>> TODD: FROM OUR STATE HOUSE STUDIO IN MONTGOMERY, I'M TODD STACY.

WELCOME TO CAPITOL JOURNAL.

WE ARE ENTERING THE SECOND WEEK OF THE ALABAMA LEGISLATURE'S 2025 REGULAR SESSION.

I'LL BE SITTING DOWN WITH STATE FINANCE DIRECTOR BILL POOLE A LITTLE LATER IN THE SHOW TO TAL IN DEPTH ON BUDGETS, EDUCATION PROGRESS AND THE STATE OF INNOVATION AND MORE ON THE SESSION IN A BIT.

BUT FIRST, NEWS FROM WASHINGTON THAT COULD HAVE A BIG IMPACT TH STATE OF ALABAMA.

PRESIDENT DONALD TRUMP ANNOUNCE OVER THE WEEKEND A PLAN TO IMPOSE A 25% TARIFF ON STEEL AN ALUMINUM IMPORTS, A MOVE THAT COULD HAVE MAJOR IMPLICATIONS FOR INDUSTRIES IN ALABAMA, INCLUDING THE MASSIVE AUTO INDUSTRY AND THE CONSTRUCTION INDUSTRY.

WITH MAJOR MANUFACTURERS LIKE MERCEDES, HONDA, HYUNDAI, TOYOTA, AND MAZDA RELYING HEAVILY ON ALUMINUM AND STEEL T BUILD VEHICLES, HIGHER COSTS COULD IMPACT EVERYTHING FROM PRODUCTION SCHEDULES TO VEHICLE PRICING FOR CONSUMERS.

TRUMPS SAID THE TARIFFS ARE MEANT TO BOOST AMERICAN STEEL PRODUCTION AND PROTECT DOMESTIC SUPPLIERS, BUT AUTOMAKERS WARN THEY COULD DRIVE UP EXPENSES, FORCE SUPPLY CHAIN ADJUSTMENTS, OR EVEN SLOW FUTURE EXPANSION PLANS IN THE STATE.

MANY MANUFACTURERS AND CONSTRUCTION COMPANIES SOURCE STEEL AND ALUMINUM INTERNATIONALLY TO KEEP COSTS COMPETITIVE.

BUT THAT MIGHT NOT BE THE WHOLE STORY.

TRUMP HAS PREVIOUSLY USED THE THREAT OF TARIFFS TO NEGOTIATE WITH FOREIGN LEADERS ON OTHER MATTERS, NOT INTENDING THEM TO GO INTO EFFECT.

IT'S SHAPING UP TO BE A BUSY WEEK IN THE ALABAMA SENATE AS LAWMAKERS ALREADY HAVE A BACKLO OF BILLS WAITING FOR THEIR CHANCE ON THE FLOOR.

SENATORS ARE EXPECTED TAKE UP A NUMBER OF SUNSET BILLS THAT HAV ALREADY PASSED THE HOUSE, ALONG WITH A SERIES OF APPOINTMENTS THAT REQUIRE CONFIRMATION.

THE SENATE COULD ALSO CONSIDER MULTIPLE BILLS RELATED TO VETERANS' AFFAIRS.

ONE KEY PROPOSAL WOULD CHANGE HOW THE COMMISSIONER OF THE ALABAMA DEPARTMENT OF VETERANS AFFAIRS IS APPOINTED--SHIFTING THE ROLE TO A CABINET-LEVEL POSITION UNDER THE GOVERNOR'S AUTHORITY.

CURRENTLY, THE POSITION IS SELECTED BY THE 17-MEMBER BOARD OF VETERANS AFFAIRS AND IS NOT IN THE GOVERNOR'S CABINET.

LAWMAKERS ARE SET TO DEBATE THE POTENTIAL IMPACT OF THE CHANGE, AS WELL AS OTHER MEASURES AIMED AT SUPPORTING VETERANS.

SENATE PRESIDENT PRO TEM GARLAN GUDGER SAYS VETERANS' LEGISLATION IS A PRIORITY THIS SESSION.

>> A LOT OF IS UPSET BILLS HAVE COME UP IN THE HOUSE.

WE WILL HAVE OVER A HUNDRED CONFIRMATIONS, SO SOME OF THE BILLS THAT WE HAVE TO GET THROUGH OPERATIONS WE WILL BE FOCUSED ON THAT AND ON A LOT OF THE VETERANS BILLS NEXT WEEK.

EVERYBODY ON THIS FLOOR AND THIS CHAMBER LOVES AND ADMIRES AND ARE THANKFUL FOR THE VETERANS THAT WE HAVE NUMBER ONE, AND WE WOULD NOT BE HERE AND HAVE OUR FREEDOM WITHOUT THEM.

EVERYONE IF HERE KNOWS THAT.

NUMBER TWO, THERE ARE PLENTY OF BOARDS WHERE ALL OF THE APPOINTMENTS GO ONE PLACE OR ANOTHER AND THERE ARE DIFFERING OPINIONS LIKE WE SAW TODAY.

THE KEY IS TALKING PART OF ABOUT IT SO THAT WE CAN COMPROMISE AND NEGOTIATE WHAT IS BEST FOSTER THE PEOPLE OF ALABAMA AS THE BILLS COME UP ESPECIALLY THE VETERANS BILLS NEXT WEEK THAT'S SOMETHING THAT WE WILL BE TALKING ABOUT BUT I HATE TO SPEAK FOR EVERYBODY ON THAT INTERIOR BECAUSE THE BILL HAS NOT COME UP, AND WHEN IT DOES, I WILL LET MY CONSTITUENTS TALK ABOUT IT.

>> WE DO EXPECT A PUBLIC HEARIN ON VETERANS LEGISLATION IN THE HOUSE ON WEDNESDAY.

LET'S TAKE A LOOK AT WHAT ELSE TO EXPECT FROM THE HOUSE THIS WEEK.

WE KNOW THE SPEAKER AND HIS LEADERSHIP TEAM ARE EAGER TO GE STARTED ON THEIR CRIME LEGISLATION, WHICH WE EXPECT TO BE IN COMMITTEE ON WEDNESDAY.

AT THE MOMENT THAT IS A BI PARTISAN PACKAGE OF LEGISLATION THAT HELPS FUND CRIME SUPPRESSION UNITS AND BANS GLOC SWITCHES THAT TURN ORDINARY GUN EFFECTIVELY INTO MACHINE GUNS.

WE COULD ALSO SEE MOVEMENT ON THE PACKAGE OF IMMIGRATION BILL THAT WERE INTRODUCED LAST WEEK ATTEMPTING TO LINE UP STATE ENFORCEMENT POLICIES WITH THE MORE AGGRESSIVE APPROACH THE TRUMP ADMINISTRATION IS TAKING TOWARD THE DEPORTATION OF ILLEGAL ALIENS.

WITH SO MUCH FOCUS ON TWO MAJOR ALABAMA INFRASTRUCTURE PROJECTS EXPANDING INTERSTATE 65 AND THE MOBILE RIVER BRIDGE AND BAYWAY PROJECT, LAWMAKERS IN WEST ALABAMA ARE REMINDING THEIR COLLEAGUES ABOUT FOLLOWING THROUGH ON THE STATE'S COMMITTE TO THE HIGHWAY 43 CORRIDOR EXPANSION IN WEST ALABAMA.

STATE REPRESENTATIVE AJ MCCAMPBELL SAID RURAL ALABAMA NEEDS INFRASTRUCTURE INVESTMENTS, TOO.

>> I BELIEVE IT IS OUR DUTY AS STATE LEGISLATORS TO DO EVERYTHING WE CAN TO UNDERSTAND THE ECONOMIC STRUGGLES AND ANXIETIES FACING THE PEOPLE WE ARE ELECTED TO SERVE.

IT'S OUR RESPONSIBILITY TO BE PRUDENT WITH YOUR HARD-EARNED TAX DOLLARS.

BUT IT IS EQUALLY IMPORTANT THAT WE INVEST AND CREATE AN OPPORTUNITIES THAT WILL SPUR FUTURE ECONOMIC GROWTH FOR GENERATIONS TO COME.

A GREAT EXAMPLE OF THIS TYPE OF INVESTMENT IS THE WORK THAT IS BEING DONE ON THE FOUR-LANE HIGHWAY CONSTRUCTION ON HIGHWAY 43 AND 69 CONNECTING TUSCALOOSA WITH MOBILE.

>> REAL QUICK BEFORE WE GO TO BREAK, THIS ISN'T A SPORTS SHOW BUT WE HAVE TO ACKNOWLEDGE WHAT THIS STATE IS DOING IN BASKETBALL.

THE LATEST ASSOCIATE PRESS TOP 25 POLL WAS RELEASED THIS AFTERNOON AND IT HAS AUBURN AND ALABAMA RANKED 1 AND 2 IN THE NATION.

IN FACT, THEY ARE JUST WITHIN A HAIR OF EACH OTHER.

THIS IS OBVIOUSLY THE FIRST TIM THIS HAS EVER HAPPENED AND IT COMES JUST IN TIME FOR THE TIGERS AND TIDE TO FACE EACH OTHER THIS COMING SATURDAY IN TUSCALOOSA.

REALLY SOMETHING SPECIAL WE'RE DOING IN ALABAMA.

WHEN WE COME BACK, STATE FINANC DIRECTOR BILL POOLE JOINS ME HERE AT THE DESK.

STAY WITH US.

>> APT IS ALABAMA'S STORYTELLER STORIES OF ALABAMA HISTORY.

♪ ♪ THE ARTS.

ALABAMA MUSIC.

LEARN MORE ONLINE AT APT.ORG.

>> TODD: WELCOME BACK TO "CAPITOL JOURNAL."

JOINING ME NEXT IS STATE FINANCE DIRECTOR BILL POOLE.

THANK YOU FOR COMING ON THE SHOW.

>> THANK YOU, TODD.

>> WELL, A LOT OF BUCKET BUDGETS FLYING AROUND THE WEEK OF THE BUDGET LEGISLATION IS STATE OF THE STATE, GOING RIGHT INTO THE BUDGET HEARINGS.

YOUR BRIEFINGS WITH REPORTERS, WHICH IS ALWAYS HELPFUL HELPING US UNDERSTAND.

YOU HAD SOMETHING TO SAY ABOUT BUDGETS AND REVENUES GETTING BACK TO NORMAL.

YOU TALKED ABOUT THE SUGAR HIGH OF RECENT YEARS WITH THE FEDERAL MONEY.

WHAT ARE THE IMPLICATIONS OF GETTING BACK TO NORMAL?

>> SO IT HAS BEEN AN EXCITING WEEK IN MONTGOMERY LAST WEEK AS THE LEGISLATURE RETURNED AND THE GOVERNOR GAVE THE STATE OF THE STATE AND WE GAVE HER OUR PROPOSED BUDGETS AND THERE ARE A LOT OF DYNAMICS EVERY YEAR, THE APPROPRIATIONS PACKAGE.

BUT WHAT IS BECOMING FAIRLY CHEER AND IT'S SOMETHING THAT WE ANTICIPATED FOR A WHILE IS WE'RE EXPECTING AND STARTING TO SEE, I THINK, REVENUES RETURNING TO MORE NORMAL TRENDS, YEAR-OVER-YEAR TRENDS IN BOTH BUDGETS IN THE GENERAL FUND DRIVEN BY INTEREST ON STATE DEPOSITS; ON THE EDUCATION SIDE DRIVEN BY INFLATED SALES INCOME AND TAXES DRIVEN BY ANOMALIES WE HAVE SEEN THESE VERY UNUSUAL AND ABNORMAL SPIKES IN REVENUE OF THE BUDGETS.

WE'RE SEEING THAT TOP OFF AND STARTING TO TREND BACK DOWN.

FOR INSTANCE, INDEPENDENT NEXT FISCAL YEAR WE'RE PREDICTING REVENUES WILL DECREASE LIKELY IN THE GENERAL FUND AND BE VERY, VERY FLAT IN THE EDUCATION BUDGET.

SO HERE AGAIN THAT'S MORE OF A NORMAL REVENUE CYCLE.

WE HAVE BEEN IN UNUSUAL TIMES, SO I THINK WE'RE GOING TO SEE THAT RETURN TO NORMAL.

>> YOU MENTIONED THE GENERAL FUND.

I WANT TO GO A LITTLE DEEPER ON THAT BECAUSE YOU'RE RIGHT, INTEREST RATES ARE UP, AND THAT MEANS -- THAT'S A BUMMER IF YOU'RE BUYING A HOUSE OR CAR BUT IF YOU ARE ACTUAL INVESTING LIKE THE STATE IS WITH THE BOND MONIES IT CAN MEAN MORE REVENUE.

TALK ABOUT HOW THAT WORKS IN THE GENERAL FUND.

>> IN THE CONTEXT OF THE GENERAL FUND WE TALK ABOUT GENERAL FUND REVENUES DON'T GROW QUICKLY.

THEY'RE LESS VOLATILE AND ALSO MUCH MORE STATIC AND STICKY IN TERMS OF THE GROWTH REVENUE.

OVER THE LAST TWO YEARS TWO THINGS HAPPENED TO CREATE AN ANOMALY ON THE GENERAL FUND SIDE.

ONE IS THE PANDEMIC AND THE PANDEMIC CASH COMING INTO THE STATE TREASURY HELD UNTIL DISBURSED AND WE STILL HAVE SOME TO BE DIS BURIED.

IT'S BEEN OBLIGATED BUT HAS NOT PAID OUT YET.

SOME OTHER FUNDS HELD HIGHER THAN NORMAL BALANCES IN THE STATE TREASURE.

COUPLE THAT WITH INTEREST RATES SPIKED ALL OF A SUDDEN OVER THE PAST COUPLE OF YEARS.

SO INTEREST EARNED THAT THE STATE HAS HELD ON STATE DEPOSITS HAS INCREASED DRAMATICALLY.

SO IN PRIOR YEARS THAT WOULD TYPICALLY BE -- AND I WON'T GET THIS EXACTLY RIGHT, $30 MILLION A YEAR, $20 MILLION A YEAR OF INCOME.

THE PAST FEW FISCAL YEARS IT'S BEEN A COUPLE HUNDRED MILLION DOLLARS ON THE STATE DEPOSITS SO THAT HAS TURBOCHARGED OUR REVENUE IN TOTALITY FOR THE GENERAL FUND SO WE HAVE HAD A CHANCE TO MAKE INVESTMENTS THE LAST COUPLE OF YEARS, AND I THINK GOOD INVESTMENTS.

BUT WHAT IS IMPORTANT IS, AS WE SEE THE TREASURY BALANCES DRAW DOWN OVER THE NEXT 12 AND 18 MONTHS, WHICH WE KNOW WILL SUBSTANTIALLY HAPPEN EXACTLY THE TIME WE DON'T KNOW, AS WE SEE INTEREST RATES, YOU KNOW, THEY TICKED DOWN A LITTLE BIT.

WHAT IS GOING TO HAPPEN WITH THEM I THINK IS ANYBODY'S SPECULATIVE IDEA RIGHT NOW.

BUT WE KNOW IS THOSE BALANCES COME DOWN.

WE WILL SEE THAT REVENUE STREAM IN THE GENERAL FUND REDUCED SO IT'S GOING TO BE VERY, VERY CRITICAL THAT WE PREPARE THE GENERAL FUND, ITS RECIPIENT BENEFICIARY AGENCIES FOR THAT NORMALIZATION BECAUSE WE COULD FIND OURSELVES IN A DIFFICULT POSITION IF WE'RE NOT CAREFUL AS IT RELATES TO THE GENERAL FUND.

SAME HOLDS FEW TRUE FOR THE EDUCATION BUDGET BUT DIFFERENT STREAMS AND THOSE GET BACK TO HISTORICAL NORMS AS WELL.

>> WHEN YOU'RE FLUSHED WITH CASH IT'S NICE TO HAVE MONEY AND BE ABLE TO SAY YES TO SOME OF THESE PROJECTS AND EVERYTHING BUT YOU DON'T WANT TO CREATE A NEW LINE ITEM TO WHERE IT'S -- HEY, THIS MONEY IS REALLY JUST TEMPORARY AND THEN IT'S PERCEIVED AS A CUT TWO YEARS LATER.

DO YOU TRY TO BE CAREFUL ABOUT THAT?

>> WE HAVE.

THERE ARE A COUPLE OF THINGS LIKE IN YOUR HOME OR BUSINESS, AND I THINK SIGNIFICANT CREDIT TO THE GOVERNOR AND TO THE LEGISLATURE FOR BEEPING CAUTIOUS AND STRATEGIC IN THIS SPIRIT.

BUT ONE YOU PAY DOWN DEBT WHEN YOU HAVE A LITTLE ONE TIME EXTRA CASH.

WE HAVE DONE THAT IN THE STATE OF ALABAMA.

TWO, SET SOME ASIDE FOR A RAINY DAY BECAUSE GOOD TIMES PASS AND THERE WILL BE DOWN CYCLES.

THE STATE HAS PLUSSED UP THE RAINY DAY ACCOUNTS FOR THE SIGNIFICANT BENEFIT OF THE STATE, WHICH, BY THE WAY, HELPED US UNDERPIN OUR CREDIT WORTHINESS AS STATE.

GETTING OFF IN THE WEEDS BUT WE'RE IN A GOOD POSITION THERE IF WE HAVE THAT TIME TO TALK ABOUT THAT.

AND THREE, YOU MAKE A FEW STRATEGIC INVESTMENTS.

YOU DON'T BITE OFF WITH THINGS YOU CAN'T SUSTAIN.

BUT YOU MAKE STRATEGIC INVESTMENTS.

ON THE GENERAL FUND SIDE WE INVESTED IN PRISONS, MENTAL HEALTH INFRASTRUCTURE, ONE TIME THINGS.

ON THE EDUCATION BUDGET, WE HAVE BEEN ABLE TO BITE OFF CAPITAL PROJECTS, GET SOME ONE TIME MONEY TO SCHOOLS IN THE FORM OF TRANSPORTATION FOR FLEET RENEWAL SCHOOLS, SAFETY, TECHNOLOGY, A LOT OF THINGS LIKE THAT THAT YOU DON'T HAVE TO HAVE THE SUSTAINABLE FUNDING NECESSARY.

>> I DON'T WANT TO GET EVERYBODY ALL WORKED UP BUT I HAVE YOU HERE.

YOU'RE THE FINANCE DIRECTOR AND IT'S YOUR JOB TO THINK LONG-TERM AND EVERYTHING.

I'M CURIOUS.

WHEN IT COMES TO THE BUDGET WHAT KEEPS YOU UP AT KNOW.

WHAT WORRIES YOU IN THE FUTURE ABOUT OH, ARE WE GOING TO BE ABLE TO SUSTAIN THIS OR NOT ECONOMICALLY?

>> WELL, I THINK GENERALLY THAT SAME THING IS WE HAVE HAD REALLY ABUNDANT HEALTHY BUDGETS THE LAST FEW YEARS.

VERY UNUSUALLY SO IN THE GENERAL FUND.

BUT REALLY TRULY FOR THE EDUCATION BUDGET, TOO.

SO BOTH BUDGETS ARE AT HISTORIC HIGHS FROM AN APPROPRIATIONS STANDPOINT.

SO WHAT DOES KEEP ME UP IS A COUPLE OF THINGS.

ONE IS CAN WE SUSTAIN THAT.

ECONOMIC CYCLES ARE GOING TO BE GOING TO GO UP AND GOING TO GO DOWN AND ARE WE PREPARED FOR THE DOWNTURN?

I THINK THAT IS PART OF OUR RESPONSIBILITY IN THE STATE GOVERNMENT IS TO THINK ABOUT THAT.

YOU CAN'T PLAN WITH FEAR BUT YOU HAVE TO PLAN WITH WISDOM AND YOU HAVE TO UNDERSTAND TRADITIONAL CYCLES OF THE ECONOMY.

SO WITH HAVE WE DONE THAT?

I THINK SO.

BUT I DO THINK PARTICULARLY ON THE GENERAL FUND SIDE OVER THE NEXT COUPLE OF FISCAL YEARS WE'RE GOING TO BE TESTED IN TERMS OF SPENDING LEVELS RELATIVE TO REVENUES AND HOW THOSE SHAKE OUT IN A POST-COVID ECONOMY, AND A LOT OF THAT IS GOING TO DEPEND ON OUR ECONOMY AND WHAT THINGS SHAPE OUT ACROSS THE NATIONAL AND STATEWIDE ECONOMY.

SO SAME ON THE EDUCATION SIDE.

WE HAVE ACCOMPLISHED AN ENORMOUS AMOUNT IN EDUCATION AND I THINK WE'RE SEEING TRENDS WE CAN BE VERY, VERY PROUD OF.

CAN WE MAINTAIN NOT ONLY THAT MOMENTUM BUT CAN WE SUPPORT THOSE PROGRAMS, BE TRUE TO THOSE PROGRAMS AND CONTINUE THOSE FOR THE BENEFIT OF OUR CITIZENS AND OUR CHILDREN AND OUR FUTURE.

>> YEAH, BECAUSE WE KNOW WHAT HAPPENED WHEN WE GOT -- LAST TIME.

AND I WANT TO GET BACK TO THAT.

REAL QUICK I WANTED TO ASK YOU ABOUT PRISON CONSTRUCTION.

BECAUSE IT'S ONGOING.

WE HAVE THESE TWO PROJECTS, ONGOING IN ELMORE.

THEY'RE REALLY GETTING CLOSE THERE.

BUT YOU KNOW, THEY SAY THERE'S MONEY TO GET ESCAMBIA COUNTY GOING.

SENATOR ALBRITTON HAD AN INTERESTING COMMENT AND HE HAS LEGISLATION, I DON'T KNOW IF IT'S DROPPED YET, ABOUT POSSIBLY FLOATING A $350 MILLION BOND OR THE AUTHORITY FOR THAT BOND.

I KNOW WE DIDN'T GET QUITE ALL WE WANTED FROM THE FIRST BOND ISSUE BECAUSE SOME OF THE SOCIAL JUSTICE STUFF WAS GOING ON.

WHAT DO YOU THINK ABOUT THAT?

DO YOU THINK THE STATE SHOULD BE IN THE BUSINESS OF BORROWING MORE MONEY FOR THAT PRISON CONSTRUCTION?

>> SO A COUPLE OF THINGS ON THE PRISON.

THAT PRISON IS COMING ALONG AND IT SHOULD OPEN IN MAY OF 2026 IF I'M CORRECT.

>> RIGHT AROUND THE CORNER.

>> REALLY KIND OF AN EXCITING -- A LOT OF HARD WORK AND A LOT OF CREDIT TO GOVERNOR IVEY AND HERE LEADERSHIP, A LOT OF CREDIT TO THE LEGISLATURE AND THEIR LEADERSHIP, A LOT OF CREDIT TO CHAIRMAN ALBRITTON AND REYNOLDS.

BUILDING PRISON IS NOT A FUN PROJECT, NOT AN EASY PROJECT.

4 THOUSAND BEDS IN ELMORE.

YOU THINK ABOUT ALL IT TAKES TO HOUSE 4 THOUSAND PRISONERS.

IT'S NOT AN APARTMENT COMPLEX WITH 2 BY 4'S AND PLYWOOD.

IT'S A SECURE PRISON FACILITY STATE OF THE ART SO IT'S GOING TO BE GOOD TO SEE THAT COME ONLINE.

THE NEXT PROJECT THAT IS SCHEDULED TO IS THE ESCAMBIA COUNTY.

SO THE SECOND NEW PRISON FACILITY.

IN CORRECTIONS RIGHT NOW IS PRECEDING ON A STAGE BUILD AND BID PROCESS.

THEY'RE PRE-K TO I THINK MOVE FORWARD WITH ONE OF THOSE FIRST STAGES.

I DON'T REMEMBER EXACTLY.

I THINK THAT WILL BE 2025, 500 BEDS.

WE'RE IN A GOOD POSITION OF FINANCING THAT AND THAT'S WHERE WE STAND NOW AS IT RELATES TO THE DEPARTMENT OF CORRECTIONS IS FOCUSING ON THAT COMPONENT OF ESCAMBIA.

AFTER THAT A COUPLE OF THINGS ARE GOING TO HAPPEN AND THESE ARE ALL REQUIRED BY STATUE.

IT CALLS FOR ESCAMBIA TO BE A 4,000-BED FACILITY, SO AT SOME-POINT THAT WILL NEED TO BE A 4,000-BED FACILITY.

IT ALWAYS CALLS YOU ONCE THAT IS COMPLETE TO GO ON TO OTHER AVENUES.

THERE'S NO EXPLORATION RIGHT NOW OF ANY SIGNIFICANT INITIAL DEBT ISSUE FOR PRISON CONSTRUCTION.

THE FOCUS RIGHT NOW SOW FINISH ELMORE, MOVE FORWARD WITH A STAGED PROCESS ON ESCAMBIA, LET THE STATE SEE WHERE WE STAND AND PLAN ACCORDINGLY FROM THERE.

BUT I WOULD POINT OUT THE TRANSITION INTO ELMORE IS GOING TO BE A CHALLENGE IN AND OF ITSELF.

YOU DON'T JUST WALK 4,000 PRISONERS ACROSS THE STREET ONE DAY AND TURN THE LIGHTS ON AND IT WORKS.

THERE ARE A LOT OF FUNDS THAT IS GOING TO REQUIRE, GETTING ESCAMBIA MOVING FORWARD, THAT'S THE NEXT STEP.

>> AND JUST THINKING ABOUT THAT NEW PRISON IN ELMORE, AGAIN, A YEAR OR LITTLE MORE THAN A YEAR FROM OPENING, THE WHOLE POINT IS IT'S SAFER, SAFER FOR OF THE INMATES AND SAFER FOR THE CORRECTIONAL OFFICERS, THE DILAPIDATED FACILITIES ALL OF THE PROBLEMS THAT COME WITH THOSE, HOPEFULLY IN PART WILL BE ADDRESSED BY MODERN FACILITIES THAT AREN'T THE 60 OR 08-YEAR OLD FACILITIES THAT ARE OPERATIONAL RIGHT NOW.

>> AND IT CONSOLIDATES A LOT OF OPERATION SPREAD ACROSS MULTIPLE PRISON LOCATIONS WITH A MODERNIZED FACILITY.

IT'S SAFER FOR EVERYBODY INVOLVED INCLUDING THE CORRECTIONS STAFF.

>> I WANT TO ASK YOU ABOUT INNOVATION.

YOU HAVE BEEN INVOLVED WITH INNOVATE ALABAMA WHEN IT STARTED AS A GERM OF AN IDEA AND HAS REALLY BLOSSOMED.

IT'S ONE OF THE THINGS WHERE NOT CREATED EFFORT REALLY PRODUCES A LOT OF RESULTS.

SOMETIMES IT CAN BE PRO FORMA.

SOMETIMES IT CAN BE WELL OKAY WE MET AND HAD A COUPLE OF PROMISE AND TURNED IT OVER.

THAT'S NOT WHAT THIS HAS BEEN.

I HAVE BEEN REALLY IMPRESSED FROM THE VERY BEGINNING JUST HOW RESULTS ORIENTED INNOVATE ALABAMA HAS BEEN.

YOU HAVE BEEN THERE FROM THE VERY BEGINNING.

YOU'RE CHAIRMAN OF IT.

TALK ABOUT WHAT IT'S LIKE TO SEE SOMETHING ACTUALLY RECEIVE RESULTS RATHER THAN JUST YOU PRODUCED A REPORT AND IT SITS ON A SHELF.

>> I THINK INNOVATE ALABAMA IS CRITICAL FOR THE FUTURE OF THE STATE.

WE'RE REALLY GOOD AT INDUSTRIAL RECRUITMENT AND A LOT OF THINGS BUT WE HAVE TO THINK ABOUT THE FUTURE ECONOMY, THAT'S GOING TO INVOLVE INNOVATION AND TECHNOLOGY AND RESEARCH.

INNOVATION IS GOING TO BE DISRUPTED BY TECHNOLOGY AND THAT'S GOING TO CHANGE FASTER AND FASTER SO WE HAVE A LOT OF ASSETS IN ALABAMA, BUT WE REALLY DIDN'T HAVE A CLEAR PLAN ON HOW TO MARSHAL AND LEVERAGE THOSE ASSET SO HE IS INNOVATE ALABAMA FILLS THAT VOID AND IT IS A TRUE PUBLIC-PRIVATE PARTNERSHIP WHICH IS FAIRLY UNIQUE IN STATES GENERALLY.

WE HAVE A REMARKABLE BOARD WITH PRIVATE SECTOR LEADERS COUPLED WITH PUBLIC SECTOR LEADERS THAT ARE POLICYMAKERS BUT IT'S FOCUSED ON THREE THINGS.

ONE IS ACCESS TO CAPITAL.

WE KNOW OUR START UP AND TECHNOLOGY COMPANIES STRUGGLE WITH START UP CAPITAL.

SO SETTING UP INSTITUTIONS FOR OUTSIDE CAPITOL.

WE WANT TO ATTRACT OUTSIDE CAPITAL TO COME IN THE STATE AND INVEST IN OUR SMALL AND INNOVATION COMPANIES.

TWO, TALENT AND RECRUITMENT.

WE HAVE A LOT OF BRILLIANT COLLEGE GRADUATES, WORKERS, WHOMEVER THEY MAY BE.

WE NEED TO KEEP THEM IN ALABAMA WE NEED TO HAVE JOBS OF THE FUTURE FOR THEM, HAVE OPPORTUNITIES FOR THEM AND WE NEED TO RECRUIT TALENT.

TALENT IS THE NAME OF THE GAME, WHETHER IT'S FOOTBALL OR BASKETBALL THESE DAYS WITH ALABAMA.

>> NUMBER ONE AND TWO NUMBER.

>> THAT'S RIGHT.

PRETTY IMPRESSIVE.

AND THIRD, LEVERAGING OUR QUALITY OF LIFE IN ALABAMA.

AND I THINK THAT'S SOMETHING THAT WE TAKE FOR GRANTED SOMETIMES IN ALABAMA, BUT WE HAVE TO WONDERFUL QUALITY OF LIFE, WE HAVE WONDERFUL OUTDOOR RECREATION OPPORTUNITIES LEVERAGING ALL OF THOSE TO FACILITY ECONOMIC DEVELOPMENT AND GROWTH IN ALABAMA AND IT'S REALLY IMPORTANT.

SO INNOVATE ALABAMA IS REALLY STILL A VERY YOUNG ENTITY THAT HAS PRODUCED ENORMOUS RESULTS.

AND THOSE ARE GOING TO MULTIPLE SUBSTANTIALLY EACH YEAR THAT THAT ORGANIZATION CONTINUES TO WORK.

AND I THINK IT'S UNIQUE, TOO, BECAUSE IT'S NOT JUST CONFINED TO URBAN LARGE CITIES.

IT'S A WAY TO REACH SOME OF THOSE STUDENTS INTO RURAL ALABAMA AND MEET THOSE COMMUNITIES WHERE THEY ARE AND FIND WHAT THEIR STRENGTHS ARE AND LEVERAGE THOSE, PARTICULARLY AS WE INVEST IN BROADBAND AROUND THE STATE AND WIRE IN WITH HIGH-SPEED INTERNET.

THEE COMMUNITIES HAVEN'T HAD THAT ACCESS SO FAR SO I THINK IT'S THE RIGHT EFFORT AT THE RIGHT TIME FOR OUR STATE AND I THINK IT'S BAN WONDERFUL SUCCESS.

>> INTERESTING THAT YOU TALK ABOUT WHAT WAS REFERRED TO FOR DECADES AS THE BRAIN TRAIN, LIKE RETAINING THAT -- YOU KNOW FOLKS MOVING OUT TO COLLEGE AND WHAT NOT.

IT'S BEEN AN ISSUE FOR 20 YEARS OR MORE.

I'M NOT SURE A WHOLE LOT HAS BEEN DONE ABOUT IT.

I REALLY THINK THAT'S INTERESTING.

BEFORE I LET YOU GO, BACK TO EDUCATION.

WE CANNOT OVERSTATE THE SIGNIFICANCE OF THE SCORES AND THE SHOT IN THE ARM IT WAS FOR THE EDUCATION COMMUNITY AND THOSE IN THIS BUILDING THAT VOTE ON POLICY.

YOU WERE ONE OF THEM.

YOU WERE THE EDUCATION BUDGET CHAIRMAN IN THE HOUSE.

YOU KNOW THAT WAS BACK WHEN SOME OF THESE LAWS WERE BEING PUT INTO PLACE.

SOME OF THAT VISION ABOUT NUMERACY, LITERACY AND THINGS LIKE THAT.

WAS IT NICE JUST TO SEE SOME CONCRETE RESULTS OF WHAT Y'ALL HAVE BEEN WORKING UPON FOR YEARS.

>> WELL, I THINK WAS NICE FOR EVERYBODY.

CAN I SPEAK FROM MY OWN PERSPECTIVE, BUT WHETHER YOU'RE A TEACHER, EDUCATOR, POLICY MAKER, THE GOVERNOR, WHOMEVER YOU ARE WHO HAS CONTRIBUTED TO EDUCATION IN ALABAMA, IT WAS A GOOD DAY LAST WEEK, AND I THINK IT'S BEEN A GOOD DAY EVER SINCE.

I HAVE TOLD A COUPLE OF GROUPS SINCE THEN.

I TOLD THEM ONE OF MY HAPPIEST DAYS IN PUBLIC SERVICE MIGHT HAVE BEEN WHEN WE SAW THE FOURTH GRADE READING AND MATH SCORES COME OUT LAST WEEK.

BECAUSE THERE HAVE BEEN A LOT OF PEOPLE THAT WORKED SO HARD ACROSS EDUCATION, ACROSS STATE GOVERNMENT, IN EVERY COMMUNITY TO TRY TO MAKE THAT HAPPEN.

AND TO SEE THE FOURTH GRADE SCORES MOVE THAT SIGNIFICANTLY, TO SEE ALABAMA MOVE OUT OF THE BOTTOM OF THE RANKS INTO THE MIDDLE OF THE RANKS, TO SEE US HAVE THE LARGEST GAINS IN THE COUNTRY, SEE US AS ONLY ONE OF TWO STATES SUCCEEDING OUR PREPANDEMIC SCORES.

WE DIDN'T SEE IT ACROSS THE BOARD BUT WE SAW IT IN OUR FOURTH GRADE.

SO WHAT WE NEED TO DO NOW IS RECOGNIZE, OKAY, WHAT'S WORKING?

WHAT ARE WE DOING WELL?

WHAT IS AFFECTING THAT CHANGE?

HOW DO WE SUSTAIN THAT SO THE FOURTH GRADERS HAVE THE SUCCESS IN 8TH GRADE AND MATRICULATE THAT THROUGH AND HOW DO WE BRING THE COHORTS BEHIND THEM ALONG EVEN MORE MOMENTUM AND BRING THE RANKINGS UP AND PREPARE OUR STATE.

I THINK WE WHEN WE TALK ABOUT BRAIN TRAIL DRAIN AND TECHNOLOGY AND BROADBAND AND OUR ABILITY AS A STATE TO HAVE SUCCESS, I THINK THIS IS OUR MOMENT AND NOW WE SEE OUR PUBLIC EDUCATION SYSTEM WITH A REAL KIND OF MOMENTUM-BUILDING OPPORTUNITY HERE, I MEAN, ALL OF THOSE THINGS COUNT TOGETHER AND I THINK REALLY WE'RE JUST IN AN INCREDIBLE POSITION IN ALABAMA AS WE THINK ABOUT OUR FUTURE.

WE THINK ABOUT OUR PAST.

BUT THIS IS OUR KIND OF CHANCE IN ALABAMA, I THINK, TO JUST FALL TO THE TOP NOT ONLY IN EDUCATION BUT IN A LOT OF RANKINGS.

WE HAVE SEEN THAT BUT WHERE YOU CAN'T DO IT WITHOUT EDUCATION.

EDUCATION IS THE FOUNDATION AND SO IT'S JUST INCREDIBLE TO SEE THOSE GAINS.

CREDIT TO GOVERNOR IVEY, CREDIT TO THE LEGISLATURE, CREDIT TO THE TEACHERS, CREDIT TO EVERYBODY WHO IS PARTICIPATING AND INVOLVED IN THAT.

>> IT'S CERTAINLY FUN TO SEE, BUT WE NEED TO KEEP OUR FOOT ON THE GAS.

FOR SURE.

THANK YOU FOR COMING ON THE SHOW.

WE WILL LOOK FORWARD TO KEEPING THE CONVERSATION GOING AS THE CONVERSATION CONTINUES.

>> GREAT TO SEE YOU, TODD.

>> WE WILL BE RIGHT BACK.

>> FOUNDED AROUND 1120 MOUNDVILLE WAS LOCATED ON THE BANKS OF THE BLACK WARRIOR RIVER, 14 MILES SOUTH OF PRESENT DAY TUSCALOOSA.

A THRIVING CEREMONIAL CENTER OF MISSISSIPPI CULTURE, THE SITE WAS OCCUPIED FOR MORE THAN THREE CENTURIES BUT WAS ABANDONED BY THE EARLY 16TH CENTURY.

>> ALABAMA PUBLIC TELEVISION IS YOUR PLACE FOR QUALITY EDUCATIONAL SERVICES.

FREE PROFILE DEVELOPMENT FOR EDUCATORS AND CHILDCARE PROVIDERS WITH ACCESS TO PRE-CURRICULUM, LESSON PLANS AND INSTRUCTIONAL RESOURCES WITH PBS LEARNING MEDIA AND ALL OF THE PBS KIDS PROGRAMS PARENTS SHOW AND TRUST.

LEARN SOMETHING NEW EVERY DAY WITH ALABAMA PUBLIC TELEVISION.

VISIT US AT APT.ORG/EDUCATION TO LEARN MORE.

>> THAT'S OUR SHOW FOR TONIGHT.

THANKS FOR WATCHING.

WE WILL BE BACK TOMORROW NIGHT AT THE SAME TIME RIGHT HERE ON ALABAMA PUBLIC TELEVISION.

FOR OUR "CAPITOL JOURNAL" TEAM, I'M TODD STACIE.