OF OTHER THINGS THAT WILL BE CONSIDERED.

>> I WANTED TO ASK ABOUT PRISONS QUICKLY.

WAS THAT THE MEETING WHERE THE BOND SALE WENT THROUGH.

STATE DIDN'T GET AS MUCH AS THE STATE WANTED BUT YOU SAID IT WAS ENOUGH TO AT LEAST GET STARTED.

WALK ME THROUGH THAT.

IS IT THE KIND OF SITUATION WHERE THE STATE WOULD GO BACK TO MARKET TO GET MORE OF THAT FINANCED OR ARE WE OKAY WITH WHAT IT IS.

>> WE ARE COMFORTABLE WITH OUR CURRENT POSITION IN TERMS OF MOVING FORWARD WITH THE TWO PRISON PROJECTS.

I WANT TO STATE CLEARLY THE STATE WILL MOVE FORWARD ON BOTH OF THOSE.

WE HAVE SUFFICIENT PROJECT FUNDS TO MOVE FORWARD FOR TWO OR THREE YEARS.

WE WILL NEED TO SECURE ADDITIONAL FINANCING.

WE'RE DIALING THAT IN.

IT IS HARD TO GET COST ESTIMATES PINNED DOWN.

THOSE ARE SOME MOVING TARGETS AT THE MOMENT AS SOME OF THE DESIGNS ARE FINALIZED AND ESTIMATES AND CONTRACTORS LINED UP.

WE WILL NEED ADDITIONAL FINANCING.

IT'S A DIFFICULT MARKET RIGHT NOW.

YOU LOOK AT THE MARKETS, WHETHER IT IS THE STOCK MARKET -- THERE'S A LOT OF CHALLENGES OUT THERE.

RATES ARE MOVING AROUND.

IN THE CASE OF THE LONGER TERM DEBT THAT WE NEEDED TO SECURE IN ORDER FOR THE FINANCING, THAT'S DIFFICULT IN THE MARKET RIGHT NOW.

THAT'S BY AND LARGE WHY WE CAME UP A LITTLE SHORT ON THE INITIAL FINANCING EFFORT BUT I'M CONFIDENT WE WILL CLOSE THE FINANCING GAP.

BUT WE'RE NOT IN A RUSH OR A PANIC.

THERE'S NO REASON TO BE CONCERNED AT THIS POINT.

WE HAVE AMPLE -- OVER A BILLION DOLLARS OF PROJECT FUNDS AT PRESENT.

SO WE ARE IN A VERY GOOD POSITION TO TAKE OUR TIME AND MAKE SURE WE HANDLE THE FINANCING, AND PRICING TO KEEP THESE PROJECTS ON TIME AND UNDER BUDGET AND FINANCED FULLY.

THOSE ARE THE THREE OBJECTIVES.

WE ARE DETERMINED TO ACCOMPLISH ALL THREE.

>> A LOT OF DIFFERENT TOPICS.

APPRECIATE YOU UPDATING US ON ALL OF THEM.

>> SURE.

THANK YOU, TODD.

>> 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.

♪ YOU ARE WATCHING ALABAMA PUBLIC TELEVISION.

♪ >> NEXT I'M JOINED BY GREG CANFIELD.

THANK YOU FOR BEING HERE.

A FEW WEEKS AGO WE COVERED A HEARING WHERE A SPECIAL COMMITTEE HAS BEEN LOOKING AT THE ECONOMIC INCENTIVES LAWS.

I KNOW A COUPLE OF LAWS ARE UP FOR REAUTHORIZATION IN THE COMING SESSION.

BEFORE WE GET INTO THE DETAILS OF THAT, CAN YOU GIVE OUR VIEWERS AN OVERVIEW OF HOW THESE ECONOMIC INCENTIVE LAWS WORK?

>> ABSOLUTELY.

I THINK IT IS IMPORTANT TO NOTE THAT THIS JOINT LEGISLATIVE COMMITTEE ON INCENTIVES HAS BEEN DELVING PRETTY DEEPLY INTO THE WHOLE ISSUE, PARTICULARLY OF THE ALABAMA JOBS ACT INCENTIVES AND OUR GROWING ALABAMA PROGRAM.

THAT'S NOT THE ONLY OVERSIGHT THAT WE HAVE THOUGH.

WE ALSO, TWICE A YEAR, PROVIDE A REPORT -- FIRST TO A JOINT LEGISLATIVE COMMITTEE ON OVERSIGHT.

THAT'S SOMETHING WE DO EACH AND EVERY YEAR, AS WELL AS EVERY YEAR PROVIDE AN INCENTIVE REPORT THAT GOES TO THE LEGISLATIVE SERVICES AGENCY.

SO, A LOT OF OVERSIGHT IN OUR INCENTIVES.

I THINK THAT'S A GOOD THING.

THE WAY OUR PROGRAMS WORK, PROBABLY NEED TO GET A LITTLE HISTORY.

>> SURE.

>> WHEN I FIRST CAME INTO THIS POSITION 11 YEARS AGO, THE INCENTIVE TOOLS FOR THE STATE OF ALABAMA, FOR PROJECT ACTIVITY, FOR JOB CREATION AND THE TRACKING AND RECRUITMENT OF INVESTMENT IN THE STATE KIND OF LOOKED LIKE THIS.

WE BORROWED A LOT OF MONEY.

WE HAD TO ISSUE BONDS.

WE USED THOSE BORROWED FUNDS TO PROVIDE GRANTS TO THESE COMPANIES AND WE USED SOMETHING CALLED THE CAPITAL INCOME TAX CREDIT WHICH WOULD STATUTORILY PROVIDE ANY COMPANY, WITHOUT ANY OVERSIGHT AT ALL, OTHER THAN THROUGH TAX LAW TO BE ABLE TO RECOVER OVER 20 YEARS UP TO 100% OF THEIR CAPITAL INVESTMENT.

WE JUST DIDN'T THINK THAT WAS A SUSTAINABLE APPROACH TO INCENTIVIZING JOB CREATION IN THE STATE.

SO, WE LOOKED TO CHANGE THAT, AND WE DID.

WE CREATED A MORE SUSTAINABLE APPROACH.

IT'S MORE PAY-AS-YOU-GO.

AND WHAT I MEAN BY PAY-AS-YOU-GO IS WE CREATE NEW REVENUE STREAMS WHEN COMPANIES INVEST NEW CAPITAL INTO THE STATE.

THEY CREATE NEW JOBS IN THE STATE AND THAT NEW PAYROLL HELPS TO LIFT THE WAGES OF THE AVERAGE ALABAMIAN ACROSS THE STATE, AND WE RETURN A SMALL PORTION OF THAT BACK AS AN INCENTIVE AFTER THE STATE HAS RECEIVED THE NEW REVENUES INTO OUR STATE TREASURY.

IT'S A MUCH MORE RESPONSIBLE WAY.

IT ALSO DRAMATICALLY REDUCES HOW MUCH BORROWING WE HAVE TO DO.

WE REDUCE BORROWING BY 70%, WHICH IS SIGNIFICANT.

SO, THE WAY IT WORKS IS THIS -- OUR TWO PRIMARY TOOLS UNDER THE ALABAMA JOBS ACT IS SOMETHING CALLED THE JOBS CREDIT AND THEN SOMETHING CALLED THE INVESTMENT CREDIT.

WHAT WE DID WAS WE REDUCED OUR DEPENDENCY ON BORROWING AND WE GOT RID OF THAT 100% INCOME TAX CREDIT AND WE REPLACED IT WITH TWO THINGS.

THE FIRST IS THE JOBS CREDIT.

IT IS A PAYROLL-BASED CREDIT THAT PROVIDES COMPANIES WITH THE ABILITY, AS THEY CREATE NEW JOBS AND THE STATE COLLECTS 12 MONTHS OF PAYROLL TAXES AT THE END OF THAT TIME.

WE RETURN 3% OF THAT PAYROLL BACK TO THE COMPANY AS AN INCENTIVE.

IT COMES TO THEM IN THE FORM OF CASH.

SO, IT IS VALUABLE TO THE COMPANIES.

BUT AGAIN, WE ARE COLLECTING NEW REVENUES THESE PROJECTS ARE CREATING AND RETURNING A SMALL PORTION OF THE NEW REVENUE STREAM BACK TO THEM AS AN INCENTIVE.

THE OTHER THING THAT WE DID WHEN WE REPLACED 100% RECAPTURE OF AN INVESTMENT THROUGH WHAT WAS CALLED AT THE SAME TIME THE CAPITAL CREDIT, WE REPLACED IT WITH THE INVESTMENT CREDIT.

WHAT THE INVESTMENT CREDIT DOES IS ALLOW A COMPANY TO GET AN INCOME TAX INCENTIVE AND INCENTIVE AGAINST OTHER TAXES FOR UTILITY TAXES AND THINGS LIKE THAT, BUT WE DRAMATICALLY REDUCE THE AMOUNT THEY CAN RECOVER, DOWN TO 15%, NOT 100% BUT 15% AND ABLE TO RECOVER THAT AT USUALLY THE AMOUNT THAT'S CAPPED AT 1.5% PER YEAR FOR UP TO TEN YEARS.

IT'S A MUCH MORE SUSTAINABLE APPROACH.

IT IS PAY-AS-YOU-GO.

IT HAS ALLOWED US TO REMAIN COMPETITIVE AND I THINK OUR PERFORMANCE HAS PROVEN THAT.

HOPEFULLY YOU WILL ASK ME ABOUT OUR PERFORMANCE.

YEAH, BEFORE WE GET TO THAT, I REMEMBER THE MEETING YOU HAD CHARTS SHOWING ALABAMA VERSUS OTHER STATES BEFORE THE TAX INCENTIVES WERE INCLUDED AND AFTER.

IT SEEMED LIKE WHEN YOU ADDED THE TAX INCENTIVES, WE WERE COMPETITIVE WITH OTHER STATES BUT WHEN YOU TOOK THEM AWAY WE WEREN'T, BASED ON NEIGHBORING STATES INCOME TAX STRUCTURES.

IS THAT FAIR?

>> THERE THERE'S A LOT OF CONCERN ABOUT INCENTIVES AND HOW THEY ARE USED.

WHAT THE STUDY SHOWED AND THIS IS DONE BY THE ECONOMIC DEVELOPMENT PARTNERSHIP OF ALABAMA EDPA FOR SHORT.

THEY LOOKED ANOTHER WHAT OTHER STATES DO, RELATIVE TO ALABAMA.

IF YOU TOOK ALL INCENTIVES AWAY, THE TAX STRUCTURE IN ALABAMA WOULD BE FAIRLY COMPETITIVE.

WE WOULD BE IN THE TOP 1 OR 2 OF THE STATES THEY RANKED.

BUT THE REALITY IS THAT WE LIVE IN A COMPETITIVE WORLD.

>> I REMEMBER YOU SAYING THAT.

LOOK, I WISH WE DIDN'T HAVE TO DO THIS BUT IT IS THE REALITY, THE WAY OF THE WORLD.

>> INTERESTINGLY, WE DON'T COMPETE JUST AGAINST 49 OTHER STATES BUT ALSO OTHER COUNTRIES.

ALABAMA IS AN INTERNATIONAL ATTRACTER OF INTERNATIONAL INVESTMENT INTO OUR STATE.

SO, THERE'S A LOT OF COMPETITION.

OUR INCENTIVES, ONCE YOU LAYER THEM BACK IN, RELATIVE TO OTHER STATES INCENTIVE PROGRAMS, HEY, WE'RE NOT NUMBER ONE.

WE DON'T HAVE THE MOST AGGRESSIVE INCENTIVE PROGRAM OUT THERE AND I DON'T THINK WE HAVE TO BE BUT WE CERTAINLY WANT TO BE IN THE TOP THIRD.

THAT'S WHERE OUR INCENTIVES PUT US.

IT ALLOWS US TO COMPETE.

>> I KNOW THESE ARE UP FOR REAUTHORIZATION THIS YEAR.

YOU ARE SEEKING CHANGES, WHICH LOOK FIVE YEARS GOES BY, THE ECONOMY CHANGES.

WHAT ARE THE SPECIFIC CHANGES YOU ARE SEEKING THE NEXT LEGISLATIVE SESSION TO THE INCENTIVES BILLS?

>> YEAH.

SO WHEN WE CREATED THE -- JULY 2015 IS WHEN WE CREATED THE NEW INCENTIVES AND CHANGED EVERYTHING AND WENT WITH A MORE SUSTAINABLE PAY-AS-YOU-GO APPROACH.

WE OPERATE UNDER TWO LIMITATIONS, TWO RESTRAINTS, IF YOU WILL.

ONE IS A CAP.

WE HAVE A CAP CURRENTLY.

WE ARE BUMPING INTO THAT CAP NOW.

IT IS ALREADY IMPEDING OUR ABILITY TO COMPETE TODAY.

WE HAVE TO ADDRESS, AS WE REAUTHORIZE THIS PROGRAM, WE HAVE TO ADDRESS THE CAP AND SEE THAT CAP -- BECAUSE IT'S PAY-AS-YOU-GO, I WOULD SUGGEST WE COULD ELIMINATE THE CAP BECAUSE A CAP IS UNNECESSARY BECAUSE IF I COMPANY DOESN'T PERFORM THEY DON'T GET PAID AN INCENTIVE.

WE HAVE THE DATA.

AS COMPANIES ARE GIVING COMPLIANCE REPORTS AND WE HAVE THE DATA THAT BACKS UP WHAT THEY HAVE COMMITTED TO IN A CONTRACT CALLED A PROJECT AGREEMENT, IF THEY DON'T MEET THOSE RESTRICTIONS AND GOALS AND COMMITMENTS UNDER THAT CONTRACT, WE DON'T PAY THEM FOR THAT YEAR.

AGAIN, IT'S SELF POLICING.

SO A CAP REALLY IS NOT NECESSARY BUT I UNDERSTAND THAT THERE ARE SOME IN THE LEGISLATURE WHO FEEL CAPS ARE NECESSARY.

SO WE WILL SEEK TO EITHER REMOVE THE CAP OR HAVE A DISCUSSION ABOUT OTHER ALTERNATIVES.

THE OTHER THING LIMIT IS A SUNSET DATE.

THE PROGRAM IS CURRENTLY SCHEDULED SUNSET JULY 31, 2023, JUST AROUND THE CORNER.

THE LAST TIME WE APPROACHED THE LEGISLATURE, THEY GAVE US A TWO-YEAR EXTENSIONS.

WE BELIEVE WE HAVE PROOF AND DATA THAT WE HAVE BEEN ABLE TO SHOW THE LEGISLATIVE OVERSIGHT COMMITTEE AND THIS NEW JOINT COMMITTEE INCENTIVES THAT YOU BROUGHT UP EARLIER, WE HAVE PROOF IT IS SUSTAINABLE AND WE WILL REQUEST A FIVE-YEAR EXTENSIONS ON THAT SUNSET DATE.

>> WHAT FEEDBACK -- DO YOU THINK THERE'S AN APPETITE TO DO THE CHANGES YOU ARE SEEKING?

>> WELL, LOOK, I THINK THAT, YOU KNOW, THAT GOES BACK TO HOW ARE THESE INCENTIVES PERFORMING.

I THINK IN REALITY, THE PROOF IS IN THE NUMBERS.

WE HAVE THE DATA THAT SHOWS THAT WHEN WE APPROACHED THIS PROGRAM WE WERE LOOKING AT THREE OVERARCHING GOALS -- ONE TO STIMULATE NEW CAPITAL INVESTMENT IN THE STATE, WHICH BRINGS TO EXPANDING NEW JOBS AND CREATES NEW CAREER AND DIVERSIFIES OUR ECONOMY.

THE SECOND GOAL WAS TO GENERATE NEW REVENUE STREAMS INTO THE STATE TO SUPPORT EDUCATION AND GENERAL GOVERNMENT.

AND THIRDLY WAS TO POSITIVELY IMPACT PER CAPITA INCOME FOR ALABAMIANS.

THE PROOF AND DATA IS SHOWING WE ARE ACHIEVING THOSE THING.

SINCE JULY 2015, THE ALABAMA JOBS ACT INCENTIVES HAVE ALLOWED US TO ATTRACT $17 BILLION OF NEW INVESTMENT IN THE STATE, CREATING ABOUT 34,000 JOBS.

THAT'S COMING FROM JUST UNDER 200 PROJECTS SINCE JULY 15 THROUGH THE END OF 2021.

WHAT IS PROBABLY MORE IMPRESSIVE THAN THAT IS THE DATA CAPTURE FROM OUR COMPLIANCE SYSTEM SHOWS THAT WE ARE ACHIEVING THAT RISE IN PER CAPITA INCOME.

WE ARE ACTUALLY SEEING JOBS ACT INCENTIVIZED JOBS THAT ARE PRODUCING WAGES THAT ARE 31% HIGHER THAN ALABAMA MEDIAN WAGE AND RECEIVING A POSITIVE RETURN ON THE INVESTMENT OF 168%.

THAT'S PRETTY POWERFUL.

WHEN YOU LOOK AT OUR ECONOMY, I DON'T THINK THAT ANYONE CAN ARGUE, UNEMPLOYMENT IS HISTORICAL LOWS.

WE HAVE MORE PEOPLE EMPLOYED TODAY THAN WE HAVE EVER HAD IN OUR STATE'S HISTORY.

THE SIGNS ARE GOOD.

THIS PROGRAM IS WORKING.

I THINK WE WILL SEE A LOT OF INTEREST IN REAUTHORIZING THE ALABAMA JOBS ACT AND GROWING ALABAMA AND I THINK THAT, YOU KNOW, THE PROOF IS GOING TO BE ONCE WE GET LEGISLATION DRAFTED AND GO BEFORE THE JOINT LEGISLATIVE COMMITTEE ON INCENTIVES, MAKING OUR RECOMMENDATION.

HOPEFULLY THEY WILL EMBRACE THOSE RECOMMENDATIONS AND THEY WILL TAKE IT TO THE LEGISLATURE.

>> WE WILL CERTAINLY BE FOLLOWING THAT.

IT IS A VERY IMPORTANT SUBJECT.

WHILE I HAVE YOU, I WANTED TO ASK YOU ABOUT INFLATION.

IT'S STILL AROUND.

KIND OF HISTORIC HIGHS.

IT'S A PROBLEM FOR JUST EVERYDAY PEOPLE WHEN THEY GO TO THE GROCERY STORE.

THE SAME THING FOR GAS PRICES.

WHEN IT COMES TO ECONOMIC DEVELOPMENT, IT SEEMS TO ME THERE MIGHT BE SOME ECONOMIC UNCERTAINTY.

DOES INFLATION AFFECT A COMPANY'S DECISION TO EXPAND AND MAYBE LOCATE HERE?

ARE YOU HEARING THAT FROM RECRUITING?

>> YEAH.

WE'RE IN A NON-TRADITIONAL ECONOMY SETUP RIGHT NOW.

IF YOU GO BACK IN HISTORY, TYPICALLY HIGH INFLATION HAS LED TO RECESSION THEIR PRESSURES.

HIGH WAGES, HIGH CONSUMER PRICES HAVE TRADITIONALLY STIFLED CONSUMER SPENDING AND WE ALL KNOW THE U.S. ECONOMY IS REALLY BASED ON CONSUMER SPENDING, AS IS OUR STATE TO A LARGE DEGREE.

INTERESTINGLY, WAGES CONTINUE TO RISE.

EVEN WITH INFLATIONARY PRESSURES AT HISTORIC HIGHS, YOU KNOW, WE SEE INFLATION WE HAVE NEVER SEEN SINCE THE '80s.

PEOPLE ARE STILL SPENDING.

IS THAT IMPACTING COMPANIES?

THERE'S SOME INTERESTING THINGS AFOOT TODAY.

WE ARE SEEING LARGER PROJECTS WITH HIGHER CAPITAL INVESTMENT THAT ARE MOVING AROUND THE GLOBE AND THE U.S.

SOME OF THIS HAS TO DO WITH THE ELECTRIFICATION OF VEHICLES AND THE MASSIVE INVESTMENT MADE IN THAT TECHNOLOGY.

BUT THERE ARE OTHER COMPANIES IMPACTED BY THE UNCERTAINTY.

WHILE WE CAN POINT THERE ARE CERTAIN SECTORS THAT ARE CONTINUING TO BE ROBUST, AS WE SAY, IN PROJECT ACTIVITY, THEREFORE OTHER SECTORS THAT ARE BEGINNING TO SAY MAYBE WE NEED TO WAIT AND SEE BECAUSE OUR COST OF CAPITAL IS RISING.

>> SOME UNCERTAINTY THERE.

BEFORE I LET YOU GO, I WANTED TO ASK -- I KNOW YOU WERE DOWN AT CAPE CANAVERAL FOR THE PLANNED LAUNCH.

I GUESS A COUPLE OF PLANNED LAUNCHES.

>> THAT'S RIGHT.

>> THIS IS A BIG MOMENT FOR ALABAMA.

SO MANY COMPANIES LOCATED HERE.

MARSHALL SPACE FLIGHT CENTER THERE IN HUNTSVILLE.

A LOT OF CONTRIBUTIONS FROM THIS STATE TO THE SPACE PROGRAM.

>> YEAH, YOU KNOW, ALABAMA IS DEFINITELY A STATE THAT HAS A RICH HERITAGE IN THE U.S. SPACE ENVIRONMENT AND SECTOR.

I WAS THERE.

MY WIFE AND I WENT AS GUESTS, INVITED BY NASA, THE MARSHALL SPACE FLIGHT CENTER WHICH PLAYS A HUGE ROLE IN THE SLS SYSTEM AS PART OF THE ARTEMIS MISSION PROGRAMS.

SO THIS WAS FOR THE LAUNCH OF ARTEMIS 1, A TEST FLIGHT OF THE NEW ROCKET.

WE WENT FOR THE FIRST LAUNCH, WHICH WAS SCRUBBED.

WE WENT BACK FOR THE SECOND LAUNCH, WHICH WAS SCRUBBED.

WE WERE THERE ON STATE BUSINESS ON THE FIRST LAUNCH, BUT WE ARE INVESTED NOW.

WE PAID OUR OWN DIME TO GO BACK FOR THE SECOND LAUNCH AND UNFORTUNATELY IT WAS SCRUBBED, TOO.

BUT, YOU KNOW, YOU WANT TO GET IT RIGHT.

I RESPECT THE FACT THAT WITH THE SAFETY MEASURES IN PLACE AND THE IMPORTANCE OF THIS LAUNCH FOR ALL OF HUMANKIND, RETURNING HUMANS BACK TO THE MOON, USING THE MOON AND A NEW PLATFORM THAT WILL ORBIT THE MOON AS THE NEXT LAUNCHING STATION TO GET HUMANS TO MARS IS ALL VERY IMPORTANT.

I'M SO HAPPY TO SEE ALABAMA PLAYING SUCH A CRITICAL ROLE IN THAT.

>> MAYBE THE THIRD TIME WILL BE THE CHARM.

>> THAT'S WHAT I BELIEVE.

THE THIRD TIME IS THE CHARM.

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

>> APPRECIATE IT VERY MUCH.

>> WE'LL BE RIGHT BACK.

♪ THE 375,000 ACRES THAT MAKE UP THE THREE RANGER DISTRICTS OF TALLADEGA NATIONAL FOREST WERE PURCHASED BY THE FEDERAL GOVERNMENT IN 1936 AS PART OF AN EFFORT TO RESTORE CLEAR-CUT TIMBER LANDS AND FARMLANDS NO LONGER CAPABLE OF PRODUCING CROPS.

THE BEAUTIFUL RESERVE INCLUDES 102-MILE NATIONAL TRAIL SYSTEM AND ALABAMA'S HIGHEST AND SECOND HIGHEST POINTS.

>> NEXT, I'M JOINED BY STATE SENATOR CLAY SCOFIELD, MAJORITY LEADER FOR THE ALABAMA SENATE.

SENATOR, THANK YOU FOR COMING ON THE SHOW.

>> THANK YOU FOR HAVING ME.

>> I WANTED TO HAVE YOU ON TO TALK SPECIFICALLY ABOUT BROADBAND.

YOU HAVE BEEN A KEY ADVOCATE FOR EXPANDING ACCESS, ESPECIALLY IN RURAL AREAS TO HIGH SPEED BROADBAND INTERNET AND NOW WE ARE STARTING TO SEE IT HAPPEN.

LAST WEEK THESE GRANTS WERE ANNOUNCED, $26 MILLION THROUGH ADECA THAT WILL GO TO COMPANIES TO HELP EXPAND FIBER LINES TO RURAL COMMUNITIES.

WERE YOU HAPPY TO SEE IT GET OFF THE GROUND?

>> YES.

IT REPRESENTS YEARS OF HARD WORK BY A LOT OF PEOPLE AND CERTAINLY THE NEW BROADBAND DIVISION THAT WE ESTABLISHED OVER AT ADECA.

THEY HAVE BEEN STAFFING, HIRING AND STAFFING THE NEW DIVISION.

AND OF COURSE WE HAVE BEEN INVESTING SOME 20, $25 MILLION A YEAR IN THIS LEADING UP TO THIS.

WE KNOW WHAT WORKS AND WHAT DOESN'T.

SO, THE LATEST GRANTS REPRESENTED SORT OF A CONTINUATION OF WHAT WE HAD BEEN DOING.

BUT WHEN YOU ARE TALKING ABOUT A 4 TO $6 BILLION PROGRAM, 25 MILLION A YEAR IS GOING TO BE VERY SLOW.

NOW, OBVIOUSLY, THAT'S A MAX.

ISPs OR THE INTERNET SERVICE PROVIDERS PROVIDE THE BULK OF THE FUNDING.

SO 25 MILLION IS AN ACTUAL MULTIPLIER.

WHEN WE REALLY WILL BEGIN TO SEE AN IMPACT IS THE MONEY THAT WE APPROPRIATED FROM ARPA, THE $191 MILLION FOR LAST MILE AND $85 MILLION FOR MIDDLE MILE.

>> I WAS GOING TO ASK YOU ABOUT THAT.

WHEN THE SUBJECT OF BROADBAND COMES UP, YOU HEAR LAST AND MIDDLE MILE.

CAN YOU EXPLAIN WHAT THE TERMS MEAN AND WHY THEY ARE IMPORTANT?

>> ABSOLUTELY.

SO, MIDDLE MILE, THEM LEGISLATURE OBVIOUSLY WITH THE SUPPORT OF GOVERNOR IVEY, WE APPROPRIATED 85 MILLION FOR MIDDLE MILE PROGRAM.

ENVISION A MIDDLE MILE PROGRAM WOULD BE ABOUT LIKE AN INNER STATE SYSTEM.

A VERY HIGH-SPEED INTERSTATE SYSTEM AROUND THE STATE OF ALABAMA.

THIS WILL VIRTUALLY TOUCH ALMOST EVERY COUNTY IN THE STATE OF ALABAMA THE WAY IT IS LAID OUT.

THAT WILL BASICALLY BE -- WE PUT OUT RRP'S FOR THAT, THE COMPANY HAS SUBMITTED PROPOSALS AND WE ARE TAKING THE BEST SUBMISSION FOR THE LEAST AMOUNT OF MONEY.

THAT WILL BE A SOLE-OWNED COMPANY AND THEY WILL BE ESSENTIALLY LIKE A WHOLESALER.

THOSE LINES WON'T ACTUALLY GO INTO THE HOME.

THAT'S LAST MILE.

GETTING IT TO THE HOME.

>> LIKE AN ARTERY VERSUS SMALLER VEINS AND CAPILLARIES.

>> THIS IS A HUGE DEAL FOR ALABAMA.

THIS WILL PUT US REALLY, REALLY AT THE FOREFRONT ON BROADBAND IN ALABAMA AND IT WILL HELP US TO EXPAND QUICKER, MUCH QUICKER AND MUCH MORE AFFORDABLE, I SHOULD ADD.

FROM THERE, WE HAD APPROPRIATED 191 MILLION FOR THE LAST MILE.

SO, WE ARE CLOSE TO BEING ABLE TO AWARD THE MIDDLE MILE PROGRAM AND IT WILL IMMEDIATELY BEGIN CONSTRUCTION SO THAT HOPEFULLY IN THE FALL -- OR EXCUSE ME THE SPRING WE WILL BE ABLE TO AWARD LAST MILE GRANTS.

SO THE MIDDLE MILE STRUCTURE CAN HOPEFULLY BE OUT THERE ENOUGH THAT WE ARE ABLE TO MAKE THE 191 MILLION GO FURTHER AND GET OUT THERE QUICKER.

>> HOW MUCH OF THIS BROADBAND EXPANSION IS TRIAGE?

MEANING LIKE, ARE THE WORST IN NEED FIRST IN LINE, OR IS THERE A WAITING LIST OF SORTS.

HOW DO YOU GO ABOUT DETERMINING WHO GETS THE FIRST GRANTS?

>> WE HAVE A LIST OF CRITERIA LAID DOWN IN THE LAW.

OF COURSE, WE SET MINIMUM SPEEDS IN THE LAW.

100/100.

WE ARE GOING FAST.

IF WE ARE INVESTING PUBLIC DOLLARS, WE NEED TO FUTURE PROOF IT AS MUCH AS WE CAN.

OBVIOUSLY, TECHNOLOGY CHANGES EVERY DAY AND 100/100 IN TEN YEARS MAY BE SLOW.

BUT THROUGH THAT LIST OF CRITERIA, THERE ARE COMPETITIVE GRANTS.

SO, WE WANT TO SEE THEY ARE ABLE TO HOOK UP MORE PEOPLE WHO HAVE NOTHING AS CHEAPLY AS POSSIBLE.

THOSE COMPETITIVE GRANTS SCHEME IS HOW IT IS DONE.

>> I SEE.

SWITCHING GEARS A BIT.

IT IS ELECTION SEASON.

THERE'S GOING TO BE -- NO MATTER WHAT SHAKES OUT IN NOVEMBER, THE SENATE WILL LOOK A LOT DIFFERENT.

MAYBE NOT THE HOUSE.

YOU HAVE NEW FACES AND COMMITTEE CHAIRS AND NEW PEOPLE TRYING TO MOVE UP.

HOW DOES YOUR CAUCUS GO ABOUT DECIDING WHO GETS THE COMMITTEE CHAIR AND IN LEADERSHIP?

I GUESS IT IS AN INTERNAL PROCESS.

>> IT IS AN INTERNAL PROCESS AND TO YOUR POINT WE WILL HAVE FOUR NEW REPUBLICAN FACES IN THE SENATE AND TWO NEW DEMOCRAT FACES IN THE SENATE, WHICH FOR MY THREE TERMS IS THE LOWEST AMOUNT OF TURNOVER WE HAVE HAD IN ONE YEAR.

USUALLY IT HAS BEEN EIGHT TO 12 -- I THINK MY CLASS WAS 12 NEW REPUBLICANS OR SO, AND THEN THE NEXT WAS EIGHT.

IT IS A CHALLENGE.

WE HAVE A LIMITED AMOUNT OF CHAIRMANSHIPS AVAILABLE AND YET EVERY ONE OF THEM ARE EXTREMELY CAPABLE OF BEING VERY, VERY GOOD CHAIRMAN.

OBVIOUSLY, THE SENATE IS VERY SENIORITY BASED.

YOU KNOW, YOUR TIME AND EXPERIENCE IN THE SENATE IS CERTAINLY TAKEN INTO ACCOUNT.

BEING FRANKLY GOOD WORKERS AND TEAM PLAYERS AND FOLKS THAT ARE DEDICATED TO THEIR CONSTITUENCY AND THINGS LIKE THAT ARE SERIOUSLY TAKEN INTO ACCOUNT.

DIFFERENT COMMITTEES PRESENT DIFFERENT ASPECTS OF ALABAMA LIFE FROM THE AGRICULTURE CONSERVATION, TO THE FORESTRY COMMITTEE, TO JUDICIARY COMMITTEE AND BUDGETS AND CONFIRMATIONS AND BANKING AND INSURANCE AND SO ON AND SO FORTH.

HAVING CHAIRMEN WITH BACKGROUNDS IN THOSE AREAS ARE VERY, VERY IMPORTANT.

NATURALLY, THE FOLKS THAT BEGIN TO JOCKEY FOR THOSE AND PUSH FOR THOSE USUALLY HAVE A BACKGROUND IN THOSE AREAS.

THE COMMITTEE STRUCTURE REFLECTS THAT, AS WELL.

PEOPLE WHO MAY BE HAVE BACKGROUNDS IN CERTAIN AREAS WANT TO BE PRESENT ON CERTAIN COMMITTEES.

SO THAT IS TAKEN INTO HEAVY ACCOUNT BECAUSE WE NEED THE EXPERIENCE AND EXPERTISE WHEN WE ARE TRYING TO SORT THROUGH THE BILLS AND WHAT'S GOOD AND BAD AND MAKE THE COMMITTEE PROCESS WORK.

IT IS VERY IMPORTANT.

OUR PROCESS IS IN THE NEXT MONTH OR SO WE WILL SEND OUT A FORMAL LETTER TO MEMBERS AND ARE ALREADY ASKING THEM TO JOT DOWN WHAT THEIR INTERESTS ARE, COMMITTEE WISE AND CHAIRMANSHIP WISE.

AND BOTH STANDING AND NON-STANDING COMMITTEES.

AND THEN ONCE OUR FORMAL PROCESS BEGINS, WE WILL ASK THEM TO SORT OF PUT IT IN A MORE FORMAL ASK IN LETTER FORMAT SO WE CAN KEEP TRACK AND BEGIN TO PUT THE VERY DIFFICULT PUZZLE TOGETHER.

BECAUSE, AGAIN, WE HAVE A LOT OF CURRENT FRESHMEN WHO WILL HAVE SENIORITY AT THAT TIME AND EVERY ONE WOULD BE A FANTASTIC CHAIRMAN.

IT WILL BE DIFFICULT BUT WE ARE UP TO THE TASK AND GOING TO BE FAIR AND DO WHAT IS BEST FOR THAT SENATOR, THEIR CONSTITUENTS AND THE STATE OF ALABAMA.

>> WE ALWAYS LIKE INSIDE BASEBALL.

THANK YOU FOR WALKING ME THROUGH THAT.

WE'RE OUT OF TIME.

I HOPE YOU WILL COME BACK AND TALK SOME MORE.

>> ANYTIME.

>> YOU GOT IT.

>> WE'LL BE RIGHT BACK.

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

"CAPITOL JOURNAL" EPISODES ARE ALSO AVAILABLE AT 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.

KEEP UP WITH WHAT IS HAPPENING WITH "CAPITOL JOURNAL."

>> THAT'S OUR SHOW FOR TONIGHT.

THANKS FOR WATCHING.

A PROGRAMMING NOTE FOR NEXT WEEK: WE ARE AIRING A SPECIAL EPISODE OF "CAPITOL JOURNAL" DEDICATED TO THE ISSUE OF OPIOID ADDICTION, PARTICULARLY PREVENTION AND TREATMENT.

THAT WILL AIR NEXT FRIDAY NIGHT RIGHT HERE ON ALABAMA PUBLIC TELEVISION.

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

WE'LL SEE YOU NEXT TIME.