Alabama State Senator Sam Givhan (R) and Alabama State Representative Anthony Daniels (D) provided a legislative update to members and guests of the Huntsville Rotary Club on June 18. The lunchtime meeting was held at the Von Braun Center.

Representative Daniels, who also serves as minority leader in the Alabama House of Representatives, spoke first.

Representative Daniels detailed successes and challenges of the 2024 legislative session.

Daniels addressed Alabama’s low rate of workforce participation, which is a pressing concern for both Democrat and Republican leaders across the state. The state’s labor participation rate is roughly 57.2%, which leaves 43% of potential employees out of the workforce in Alabama.

Lawmakers worked across the aisle during the recent session to pass legislation which will increase labor participation by making both housing and childcare more affordable.

Daniels discussed a tax credit available to those who build low-income housing. In this particular piece of legislation, “low income” is defined as workers who make an hourly wage of between $11 and $35.

“In the workforce in that particular hourly range you’ll find individuals that work in the hospitals and who work in other various jobs within the community,” said Daniels. “So it is not public housing, it is workforce housing.”

Another piece of legislation that addresses workforce participation is a childcare tax credit. Daniels said he believes that this piece of legislation is one of the most important to come out of the session.

“What this legislation will do,” said Daniels, “if you’re a corporation, a nonprofit, or another entity out there and you want to build a childcare facility onsite, there is about 75% of the cost–up to $1,000,000–that you can receive credit for the construction costs.”

This legislation includes a tax care credit that would go directly to the parents as well.

A final set of initiatives aimed at raising the numbers of workers participating in the state’s labor force focuses on increasing opportunities for young people who plan to go into the trades. The Alabama Career Pathways Act allows high school students who have an interest in the trades to customize their curriculum to more closely align their secondary education with their post-graduation career goals.

Senator Givhan followed Representative Daniels’s remarks.

Givhan echoed remarks made by Daniels regarding affordable housing for workers. He said that the number of contractors building affordable housing has dropped in recent years, causing legislatures to seek measures that would provide relief to workers–who we all count on each day.

Givhan said that wherever he goes, people want to talk about the gambling bill–which stalled in the state’s Senate.

“My constituents have been consistent [in saying] that they want a lottery, they don’t want casinos,” said Givhan.

Givhan said that negotiations over how to write the gambling bill did not divide only along party lines, but that there were major disagreements within the Republican party about how the bill should be written.

“I can’t speak for the Democratic caucus, but amongst the Republican caucus, it’s a divide,” said Givhan. “In the Senate there are eight Senators who–in my judgment–are not going to vote for anything that doesn’t have casinos. And there are a bunch of Republicans who won’t vote for any form of gambling. It’s so complicated.”

Givhan said that he and Senator Orr will attempt to push forward a lottery-only bill in a future session.

After Givhan concluded his remarks, the floor was opened for questions from the audience. The first question was posed by Mary Elizabeth Marr, CEO of Thrive Alabama.

“Medicaid expansion has got to happen,” said Marr. “There are people in this state who need healthcare. It impacts our workforce.”

Marr asserted that Medicaid expansion is not only the right thing to do, but that states who have expanded Medicaid have gained measurable economic benefits.

“In the first year that Arkansas expanded Medicaid, 19% less people went on disability,” said Marr.

Givhan responded to Marr by saying that Governor Ivey has the power to expand Medicaid at any time.

Alabama is one of ten states that have not adopted Medicaid expansion.

Givhan and Daniels both acknowledge that one challenge to Medicaid expansion is physician compensation. Givhan said that discussions are ongoing about how to meet both the needs of patients and providers.

In the absence of unilateral action by Governor Ivey, Alabama’s Senators and Representatives will continue to hash out a Medicaid expansion package that will be agreeable to all stakeholders.