The proposal, Senate Bill 513 sponsored by Senator Dick Brewbaker (R-Pike Road), includes three major components aimed at turning around underperforming schools across the state:

• Allows for innovative flexibility options where school systems may enter into a school flexibility contract with the State Department of Education that allows for flexibility from state laws, including State Board rules, regulations and policies, in exchange for exceptional levels of results-driven accountability;
• Authorizes the establishment of a limited number of public charter schools in priority local school systems; and
• Gives the state school superintendent the duty to intervene in order to improve “persistently low-performing schools” if local officials fail to act.

Senator Brewbaker cited 58 schools across the state that have been identified as “persistently low-performing,” meaning the schools have ranked in the bottom five percent of schools on science, reading and math standardized test scores for the past three years.

Continual underperformance is no longer an option under this proposal, Brewbaker said.

“In America, we don’t tell you where to go to church of what to do for a living, but we do tell you where you have to send your kids to school. It’s about time we ensure each and every child across the state has access to a quality education,” Senator Brewbaker said. “By giving education officials the tools and flexibility to best meet the needs of our local schools, we are sending a clear message that failure in our schools is no longer an option.”

Senate President Pro Tem Del Marsh said giving education leaders innovative options to better manage schools is a positive step toward improving the quality of education in Alabama.

“Alabama’s children are the building blocks of our future and we ought to give them every opportunity to succeed,” Senator Marsh said. “That starts with a quality education. While there is no silver bullet to cure all education problems, giving education leaders the flexibility and resources to improve underperforming schools is a great step in the right direction.”

The legislation now goes to the House for consideration.

BIRMINGHAM, Alabama — Alabama businesses might have an easier time filing and remitting sales and use tax if state lawmakers pass legislation meant to streamline the system.

The legislation would create the Optional Network Election for Single Point Online Transaction, otherwise known as the ONE SPOT system. The free, electronic system would enable businesses to file just once, rather than filing in every municipality and county where it does business. The system will be optional for businesses to use.

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Senate Bill 459, sponsored by Senator Slade Blackwell, was approved by the Senate Banking and Insurance Committee, while its House companion, House Bill 597, sponsored by Representative Jack Williams, received a favorable report from the House Commerce and Small Business Committee.

Under current law, taxpayers doing business in more than one municipality or county in Alabama must file separate tax returns with each of those local taxing jurisdictions as well as the Alabama Department of Revenue.

The legislation creates an electronic single point of filing system that will be made available for filing and remitting various state and local business taxes. The system, known as ONE SPOT – Optional Network Election for Single Point Online Transactions, will be administered by the Alabama Department of Revenue and available for use by both taxpayers and Alabama municipalities and counties at no cost.

Senator Marsh said this legislation is a giant step toward streamlining the way businesses interface with state and local government.

“We are placing a huge administrative burden on businesses by requiring them to file what could be hundreds of separate tax returns with cities and counties across the state,” Marsh said. “This is a common sense solution and is a perfect example of how we can streamline government operations to better serve Alabama taxpayers. I want to thank the members of the Initiative to Streamline Government’s Tax and Regulatory Study Committee, including Senator Blackwell, who chaired that committee, and Representative Williams for working to solve this issue.”

Working to eliminate government red tape will promote growth in Alabama’s private sector economy, Speaker Hubbard said.

“When we travelled the state asking business owners what was hindering them from growing their businesses and hiring more workers, almost everyone pointed to bureaucratic red tape. The layered system businesses have to navigate for filing city and state taxes defines red tape, and it’s about time we did something about it. I’m proud to work together with Senate President Pro Tem Marsh and the bill sponsors on a common sense reform that will boost job growth and make government more efficient all that the same time.”

“This bill could be one of the most important, pro-business items of legislation that the Legislature passes this year,” Blackwell said. “Small businesses have been pushing for this reform for years and I’m proud to sponsor this bill that will make the filing process more efficient.”

“The single point filing system is a business-friendly approach to filing these tax returns,” Williams said. “The state should be leading the effort toward making compliance as easy as possible for those trying to comply with our state tax code. That’s exactly what we’re doing with this bill.”

Lawmakers already have shot down the governor’s proposed solution — paying General Fund costs with Education Trust Fund money. Legislative budget-writers are struggling to craft budgets without tax increases that don’t devastate state agencies. Wish them luck, because without new revenue, it is an impossible task to write balanced budgets without ravaging some parts of state government.

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Bentley already has targeted some programs in the executive branch, including one of his own Cabinet members, for merger and said there will be more.

“Streamlining government will save money. If one agency duplicates the services of another agency, we will merge those agencies. We will look for excess and cut it out,” Bentley said.

Like most new Alabama governors, Bentley barely had begun his term last year when he created the Commission on Improving State Government to give him recommendations.

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“Leading into the session we pledged to focus first and foremost on proposals that will improve Alabama’s economy and today we continued to pass legislation that will do just that,” said Senate President Pro Tem Del Marsh. “Alabama has added 41,000 jobs since last January, but there’s still work to be done. I appreciate my colleagues’ commitment to putting Alabamians back to work and we will continue working with Governor Bentley and Lieutenant Governor Ivey to implement policies that help protect existing businesses and attract new jobs to the state.”

Senate Bill 30, sponsored by Senator Arthur Orr (R-Decatur) and Senator Bill Holtzclaw (R-Madison), helps ensure Alabama companies are able to compete for state contracts by requiring the State Purchasing Division to maintain a statewide database of bid requests or proposals for a public contract with the state. The database will be public record and accessible on open.alabama.gov.

Of the $88.4 million in contracts awarded by the State of Alabama between February and July of 2011, slightly less than half of the total dollar value went to Alabama companies. According to a report from the state Examiners of Public Accounts, a total of 332 contracts were awarded during the six-month period with 59 contracts totaling $44.9 million going to out-of-state companies.

Senators Orr and Holtzclaw said this legislation presents a great opportunity to protect and promote Alabama jobs by ensuring homegrown Alabama companies are competing for state contracts. They also pledged to continue looking for innovative ways for state government to work with the private sector to help boost Alabama’s economy.

Senate Bill 48, also sponsored by Senator Orr, allows for an extension of the time period in which certain capital credits may be claimed and will allow unused credits for certain qualifying projects to be carried forward.

“Alabama has a proven track record of using incentives to protect existing jobs and recruit new businesses,” Senator Orr said. “This proposal will allow for a more broad use of the tools we already have at our disposal to continue growing Alabama’s private sector economy.”

Legislative Leadership seeks to continue progress with 2012 jobs agenda

MONTGOMERY – Alabama is reducing its unemployment rate faster than any state in the nation, which is a testament to the difference pro-growth economic policies can have on job creation, Alabama’s Legislative Leadership said Thursday.

Alabama’s unemployment rate for December was 8.1 percent, down from 8.7 percent in November and 10 percent in July. That’s a 19 percent decline in the last six months. Alabama’s progress reducing unemployment outpaces not only the national average, but also neighboring states (see attached chart).

A number of laws enacted in 2011 are contributing to a better job climate in Alabama, including:

• The Full Employment Act, which provides incentives to companies hiring permanent workers;
• A series of six tort reform laws that offer job creators long-needed protection from frivolous lawsuits; and
• A crackdown on illegal immigration, which sent a clear message that only legal workers could hold jobs here.

“Governor Bentley and the 2010 legislative candidates all ran on a promise of getting Alabamians back to work by enacting pro-growth policies, and that’s exactly what is happening,” House Speaker Mike Hubbard said. “You won’t find better workers anywhere than right here in Alabama. They are ready and willing to do the job. It’s our job to ensure Alabama’s business climate is as strong as our workers’ desire to find employment and provide for their families.”

Senate President Pro Tem Del Marsh credited the Republican Majority for their commitment to put Alabamians back to work and said the Legislature will continue to focus on growing Alabama’s private sector economy in the 2012 Legislative Session.

“Each and every member of the Republican Majority – including Governor Bentley and Lieutenant Governor Ivey – have time and again proven their commitment to the people of Alabama by never wavering on the mission to create jobs and grow Alabama’s private sector economy,” Senator Marsh said. “The decrease in unemployment proves that our efforts are succeeding and only strengthens our dedication to continue cutting red tape and proposing innovative solutions to help job creators put Alabama back to work.”

Alabama has by far the lowest unemployment rate among neighboring states, with Tennessee at 8.7 percent, Georgia at 9.7 percent, Florida at 9.9 percent and Mississippi at 10.4 percent. Over the last six months, the average decline in those states’ average unemployment rate was 5.3 percent, while Alabama’s rate dropped by a whopping 19 percent.

“We are obviously pleased to see such progress, but there is still much work to do,” Speaker Hubbard said. “If this recession has taught us anything it is that we must keep innovating and keep finding ways to give Alabama a competitive advantage for economic development. That’s why we are redoubling our efforts in the upcoming legislative session to pass an aggressive agenda aimed at boosting private sector job growth.”

The Legislative Leadership has made the following job-growth proposals the top priority in the upcoming Regular Session of the Alabama Legislature:

• Streamlined Tax Incentives to Recruit and Retain Jobs

-          Alabama’s success in landing world-class companies like Mercedes, Honda, Hyundai and ThyssenKrupp proves how effective tax incentives can be for bringing jobs to this state.

-          This constitutional amendment would allow voters to give the Alabama Development Office and the Governor more flexibility in offering tax incentives to land major economic development projects and retain those companies that might otherwise relocate outside Alabama.

• “Heroes for Hire” – Tax Incentives for Hiring Veterans Returning from War

-          With wars winding down in Iraq and Afghanistan, thousands of Alabama veterans will soon return home to a stagnant economy in which it is difficult to find a job.

-          This proposal would offer Alabama businesses at least a $1000 tax credit for hiring a veteran recently returned from war, because those who served on the front lines for our country deserve to be at the front of the line for new hires.

•  “Made in Alabama” Job Incentives Act

-          Recommended by the Speaker’s Commission on Job Creation and passed into law in the 2011 Regular Session, this measure allows the state to offer temporary state income tax incentives to offset build-up phase tariff costs for international companies bringing jobs to the state.

-          As a direct result of this legislation, hundreds of foreign-based companies representing thousands of jobs expressed interest in locating their North American facilities in Alabama.

-          Unfortunately, the Alabama Education Association is suing to block the law, creating uncertainty for businesses that could take advantage of the incentive. Lawmakers will remove AEA’s technical argument, pass the law again and make sure Alabama once again has this competitive advantage over other states for recruiting international companies.

• Making Workforce Development Work for the Unemployed

-          Thousands of unemployed Alabamians are able – but not trained – to enter into available good-paying skilled-labor jobs, such as construction, welding, plumbing and machine maintenance.

-          Lawmakers will make the necessary investments that afford our two-year college system the resources they need to connect Alabama’s jobless with Alabama jobs.

• Alabama Regulatory Flexibility Act

-          The Alabama Regulatory Flexibility Act would require each state agency to conduct an economic impact analysis as well as a regulatory flexibility analysis prior to the adoption of any proposed regulation that may have an adverse impact on small businesses.

• Data Processing Center Economic Incentive Enhancement

-          Data processing centers are unique components of a 21st century economy.  These centers employ a skilled workforce, provide high-paying jobs, and have a low environmental footprint.  This proposal would expand the scope of certain tax incentives in order to focus on recruiting more data processing centers to Alabama.

• Legislation Establishing a Small Business Financing Authority

-          One of the top inhibitors small business development and growth is access to capital. Loans are increasingly difficult to come by even for good candidates with solid business plans.

-          A key recommendation of the Speaker’s Commission on Job Creation, this authority would assist small businesses with financing issues by making direct loans, helping small businesses attract more banking partners, and meeting a variety of credit-related needs.

-          Other states have created small business financing authorities.  In Virginia, for example, the return on investment has been $5.81 for every state dollar loaned to a small business. Using that calculation, a one-time appropriation of $5 million would allow the state to assist more than 200 small businesses and generate $35 million in private equity and credit in the first year the loans are made.

• Creation the Alabama Sales, Use, and Lease Tax Simplification Task Force

-          Alabama requires taxpayers and businesses to file separate sales, use and lease tax returns at the state, county, and city levels of government.  Other states, which also have differing rates at the state, county and city level, only require a single sales, use and lease tax return to be filed.

-          Alabama’s requirement of separate tax returns causes a significant compliance burden for many companies and provides no beneficial impact on our economy. The Alabama Sales, Use and Lease Tax Simplification Task Force would be a twenty-member panel required to recommend ways to streamline and simplify the administration and remittance of sales, use and lease taxes.

• Enhancement of existing capital outlay tax credits to recruit targeted projects

-          Under existing law, certain new and expanding businesses may qualify for an income tax capital credit of up to five percent (5%) of the capital costs of a qualifying project in each of the 20 years, commencing with the year during which the qualifying project is placed into service and continuing for 19 consecutive years thereafter. Any unused capital credit may not be carried forward to another tax year.

-          This proposal would allow for an extension of the time period in which certain capital credits may be claimed and will allow unused capital credits for certain qualifying projects to be carried forward

The 2012 Legislative Session begins Tuesday, February 7.

Senate President Pro-Tem Del Marsh said the first bills he expects to come up for consideration in the Senate are measures that will provide incentives for businesses that create new jobs and for new industries that bring jobs into the state.

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Highlights of the Republican jobs agenda, announced last week, include improvements in large-scale industrial recruiting, workforce training and small business development.

These changes and others on the GOP jobs agenda will make Alabama more competitive with other states in business recruiting and development, and quicker to react in offering job retraining and tax incentives when the stakes are high.

Read more: GOP’s jobs agenda should improve Alabama’s economic outlook