This is Part 2 (see Part 1 here) of a three-part series written after Yellowhammer News’s state political reporter, Adam Thomas, spent a day with Governor Bentley and his team on the governor’s “Road to Economic Recovery Tour.”
The magic number is 5.2.
Alabama Governor Robert Bentley pledged not to take a salary until Alabama reaches “full employment,” or 5.2 percent.
I asked him last week while tagging along on his “Road to Economic Recovery Tour” if he thinks he can get the state to that point if the voters give him a second term.
His answer was simple: “I do.”
Alabama’s unemployment rate has fallen precipitously since Bentley took office, from almost ten percent in early 2011, to just over six percent now. Some critics are quick to point out that the drop is partially due to some Alabamians simply dropping out of the labor force after not being able to find work for so long. Such is the case in other parts of the country as well.
When asked about the biggest obstacles to job creation, the governor points his finger squarely at the federal government and the burdensome regulations they’re placing on entrepreneurs — especially ObamaCare.
“I think that if Washington would get out of the way we could reach it much quicker. If the Affordable Care Act had never been passed we would already be there,” he said.
Bentley may be known for his low key style, but he becomes more animated when expressing his frustration with the feds. In a speech delivered earlier this year to the Public Affair Research Council in Birmingham, Bentley called ObamaCare “one of the worst pieces of legislation that has ever been written.”
At David’s Catfish House in Andalusia last week, he seemed to pick that sentence up right where he’d left off.
“Washington is an impediment to job creation, not a creator of jobs,” he said bluntly. “Jobs are never created by presidents. They don’t get out and recruit jobs like I do. They don’t talk to all these companies like I do. Job creation is done by governors and local economic developers and by local citizens who sell their town. All of those things put together are what is bringing companies to Alabama.”
Airbus is the most notable economic development success of the governor’s first term, but it is only one of multiple companies wooed to Alabama by large economic incentives packages.
A major topic of discussion among some policy analysts is whether or not these packages ultimately pay off for the taxpayers. Most seem to agree that some, like Mercedes, have been a major success, while others, like ThyssenKrupp, may never garner a return on the taxpayers’ investment.
It’s difficult to measure any incentive package’s success. When a major manufacturer locates in the state, their impact is amplified by the smaller suppliers that follow them to the area. A ripple effect takes place, and it’s hard to quantify.
Bentley lobbied the voters heavily last year to pass Amendment 2, which he called “the jobs amendment.”
The state’s source of funding for economic incentives — a $750 million bond program — had only $30 million left in it. The amendment allowed the state to refinance the bonds and take advantage of lower interest rates. The $750 million cap remained in place, but it freed up more money for Bentley’s commerce department to put to use when crafting incentive packages.
The rare criticism of the Bentley administration when it comes to economic development is that they’re a “one-trick pony,” relying too heavily on the incentives to attract jobs.
Bentley disagrees, and says his team has a three-step plan called “Accelerate Alabama” that is going to push Alabama’s unemployment rate even lower: recruitment, retention and renewal.
RECRUITMENT
Bentley says Alabama’s status as a Right-to-Work state has been a major selling point to companies around the world.
“You recruit industries by having an environment within the state that makes companies want to come to Alabama,” he said. “First is we are a Right-to-Work state, and we are a low unionized state. If we were a high unionized state or a low right to work state, we wouldn’t be able to recruit any of these jobs. They wouldn’t even look at Alabama.”
The governor spoke at length about the importance of keeping energy costs and taxes as low as possible. He also said that a quality education system and sound infrastructure were big selling points for companies considering locating in Alabama.
“You put all that together and you have an environment that makes it easier for us to recruit jobs,” he said. “But the most important reason that companies come to Alabama is that we have the best workforce of any state in the country.”
RETENTION
“Retaining jobs in Alabama is just as important as recruiting jobs,” Bentley said, turning to the second part of his “Accelerate Alabama” plan.
The Administration is focusing heavily on workforce training to make sure expanding companies have a pool of qualified employees ready to fill their needs.
“We have good work force training through AIDT and our two year college system.” Bentley explained. “Not every child is going to go to college. We have got make sure students understand that technical training, even in high school, is not for low-skilled positions. These are jobs in which you need to be able to communicate, you have to be able to write, you have to be able to read, you need math and science — these are high tech jobs.”
RENEWAL
“Renewal deals with entrepreneurship and innovation,” Bentley said, launching into the third prong of his plan. “That means you’re a person with ideas, and those ideas develop into a product, and that product develops into a company and begins to hire people and grow.”
One of the governor’s stated goals is to create a business climate in which the entrepreneurial process is free to take place uninhibited.
An entrepreneur somewhere in Alabama may be sitting on the next big thing, but the governor says he’s not sitting back and waiting. Turning our attention back to recruitment, I asked Governor Bentley if he has any Airbus-like announcements coming before election day.
“One in particular, if we get it, it will probably be the largest that state has ever seen. But I can’t talk about that right now.”
For now, Alabama sits at 6.3 percent unemployment — another stop on the “Road to Economic Recovery.” Or perhaps more specifically, the Road to 5.2.
Part 3 of this series will focus on the Bentley re-election campaign.
Follow Adam on Twitter @AdamYHN
Don’t miss out! Subscribe today to have Alabama’s leading headlines delivered to your inbox.