This week, both houses of the Alabama Legislature passed bills to address Alabama's workforce and economic vulnerability: Nearly half of the state's working-age population is neither employed nor willing to participate in the workforce, reflected in the state's lowest labor force participation rate in the nation.

The seven-bill package, titled “Working for Alabama,” is the product of state leaders in government, business and education who have studied the challenges of recent years to provide comprehensive solutions that include streamlined approaches to child care, housing, economic development and workforce development.

Lawmakers this week supported the proposal by passing the Alabama Workforce Housing Tax Credit, the Child Care Tax Credit, the Alabama Growth Alliance Act, the Alabama Workforce Transformation Act and the Alabama Career Pathways Act in both or either chambers.

Transforming the Workforce

Streamlining workforce development agencies and efforts at the state level under a new agency, the Alabama Department of Labor, was a top priority identified by Lt. Gov. Will Ainsworth’s 21st Century Workforce Study Commission.

this week, SB247The Workforce Transformation Act has passed both the Alabama House and Senate.

“This is a step forward in labor policy for the state of Alabama,” said Senate Majority Leader Steve Livingston, who sponsored the bill. “It brings all of these agencies under the jurisdiction of the Secretary of Labor. It saves the state money. It makes it easier to find a job. It makes the whole thing work a lot better.”

Under the bill, the Alabama Department of Labor would develop and update the Alabama Workforce Development Plan every four years, outlining the role of the state's workforce-related agencies in a coordinated pathway for recruiting, training, and hiring (including both job placement and retention).

RELATED: 'Work for Alabama' bill to boost state's workforce, economy

Merging the Alabama Department of Commerce and Workforce Development Division's workforce development functions with the Department of Labor would consolidate a total of $370.7 million in state and federal funding allocated to workforce development, and lawmakers say streamlining the state's efforts will ultimately help Alabamians find good jobs.

“Alabama has one of the worst workforce participation rates in the nation,” said State Rep. Danny Garrett (R-Trussville), Chairman of the Education Trust Fund Committee. “But by reducing government inefficiencies, streamlining our state's workforce development programs to make them more effective, and removing key barriers to entry, we will change that and get more Alabamians into the workforce and contributing to our economy.”

The Workforce Transformation Act passed unanimously in both the Senate and the Assembly and now heads to Governor Ivey's desk to await her signature.

Childcare Tax Credit

On Tuesday, the Alabama House of Representatives HB358 To support child care for working Alabamians, the proposal would establish an employer tax credit, a child care facility tax credit and a subsidy program for nonprofit child care providers. The proposal has garnered attention and support from public and private sector leaders since last year.

If passed, the bill would provide tax credits to employers who offer on-site child care or who pay employees up to $600,000 a year in child care costs, as well as to child care providers who participate in the state's Child Care Quality Rating Program and those who donate to nonprofit child care providers to help improve their facilities.

The bill, sponsored by House Minority Leader Anthony Daniels (D-Huntsville), passed unanimously in the Alabama House of Representatives on Thursday and is expected to head to the Senate.

RELATED: State Sen. Gudger: Child care is a lifeline of Alabama's economy, now is the time to invest in it

“In its first year alone, the Child Welfare Tax Credit is projected to affect 7,079 households and 10,000 children, with the potential to reach approximately 58,000 households and 50,000 children over five years.” Said Alabama Sen. Garlan Gudger is sponsoring the child care portion of the Work for Alabama campaign in the Senate.

“Through the implementation of these Child Care Tax Credits, we will be making a strategic investment in Alabama's economy by incentivizing both employers and child care providers to expand access to child care services, allowing parents to support their families while caring for their children,” said Rep. Gudger (R-Cullman).

Housing Tax Credit

Alabama’s Workforce Housing Tax Credit was developed to complement the existing federal Housing Tax Credit program, which was created under the Reagan Administration to encourage investment in the development of affordable workforce housing.

It was introduced in the House of Representatives and sponsored by state Rep. Cynthia Almond. HB346 After some debate, lawmakers passed the bill unanimously. Under the program, developers would receive tax credits in exchange for setting rent caps. Rep. Almond (R-Tuscaloosa) said the benefit of the program is that it incentivizes developers to do things they wouldn't otherwise be able to do, helping to solve Alabama's workforce housing crisis.

RELATED: Mayor Sandy Stimpson: Affordable housing solutions needed to develop Alabama's workforce

State tax credits will fund approximately 25 percent of the development, with the remaining 75 percent being funded by private and federal capital, and no state incentives will be issued until the project is completed.

The housing tax credit portion of Working for Alabama will now head to the Senate, where it is chaired by state Sen. Chris Elliott (R-Josephine).

Career Pathway Method

Bills also passed both houses this week that would create a workforce preparation diploma to help Alabama elementary, middle and high school students who don't want to go to college better prepare for jobs and credentials. The bill would also invest in career and technical education centers across the state.

“We've worked with the Lt. Governor's 21st Century Workforce Commission since 2019 and found that during that time, 45 percent of students graduating from high school aren't going on to college,” said state Sen. Donnie Chesteen (R-Geneva), who led the bill through final passage in the Senate on Tuesday.

“That's why, if we're going to increase labor force participation, we have a group of people we need to get right out of high school. They're healthy, they're ready to get to work. They just need guidance and the skills to get into high-paying, in-demand jobs and be able to provide for their families.”

Related: Developing Alabama's future workforce: More than 5,300 companies partner with ACCS

The new diploma pathway would see the Alabama Department of Education prepare a curriculum to align with the CTE program and fulfill existing math and science requirements for students in grades 10 through 12. “This is good news for some students,” said Rep. Calvin Lawrence, the House sponsor, after the bill passed.

“The reality is that not all Alabama high school students plan on going to college,” said Rep. Lawrence (D-Hayneville). “The good news is that Alabama is home to many high-paying, quality jobs and opportunities for young people to pursue great careers for themselves and their families without needing to earn a four-year degree.”

Alabama Growth Alliance

Lawmakers and state leaders say by leveraging the strengths of both the public and private sectors, the state can foster a more collaborative, efficient approach to economic development. SB252 It ensures that such levels of public-private partnership regularly review the state’s key economic development strategies.

“Economic and workforce development is critical to the future success of our state. Tomorrow's outcomes will be a direct result of the decisions and investments we make today,” Senate President Pro Tempore Greg Reed, the bill's sponsor, said after the bill's passage in the Senate on Tuesday.

“The Alabama Growth Alliance works with public and private stakeholders to consider what our state needs for a brighter future, and this bill will positively impact economic and workforce development planning and investment for generations of Alabamians,” said Reed (R-Jasper).

RELATED: Legislative leaders discuss ambitious workforce and economic development package

When introduced in the House, lawmakers promoted the bill as an additional structural approach and regularly updated economic development plan for the state. The Alabama Growth Alliance Act, introduced by Rep. Randall Shedd (R-Fairview), seeks to set a framework for achieving this goal.

“Over the last few years, we've made great strides on some very important issues in our state,” said State Rep. Randall Shedd after the House passage. “Look at broadband. We were 47th a few years ago and now we're ranked in the top 20. The fact that we've been able to make such progress in such a short period of time is the result of planning, hard work and collaboration between the public and private sectors to create an environment that will make the biggest difference.”

“Having a structure for our state's workforce development efforts that tracks results and ensures accountability, as well as a plan that incorporates private sector input and is regularly updated to address a changing global environment, will allow for a more thoughtful, intentional and effective approach to economic growth,” said Rep. Shedd (R-Fairview).

RELATED: Ainsworth sees Alabama as 'workforce powerhouse in the Southeast'

While several bills contained in the Work for Alabama bill await tweaks and changes from the relevant legislatures, the Workforce Transformation Act is already awaiting Governor Kay Ivey's signature. As first outlined in her 2024 State of the State address, Governor Ivey fully supports the legislative package.

“Our state will not reach its full potential if nearly half of our population remains on the sidelines. Alabama can do better, and to do that we need to make Alabama's workforce programs more effective and efficient,” Ivey said in February.

Tuesday marks the 24th day of the 2024 state legislative session.

Grayson Everett is the state and politics editor for Yellow Hammer News. You can follow him on Twitter. Grayson