Ivey proposes $400 tax rebates during State of the State

Gov. Kay Ivey’s first State of the State address of her second term featured a proposal for $400 tax rebates, the possible creation of a healthcare magnet school and a special guest: Terry Saban.

Ivey called for a special session of the legislature beginning tomorrow to determine how Alabama should distribute more than $1 billion in American Rescue Plan Act funds. Ivey urged lawmakers to approve one-time tax rebates of $400 to all eligible Alabamians from the funds.

Much of Ivey’s speech focused on new policies aimed at boosting business in the state and improving educational outcomes, which are currently some of the worst in the nation.

But the line that drew the biggest applause of the evening was Ivey’s call for the approval of House Bill 1, which would increase penalties for those convicted of trafficking fentanyl.

“By doing this, we will put any traffickers of this deadly drug behind bars — and keep them there,” Ivey said.

Ivey urged legislators to completely pay off the Alabama Trust Fund and announced the creation of a $200 million grant program called the Main Street Program, which supports locally owned businesses across the state.

She also hinted at an executive order coming Wednesday morning that she said would be a step toward delivering on her inaugural promise to “cut regulations by 25% over the next two years.”

Ivey boasted about the state’s economic success under her tenure as governor, including $42 billion in investment which she said has created 78,000 new jobs.

Ivey announced she is including 2% pay raises for all teachers in the state in her proposed budget.

A new magnet high school may be on the horizon as well. Ivey proposed the establishment of the Alabama School of Healthcare Sciences in Demopolis. The school would offer high school students STEM and healthcare courses as well as hands-on clinical training, Ivey said.

“Y’all, when these students receive their diplomas, they will be ready to fill a broad spectrum of healthcare jobs or pursue a higher education,” Ivey said.

Ivey announced that the state will be the newest partner of the Saban Center, an interactive and immersive education center in Tuscaloosa for students across the state. The center, which isn’t opened yet, will offer education in STEM, arts and sports sciences, Ivey said.

House Minority Leader Anthony Daniels, D-Huntsville, said he was disappointed that Ivey didn’t address youth violence during her speech. Daniels also said healthcare is a major concern for many Alabamians, especially those from rural areas.

Daniels and Rep. Sam Jones, D-Mobile, called for the expansion of Medicaid. Democrats have tried each year since the Affordable Care Act was passed for Alabama to join the national program but have come up short each time.

Senate Minority Leader Bobby Singleton, D-Greensboro, said he thought ARPA funds could be better spent investing in education and rural health care but wasn’t opposed to Ivey’s proposal.

“At the end of the day, we’ll take a rebate,” Singleton said.

Jones also felt that Ivey needed to talk about the state of Alabama’s criminal justice system if she supports increased penalties for fentanyl traffickers.

“You’ve got all kind of violence, tremendous costs for the state (in prisons), and I think we need to talk about our criminal justice system,” Jones said.

Daniels said he’s in favor of the creation of a healthcare magnet school, but he also said that students in every county should have pathways for them to get training in fields they’re interested in.

Evan Mealins is the justice reporter for the Montgomery Advertiser. Contact him at emealins@gannett.com or follow him on Twitter @EvanMealins.

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This article originally appeared on Montgomery Advertiser: Ivey State of the State: ARPA funded tax rebates, raises for teachers