July 2024 Group Watch: Second Round of SEEDS Grants Available

Thanks to the new Site Evaluation and Economic Development Strategy (SEEDS) Act, communities across Alabama can soon apply for state grants that could help them develop industrial sites capable of competing for high-impact economic development projects and the jobs that come with them. SEEDS has already been a success, with the first-round of grants steering $30 million into critically needed site development activities across the state and being matched by $38.4 million in local funds at 29 different Alabama industrial sites encompassing nearly 8,400 acres. The second round of SEEDS funding, also potentially totaling $30 million, is available for communities that meet the program’s criteria and are selected to receive grants from the State Industrial Development Authority (SIDA). The application portal for SEEDS site assessment and site development grants opened on July 1 and closes on September 30. SIDA will evaluate the applications and announce results early next year.

July 2024 Group Watch: AL High-Speed Internet Access Growing Fast

In 2019, Alabama was ranked 47^th in the U.S. for broadband connectivity on BroadbandNow’s list. Fast forward to 2024, and the state ranks 24^th on that same list. The index of internet availability takes into account internet coverage, speed and availability in each individual state. While its an impressive improvement, the data accompanying the rankings showed that still, roughly 1 in 10 Alabamians are not able to purchase an internet plan of at least 25Mbps download and 3Mbps upload speeds. Additionally, almost 6 in 10 residents are not able to purchase broadband at a price of $60 a month or less. In Alabama, 85.4 percent of people have access to 100Mbps broadband, ranking 41^st among all states. The five counties with the highest rates of residents with access to broadband speeds of at least 100Mbps are in metropolitan areas, including Jefferson, Shelby, Madison, Montgomery and Lee. Perry County, the state’s least populous, has the lowest rate of access to high-speed broadband.

July 2024 Group Watch: Governor Awards Grants to Expand EV Charging in AL

Electric vehicles on Alabama’s interstates are about to receive a big boost thanks to $11.2 million in grant funding awarded by Governor Kay Ivey. The money has been divided into 14 individual grants. Thirteen will go towards installing electric vehicle charging stations at fueling locations found across Alabama’s interstate system. The remaining grant will be given to Bevill State Community College in Jasper to help train students on installation and the upkeep of electric chargers. Grant awards and project locations are Falkville off I-65; Gadsden near I-59; Hamilton adjacent to I-22; Jasper near I-22; Heflin adjacent to I-20; Tuscaloosa near I-20/59; Eutaw adjacent to I-20/59; Clanton near I-65; Montgomery adjacent to I-65; Evergreen near I-65; Atmore near I-65; and Irvington near I-10.

July 2024 Group Watch: Gov Ivey Touts AL Manufacturers on “Made in USA Day”

On July’s “Made in the USA Day,” Governor Ivey praised Alabama’s robust manufacturing sector and highlighted its role in driving economic growth statewide through high-quality jobs and products in demand worldwide. Ivey emphasized Alabama’s status as a powerhouse in U.S. manufacturing, ranking in the top five states for manufacturing job concentration. With over 270,000 people employed at more than 4,000 enterprises, Alabama’s manufacturing landscape is both diverse and dynamic. The sector contributes approximately 17 percent of the state’s Gross Domestic Product, with an economic output exceeding $40 billion annually. The Ivey administration continues to prioritize initiatives that support and expand the manufacturing sector, including workforce development programs, investment in infrastructure and fostering a pro-business climate. These efforts have resulted in significant job creation and economic development the state.

June 2024 Group Watch: News & Views from the State House

While gambling legislation failed to make it through the 2024 regular session of the Alabama Legislature, those in favor of putting the issue to a statewide vote may get another bite at that apple. RSA’s Dr. Bronner says a special session on the topic is in order.

Despite licensing delays, Alabama’s medical cannabis industry is still growing, with the first legal medical cannabis crop soon to be ready for harvest. And, speaking of growing, amid positive economic development announcements, the state’s Innovate Alabama initiative just launched SEEK AL, a campaign highlighting and promoting the state’s diverse outdoor recreation opportunities, all in an effort to recruit more businesses and entrepreneurs to Alabama.

Find more details and info on other important #alpolitics news below.

June 2024 Group Watch: RSA’s Bronner Calls for Gambling Special Session 

Retirement Systems of Alabama CEO David Bronner said he would like to see Gov. Kay Ivey call a special session to try again to pass a proposed constitutional amendment on gambling that failed by one vote during the annual session that ended in May. Bronner said he is concerned that leaner times are coming, and the state will need revenue to sustain progress in education and other areas. Bronner said the revenue from a gambling package could help offset tax cuts passed the last couple of years and the cost of a new school choice program, the CHOOSE Act, which will allow parents to use $7,000 in tax dollars to pay for private school, money that would otherwise support public education. Bronner said that could be a problem in a state that already lags behind other states in school funding. Lawmakers spent more than a year developing a plan for a lottery, casinos and sports betting that in its initial form would have generated more than $900 million a year in net revenue for the state. The House passed the plan, then later passed a compromise version with no sports betting. The compromise plan fell one vote short in the Senate. Approval is required to put it on the ballot for voters, who have the final say. Governor Ivey has advocated for a statewide vote on the gambling issue, including during her state of the State of the State address in February. She supported the plan that passed the House during this regular session.

June 2024 Group Watch: State Revenue Status Update

Revenue growth in Alabama’s General Fund is still being propelled by high interest rates and was up nearly 5.5% in May compared to a year ago, and nearly 9% for the fiscal year. Revenues into the Education Trust Fun were up more than 18% in May, but overall growth is flat at .2%. The one-month growth was due to individual income tax refund payments being down compared to a year ago. Income and sales taxes are the largest sources of revenue for the ETF. As of the end of May, income tax revenue had risen .75% this year. Sales tax revenue growth is -1.5%. Separately, hourly workers in Alabama no longer have to pay income tax on overtime earnings. The cut on overtime is is having a larger impact on the ETF than originally expected; the ultimate loss in revenue could be as much as $184 million. The current year’s education budget is $8.8 billion; the General Fund budget is $3 billion. In both budgets, legislators did not appropriate all possible revenue. For FY 2025, which begins October 1, lawmakers and the governor approved $9.3 billion and $3.4 billion spending plans, respectively.

June 2024 Group Watch: Alabama’s First Medical Cannabis Crop Nearing Harvest

The CEO of Native Black Cultivation, a medical cannabis cultivation license holder, said he is nearing harvest, marking the state’s first medical cannabis harvest. He says would like to get the product into the market, but he doesn’t think that will happen unless a restraining order on dispensaries is lifted. Medical cannabis suppliers have yet to sell products three years after the Alabama Legislature approved the medical cannabis program in 2021. The Alabama Medical Cannabis Commission (AMCC) began accepting applications in late 2022. The AMCC initially issued licenses in June but voided them due to scoring inconsistencies, later rescinding awards again in August amid a lawsuit over Open Meetings Act violations. The AMCC issued new licensing rules in December, but litigation halted the licensing process again in January for dispensaries and integrated facilities. Cultivators are preparing to harvest their first crops, and they are faced with uncertainty about when that product can be sold to patients. Processor, secure transporter, and state testing lab licenses have been issued, and those licensees are working towards commencing their operations.

June 2024 Group Watch: Ready to Drink Spirits Stalled Again in AL

An ongoing effort to expand the availability of ready-to-drink mixed spirits in Alabama continues to face obstacles over industry disagreements on franchise laws, disputes that some say may be irreconcilable. The first significant effort to expand the availability of RTD spirits came in 2023 in a bill by Senator Steve Livington, which would have permitted RTD spirits with an alcohol volume of up to 12.5% to be sold anywhere that beer and wine are sold. After its failure, a bill in 2024 by Senator Bobby Singleton prosed to reduce the content cap to 8%, but it too failed. The franchise language or “territorial” designations are the biggest hurdle. The head of the Alabama Beverage Association said that her industry could support the availability of RTD spirits, but franchise language represents a non-starter for them. The Head of the Alabama Wholesale Beer Association, which represents beer distributors in the state, said that franchise language is important to wine and beer distributors due to the regulatory oversight they provide. Whether lawmakers are willing to strip any proposal of franchise language remains to be seen.

June 2024 Group Watch: Innovate AL Launches SEEK AL

Innovate Alabama has launched SEEK AL, a digital campaign showcasing the rich variety of outdoor recreational assets the state has to offer innovators looking for a place to play, work, and put down roots. SEEK AL will leverage the state’s parks, waterways, greenways and trails to position Alabama not just as a thriving innovation ecosystem, but a place that has something for everyone, whether a current resident or someone looking to relocate. The campaign launches at a time when Innovate Alabama and the Alabama Department of Commerce are collaborating with other key organizations to craft a new economic development strategic plan to propel the state’s economic growth into the next decade and beyond. Innovate Alabama will be adding an outdoor recreation grant opportunity in the next round of the Innovate Alabama Network, a comprehensive resource to connect communities fostering innovation in their own backyard.