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Alabama Economic News

In early May, the Tennessee Valley Authority (TVA) “announced plans to outsource 20 percent of its highly-skilled technology workforce to Capgemini, CGI, and Accenture — companies based in France, Canada, and Ireland respectively,” according to Rachel M. Cohen of The Intercept. This has outraged union workers in Alabama and it has drawn criticism from Alabama’s junior Senator, Doug Jones. On Tuesday, Senator Jones issued a statement condemning the outsourcing of jobs by TVA. “I stand with the Engineering Association today — and every day — as they watch their jobs outsourced to a foreign company in the middle of a pandemic,” Jones said. He concluded, “The Tennessee Valley Authority (TVA) was formed to help grow this country’s middle class and bring the American economy out…

On Thursday, President Donald Trump toured a shipyard in Marinette, a city located in the battleground state of Wisconsin. In 2016, the President won the state of Wisconsin by less than 1 point. During a series of remarks, the President touted a $5.5 billion federal contract that was awarded to the shipyard to build the U.S. Navy Frigate FFG(X). He also reaffirmed his commitment to American workers. “Under this administration, you know that American workers like you are a national treasure,” he said. He continued, “Through your sweat, skill and devotion, the workers of this shipyard will forge the future of the United States Navy,” and “You’ll fashion the ultimate symbol of American power and American prestige.” The Alabama Democratic Party issued a press release…

Moody’s Analytics estimates that Alabama would face a fiscal shock of $1.4 billion in a scenario where the COVID-19 pandemic caused a severe recession. Moody’s Analytics, in an effort to try to provide policymakers and other stakeholders with an estimate of the potential downside implications, ran two recession scenarios through their usual state budget stress-testing methodology. Looking at the moderate recession test, the state is better prepared than most and would still retain 2 percent of its total 2019 revenues. Alabama could operate for an estimated 35.3 days on its rainy day fund, which totaled $848 million in the fiscal year 2019. Alabama was 1 of 17 states in the report with enough rainy day funds to be able to weather the economic impact of…

Kay Ivey

At a press conference on Tuesday, Alabama Governor Kay Ivey announced that the current Stay-At-Home order will expire on April 30th at 5 p.m. “On April 30th, our current stay-at-home order will expire,” Governor Ivey stated. Ivey also said, “All businesses are essential…no matter the size. You have tremendous value to our state.” “I look forward to easing back to our routines with caution.” A Safer-At-Home order will go into effect the moment after the Stay-At-Home order expires. This new Safer-At-Home order will expire on May 15th. The Governor’s office issued the following guidelines for this order: NEW UPDATES:INDIVIDUALSEncouraged to stay home and follow good sanitation practicesEMPLOYERSBusinesses may open subject to sanitation and social-distancing guidelines; certain higher-riskbusinesses and activities remain closedRETAIL STORESAll retail stores open…

On Monday, Alabama State Rep. Danny Garrett tweeted that Governor Kay Ivey would an announcement tomorrow regarding her plans for reopening the state’s economy. “On a call w/ members of the Alabama Legislature this morning, Gov. Ivey said she would make an announcement tomorrow (4/28) on her plans to begin reopening the state’s economy. She previously stated she would make decision about phased reopening of businesses on or before 4/28,” Garret’s tweet states. The Governor’s office confirmed that she would be holding a press conference tomorrow at 11 a.m. at the State Capital. She will be joined at the conference by State Health Officer Scott Harris and members of the state’s Coronavirus Task Force. Ivey has taken a cautious approach to reopening the state’s economy….

Kay Ivey

As the coronavirus pandemic becomes more devastating across the United States, students are continuing their academic studies online. Public schools and universities across the country have closed their campuses and fully transitioned to an online instruction platform. Communities are thus reliant on access to broadband high-speed internet. Today Governor Kay Ivey awarded $9.5 million in grants to telecom companies across the state in order to bring broadband to rural and under-served areas. These grants were made possible by the Alabama Broadband Accessibility Fund. In a press release, Governor Ivey stated, “Availability of high-speed internet has always been vital, but the events of the past several weeks magnify just how imperative it is that all Alabamians have access to broadband,” “I am pleased to support these…

On Friday, Governor Kay Ivey delivered an update to her State of Emergency declaration for the state of Alabama. Beginning at 5:00 on Saturday, all non-essential businesses in Alabama must close during the course of the COVID-19 pandemic. Non-essential businesses include entertainment venues, athletic facilities and activities, non-essential “close-contact” service establishments, and non-essential retail stores. However, two Republican lawmakers voiced their opposition to closing all non-essential businesses on their respective social media platforms. In a post on his personal Facebook page, State Rep. Danny Garrett (R-Trussville) wrote, “I support the Governor’s efforts to make Alabama safer, but the government should not pick winners and losers. This recent order, in my opinion, is unfair to small business owners.” State Sen. Tom Whatley (R-Auburn), who is the…

Financial Advisory, Corporate Tax Planning or Optimization

Governor Kay Ivey and the Alabama Department of Revenue announced today that the state income tax filing due date is extended from April 15, 2020, to July 15, 2020. Taxpayers can also defer state income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers. “This morning, I signed a supplemental State of Emergency order to allow the Alabama Department of Revenue to extend state filings until July 15, 2020,” said Governor Ivey. “It is imperative we reduce the burden upon Alabamians and get folks back on their feet financially. The safety and wellbeing of Alabamians is the…

The store closed

Governor Kay Ivey and the Alabama Department of Public Health (ADPH) on Thursday issued a statewide health order to aid in Alabama’s efforts to contain the spread of the Coronavirus (COVID-19). Statewide Through April 5 All gatherings of 25 persons or more, or gatherings of any size that cannot maintain a consistent six-foot distance between persons, are prohibited. This Order shall apply to all gatherings, events or activities that bring 25 or more persons in a single room or single space at the same time. Any restaurant, bar, brewery or similar establishments shall not permit on-premise consumption of food or drink. Governor Ivey continues to encourage patrons to visit their local eateries for take-out or delivery provided the social distancing protocols include maintaining a consistent six-foot…

Bank credit card, moneys and coins and bank contract on background. Money and concept credit concept

Governor Kay Ivey on Tuesday in cooperation with the Superintendent of Banking Mike Hill emphasized measures taken by financial regulators to protect the financial system within the state. The Alabama Banking Department, which oversees operations of our banks, has partnered with its regulated banks to ensure those financial institutions are as prepared as possible for situations such as the COVID-19 (Coronavirus) pandemic. The objective of financial regulators and the state and national banks has been to ensure that the financial needs of our citizens and their customers are met without interruption or added hardships. “I am confident in the preparations and plans that our financial institutions have put in place,” said Ivey. “I also have significant confidence in the underlying health of our financial services…

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