Goat Hill Report- Week Ending March 14, 2025
This week the Alabama legislature returned from last week’s break to complete the sixth week of the 2025 session. The legislature was in session for a three-day week, convening on the House and Senate floor on Tuesday, Wednesday and Thursday with committee meetings largely on Wednesday. As part of the on-again-off-again March schedule, the legislature will be off again next week and then back in session the following week (week of March 31). **Please note: due to the legislature’s break next week, there will be no weekly legislative report next Friday (March 28).** The legislature has now completed 16 days, which is just past the halfway point of the (maximum) 30-day session. The session is expected to wrap up in mid-May. Details of this week’s notable action and news items are provided below.
Paid Parental Leave Passes the House, Goes to Governor’s Desk
On Thursday, the House voted 94-2 to approve a final Senate version of a bill that would give Alabama teachers and state workers up to eight weeks of paid parental leave. SB199 by Sen. Vivian Figures (D-Mobile) was shepherded in the House by Rep. Ginny Shaver (R-Leesburg), and was prominently supported by Gov. Kay Ivey who called it a “pro-family, pro-workforce and pro-Alabama bill.” The bipartisan legislation now awaits the governor’s signature. The proposed law would give female state employees and teachers eight weeks of paid parental leave in the event of a birth, stillbirth or miscarriage of a child. Male employees would receive two weeks of leave under the same circumstances. On the House floor on Thursday, Rep. Shaver echoed the Governor’s pro-family message, but also spoke in terms of state government and school systems being more competitive for employees against private industry and our surrounding states. Every neighboring state except Mississippi provide similar benefits. In fact, Alabama will join at least 36 other states providing paid leave to state employees once the Governor signs the law as anticipated.
Preview of Second Half of Session
• Budgets Looming: The state’s two budgets, the Education Trust Fund (ETF) and the General Fund (GF), will be near the top of the agenda when lawmakers return in early April. The General Fund, which originates in the House this year, is expected to be in committee the first week after spring break – while the Senate is expected to begin its work on the Education Trust Fund the following week. On the General Fund side, the biggest identified funding needs for Fiscal Year 2026 are the Alabama Department of Corrections and the Alabama Medicaid Agency. On the Education side, priority items worth watching at the funding amounts for the first year of the state’s education savings account (ESA) program as well as a major modification of the state’s public education funding formula to better account for individual student needs.
• Tax Cut Differences: Directly related to the budgets, there is some lingering uncertainty as to how the House and Senate will reconcile their thoughts on tax reform in the coming weeks. The House has already passed a package of bills which broad based tax relief (i.e., further reduction of grocery tax, increasing standard deductions for certain income thresholds, etc.); the Senate has yet to act on any of the House-passed bills. One wrinkle is the pending expiration of a legislation which exempts taxation of overtime pay (originally passed in 2023), which has bipartisan support but comes with a hefty annual price tag. Some supporters of the measure are framing it as a potential tax increase on working Alabamians if the measure is allowed to sunset.
• ALFA Health Plan: A high-profile tussle between Montgomery interest groups has re-emerged in recent days. The Alabama Farmers Federation (ALFA), one of the most prominent trade associations in the state, is ramping up its legislative efforts to offer health plans to its membership. A House version of ALFA’s bill filed on Thursday includes almost 40 co-sponsors from both parties. Thus far, Alabama’s dominant health insurer, BlueCross BlueShield, has been able to counter ALFA’s grassroots efforts to some extent, but a full debate on the merits of the proposal is due to happen soon. As healthcare affordability concerns persist in our state, there is precedence for a proposal like ALFA’s – especially in the Southeast, with Tennessee’s Farm Bureau plan being held up as a gold standard.
• Gambling Push: Speaking of high-profile, it is increasingly likely that a comprehensive gambling bill will be introduced when the Legislature reconvenes. Last year’s effort to both regulate illegal gaming and provide a pathway for casinos, sports betting, and a lottery came very close to final passage. With the 2026 election cycle set to begin in less than 2 months, this session is widely considered to be the last shot at a comprehensive bill until at least 2027. That would be no guarantee either, as a new Governor – who may or may not be supportive of the push – will be in office at that time. State Senator Greg Albritton (R-Atmore), a historic proponent of gaming, continues to be the key “cog in the wheel” as he also chairs the state General Fund budget committee and can wield political influence in a variety of ways. As always, expect the unexpected when it comes to this topic.
News of Interest to the Concrete Industry
The ACIA will be hosting a breakfast for legislators on April 10, 2025 at 8 am in conjunction with the Home Builders Association of Alabama. If you would like to attend, please email John Sorrell at jsorrell@alconcrete.org.
Click here for a report of bills the ACIA is tracking during the session. The legislature will return on April 1, 2025 following a one-week break.