3 years ago

POWER & INFLUENCE 50: Alabama’s most powerful & influential business leaders

The Yellowhammer Power & Influence 50 is an annual list of the 50 most powerful and influential players in Alabama politics and business — the men and women who shape the state.

This year’s list is being released in three segments: Government officials and politicians, lobbyists and consultants, and today’s segment, business leaders.

Don’t miss Yellowhammer’s 2nd Annual Power of Service reception honoring the men and women on the Power & Influence 50 list who leverage their stature to make a positive impact on the state. The event is set to take place Friday, May 13th at the Grand Bohemian Hotel in Mountain Brook. Last year’s event attracted a who’s who of Alabama politics and business, including the Governor, Lt. Governor, Speaker of the House, Pro Tem of the Senate, numerous members of Congress, dozens of state legislators and many of the state’s top executives, lobbyists, opinion leaders and political activists. For more information on the event click here and to purchase tickets click here.

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Rick Burgess, nationally syndicated talk radio host, Rick & Bubba Show

As the only media personality on the Power & Influence 50, Burgess is a unique fit among the state’s business elite. He and his co-host, Bill “Bubba” Bussey, have built a radio empire that gives them an unmatched platform to entertain listeners across Alabama and beyond, as well as advance their Christian, conservative worldview and political agenda.

Burgess represents the duo on the Power & Influence list because he has shown a greater willingness to throw his weight behind political candidates in recent years, most notably Congressman Gary Palmer, whom Burgess helped propel into office with a giant wave of ads featuring his endorsement. He has also become one of the state’s most outspoken opponents of gambling expansions of any kind.

Candidates will be lining up to garner Burgess’s backing in the years to come, but he’s already proven to be very picky when it comes to supporting politicians. That makes his endorsement even more valuable.

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Mark Crosswhite, CEO, Alabama Power Company

Crosswhite is now two years into his tenure atop the Power Company and continues to impress with his exacting approach to both internal company operations and governmental affairs.

APCO’s operation is so vast that almost every state policy has the potential to affect their business in some way. For that reason, the company has been an active player for decades in every nook and cranny of state government — from the county and municipal levels up to the legislative and executive branches.

Crosswhite served as Alabama Power’s Executive Vice President of External Affairs for almost three years; then became CEO and President of Gulf Power, another Southern Company subsidiary. He was then Chief Operating Officer and Executive Vice President of Southern Company from mid-2012 until March of 2014 when he became CEO of Alabama Power at the age of 50.

With seemingly limitless resources, Crosswhite and Alabama Power wield influence on a level that most others — including many on this list — can only dream of.

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Garry Neil Drummond, CEO, Drummond Coal

The Drummond family built a multinational coal juggernaut off of a $300 loan from Walker County Bank in Jasper, Alabama, using three mules as collateral on the note.

As the third generation CEO (he took over the company in 1961 and spurred it on to previously unfathomable heights), Mr. Drummond has endured the Obama administration’s wrath to an extent that few Americans can even imagine.

No other industry in America has been the target of such fierce opposition from the government, but Drummond has thrived by diversifying his company’s holdings and continuing to run one of the most efficient mining operations in the world.

Forbes ranks him as Alabama’s wealthiest individual, which means he is one of the few Alabama businessmen who routinely gets courted by national politicians. Presidential candidates have been known to carve out chunks of entire days to try to get on Mr. Drummond’s calendar for a meeting.

For most businessmen it works the other way around. Drummond’s in a league of his own in the Yellowhammer State. He doesn’t just work for a giant company — he is a giant company.

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Joe Espy, President, Melton Espy & Williams PC

Espy is the preeminent criminal defense attorney in Alabama and the first call when almost any top tier political figure needs legal counsel. When it comes to needing the type of representation Espy provides, there are no party lines. He has represented Democrats and Republicans alike. He currently reps the governor, which means he will likely be omnipresent in political circles for the foreseeable future.

On top of his highly successful law practice, Espy is also a University of Alabama Trustee, placing him in rarified air among the state’s business elite.

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Grayson Hall, CEO, Regions Bank

Hall has banking in his bloodstream. There was little doubt where he was headed after earning his MBA at the University of Alabama and later graduating from the Stonier School of Banking. He has been working his way up since then and now helms the largest publicly traded company in Alabama.

He is a fierce believer in the concept of “shared value,” which is essentially the idea that all company initiatives should create value in some way for its customers, employees, shareholders and communities. That approach has earned Regions the best reputation among banks nationally, up from No. 19 just a few years ago.

In addition to his enviable position atop Regions, Hall also serves on a handful of other influential boards of directors, including Alabama Power’s.

Every ambitious politician from Alabama or passing through the state — from members of Congress to presidential candidates — has Hall on their call list.

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Johnny Johns, Chairman, President and CEO, Protective Life Corporation

The soft-spoken CEO of Protective Life Corporation has an unrivaled rolodex and intense desire to leave the state of Alabama better than he found it. Under Johns’ leadership, Protective has been a philanthropic powerhouse in the Birmingham community. After merging with Tokyo-based Dai-ichi Life Insurance Co. last year, the newly combined companies donated a stunning $4.1 million toward initiatives that will impact medical research, education and culture in Alabama for many years to come. This year the company donated $500,000 toward to the UAB Athletic Foundation’s $15 million goal for a proposed Football Operations Building.

Johns is on numerous influential boards of directors, including Regions Financial Corporation, Southern Company and the University of Alabama System.

His influence on Alabama’s political landscape extends back to the mid-90s when he and a group of powerful businessmen put together a successful effort to flip Alabama’s courts — which had become known as “tort hell” — to Republican control. He was also a major contributor to the 2010 effort to end 136 years of Democratic control in the Alabama legislature.

Johns is one of the first calls for any aspiring statewide candidate.

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Terry Kellogg, CEO, Blue Cross and Blue Shield of Alabama

Kellogg has spent three decades with BCBS, rising up through the ranks to become the company’s CEO in 2010. He has earned a reputation for being brilliant and not scared to tell it like it is. BCBS of Alabama maintains the largest market share of any health insurer in the country.

Under Kellogg’s leadership, BCBS has been one of the most politically active companies in Alabama, maintaining a strong presence at the Statehouse and actively engaging in a wide variety of policy issues. He has guided the company well through the tumultuous implementation of ObamaCare.

Kellogg told the Birmingham Business Journal last year that his leadership style is inspired by Dwight Eisenhower.

“Eisenhower was on the ground everywhere,” he said, “present all the time and accessible.”

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Thomas M. “Tommy” Lee

Lee is president and CEO of Vulcan, Inc., an aluminum manufacturer based in Foley, and he’s got over four decades of south Alabama business and political connections at his disposal. He is a former Chairman of the South Baldwin Chamber of Commerce and a past winner of the Walton M. Vines Free Enterprise Person of the Year.

He is making his first ever appearance on the Power & Influence 50 this year due in large part to his ascendance to the chairmanship of the Business Council of Alabama, a powerful voice representing the statewide business community’s interests before state government.

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John McMahon, Chairman, Ligon Industries

McMahon is the kind of industrialist who would fit right in in the pages of an Ayn Rand novel — a legendary investor in the Alabama business community whose holdings span diverse industries and dot the U.S. map. He is also on numerous influential boards of directors, including Protective Life Insurance Corporation, ProAssurance Corporation, National Bank of Commerce, Cooper/T. Smith Corporation and UAB Health Systems.

He keeps his head down and avoids the spotlights, but anyone in the know understands just how influential he has been and continues to be in Alabama politics. He was a key player in the business community’s revolt against “tort hell” in the mid-90s, a movement whose impact continues to ripple across Alabama’s economic landscape. Since then he has been a powerful ally for numerous powerful politicians, including state legislators, members of congress and presidential candidates.

When McMahon calls, everyone answers.

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Claude B. Nielsen, CEO, Coca-Cola Bottling Company UNITED, Inc.

Claude Nielsen joined Coca-Cola Bottling Company UNITED, Inc. in 1979 and has been the company’s CEO since 1991. Under his direction, Coca-Cola UNITED has become the largest privately held Coca-Cola Bottler in the United States and is the 7th largest privately held company in Alabama.

He flexed his muscle politically last year by personally making calls to lawmakers in an effort kill a proposed soda tax increase. One legislator who was on the fence about the issue told Yellowhammer, “Once he called, I was a ‘no,’ end of discussion.”

That’s the level of influence that has propelled Nielsen onto this year’s Power & Influence 50.

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Craft O’Neal, Chairman and CEO, O’Neal Industries

O’Neal runs Birmingham’s second largest private company, a $2.5 billion per year juggernaut that employs roughly 370 people in the Magic City alone.

The O’Neal name is golden in Alabama business circles. His grandfather founded O’Neal Steel, which is now O’Neal Industries, and his father ran the company for many years as the younger O’Neal worked his way up and ultimately succeeded him as chairman and CEO.

O’Neal flexed his muscle this past year by helping pull together a group of Birmingham heavyweights to resurrect UAB football. With O’Neal playing a key role, the group navigated a labyrinth of political challenges and ultimately succeeded, a result that could have a profound impact on the Birmingham community for decades to come.

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Jimmy Parnell, President, CEO and Chairman, Alfa

Simply put: Parnell is a great American.

He was driving a tractor when he was five and managing his family farm’s payroll by age 12. His subsequent success in private business (he’s a partner in his family’s beef cattle farm and timber business) and deep farming background (he’s a fifth generation farmer) prepared him for his current role as CEO of Alfa, an organization whose agriculture and insurance interests make them one of the top players in Alabama’s economic and political landscape.

There isn’t an organization in the state that can touch Alfa’s grassroots capabilities. When their members get engaged on an issue or back a candidate, it matters. Their governmental affairs team is one of the largest and most active on Goat Hill.

It is hard to believe there was a time prior to Parnell’s tenure when Alfa was behind the curve in adjusting to Republican control after the 2010 election cycle. With Parnell at the helm, they’re not behind the curve on anything — ever.

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Jimmy Rane, CEO, Great Southern Wood Preserving Incorporated

Alabama’s preeminent entrepreneur built a multinational lumber empire from the tiny town of Abbeville, then devoted his resources to sustaining and developing his hometown’s economy and culture. As a result he is beloved by the local community and revered by his employees.

Rane, who is commonly known as the “Yella Fella” after portraying that character in popular Yellawood TV commercials, now owns and runs the largest lumber treatment company on the planet.

Politically, Rane has long been one of the Republican Party’s most influential supporters, even while Democrats held total sway over the state. He was a major financial backer of the GOP’s successful effort to takeover the legislature in 2010, and remains a close ally of legislative leadership.

He is the most influential member of the Auburn University board of trustees, currently serving as president pro tem.

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Britt Sexton, CEO, Sexton Inc.

Anyone who can position himself as a vocal leader on the University of Alabama Board of Trustees must have some serious juice. Behind the scenes, Sexton has been a major part of waking the sleeping political giant that is the UA System.

He is one of the state’s most successful investors, with business interests ranging from financial services and private equity to software and real estate.

His financial resources have allowed him to become one of north Alabama’s most significant philanthropists.

And when it comes to politics, any ambitious politician would do well to try to enter his orbit, because while many other power players of his stature are in the twilight of their careers, Sexton has decades ahead of him.

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Gary Smith, President & CEO, PowerSouth

Smith has really shepherded a new era at PowerSouth. The company has gone from a small co-op at odds with the state’s largest utility, to a major statewide player in economic development and energy policy and a partner with Alabama Power.

Their influence will continue to grow in the political space with the founding of the The Energy Institute of Alabama, an advocacy group aimed at promoting the state’s energy sector that is being chaired by PowerSouth VP Seth Hammett.

Smith has put together a good team with a mix of veterans and young talent. This is his first year on the Power & Influence 50. Expect him and his company to continue to rise in the years to come.

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Zeke Smith, Executive Vice President of External Affairs, Alabama Power Company

There has been a lot of internal shuffling at Alabama Power in recent months, which has actually allowed Smith — a longtime member of the Power & Influence 50 — to consolidate power with regard to the company’s enormous external affairs operation.

He has drawn rave reviews for his leadership on the Alabama Workforce Council, an organization that is leading the effort to redesign the state’s workforce development initiatives and prepare the next generation to compete in the global marketplace. Smith was personally tapped by the governor to spearhead the group, just one example of his stature in the upper echelons of Alabama’s political and business structure.

He is one of the few individuals whose political network and influence is felt in both Montgomery and Washington. Whether you’re a freshman state legislator or a long-time United States senator, you want Smith in your corner.

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Finis St. John, IV, Attorney

“Fess,” as he is known, is perhaps the most influential member of the University of Alabama Board of Trustees and currently serves as the System’s Athletic Chair. He has been a fierce proponent of the UA System’s multi-campus setup. Most recently he has been the driving force behind the UA System getting more involved in federal and state governmental affairs, an initiative that could change the state’s political landscape in profound ways.

St. John’s family has a long history in Alabama politics. His father served as president pro tem of the senate in the late 1970s.

Today he and his wife run a highly successful law firm in Cullman. They are the only husband-wife pair who are members of the American College of Trial Lawyers, which is a big deal in the legal community.

St. John is Chairman of the Board of Directors for Southern Community Bankshares and First Community Bank and also is Chairman of the Board of Directors and co-founder of Cullman Environmental.

He has carved out an influential space for himself, in spite of not being based in the traditional power centers of Birmingham or Montgomery.

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Lee Styslinger, III, CEO, Altec Inc.

From Birmingham, Styslinger runs an electric and telecommunications equipment manufacturer whose products can be found getting work done in over 100 countries.

His political influence, similar to his business interests, expands outside of Alabama. He is among the first Alabamians any aspiring Republican presidential candidate will try to get on the phone. When Paul Ryan and Mitt Romney came to Alabama, Styslinger was their guy. When Jeb Bush sought an Alabamian to activate his giant fundraising base in the state, Styslinger is the man he tapped to do it.

He is a member of the extremely powerful Business Roundtable, a group of CEOs of major U.S. corporations, and of the Council on Foreign Relations.

Perhaps most impressively in sports crazed Alabama, Styslinger is a member of the Augusta National Golf Club and part of the Masters Tournament Committee.

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Mike Thompson, CEO, Thompson Tractor

When it comes to infrastructure projects in the state of Alabama, few people are as engaged as Thompson, whose machines have helped build an unfathomable number of miles of highway in the Yellowhammer State.

He was one of the key financial backers of the Republican takeover of the state legislature in 2010, and on the national level he is a coveted “bundler” for presidential candidates, most notably the Bushes.

Thompson has been known to call state lawmakers into his office to personally persuade them to support legislation he cares about. They usually get on board quickly.

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Dr. Robert Witt, Chancellor, University of Alabama System

The UA System is Alabama’s largest employer and the umbrella organization for the state’s most iconic institution. That alone would make Witt one of the most influential individuals in the state, but in the same way he executed an unprecedented growth strategy in his previous post as president of the System’s flagship university, he is now taking the System’s political influence to new heights as well.

With the teachers union crippled, Witt and his allies on the UA Board saw an opportunity to fill the power vacuum with an advocacy group focused on education outcomes, rather than just teacher benefits. Witt now chairs Alabama Unites for Education, and is building out a multi-pronged political operation that includes lobbying, grassroots advocacy and candidate recruitment and support.

Witt is one of the few individuals whose influences touches all of Alabama’s “big three” — politics, business and sports.

11 mins ago

Birmingham’s new Sidewalk Film Center and Cinema is ready for its premiere

The new, permanent home of Birmingham’s Sidewalk Film Festival will open its doors this weekend, just in time for this year’s event.

Chloe Cook, executive director of the Sidewalk Film Festival, said the 11,500 square-foot facility is not complete, but is far enough along to be used as a festival venue this weekend.

“After the festival we will go dark for a week,” Cook said. “Then we will have a soft opening Labor Day weekend before our grand opening September 13-15. We’re very excited.”

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Sidewalk Film Center and Cinema a dream come true from Alabama NewsCenter on Vimeo.

The cinema, located in the basement of the Pizitz building on 2nd Avenue North, features two 89-seat theaters and an education room for special events. Outside of the festival week, it will function very much like a typical movie theater, operating seven days a week on a year-round basis, screening the latest independent feature films on one of two screens.

“We’re excited to have something slightly larger than a jewel-box movie theater, but not a huge multiplex-type facility where we can carefully curate the programming for our community,” Cook said. “When I took the job in 2009 I did not imagine this would come to fruition. I really think a lot of redevelopment in the north side of downtown Birmingham has happened around our annual festival and it continued happening to the point that we felt like the timing was right to pursue this project and fill that cultural void.”

Cook said the $4.9 million facility would not have happened without the generous support of a variety of contributors.

“We have been so fortunate to receive generous support from our corporate community, including Alabama Power (Foundation)Regions BankBlue Cross Blue Shield of Alabama, as well as our foundation community,” Cook said. “We’ve seen support from the Hugh Kaul Foundation, The Stephens Foundation, The Daniel Foundation, but we’ve also seen a lot of individuals who are not people who could start a foundation but they can send in a check for $250 or $25. That’s been really rewarding.”

To learn more about the Sidewalk Film Center and Cinema, visit MakeMovieMagic.com. To learn more about the Sidewalk Film Festival, visit SidewalkFest.com.

(Courtesy of Alabama NewsCenter)

SchoolFest sets the stage for Alabama children

The following is the latest installment of the Alabama Power Foundation’s annual report, highlighting the people and groups spreading good across Alabama with the foundation’s support.

 

Plato said art imitates life. Oscar Wilde said it was the other way around. It’s an argument that continues. However, one art form brings us face to face with the connection between art and life, perhaps better than any other: theater. It’s here people act out stories, hoping their audience forgets for a moment that it’s all make-believe. Were it not for the SchoolFest program of the Alabama Shakespeare Festival (ASF), many Alabama children might never be exposed to the magic of theater.

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Every year, 40,000 students attend SchoolFest in Montgomery. From the professional actors to the costume and set design, the productions are the same as those presented to other ASF audiences. Thanks to grants from the Alabama Power Foundation and others, ticket prices are discounted and many schools attend for free, exposing students from all walks of life to art.

For some, it’s an experience they’ll never forget. For others, like Emily Prim, it’s life-changing. Prim is assistant wardrobe supervisor at ASF. She remembers distinctly when the “theater bug” bit her. “I was in seventh grade at St. James School in Montgomery. We had a field trip to SchoolFest, where we saw ‘James and the Giant Peach.’ I remember it so well, because there was a Ferris wheel on stage that was the peach, and I thought that was so cool. I was sorta thinking about theater, because of shows we had done in school and stuff, but when I came to see ‘James’ here, it made me start thinking that this is something I could do after I graduate,” Prim said.

Prim’s experience is what ASF is all about. Executive Director Todd Schmidt put it this way: “It’s really a bedrock of our mission at ASF, which is to create communities through transformative theatrical experiences. It’s a lot of kids’ first introduction to theater. It’s important to do that, especially in this time of continued cuts in arts funding.”

Shakespeare Festival’s SchoolFest puts the arts at center stage for Alabama students from Alabama NewsCenter on Vimeo.

Just in the past year, students have seen productions of “The Sound of Music,” “Romeo and Juliet,” “Our Town,” “Steel Magnolias” and “Four Little Girls: Birmingham 1963.” The latter featured 24 students from Montgomery Public Schools in the cast. Schmidt chooses shows that are appropriate for audiences of all ages. SchoolFest builds many of these productions around school curricula.

“We put our programming out to schools, and then they select what they think is relevant to what they’re doing and what they want their kids to be exposed to,” Schmidt said.

What started decades ago as productions appropriate for students has continued to expand. In addition to SchoolFest, ASF offers educational programs. There are theater classes for adults and children, and summer theater camps for students. ASF has hosted a series of conversations that are tied – at least in part – to the shows. U.S. Rep. Terri Sewell spoke alongside a cast member from “Four Little Girls: Birmingham 1963.”

“These are not about our productions, but they focus on themes of the productions,” Schmidt said. “There’s one coming up that talks about women dealing with glass ceilings, working in fields normally dominated by men, which ties somewhat into the production of ‘Steel Magnolias’ and a new production, ‘Into the Breeches.’”

Lonny Harrison, director of theater at St. James School in Montgomery, has been bringing students to see productions at ASF for 21 years. “We have some students who, up to the point they’ve hit SchoolFest, have never seen a live production outside of a school play. This definitely helps get them more into the arts.

It seems like kids respond differently to every show, but whether it’s something that’s the most amazing thing to them, or something that makes them think more critically, it at least makes them think about it. When we left ‘Romeo and Juliet’ the other day, kids were saying, ‘Let’s do some Shakespeare!’ I had to tell them, ‘Small steps.’”

Harrison has a long history with SchoolFest. He saw stage productions at ASF when he was in school. His experience echoes that of many Alabamians. Were you to poll the state, you’d likely be amazed at the number of people of all ages who’ve shared the marvel of live performance in a theater at the Alabama Shakespeare Festival.

In Alabama, it’s a generational thing. When it comes to the art imitating life vs. life imitating art question, perhaps Shakespeare got it right when, in the second act of “As You Like It,” the character Jaques said, “All the world’s a stage and all the men and women merely players. They have their exits and their entrances, and one man in his time plays many parts.”

The parts being played by the men and women of the Alabama Shakespeare Festival are a rich and vital service to the people of our state. These are the people who transform our children, who show them a new and lively way to understand stories, and life – its comedies and tragedies. These are the “players” who expand the minds of our young people, and show them a world that lives within their own ability to imagine.

For more information on the Alabama Power Foundation and its annual report, visit here.

(Courtesy of Alabama NewsCenter)

4 hours ago

Aderholt’s advice for Alabama’s 2020 U.S. Senate candidates: ‘Make it very clear that they’re supportive of the president’

Although it is still the early going of the 2020 U.S. Senate Republican primary election campaign, U.S. Rep. Robert Aderholt (R-Haleyville) has some advice for the handful of candidates seeking the GOP nod.

When asked what he saw as important to him and his constituents in Alabama’s fourth congressional district, he said it was support for President Donald Trump.

In the 2016 presidential election, Trump dominated Aderholt’s district by winning more than 80% of the vote and was the only district in the country to break the 80% threshold.

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“They’ve clearly got to make sure that they make it very clear that they’re supportive of the president,” Aderholt said. “I mean, this president has as much support of any since I have been in office. I have never seen a president that has the support this president has. He has, everywhere I go, people are very optimistic that they are very positive about what he is doing. And they’re optimistic about the future. So I would first of all — they need to let their constituents, future constituents that are voters, know that they’re someone who would stand with the president.”

“As someone who is in another branch of government, we always want to make sure we don’t do just exactly like the executive or the president wants to do regardless of who it is,” he continued. “The Founding Fathers wanted the different branches to be a watchdog on each other. But, as I have seen from this president, the things that he is doing is consistent with what the voters want and what has been good for America. I’m fully supportive of this president. I think they need to communicate they’re supporting the president. I think that is probably the biggest thing right now. Alabama is a very pro-life state, and I think they need to communicate that, which again is consistent with the president’s message.”

Aderholt also suggested the Senate candidates should be supportive of Trump’s efforts to renegotiate NAFTA.

“I am also getting the feedback that the Mexican-Canadian trade agreement that the president is trying to negotiate — to redo NAFTA, people are very supportive of that,” Aderholt added. “But again, the president has been very supportive of these issues. What the president is doing, I’m very supportive of. I don’t see any issue as far as supporting what the president’s issue is.”

@Jeff_Poor is a graduate of Auburn University, the editor of Breitbart TV and host of “The Jeff Poor Show” from 2-5 p.m. on WVNN in Huntsville.

5 hours ago

Georgia-based Colonial sues contractor over Alabama spill

Georgia-based Colonial Pipeline Co. has sued an Alabama contractor over a spill that threatened gasoline supplies along the East Coast three years ago.

The pipeline operator contends faulty work by the Birmingham-based Ceco Pipeline Services caused a crack that spilled at least 250,000 gallons of gasoline in rural Shelby County in September 2016.

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The spill shut down a major pipeline for weeks, tightening gasoline supplies along the Eastern Seaboard.

The pipeline carries fuel from Houston to metropolitan New York.

With headquarters near Atlanta in Alpharetta, Colonial Pipeline filed the federal lawsuit Friday seeking an unspecified amount of money.

Ceco Pipeline Services has not filed a response in court, and general manager Luke Hotze declined comment Monday, citing the lawsuit.

Hired to replace coatings that protect the pipeline’s exterior, the contractor failed to adequately replace dirt around the pipeline after maintenance work, the suit said.

The failure left a void beneath the pipe, which bent as it sagged.

The bend caused cracks that led to the breach, according to the suit.

The failure cost Colonial Pipeline lost income, plus money spent on repairs and cleanup, the lawsuit said without specifying an amount.

The lawsuit said Colonial Pipeline transports an average of 100 million gallons (378 million liters) of refined petroleum products daily through a system that includes more than 5,500 miles (8,850 kilometers) of pipeline.
(Associated Press, copyright 2019)

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‘School choice’ also means ‘tax choice’ in Alabama

It’s back-to-school season and for some parents, this is a happy time.

But for those whose children are stuck in underperforming schools, or schools where they are bullied or are in danger, this is a heartbreaking time, especially if they cannot afford to move or go to private school.

“There was fighting every day. People wanted to shoot me, kill me, and everything,” said Calvin Coleman in a speech about his experiences at his Mobile public high school.

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Did you know that you, or your company, can help students like Calvin by donating a portion of what you already owe in state income taxes to a program that funds scholarships for low-income families in Alabama?

“When my son Carlos was in the fifth grade, he was constantly bullied and I wanted to desperately put him into a private school,” wrote Nyenya Webster of Montgomery in Alabama Daily News. Every day was a struggle, she added. “I was at a loss as to what to do to help my son.”

Then Webster learned about the tax-credit scholarship program created in 2013 by the Alabama Accountability Act that serves roughly 4,000 low-income, mostly minority Alabama students.

She applied, and Carlos received a scholarship to attend Success Unlimited Academy in Montgomery.

“Success Unlimited has been a lifesaver for my son,” Webster wrote. “He … is now considering college. My son never talked about going to college before Success.”

For those who want to help other Alabama families break the cycle of poverty through education, it’s a no-brainer.

“For a donor, it doesn’t cost them anything,” said Warren Callaway, executive director of Scholarships For Kids, one of the scholarship granting organizations funded by the program.

That’s because a tax credit is different from a charitable contribution. When you make a charitable contribution to a non-profit organization, you deduct a portion of that on your income tax. However, a tax credit allows you to take a dollar for dollar reduction in your state income tax.

“Basically, donors are redirecting some of their state income tax liability to a [scholarship granting organization],” Callaway said. “So, if you give $100 to us, you can reduce your state income tax by $100.”

Who benefits from the donation?

“The average household income for these students is under $30,000 so these are families that would have no other way of choosing the school that is best for their child,” said Ryan Cantrell, director of state strategy and political affairs for the American Federation for Children, during an interview of the 1819 podcast.

Higher-income families have always had school choice, Cantrell said, but “it’s the low-income families who get stuck with no options in under-performing schools or schools that don’t work for their child.”

There are $30 million in tax credits available and, so far, only about a third have been claimed, according to the Department of Revenue’s My Alabama Taxes website.

Here’s how you can reserve your tax credit before the December 31, 2019, deadline:

Step 1: Estimate how much income tax you or your business will owe Alabama next year by checking how much you paid last year. Individuals and corporations can donate up to 50 percent of their tax bill, and while individuals are limited to $50,000, corporations are unlimited.

Step 2: Visit the My Alabama Taxes website and follow instructions for reserving an Alabama Accountability Act tax credit.

Step 3: Send a check to one of the seven scholarship granting organizations in Alabama within 30 days.

Step 4: When you do your taxes next year, fill out an Alabama Department of Revenue Schedule AATC form to reduce your income tax bill by the amount you donated.

For more help, individuals may call the Alabama Department of Revenue at 334-353-0602 or 334-353-9770, and corporations may call 334-242-1200.

You’re already going to have to write a check for your state income taxes. Why not control where some of that money goes, especially when it has the power to change lives?

“It was a relief that nobody would understand,” said mother-of-five Alleane West in an Alabama Opportunity Scholarship video about the program’s impact on her family. “You know, you’re a single mom with boys trying to not make them a statistic.”

Watch:

Rachel Blackmon Bryars is a senior fellow at the Alabama Policy Institute. Connect with her at rachel@alabamapolicy.org or on Instagram @RachelBlackmonBryars.