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Economy

The White House and Senate reach deal on a stimulus

Brandon Moseley

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Early Wednesday morning, the White House and Senate leaders finally reached a deal on a massive stimulus package they are hoping can keep the American economy from falling into a deep recession due to the government-imposed economic shutdown to deal with the growing coronavirus threat.

The final version of the Senate bill comes with a two trillion dollar price tag. The plan includes tax rebates, four months of expanded unemployment benefits, a $500 billion corporate liquidity program, $100 billion in aid for hospitals, $150 billion in aid for state and local governments, money for education, transit programs, and airlines, as well as checks to families, and a slue of tax rebates and benefits for businesses and corporations. It also authorized the Federal Reserve in conjunction with the Treasury to make up to $4 trillion in loans to corporations.

Americans who make up to $75,000 a year will get a one time check of $1,200. Americans with no or little tax liability would receive the same amount. The original Republican proposal had given them a minimum of $600. The deal was reached following five intense days of negotiations that began on Friday.

“At last we have a deal. … the Senate has reached a bipartisan agreement,” Senate Majority Leader Mitch McConnell (R-Kentucky) said during a speech on the Senate floor after 1:30 a.m. on Wednesday. McConnell pledging that the Senate will pass the stimulus bill later today.

Senate Minority Leader Charles “Chuck” Schumer (D-New York) praised the bill as “the largest rescue package in American history.”

“This bill is far from perfect, but we believe the legislation has been improved significantly to warrant its quick consideration and passage,” Schumer said.

The Hill is reporting that McConnell, Schumer, Treasury Secretary Steve Mnuchin, White House legislative affairs director Eric Ueland and incoming White House chief of staff Mark Meadows were all in the final negotiations. Schumer kept Speaker of the House Nancy Pelosi (D-California) closely abreast of what was happening during the discussions.

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Pelosi has introduced her own $2.5 trillion stimulus bill that includes Democratic priorities such as ending photo ID for voting, parts of the Green New Deal, higher fuel economy and emissions standards for airplanes, and increased union collective bargaining powers. Republicans point to items like $35 million for the JFK Center for the Performing Arts as pork in the Pelosi bill.

“With this coronavirus relief package, we’re trying to keep people employed—helping companies, large and small, maintain payroll to prevent massive layoffs,” said Sen. Mitt Romney (R-Utah). “This isn’t a corporate bailout. Spoke with KSL News radio this morning about why this is not the time for my Democratic colleagues to stall this package to add unrelated pet projects.”

“With hundreds of thousands being laid off every single day and employers shutting down—some permanently—this is no time for Democrats to dither, hoping to win corporate social engineering points,” Romney added. “Shameful, destructive, and dangerous.”

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Sen. Richard Shelby (R-Alabama) was an early supporter of a COVID-19 stimulus bill.

“It is my hope that in the coming days, we can pass an additional package that will contain comprehensive funding and protections to mitigate this virus and safeguard small businesses and others that make up the economic foundation of our nation,” Shelby said before deliberations began.

Sen. Doug Jones (D-Alabama) voted against ending debate (and negotiations) on Monday over dissatisfaction with the bill that McConnell introduced.

“You know the old saying: half a loaf is better than none,” Jones said. “But the vote today was not even 1/2 a loaf for hospitals, city & county gov’ts, small businesses & working folks, who would have got just a couple of slices while most of the bread goes to bailouts. That is why I voted NO!”

Jones said in a video statement that his two main sticking points were a lack of support for state and local government and a lack of transparency in the $500 billion corporate stabilization fund.

Republicans conceded both points to Jones.

Republicans hold a 53 to 47 majority in the Senate, but were seriously weakened when Sen. Rand Paul (R-Kentucky) announced that he was infected with the novel coronavirus. This meant that Paul, as well as Utah Republican Sens. Mitt Romney and Mike Lee who are regularly in close contact with Paul, have to self-quarantine for 14 days so are unavailable for votes on the Senate floor.

According to a source in the administration speaking to the Hill, “The legislation creates an inspector general and oversight committee for the corporate assistance program, similar to what was done for the Troubled Asset Relief Program of a decade ago, according to the senior administration official.

Jones had objected to giving Mnuchin sole power to decide what corporations he gave loans and guarantees to corporations. Jones also demanded and got the $150 billion for state and local governments. Those points were both addressed in this version of the bill. On Monday, Jones co-sponsored legislation giving COVID-19 relief to hospitals. This version of the bill includes $100 billion in COVID-19 relief for hospitals. Congresswoman Terri Sewell (D-Selma) cosponsored similar legislation to Jones’s bill in the House.

Jones voted to end debate on an earlier version of the bill after Republicans conceded to his points.

A final key sticking point was bailouts for the troubled airlines, who have seen most of their international business grounded by the federal government. Republicans wanted to aid the airlines while some Democrats objected. This bill contains $25 billion in direct aid for airlines and $4 billion for air cargo carriers. The bill includes hundreds of billions of dollars in buffer capital for the Treasury Department to allow the Federal Reserve to hand out an additional $4 trillion in loans to distressed companies such as U.S. airlines and Boeing.

In a nod to Democrats, the bill bans stock buybacks for any corporation that accepts government loans during the term of their assistance plus one year. Schumer asked for and got a provision to ban businesses owned by the president, vice president, members of Congress and the heads of federal executive departments from receiving loans or investments through the corporate liquidity program. The prohibition also applies to their children, spouses and in-laws.

The bill includes $30 billion in emergency education funding, $25 billion in emergency transit funding, and creates an employee retention tax credit to incentivize businesses to keep workers on payroll during the crisis.

Aides are working on drafting the language for the final bill and a vote is expected later today.

(Orignal reporting by the Hill’s Alexander Bolton and Jordain Carney contributed to this report.)

Brandon Moseley is a senior reporter with eight and a half years at Alabama Political Reporter. You can email him at [email protected] or follow him on Facebook. Brandon is a native of Moody, Alabama, a graduate of Auburn University, and a seventh generation Alabamian.

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Economy

Alabama unemployment rate drops more than 2 points to 5.6 percent

Micah Danney

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(STOCK PHOTO)

The state’s seasonally adjusted unemployment rate decreased to 5.6 percent in August, down from 7.9 percent in July, according to the Alabama Department of Labor. 

The figure represents 127,186 unemployed people, compared to 176,556 in July. It compares to an August 2019 rate of 2.8 percent, or 62,149 unemployed people.

“August showed a larger drop in the unemployment rate than we’ve seen for a few months,” said Alabama Labor Secretary Fitzgerald Washington. “We are continuing to see our initial claims drop, staying under 10,000 for the past several weeks. We regained another 22,200 jobs this month but are still down more than 86,000 from this time last year.”

Washington said that the number of people who are working or actively looking for work is at its highest level ever, which he described as a sign that people are confident that there are jobs to be found. 

Gov. Kay Ivey said the numbers are good news for Alabama. 

“We have worked extremely hard to open Alabama’s businesses safely, and to put our hard-working families back to work,” Ivey said in a statement. “We know that challenges remain, and we will endeavor to meet them so that we can get back to our previous, pre-pandemic record-setting employment numbers.”

All the state’s counties and metro areas experienced a decrease in unemployment rates from July to August. The most gains were seen in the government sector, the professional and business services sector and the trade, transportation and utilities sector.

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Counties with the lowest unemployment rates were:

  • Clay County – 3.4 percent
  • Randolph, Franklin, Marshall, Cullman, Cleburne and Cherokee Counties – 3.6 percent
  • Blount County – 3.7 percent

Counties with the highest unemployment rates were:

  • Wilcox County – 14.8 percent
  • Lowndes County – 13.8 percent
  • Greene County – 10.9 percent

Major cities with the lowest unemployment rates are:

  • Vestavia Hills – 3 percent
  • Homewood  – 3.2 percent
  • Madison – 3.3 percent

Major cities with the highest unemployment rates are:

  • Prichard – 15.4 percent
  • Selma – 12.9 percent
  • Bessemer – 10.7 percent

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Economy

New unemployment claims drop slightly

Micah Danney

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There were 8,848 new unemployment claims filed in Alabama last week, slightly fewer than the 8,902 filed the previous week, according to the Alabama Department of Labor.

Of the claims filed between Sept. 6 and Sept. 12, 4,485, or 51 percent, were related to COVID-19. That’s the same percentage as the previous week.

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Economy

Inaugural Alabama Works innovator awards presented

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The inaugural AlabamaWorks! Innovator Awards were presented by Gov. Kay Ivey and Deputy Director of Commerce and AIDT Director Ed Castile Thursday during the AlabamaWorks! Virtual Conference.

The awards were developed to highlight people and programs across the state that take an innovative approach to solving workforce challenges and help advance Ivey’s Success Plus attainment goal of adding 500,000 highly skilled workers by 2025.

At the time of the inception of the awards, Alabama was unaware of the impact COVID-19 would have on the workforce and although the attainment goal has not changed, our economic and workforce recovery post-COVID-19 will hinge on innovators like those recognized.

“The workforce challenges that we face today are not the same ones that we faced six months ago due to the COVID-19 pandemic that has completely reshaped the workforce landscape,” said Gov. Kay Ivey. “The State of Alabama is relying on those who are leading the charge by implementing innovative solutions in their cities, counties and regions to further economic and workforce development.”

The recipients are visionaries, outside-of-the-box thinkers and problem solvers. The programs test boundaries, explore new opportunities and reach deeper to bring about change. “It is important to recognize these leaders of innovation and to thank them for their hard work and dedication to the citizens, communities and industries of Alabama,” said Ed Castile, deputy director of commerce and AIDT director. “Their innovative approach to workforce development will be key to opening doors, breaking barriers and propelling Alabamians forward.”

The recipients of the first-ever AlabamaWorks Innovator Awards are as follows:

Region 1 – North AlabamaWorks – Beth Brumley, Colbert County Schools

Beth Brumley built the Health Science Program for Colbert County Schools from the ground up by using her experience in the healthcare field to provide critical, real-world skills to her students. She developed key relationships within the healthcare community to provide her students enhanced learning opportunities and exposure, which resulted in increased demand for program graduates. Beth was also named the 2020 National New Teacher of the Year through the Association for Career and Technical Education. By bridging the gap between education and employer, Beth has created a formula for success that positively impacts the workforce.

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Region 2 – East AlabamaWorks – The Sylacauga Alliance for Family Enhancement (SAFE)

SAFE has been a model for supportive services to empower individuals and families while fostering positive and healthy development of the community for nearly 25 years. In their program, SAFE combines occupational and employability skills to help job seekers be ready to enter the workforce regardless of barriers they may have faced in the past. Their dedication to providing practical solutions to modern problems is a testament to their heart for service and passion for helping their community and region.

Region 3 – West AlabamaWorks – Dr. Mike Daria, Superintendent Tuscaloosa City Schools

Dr. Daria has played a crucial role in the success of West Alabama’s workforce development by fostering important relationships between industry and education. His leadership has focused on increased Career Technical Education (CTE) enrollment, supporting local Worlds of Work events and the Educator Workforce Academy. Dr. Daria’s emphasis on the importance of identifying career pathways for the students in his district and then providing viable opportunities for students to take those paths, make him invaluable to West Alabama.

Region 4 – Central Six AlabamaWorks – Ed Farm

Ed Farm is the signature program of TechAlabama that focuses on encouraging children and adults to discover and pursue STEM careers. Ed Farm has a vision for a world full of invention, led by citizens who have been equipped with the necessary tools to fill or create the careers of the future. Through equipping educators and communities with innovative tools, strategies and programs they are able to support active learning for all students. With three signature tracks, Ed Farm is poised to help increase educational equity and improve learning outcomes through technology all while preparing the future tech workforce.

Region 5 – Central AlabamaWorks – Tiger Mochas, Auburn City Schools

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Tiger Mochas is a collaborative effort between special education students, FCCLA (Family, Career, and Community Leaders of America) members and peer volunteers at Auburn High School. This student-led organization is serving up a lot more than hot cups of coffee to their peers because through their work, students are provided meaningful, hands-on work experience that teaches important functional, social and daily living skills. Graduates of the program leave with not only work and employability skills, but in-demand soft skills that will help them succeed in life and work.

Region 6 – Southeast AlabamaWorks – WeeCat Industries

WeeCat Industries uses a simulated workplace model to meet the growing demand for a skilled workforce. WeeCat saw an opportunity to begin teaching work ethics and employability skills as early as preschool, and rose to the challenge. Their students clock into work, run an assembly line, fill orders, check invoices, meet production quota, interview for new positions and implement quality control all while earning a “paycheck” to be spent at the WeeCat Store before they can even spell the word “school”. WeeCat Industries places invaluable skills at a crucial age in development which will shape the future of the workforce.

Region 7 – SAWDC AlabamaWorks – Ed Bushaw

Ed Bushaw with the South Baldwin Chamber of Commerce researched and developed initiatives to address the region’s workforce supply to meet the needs of the growing hospitality and tourism industry in his region. His collaborative efforts with business and industry officials resulted in the development of the first Hospitality and Tourism registered apprenticeship program in Alabama. Apprentices receive classroom instruction as well as valuable real-world experience within the hospitality and tourism industry and finish the program with a credential that can be used to advance their career. Ed’s ability to adapt to the needs of industry and implement programs that address those needs are vital to the continued success of southwest Alabama.

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Economy

Report: Transitioning to electric vehicles could save Alabama millions in health costs

Alabama would experience approximately 500 less asthma attacks per year, about 38 fewer premature deaths and prevent more than 2,200 lost workdays annually.

Micah Danney

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Alabama could save $431 million in public health costs per year by 2050, if the state shifted to an electric transportation sector between now and then, according to a new study by the American Lung Association.

Such a transition would reduce other health-related issues, said the organization, which used data on pollution from vehicles and from oil refineries to calculate its findings.

Alabama would experience approximately 500 less asthma attacks per year, about 38 fewer premature deaths and prevent more than 2,200 lost workdays annually.

The transportation sector is one of the main contributors to air pollution and climate change, said William Barrett, the association’s director of advocacy for clean air and the study’s author.

“We have the technology to transition to cleaner cars, trucks and buses, and by taking that step we can prepare Alabama for the future while also seeing the health and economic benefits forecasted in ‘The Road to Clean Air,’” Barrett said. “Especially as our state faces the impacts of climate change, such as extreme storms, this is a powerful and practical opportunity to take action to improve our economy, our health and our future.”

Trading combustion-powered vehicles for electric ones could result in $11.3 billion in avoided health costs across southern states by mid-century, the report estimated, and prevent roughly 1,000 premature deaths.

Nationally, Americans stand to save $72 billion in health costs and $113 billion in avoided climate change impacts, the ALA said.

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The path to that future depends on leaders factoring public health effects into decisions about transportation, Barrett said.

That involves steps like pursuing electric vehicle fleets when purchasing decisions are being made and supporting the creation of enough charging stations along highways, roads and at truck stops.

Investing in that infrastructure can drive wider economic benefits, Barrett said. He cited California’s increased manufacturing of electric vehicles.

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Tesla is the most well-known producer that has located there, but Barrett said that makers of trucks and buses have also chosen to locate their facilities in the state.

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