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A showdown is nearing for BCA’s Billy Canary

Bill Britt

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The Business Council of Alabama’s executive committee recently approved a succession plan to protect its embattled CEO Billy Canary, but when the plan was presented to a group comprised of the organization’s top members, Canary had deceptively altered the policy adopted by the committee for one more favorable to himself. Alabama Political Reporter is also in possession of an email chain between committee members that eludes to a dramatic showdown between those protecting Canary and those who say he must go for the good of the state’s business community.

According to individuals with knowledge of both meetings, the succession course voted for and approved by BCA’s executive committee was not the one laid out to executives of Alabama Power, Blue Cross Blue Shield, Regions Bank, Drummond Coal and others known as the Big Seven who are calling for Canary’s removal, having grown weary with his failed leadership and prevarication.

Canary’s ruse was carried out with the knowledge of BCA’s current chairman, Perry Hand, and executive committee board members Denson Henry and Mike Kemp, who also attended the briefing with the Big Seven.

Kemp is President and CEO of Birmingham-based Kemp Management Solutions, LLC, and is next in line to replace Hand. Henry is Vice President of Henry Brick Company headquartered in Selma. Like Hand, Kemp and Henry have deep ties to the construction business.

Several days after the meeting, an email chain shows that Hand is dismissive of BCA members who express concern over the Seven’s displeasure with Canary. The chain begins with an email from executive committee member Tony Cochran from Albertville-based CK Business Solutions, PC.

“Good morning Perry,

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I have communicated with a couple of other executive committee members regarding the succession plan approved at our last meeting along with the next steps. None of us have knowledge of where BCA currently stands regarding the next steps that were outlined.

Could you send us an email update, or if you prefer, organize a conference call of the executive committee? I am certain everyone on the committee is getting questioned by our other board members and possibly general members of BCA. It would be helpful to know where we are in this process and what is going to happen next.

Anxiously yours,

Tony Cochran”

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Hand flippantly responds to Cochran’s concerns as if he has everything under control.

“Tony: A conference call will be lined up soon. Just hang in there. I’ve met with AL Power and the group of companies last week. Thank you.”

Next, executive committee member Alabama Power CEO Mark Crosswhite weighs in on the email exchange.

“Tony

I realize that you asked Perry where things stood, but I’ll provide Alabama Power’s view since I’m on the email distribution.

As Perry noted, he (together with Mike Kemp and Denson Henry) met with a group from Alabama Power and other members of BCA on June 4.

We were presented with a Transition and Succession Planning proposal, which I understood had been approved by the Executive Committee. While I appreciate the time that Perry, Mike, and Denson spent in meeting with us, the proposal lacked important details (a concrete timeline, committee structure, and so forth) and unreasonably delayed the transition of leadership at BCA.

I do not purport to speak for all the companies that attended, but the common feedback was that we should move forward with a transition plan as quickly as possible including an immediate public announcement of the transition, appointment of the various committees with representation across BCA’s membership (businesses large and small), and celebration of Billy’s tenure at the August meeting.

I have heard nothing since June 4, so I can only assume our suggestions have been rejected.

If anyone would like to discuss, please contact me (——–). Otherwise, I understand if you delete me from the email distribution list.”

In April, at an executive committee meeting, seven of the state’s largest corporations laid down an ultimatum: either Canary goes, or they do. Hand, along with a handful of Canary’s loyalists, have resisted change many believe for a personal financial reason, including Hand’s cozy relationships with former Gov. Bob Riley, who remains one of Canary’s stalwart supporters.

Canary and Hand’s deception at the June 4 meeting is seen as the last straw, leaving many of the state’s most prominent leaders more committed than ever to seeing Canary removed from BCA.

Henry and Kemp’s complicity in the ploy shows just how far Canary’s poisonous leadership has infected the once revered business group, according to those with knowledge of events.

According to APR‘s sources, the private struggle to restore competent leadership at BCA will soon become a public matter.

 

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Alabama breaks daily COVID-19 case, hospitalization record again Thursday

Coronavirus hospitalizations reached another record high for the fourth time in so many days.

Eddie Burkhalter

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An aerial view of Huntsville and Huntsville Hospital, where medical staff are treating a record number of COVID-19 patients.

For a second straight day, Alabama’s daily COVID-19 case count was at a record high on Thursday, and coronavirus hospitalizations reached another record high for the fourth time in so many days.

The Alabama Department of Public Health reported 3,531 new cases Thursday, and the state has averaged 2,461 cases each day for the last two weeks, a 28 percent increase over the previous two weeks. 

The latest White House Coronavirus Task Force state report for Alabama, released Sunday, shows that shows 90 percent of Alabama counties had moderate or high levels of community transmission last week, while 64 percent had high transmission levels. The state ranked 19th highest in the percentage of tests that were positive. 

Coronavirus is surging across the country, with cases per day increasing more than seven times the levels seen in the U.S. before the summer surge, and hospitalizations are three times as high now as then, according to the report. The U.S. reported record high cases and deaths Wednesday. 

“It must be made clear that if you are over 65 or have significant health conditions, you should not enter any indoor public spaces where anyone is unmasked due to the immediate risk to your health,” the report states. “You should have groceries and medications delivered.” 

The report warns that for those under 40 “you need to assume you became infected during the Thanksgiving period” if you gathered beyond your immediate household. 

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“Most likely, you will not have symptoms; however, you are dangerous to others, and you must isolate away from anyone at increased risk,” the report continues. 

The number of people in Alabama hospitals with COVID-19 on Thursday reached 1,827. That’s nearly 40 percent higher than two weeks ago. Huntsville Hospital had a record-high 338 COVID-19 patients on Thursday, after a string of record-setting daily hospitalizations. UAB Hospital was caring for a record 127 COVID-19 patients Wednesday and 125 on Thursday.

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Testing statewide remains low. The average positivity rate over the last week was 34 percent. Public health experts say it should be below 5 percent to ensure adequate testing is being done to prevent cases from going undetected. 

The state averaged 8,517 tests each day over the last two weeks, down from the two week average of 9,407 recorded on Nov. 26.

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Finance director: Alabama expects to spend nearly all of $1.8 billion in CARES Act funds

“I think we’ll be down to less than $10 million, and hopefully less than that,” the state finance director said.

Eddie Burkhalter

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Alabama State Finance Director Kelly Butler at a COVID-19 press conference. (VIA GOVERNOR'S OFFICE)

Alabama has until Dec. 30 to spend the $818 million that remains of $1.8 billion in federal CARES Act money allocated to the state, or the remaining funds revert back to the federal government, but the state’s finance director believes that’s possible, for the most part. 

“I think we’ll be down to less than $10 million, and hopefully less than that,” said Alabama State Finance Director Kelly Butler, speaking to reporters Wednesday. 

With new daily COVID-19 cases continuing to break records in Alabama and coronavirus hospitalizations reaching record levels this week, many have expressed concern that Alabama could leave millions on the table at a time when the money could do the most good. 

It’s not clear if lawmakers in Washington D.C. will agree in time to extend the deadline for states to spend the cash, and Butler said Wednesday that state officials had hoped the extension would come to pass but aren’t banking on it. 

“The reality is, if we’re going to be able to get the money out the door, we can’t wait on that any longer,” Butler said. “So we’ve got to put the pedal to the metal and assume that December 30 is a hard cutoff, and that’s the way we’re operating.” 

Butler explained that almost all of the CARES Act money to various state programs and entities are reimbursement programs, meaning those entities must show they spent the money on coronavirus-related expenses, as required by the federal government, then ask the state for reimbursement. 

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“This is particularly true for local governments, state government agencies, hospitals,” Butler said. 

Butler also explained that despite the many needs, the federal money comes with substantial limitations. 

“There is a perception out there that this money can solve everybody’s problem, and can be used for everything that people want it to be used for,” Butler said. “And the reality is that the Treasury guidance, particularly the audit guidance issued by the Treasury, it just does not allow us to do everything that everybody wants us to do, and the penalty, if we use the money outside the bounds outside the law and the regulations, is that the state has to repay the money.” 

Gov. Kay Ivey on Nov. 23 allocated $3.6 million in CARES Act funds to food banks statewide, Butler noted, and another $2 million to a program that provides counseling for veterans with PTSD. 

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“We have money out there for hospitals, nursing homes. We are in constant communication with them,” Butler said. “We have done before this latest grant program, we’ve done one small business grant program, a faith-based organization grant program, a nonprofit organization grant program, a medical provider grant program, an agricultural producer grant program, so we haven’t stopped since May.” 

Asked whether any of the federal aid has gone to the Alabama Department of Public Health to help set up the administration of COVID-19 vaccines, Butler said the state has allocated more than $30 million to the Department of Public Health, but most of that was done before it was clear Alabama could get a vaccine this month. 

Butler said until recently it wasn’t thought a vaccine would be available before the end of the year, and that “up until recently, it was not something that we were allowed to spend money on.” 

“We have allocated a small amount to a company in Huntsville called Aclinnate Genetics for vaccine education, particularly in the African American community throughout the state,” Butler said. 

There remains the possibility of reallocating unspent money to other programs, Butler said, as has been done twice before. That requires conversations between Butler, Gov. Kay Ivey and legislative leadership Butler said, adding that he anticipates at least one more reallocation before the deadline. 

“Our plans are to, as I’ve said daily, evaluate the programs and somewhere around the middle of this month, sort of do a final tally and go back to the Legislature and ask for reallocations so that we can allocate money to things that and programs that might need it,” Butler said. 

One possibility would be to allocate additional money to the state’s unemployment trust fund, Butler said. As much as $287 million could be reallocated to the fund, he said. 

“Health care, with the virus continuing, is also another definite possibility,” Butler said. 

Asked about concerns some local governments and other groups have had that the entities don’t have the money to spend, to then ask for reimbursement, Butler said that he has heard those concerns but that federal guidelines connected to the CARES Act funding are strict. 

“The reality is the Treasury guidance and the CARES act, we believe, prohibit us from sending the money out upfront,” Butler said. “And it’s just not something we believe we can do.” 

Butler said the state has worked closely with local municipalities and groups, including the Black Belt Foundation, to help them apply for reimbursements and get the money returned quickly. 

A reporter asked about as-of-yet unpaid reimbursement requests of more than $850,000 from the Madison County Commission from August, and Butler said the state does have a backlog of requests, and that while the program was established on May 28, many local governments waited until August to submit applications.

Butler then said that he’s been told the Madison County Commission’s requests were being processed Wednesday and the commission should see that money soon. 

Butler said the state has received word from the U.S. Treasury that as long as those reimbursement requests are turned in before the Dec. 30 deadline “we will have a two to three month period to work out those prior bills as long as they were expenses incurred before December.”

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Report shows inequalities, strengths of Alabama women

The Women’s Fund of Greater Birmingham set out to examine the challenges facing women in the state. 

Eddie Burkhalter

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(VIA THE WOMENS FUND OF GREATER BIRMINGHAM)

Researchers didn’t set out to establish a baseline that could be used to later examine what impact COVID-19 is having on women in Alabama, but that’s what happened when the Women’s Fund of Greater Birmingham set out in the fall of last year to examine the challenges facing women in the state. 

The resulting report, released Wednesday and titled “Status of Women in Alabama: 2020” was compiled with the help of researchers at the Washington D.C.-based Institute for Women’s Policy and Research and focuses on four areas: work, earnings, and family; poverty and opportunity; health and well-being; and political representation and leadership. 

The report shows women in Alabama faired worse than women nationwide in terms of the wage gap and percent of women living in poverty, but that women in Alabama are entrepreneurial and are heavily relied on as their families’ main source of income.  

The report also briefly notes the impact COVID-19 is having on each of the parameters studied, but it will be some time before data is available to further that research.  

“When women thrive, Alabama thrives,” the report’s executive summary begins. “When barriers for women are removed, their success extends to their families, our economy, and the state as a whole.” 

Melanie Bridgeforth, president and CEO of the Women’s Fund of Greater Birmingham, a nonprofit philanthropic foundation that advocates for women and girls, told reporters during a press briefing Wednesday that you cannot change what you don’t know. 

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And so we felt strongly that by producing responsible and credible data that illuminates gaps and benchmark progress, we can also help make a difference and improve the status of women in Alabama simply by shining a light,” Bridgeforth said. 

Elyse Shaw, a study director at the Institute for Women’s Policy Research, said during the briefing that women’s earnings are no longer optional for families. 

“Women’s earnings are essential to economic security,” Shaw said.  

Women in Alabama earn just 73 cents for every dollar that men earn, compared to the U.S. as a whole, where women earn 82 cents on the dollar, according to the report.

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If the current trend continues, Alabama women will have to wait until the year 2089 to reach pay equity,” the report reads. 

Even with the wide wage gap, women’s earnings in Alabama are relied on to keep households afloat. The share of Alabama women who are breadwinners, meaning all single women and married women who earn at least 40 percent of household income, is 74.2 percent. Black mothers with children under 18 in Alabama make up 77.9 percent of breadwinners.

“The earnings of Black mothers are vital to their families, and they’re more likely to be in the jobs that have been hit hardest by this economic recession,” Shaw said. 

One of the bright spots the report found was the entrepreneurship among Alabama women, who make up 37 percent of the state’s business ownership, compared to 36 percent nationally, Shaw said. One in four women in Alabama have a bachelor’s degree or higher, the report found. 

“So women in Alabama are out there, starting businesses, stepping forward and really supporting themselves and their families,” Shaw said. 

The COVID-19 pandemic is having dramatic impacts on the ability of women to earn incomes, and Black people are disproportionately impacted, the report notes. In August unemployment was 5.6 percent in Alabama, and of the unemployment claims, 57.3 percent of claims were made by women and 53.5 percent of claims were made by individuals who are Black. 

Coronavirus is also clearly impacting the health and wellbeing of women in Alabama, who make up 55.5 percent of those who tested positive for COVID-19 as of Sept. 1. Almost 50 percent of the deaths during that time frame were women. Nationally, women comprised 51.7 percent of those who tested positive and 46 percent of the deaths, according to the CDC.

The report largely uses data that was compiled by state and federal agencies well before the COVID-19 pandemic began, Shaw explained, so it will likely be another year before they’ll be able to see data that reflects COVID-19’s true impact on Alabama women. 

“This will be our baseline data,” Bridgeforth said of the 2020 report.

Bridgeforth said that the nonprofit plans to put out a new report every two years, and that they expect they might see in the next report is “the literal flattening of our childcare industry. Folks who have lost jobs or going back into jobs where there are unstable or stagnant wages.” 

“I’m amazed when people say that COVID has caused so much,” Bridgeforth said. “COVID has merely shone a light and illuminated and exposed broken systems that were already there.” 

“You do have that baseline now to then compare as the years go on,” Shaw said. “And you see not only what is the impact of COVID, but what are the repercussions that ripple down the years.” 

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Sewell selected as chief deputy whip for the 117th Congress

It is the job of the whips to communicate between the Democratic membership and the Democratic leadership in the House.

Brandon Moseley

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Congresswoman Terri Sewell, D-Alabama

House Majority Whip James Clyburn announced that Congresswoman Terri Sewell, D-Alabama, has been selected as a chief deputy whip for the Democratic Party House Majority during the 117th Congress. Sewell has served as a chief deputy whip since she was appointed in the 113th Congress in 2013.

“I proudly accept the honor of serving as a Chief Deputy Whip under the leadership of Democratic Whip James Clyburn’s for the 117th Congress,” Sewell said. “I am thrilled to continue working with this dynamic team and Democratic Leadership in the House to advance an agenda focused on providing for the lives and livelihoods of the American people during this unprecedented time in our nation’s history. As this public health crisis continues, I am confident we have the leadership necessary to meet the challenges for the American people that include crushing this virus, strengthening our economy, improving our nation’s infrastructure, and putting Alabamians back to work.”

“I am pleased that Terri will continue serving as Chief Deputy Whip in the 117th Congress,” Clyburn said. “Terri’s experience and work ethic will continue to serve the Whip team well as we face historic challenges and opportunities next year. I look forward to working with her in collaboration with the incoming administration to advance our legislative priorities.”

Clyburn announced ten total representatives who will serve as chief deputy whips in the 116th Congress, including North Carolina Rep. G.K. Butterfield and Illinois Rep. Jan Schakowsky, who will serve as Senior Chief Deputy Whips; and Texas Rep. Henry Cuellar, Texas Rep. Sheila Jackson Lee, Michigan Rep. Dan Kildee, Florida Rep. Stephanie Murphy, California Rep. Jimmy Panetta, Florida Rep. Debbie Wasserman Schultz and Vermont Rep. Peter Welch as chief deputy whips.

It is the job of the whips to communicate between the Democratic membership and the Democratic leadership in the House so that Speaker Nancy Pelosi knows how the Democratic members in the House are going to vote. The whips also strongly encourage members of the Democratic majority to vote with the leadership and where possible work to address concerns of the members with pending legislation so that they can support that legislation.

The 116th Congress, which began in 2019, was the first Congress since 2010 that the Democrats had the majority in the U.S. House of Representatives. Democrats were able to keep control of the House in the 117th Congress, which begins in 2021, but their majority has grown smaller, making the job of the whips both more difficult and more important as Democrats hope to advance the agenda of the Biden administration.

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Sewell was just re-elected to a sixth term representing the 7th Congressional District.

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