MONTGOMERY, Ala. — Gov. Kay Ivey signed into law a package of bills Thursday dubbed “Working for Alabama,” which includes a number of workforce development initiatives officials hope will improve the state’s labor participation rate.
“Our state leaders over the past few years have taken up several ambitious challenges to address Alabama’s top areas of need,” Ivey said before signing the bills.
“And the results are paying out in dividends. From broadband to infrastructure to The Game Plan we passed last year and now, Working for Alabama, we have come together to put Alabama first and have paved the way for a stronger economy and a better quality of life for all Alabamians.”
Here’s our coverage from today’s bill signing ceremony in which @GovernorKayIvey signed into law the six workforce development bills that were a priority of top leaders this session. #alpolitics pic.twitter.com/xlDTgA7EkM
— Todd Stacy (@toddcstacy) May 9, 2024
Among the most notable inclusions in the package include a child care tax credit program that would offset tax liabilities for child care providers and employers who invest in expanding child care, capped at $15 million for its first year and topping out at $20 million in 2027.
A housing tax credit program is included in the package as well, which will provide $5 million in tax credits a year for eligible housing projects. The Alabama Workforce Pathways Act is another inclusion, and will provide high school students an alternative pathway to earning a diploma with a focus on career tech. Other legislation reorganizes the state agencies and boards focused on workforce and job creation.
After the House had adjourned for the year, House Speaker Nathaniel Ledbetter, R-Rainsville, told Alabama Daily News that he considered the passage of the package as the leading accomplishment of the year.
“Finishing up with the package of bills that we put together for the workforce shortage was a big deal,” Ledbetter said. “The child care tax credit, the pathway diploma, I think it’s going to be a big deal, and I think it’s going to help in multiple ways.”
Ivey signed the bill into law Thursday morning during a ceremony at the State Capitol, and was joined by several legislative leaders, including Lt. Gov. Will Ainsworth, Senate Pro Tem Greg Reed, R-Jasper, Ledbetter, Senate Minority Leader Bobby Singleton, D-Greensboro, and House Minority Leader Anthony Daniels, D-Huntsville.
“Growing Alabama’s economy and creating more long-lasting, high-paying, 21st century jobs ranks high among my top priorities,” Ainsworth said, an early proponent of the package.
“Signing the Working for Alabama package into law, represents a strong step toward more jobs, opportunities and prosperity for everyone who calls our state home.”
While the state’s unemployment rate remains a strong 3%, its labor participation rate remains among the lowest in the country at more than 57%.
Ivey, along with legislative leadership, had made improving the state’s labor participation rate a high priority this year, commissioning several meetings to research and identify common barriers to employment.
The findings of those meetings identified child care and housing as among the largest barriers to employment, findings that ultimately led to the creation of the legislative package.
“The Working for Alabama package didn’t just happen overnight, this took bipartisan efforts in both chambers of the Legislature addressing some of our state’s top vulnerabilities,” Singleton said.
“I’m proud of the way we worked together to make this happen. A particular focus of mine throughout this process has been to make sure the rural areas of our state are given the support they need. Working for Alabama will make key investments into some of our state’s communities in the most need of support.”
Two bills in the original seven-bill package died along the legislative process. They would have given local governments the ability to create corporations that could collect fees and spend tax dollars in newly created development districts. Criticized for being too broad, those bills were replaced with a more limited bill to give municipalities the ability to create designated research corridors with appointed boards that could collect fees and spend funds to develop the areas. That has also been signed by Ivey.