Six ways Alabama should use ARPA funds to build a better, more inclusive future

The Alabama Legislature’s 2022 regular session, which began Tuesday, will be unusual in one important way. For the first time in many years, Alabama has more than enough revenue to maintain its bare-bones public services. That means instead of scrambling to avoid cuts, the legislative focus can be on strengthening investments in our state’s future.

Both the Education Trust Fund (ETF) budget and the General Fund (GF) budget, which funds non-education programs, have seen tax revenues rise more than 10% in the last year. ETF revenues actually increased 16% in 2021. In addition, Alabama has about $1.6 billion of federal relief funds remaining under the American Rescue Plan Act (ARPA). President Joe Biden signed ARPA into law in March 2021.

Alabama lawmakers already allocated $480 million of the state’s ARPA money last year. Of that amount, $400 million went toward prison construction and $80 million went to hospitals and nursing homes.

Budget growth faces sustainability challenges

State budget officials have steadily cautioned lawmakers to consider the one-time nature of both relief money and the bump in tax revenues. Recent revenue growth almost certainly will not be sustained in future years, budget officials warn. And one-time ARPA funds are by definition only temporary.

Alabama’s budget officials have strongly recommended that both ARPA funds and increased state revenues be invested in programs and services that won’t require regular, recurring revenue but that still meet critical needs for the people of the state. Alabama Arise questions whether the new revenue is as unsustainable as budget officials predict. But Arise agrees that this money needs to fund big ideas that will benefit the state for years to come.

Areas for investment

If spent wisely, ARPA funds could create vital long-term improvements for Alabamians. Alabama Arise has numerous specific suggestions for what those big ideas, and investments, could be.

Serve underserved communities

ARPA investments should focus on the most underserved areas and most underserved Alabamians. Communities of color and communities with low incomes, particularly in the Black Belt, have long-festering unmet infrastructure needs. The lack of wastewater treatment, accessible broadband internet, affordable housing and public transportation has held these communities back for decades.

In deciding where to spend new one-time dollars, the most historically neglected parts of Alabama should come first. An urgent public health need in many rural Black Belt counties is for sewer and other water treatment systems. These should be a top priority.

Modernize state technology

A major lesson from the COVID-19 recession was that Alabama’s technology infrastructure is totally inadequate for remote access to services. Suddenly unemployed people desperately tried to apply for unemployment insurance (UI) benefits, food assistance, COVID-19 tests and other services on overwhelmed state computer and telephone systems. People who had never before applied for public assistance couldn’t find one-stop sources of information about services for which they might be eligible. And when new federal programs were created, they were hard to implement. That’s because Alabama’s computer systems didn’t talk to each other and couldn’t share information needed to help people get assistance.

Modernizing the state’s computer systems would be a great investment to increase efficiency and prepare us for the next crisis. This would allow for integrated eligibility and data sharing systems across state agencies. And it would be an opportunity to modernize and upgrade the state’s UI application and payment process.

Expand Medicaid and strengthen public health

Alabama has failed for decades to invest adequately in our health care infrastructure, including Medicaid. The devastating toll of the COVID-19 pandemic has made the consequences of that failure apparent to everyone in the state. We need to invest now in a health care infrastructure that will improve the delivery of health services to underserved individuals and communities.

Medicaid expansion to cover adults with low incomes is an essential step to strengthen Alabama’s health care system. Other investments should include more funding for mobile health services and telehealth services. Alabama also should provide additional resources for our local and state public health departments.

Reduce hunger and promote healthier communities

Hunger was already a large and perpetual problem across Alabama even before the pandemic. But the COVID-19 recession and its aftermath exacerbated this problem by fueling a rapid, major increase in food insecurity. Sudden income loss, rising prices and occasional shortages have made it much more difficult for many people to feed their children and families.

The Supplemental Nutrition Assistance Program (SNAP) and various child nutrition programs are essential standing resources to fight hunger in Alabama. But the state can and should do more to support our food infrastructure. Alabama should provide healthy food financing grants to expand community groceries, farmers markets and mobile markets. This would improve access to healthy foods in communities without ready access to fresh foods, especially fruits and vegetables.

Invest in affordable housing

The COVID-19 recession has caused a wave of evictions and foreclosures across Alabama. This has occurred as the cost of housing has been driven up amid supply chain issues and fewer available workers.

Alabama could help address its housing shortage and resulting homelessness by providing $25 million for the state Housing Trust Fund. This investment would create and support jobs across the state. And it would reduce Alabama’s shortfall of more than 73,000 affordable homes for people with incomes below the federal poverty level.

Fund public transportation

Alabama’s elected leaders, including Gov. Kay Ivey in her State of the State address, have celebrated the state’s low unemployment rate. But they also are bemoaning our state’s associated low rate of labor force participation. For more Alabamians to return to work during and after the pandemic, the state must ensure they have essential work supports. Not the least of these is transportation to and from a job or school.

Lawmakers can help people reenter the job market by investing $20 million in ARPA funds and $10 million in GF dollars in the state Public Transportation Trust Fund. These dollars would go a long way toward ensuring that people, especially those in rural areas, can get to a job and to job training. They also would help Alabama match other federal transportation dollars that can benefit the entire state.

Jump-start public transit in Alabama

Alabama’s failure to invest in public transportation is hurting people, communities, the economy and the environment. Many seniors, people with disabilities and people with low incomes need public transit to get to work, medical care, the grocery store and more. Others prefer an energy-saving alternative to cars. The Legislature created the Public Transportation Trust Fund (PTTF) in 2018 but hasn’t provided state funds for it.

The November 2021 federal infrastructure law has changed the game. It targets hundreds of millions of federal dollars to Alabama for public transportation. It’s time to activate the PTTF to ensure transparent, equitable distribution of these historic resources. Here’s why:

  • Alabama is one of only three states (along with Hawaii and Nevada) that provide no state funding for public transportation. All other Southern states do.
  • Alabama leaves millions in federal matching funds on the table every year. The federal government can grant $4 for every $1 the state spends on buses. And federal funds can double state investment in operations.
  • Every $1 million spent on operations creates 50 jobs. These jobs provide good benefits and an average operator’s salary of more than $70,000.
  • Lack of funds has limited public transit options. No service in Alabama operates past 11 p.m., even on weekends. Rural van routes may be booked up weeks in advance. And some cities with more than 30,000 people have no general public transit option.
  • Eight rural hospitals have closed since 2011, and many others are at risk. These closures have increased the strain on rural public transportation by leaving many Alabamians farther away from health care facilities.
  • The Alabama Department of Economic and Community Affairs (ADECA) administers the fund. ADECA makes and audits project awards and does a needs assessment.

Bottom line

We have the vehicle. Let’s drive it. Alabama’s Public Transportation Trust Fund can match and distribute federal funds wisely and fairly. Expanding public transportation would create thousands of jobs, fuel economic growth and get people where they need to go. It would create a healthier environment and a healthier Alabama for all.

Recovering from Alabama’s costly mistake on COVID-19 recovery funds

This post originally appeared on the Economic Policy Institute’s blog.

When the Alabama Legislature gathered for a special session in September, it made a shortsighted and costly mistake. Lawmakers chose to allocate $400 million in American Rescue Plan Act (ARPA) money ‒ about 20% of Alabama’s federal COVID-19 relief funds ‒ to help finance a $1.3 billion prison construction plan.

Alabama prisons are decrepit, dangerous and massively overcrowded. The U.S. Department of Justice (DOJ) has sued the state over the unconstitutional conditions in the institutions. Moreso, raiding funds designed to help people and communities recover from pandemic-related economic distress will do nothing to make Alabama more humane and inclusive. That is particularly true when Black Alabamians are three times more likely to be incarcerated than white Alabamians due to discriminatory practices in policing and incarceration.

The state has a better path to build a more sensible criminal justice system and avert a looming federal takeover. New buildings to house the same old problems won’t get us there. Real change will require meaningful changes to sentencing and reentry policies.

Sentencing reform is vital to build a more humane criminal justice system in Alabama

Alabama’s sentencing scheme still relies on outdated ideas about punishment and limits availability of services shown to improve reentry. One example is the state’s Habitual Felony Offender Act (HFOA), which increases sentences for even minor offenses. Like other mandatory minimum laws, it is a relic of earlier racially motivated “tough on crime” practices and leads to higher rates of incarceration throughout the South.

The Legislature made minor improvements to the HFOA in 2015 but refused to make them retroactive. That failure has left hundreds of Alabamians still serving sentences for convictions that today would result in less time under current presumptive sentencing guidelines.

Alabama Arise supports full repeal of the broken HFOA. Until then, the state at minimum should ensure people aren’t serving wildly different sentences for the same conviction.

Those efforts have been an uphill battle for reform advocates. During September’s special session, lawmakers failed to pass a bill to allow some people to petition for resentencing under current standards. Legislators also have failed in recent years to expand medical release and releases for older people who have aged out of reasonable likelihood of recidivism. Efforts to expand and improve diversion programs have stalled as well.

All of these policies would save Alabama money in the long run. They also would demonstrate respect for the humanity of incarcerated people. But legislators have chosen not to act.

This persistent refusal to engage in meaningful reform may cost Alabama dearly. Failure to take even small steps to reduce overcrowding and improve atrocious conditions may spur the DOJ to conduct a wholesale takeover of the state’s prison system. If that happens, the Legislature will have only its own inaction to blame.

How federal aid should help Alabamians

The consequences of prioritizing bad spending go beyond federal intervention in the broken prison system. ARPA relief funds represent an opportunity to move Alabama forward in many areas that would increase opportunity and stability for people across the state.

Provide health care to hundreds of thousands of uninsured Alabamians

More than 220,000 Alabamians live in a Medicaid coverage gap. They make too much to qualify for Medicaid under the state’s bare-bones eligibility limits but too little to qualify for subsidized coverage through the Affordable Care Act. Another 120,000 Alabamians have stretched their finances seriously to pay for coverage they can’t truly afford.

Federal ARPA funds would allow Alabama to expand Medicaid. Alabama could use these dollars to meet other critical spending priorities. This would free up state funds to pay for the startup of an expanded Medicaid program to cover adults left out of coverage.

Update infrastructure and invest in equity

Alabama should use ARPA funds to update and expand infrastructure and support services. Economic fallout from the COVID-19 pandemic has placed a disproportionately heavy burden on women, Black Alabamians and communities with few resources upon which to fall back. Investments in child care, expanded early childhood education and long-term postpartum health coverage would deliver major improvements in quality of life for people hit hardest during the pandemic.

Federal relief should be used both to lessen the pandemic’s immediate harm and to break the pattern of long-term, intentional disinvestment in the Black Belt and other areas. Community-based organizations offer valuable connections and expertise to guide investment to where it is needed. The state should ensure these groups have the capacity and pathways to provide input on best uses for relief money.

Finish implementing solutions on housing and public transportation

ARPA funds also represent an opportunity to take steps forward where lack of political will has hindered full implementation of state solutions. Within the past decade, the Legislature created both the Public Transportation Trust Fund and the Affordable Housing Trust Fund (AHTF). It also has failed to provide a single dollar for either.

Transportation investment would improve quality of life for everyone. Robust public transit creates long-term, high-wage jobs and enables people to get to work reliably and inexpensively. It is a vital public good that helps older people and people with disabilities fully participate in public life.

Housing investment would help alleviate the state’s severe affordable housing shortage. State AHTF funding would increase community resilience by allowing struggling families to spend less of their incomes to keep a roof over their heads. It also could help speed up rental assistance and prevent evictions during future recessions.

Increase transparency and modernize technology

Alabama’s technological infrastructure has lagged behind contemporary standards. Early in the pandemic, this resulted in major delays of unemployment insurance payments. The patchwork of IT systems at all levels of state government has contributed to public confusion and delays. Technology investments would reduce duplication of effort and increase public access to the public’s information.

A new path forward

ARPA provides a generational opportunity to begin remedying policy shortcomings that have held back progress, perpetuated inequality and furthered Alabama’s history of racist policy choices. This chance is too valuable to waste by doubling down on past failures like foolish and overly punitive criminal justice policy.

The Legislature’s recent misuse of $400 million is inexcusable, but this bad decision has not blocked the path forward. The remaining ARPA funds are a chance to invest in adequate resources and transparent, responsive government. Our state must seize this opportunity to improve life significantly for every Alabamian.

Alabama Arise unveils members’ 2022 roadmap for change

Sentencing reform and voting rights expansion are two key goals on Alabama Arise’s 2022 legislative agenda. Members voted for Arise’s issue priorities this week after nearly 300 people attended the organization’s online annual meeting Saturday. The seven issues chosen were:

  • Tax reform, including untaxing groceries and ending the state’s upside-down deduction for federal income taxes, which overwhelmingly benefits rich households.
  • Adequate budgets for human services like education, health care and child care, including Medicaid expansion to make health coverage affordable for all Alabamians.
  • Voting rights, including automatic universal voter registration and removal of barriers to voting rights restoration for disenfranchised Alabamians.
  • Criminal justice reform, including retroactive application of state sentencing guidelines and repeal of the Habitual Felony Offender Act.
  • Death penalty reform, including a law to require juries to be unanimous in any decision to impose a death sentence.
  • Payday and title lending reform to protect consumers from getting trapped in debt.
  • Public transportation to help Alabamians with low incomes stay connected to work, school, health care and their communities.

“Arise believes in dignity, equity and justice for all Alabamians,” Alabama Arise executive director Robyn Hyden said. “Our 2022 issue priorities would break down many of the policy barriers that keep people in poverty. We must build a more inclusive future for our state. And together, we will.”

Graphic listing Alabama Arise's 2022 issue priorities

The urgent need for criminal justice reform

Alabama’s criminal justice system is broken, and its prisons are violent and dangerously overcrowded. Exorbitant court fines and fees impose heavy burdens on thousands of families every year, taking a disproportionate toll on communities of color and families who already struggle to make ends meet. And Alabama needs investments in mental health care, substance use disorder treatment, community corrections and diversion programs to help stem the tide of mass incarceration.

Lawmakers’ plan to spend hundreds of millions of dollars on new prisons is not an adequate solution to these problems. Alabama must enact meaningful sentencing and reentry reforms to make its corrections system more humane and effective. Legislators took a good first step during this week’s special session by passing a bill by Rep. Jim Hill, R-Moody, to provide supervised release for everyone leaving prison in Alabama.

Many other needed changes still remain on the Legislature’s plate, however. One important priority is Hill’s proposal to allow judges to apply Alabama’s new sentencing guidelines retroactively. The House declined to vote on that bill this week, but Hill has promised to file it again in 2022. Hundreds of people would be eligible to apply for a reduced sentence if the measure passes.

Arise also will continue to work toward repeal of the Habitual Felony Offender Act (HFOA), the state’s “three-strikes” law. The HFOA is a driver of sentencing disparities and prison overcrowding in Alabama. The law lengthens sentences for a felony conviction after a prior felony conviction, even when the prior offense was nonviolent. Hundreds of people in Alabama are serving life sentences for non-homicide crimes because of the HFOA. Thousands more have had their sentences increased as a result. Repealing the law would reduce prison overcrowding and end some of Alabama’s most abusive sentencing practices.

Protect and expand voting rights so every voice is heard

Arise members provided a resounding endorsement of efforts to protect and expand voting rights in Alabama. This includes support of federal legislation to prevent voter suppression and strengthen the Voting Rights Act. And it includes calls for numerous state-level improvements to promote greater civic engagement and increase access to voting.

One such improvement would be automatic voter registration (AVR) across Alabama. AVR would use information the state already has to register or update registrations electronically for hundreds of thousands of Alabamians. Another important step would be to ensure people who struggle to make ends meet are not denied the right to vote simply because they cannot afford court fines and fees.

“Our ability to progress as a state will be limited as long as any person or group is unable to exercise their constitutional right to vote,” Hyden said. “We urge Alabama lawmakers to protect and expand voting rights by instituting automatic voter registration and lifting barriers to voting rights restoration.”

Alabama Arise keeps listening. Here’s what we heard in 2021!

Listening is a core value of Alabama Arise. We deeply value the input we get from our members, our allies and most importantly, those directly affected by the work we do together. We depend on what we hear to help guide our issue work and our strategies.

The ongoing COVID-19 pandemic continued to challenge us to be creative in finding ways to listen. We did another series of three statewide online Town Hall Tuesdays. This year, we also held 12 individual group listening sessions for a total of 15 listening sessions in all.

What we heard this summer

The town halls happened every two weeks, starting June 15 and ending July 13. The individual meetings took place throughout the summer. Here is some of what we heard in those town halls and in the individual group sessions:

Health care, voting, criminal justice
    • In addition to strong support for Medicaid expansion, we heard several people express the need to address hospital costs, the lack of adequate equitable access to health services and significant concern for prescription drug prices (for seniors in particular). Many people highlighted the need for mental health reforms, and several pointed out the mental health connection to issues of homelessness.
    • We heard concerns about ongoing, intentional barriers to voting. Many raised the need to improve voter access by making it easier, not more difficult, for people to vote. They said we need reforms like automatic voter registration, no-excuse and simplified absentee voting, a better process for restoring voting rights of people who were formerly incarcerated, an Election Day holiday and curbside voting. Issues about term limits for legislators and rank choice voting also were raised. While related to voting, but distinct, redistricting was also a concern.
    • People voiced passionate support for many criminal justice reforms. Several highlighted a desire to abolish the Habitual Felony Offender Act and the death penalty. They also raised their voices for reforms around juvenile justice, gun violence, community sentencing options and programs to build social and job skills of people who were formerly incarcerated. There was much discussion about the need for prison reform beyond just building new prisons. Some participants also mentioned police reforms, specifically people advocating for public access to police body cam footage.
Housing, education, child care, transportation, language barriers
  • We heard much discussion about the need for quality affordable housing, living wages and adequate funding of public education, including early childhood education and child care. Many also emphasized the connections between most of the issues of concern. Deficits in one area lead to insufficiency in many others.
  • We also heard concern about the need to improve public transportation in the state. Many were interested in environmentally friendly public transportation solutions and securing a funding source for the Public Transportation Trust Fund created a few years ago.
  • Among our Spanish-speaking members, many noted concerns with access to health care. These included eligibility concerns and disparities with information shared regarding documents and verification needed to receive the COVID-19 vaccine. They also requested a statewide Spanish-language hotline for addressing day-to-day inquiries surrounding public service benefits.

Notes from each town hall

For details about what we heard in the town hall series, click here to read breakout session notes from each of the 2021 Town Hall Tuesday events. Those sessions were as follows:

June 15 ‒ A better Alabama for all: Participants discussed the question: If you could wave a magic wand and fix one issue that addresses poverty in Alabama, what would that issue be?

June 29 ‒ Health care for all: Participants discussed ways to close the health coverage gap by expanding Medicaid in Alabama.

July 13 ‒ Justice for all: Participants discussed their priorities for improving access to voting and reforming our criminal justice system.

Stay in touch with Arise

We didn’t stop listening because the town halls ended. We want to hear from you, and we encourage you to contact the Arise organizer in your area:

We hope to see you at Arise’s online annual meeting Sept. 25!

The State of Working Alabama 2021: What policy barriers should Alabama remove on this Labor Day?

State of Working Alabama logo

It’s Labor Day weekend. The days are ever so slightly cooler. Football season has started. And Alabama’s economy is officially “open for business.” So why are so many jobs still going unfilled in our state? Why are employers looking for workers and not finding them?

A look at some very interesting data can provide a few answers.

Unemployment vs labor force

Alabama’s unemployment rate is one of the lowest in the nation, a very impressive 3.2% in July.  But another number doesn’t get as much attention as the unemployment rate: the labor force participation rate. Labor force participation is the number of people who are either working or looking for work divided by the total number of working-age, non-institutionalized people in the state.

Alabama’s labor force participation rate is one of the nation’s lowest. That means many people here are neither working nor looking for work. And that low number may tell us about why a lot of available jobs are not being filled.

In 2008, Alabama’s labor force participation rate was 60.6%. That means 60.6% of potential workers were either employed or looking for employment. By July 2021, our labor force participation rate had declined to 48th nationally at 56.7%. Alabama is also 44th nationally in the share of our adult population who are employed ‒ only slightly under 55%.

Barriers to work

We all know how hard-working the people of Alabama are. We pride ourselves on our work ethic, independence and resilience. But many Alabamians face significant barriers to employment that the pandemic has exacerbated. And those structural barriers have left many jobs unfilled while potential employees are unable to work.

One important explanation revolves around child care. In the recent study, “Where Are They Now? Workers with Young Children during COVID-19,” M. Melinda Pitts of the Federal Reserve Bank of Atlanta found that the workforce exits of women with children under age 13 accounted for much of the decline in employment. And she attributed much of this decline to the unavailability of quality child care during the pandemic and continued unwillingness to use child care services with the virus still raging. Even with schools and child care centers reopening, Pitts concluded, the continued risk of COVID-19, low vaccination rates and uncertainty about school closures would continue to depress employment rates among women with young children.

Pandemic’s effects

Every couple of weeks during the pandemic, the U.S. Census Bureau has conducted a survey in every state called the Household Pulse Survey. This survey asks a sample of people about how the pandemic has affected their lives, from food security to employment and income. The most recent results from Alabama, for the weeks of Aug. 4-16, provide meaningful insight into why Alabamians may not be taking advantage of the supposedly booming job market. (Arise calculated the following percentages based on survey results.)

Alabama findings

  • Despite the low unemployment rate, many Alabamians, especially women, are not yet employed. Among Alabama women who responded to the survey, 47% were not employed in the seven days preceding the survey, compared to slightly more than 37% of men who were not working.
  • When asked why they were not working, nearly 12% of Alabamians who are not retired and do not have a disability said they were caring for children not in school or day care. Another 5% said they were caring for an older adult.
  • About 5% of Alabama respondents who are not retired and don’t have a disability said they weren’t working because they were afraid of getting COVID-19.
  • More than 11% of Alabamians who are not retired and don’t have a disability said they had lost their job because of the pandemic.
  • About 4% of Alabama respondents who are not retired and don’t have a disability said they weren’t working because they didn’t have transportation to work.
  • The Household Pulse Survey doesn’t break out non-employment rates for men and women by race. But it does show non-employment rates are higher in general for Black people (nearly 49%) and Hispanic/Latinx people (46%) than for white people (40%). Whether because of COVID-19’s impacts or employment barriers or both, people of color are disproportionately affected. This is consistent with research by the Economic Policy Institute which found that Black Alabamians had a 2021 unemployment rate 40% higher than did White Alabamians.

Alabama businesses are desperately looking for workers, and Alabamians want to return to work. But for this to happen, our leadership needs to support workers instead of blaming essential income supports or the workers themselves for vacant jobs. What should elected officials do?

Recommendations:

Wages

Many of the jobs that remain unfilled are in the service sector. These are the public-facing jobs filled by people we hailed as “essential workers” last year. People essential to our recovery from the pandemic and its recession need a living wage. They also need employment supports like health insurance, paid time off and protections from potential coronavirus infection so they can return to work and still take care of their children and families.

Child care

Congress has appropriated significant funds to support child care centers and the parents who need them. And the Department of Human Resources has done a good job of targeting money where it most needs to go. But the number of respondents listing child care or senior care as the reason they are not able to work indicates even more needs to be done. Alabama should redouble its efforts to ensure safe, affordable child care and senior care are available when people need to work, including evenings and weekends.

Public transportation

Alabama lacks public transportation in all but our biggest cities. Even there, transit is limited and often doesn’t get people to the jobs available to them. If Congress approves new infrastructure funds, Alabama should invest heavily in public transportation in both urban and rural counties. These investments would help residents get to work, school, the doctor’s office and other essential locations.

Unemployment insurance benefits

More than 11% of Alabama Household Pulse respondents say they have lost jobs due to the pandemic. That may result from their employer laying them off, going out of business or closing temporarily. People unemployed because of the pandemic continue to need unemployment income (UI) benefits. Alabama’s unemployment compensation system unfortunately has failed to respond adequately either during the recession’s height or our slow recovery. The decision to reduce UI benefits in an effort to force workers back into jobs has only increased suffering without filling the vacant jobs. Alabama needs to invest in a robust unemployment compensation infrastructure. The state also needs to bolster benefits for laid-off workers still suffering the pandemic’s effects.

Health care

Nearly 9% of all the people who responded to the Household Pulse Survey in early August said they were not working because of disability or health problems. Adequate, accessible and affordable health care services can help people address health problems that make work difficult or impossible. Alabama must expand Medicaid to provide these health services if we want to jump-start our economy fully.

Public transparency

The Alabama Department of Labor should return to its former practice of releasing unemployment data via news releases. Months after cutting off the $300 federal supplement, UI claims remain at 297% of pre-pandemic claim numbers. This data shows that, contrary to the false narrative pushed by some officials, pandemic unemployment has never been a result of the increased benefits available through federal assistance. The state should return to publicly acknowledging the data that lays out recent policy mistakes and the number of Alabamians harmed by anti-worker decisions.

COVID-19 concerns

Finally, 5% of Household Pulse respondents who are not retired and do not have a disability said they had not reentered the workforce because of very realistic fears of COVID-19. Alabama and the nation need to ensure our investments in public health interventions and COVID-19 mitigation are science-based and effective. That includes efforts to address vaccine hesitancy and misinformation in Alabama.

Special session(s) ahead in Alabama? How Arise is preparing

Alabama Arise’s work for equity, justice and opportunity persisted after the Legislature’s regular session ended. We’ll renew our commitment to those principles when Arise members choose 2022 issue priorities after the Sept. 25 annual meeting. And we’ll keep up the drumbeat when lawmakers return later this year for one or more expected special sessions.

Alabama’s overcrowded and antiquated corrections system – a decades-long humanitarian crisis – may prompt a special session this fall. Gov. Kay Ivey and many legislators hope to build and renovate multiple prisons. Alabama may seek federal permission to use COVID-19 relief money for those purposes.

Arise believes meaningful sentencing reforms should accompany any plan for new prisons. Repeal of the outdated Habitual Felony Offender Act would be one long-term step to reduce overcrowding. Parole reform and stronger investments in community corrections and reentry supports would help as well. Arise will advocate for these policy changes and others during any prison-related special session.

Redistricting is another likely focus of a special session. Legislators will use new Census data to draw new districts for the Legislature, state school board and U.S. House. Arise urges members to participate in public hearings that the Joint Reapportionment Committee will hold across Alabama this month. Click here for more information and a full hearing schedule.

Arise will continue advocacy on federal funds, too. We’ll support efforts to make recent Child Tax Credit improvements permanent. We’ll urge legislators to use federal relief money for Medicaid expansion, public transportation and other long-term investments. And we’ll seek to build on an August federal rule change that permanently boosted Supplemental Nutrition Assistance Program (SNAP) benefits.

42 Alabama groups urge Ivey to drive transformative change with federal COVID-19 relief funds

To strengthen the common good: Six principles for allocating Alabama's American Rescue Plan Act funding

Alabama should build a more equitable and inclusive future by using federal COVID-19 relief money for transformational investments in public health and economic opportunity, according to a letter that 42 churches and organizations across the state sent to Gov. Kay Ivey this week. Alabama Arise is among the groups that co-signed the letter.

The American Rescue Plan Act (ARPA) will provide Alabama $2.3 billion of federal assistance for education and other vital services. Local governments across the state will receive another $1.7 billion.

Affordable housing, education, nutrition and public transportation are a few key areas of need identified in the letter. The letter urges Alabama to use ARPA funds to expand Medicaid, increase broadband internet access in underserved areas and increase funding for child care, early childhood education and mental health care, among other investments.

“New funding at this scale can be transformative for our state, but only if we take a transformative approach to how we spend it,” the letter says. “For too long, Alabama’s leaders … have settled for poor outcomes in health, education, community development and other measures of shared prosperity, because they thought we couldn’t tackle such deep problems. The pandemic is challenging us to reclaim – and redefine – the common good. ARPA funding gives us a rare opportunity to meet the challenge, if we’re willing.”

The full letter, “To Strengthen the Common Good: Six Principles for Allocating Alabama’s ARPA Funding,” is available here.

Principles for effective, transparent use of ARPA money

COVID-19 and its associated recession exacerbated preexisting racial, gender and regional disparities that prevent Alabama from reaching its full potential. Enduring recovery will require breaking away from a mindset of scarce resources and limited opportunities, the letter says.

The letter encourages state leaders to allocate ARPA funds using these six principles as a framework:

  1. Engage local communities at every step.
  2. Aim for equity in outcomes.
  3. Maximize well-being by addressing health in all policies.
  4. Invest in existing assets and capacities to help funds work faster, go further and avoid duplication.
  5. Think big and create a 21st-century infrastructure for the common good.
  6. Build public trust and engagement by following the highest standards of documentation, transparency and accessibility of information about funding awards and expenditures.

Investments to increase equity, expand economic opportunity in Alabama

ARPA funds offer the state an opportunity to lift communities toward better health and broadly shared prosperity. They also can help Alabama address chronic challenges in education, health care, housing and other quality-of-life measures. Among the letter’s key recommendations for allocation of ARPA funds:

  • Expand Medicaid to save lives and ensure health coverage for more than 340,000 Alabamians with low incomes.
  • Invest in mobile mental health crisis services and expand mental health crisis centers and school-based mental health services.
  • Increase funding for in-home early childhood education and in-home services for older adults and people with disabilities.
  • Provide funding for the state’s Housing Trust Fund and Public Transportation Trust Fund.
  • Promote equity in high-speed internet access by targeting earmarked broadband funding to help providers expand into underserved areas.
  • Invest in workforce development by creating subsidized apprenticeships, two-year scholarship programs and subsidized certificate programs for workers with low incomes.
  • Provide a grocery tax rebate and other cash assistance to households with low incomes.

“Recovery from COVID-19 will require Alabama to go beyond a return to an inadequate status quo,” Alabama Arise executive director Robyn Hyden said. “Our elected officials must make better policy choices now to build thriving communities in the future, and ARPA funds offer a powerful pathway to help make that vision a reality. We urge the governor to seize this opportunity to increase public trust and build a brighter, more equitable future for all Alabamians.”

To strengthen the common good: Six principles for allocating Alabama’s ARPA funding

To strengthen the common good: Six principles for allocating Alabama's American Rescue Plan Act funding

Introduction

Dear Governor Ivey,

One of the darkest years in recent memory has put Alabama’s families, communities, health system, businesses – and our leaders at all levels – to the test. Thank you for all your efforts to keep Alabamians safe and secure during this unprecedented emergency. Now that a post-COVID world is dawning, the leadership test doesn’t end. Rather, it enters a critical new phase: Your vision and your actions will help determine what a post-COVID Alabama looks like, and history will record the results. Will the comfort of the familiar pull us back into “the way we’ve always done things”? Or will we count this ordeal as an awakening to bold new possibilities for our state?

For the organizations listed below, all signs point to the second option: The opportunity to address chronic problems that the pandemic has only worsened; a chance to inspire Alabamians with a recovery plan that lifts all communities toward a healthier, more prosperous future; and – most pragmatically – the power of $4 billion in new federal funding to turn vision into reality. We enclose for your consideration six principles that we believe can guide state and local leaders in the most productive, equitable and lasting use of these tax dollars.

The signers of this letter are advocates who work closely with the communities hit hardest by the COVID-19 health and economic crises. For these Alabamians, recovery from the pandemic must mean more than restoring the pre-COVID status quo. With courageous and creative leadership, community engagement across the state, and wise use of historic levels of funding, we have what we need to move Alabama forward and strengthen the common good.

We stand ready to answer any questions you may have about our recommendations.

Respectfully submitted,

The Undersigned Alabama Organizations

Signatories

The following organizations support a principled approach to American Rescue Plan Act funding that will strengthen Alabama’s common good:

ADAP
AIDS Alabama
Alabama Appleseed Center for Law and Justice
Alabama Arise
Alabama Coalition for Immigrant Justice
Alabama CURE
Alabama Possible
Alabama Solutions
Alabama State Conference of the NAACP
Bay Area Women Coalition, Inc.
Birmingham Society of Friends
BirthWell Partners Community Doula Project, Birmingham
Church & Society, Anniston First United Methodist Church
Community Enabler Developer, Inc.
Disabilities Leadership Coalition of Alabama
Disability Rights & Resources
The E.WE Foundation
Faith and Works Statewide Civic Engagement Collective
Grace Presbyterian Church (PCUSA), Tuscaloosa
Greater Birmingham Ministries
Hispanic Interest Coalition of Alabama
Hometown Action
Immanuel Presbyterian Church (PCUSA), Montgomery
Jobs to Move America
League of Women Voters of Alabama
Medical Advocacy & Outreach
The Nightingale Clinic, Birmingham
Nurse Practitioner Alliance of Alabama
Open Table United Church of Christ, Mobile
People First of Alabama
Project Hope to Abolish the Death Penalty
Restorative Strategies, LLC, Birmingham
Sisters of Mercy
Sisters of St. Joseph
The Sisters, Tuscaloosa
St. Luke’s Episcopal Church, Jacksonville
Unitarian Universalist Fellowship of Mobile
University of Montevallo Social Work Program
Volunteers of America Southeast
West Alabama Women’s Center
YMCA of Birmingham
YWCA of Central Alabama

Letter text

To Strengthen the Common Good: Six Principles for Allocating Alabama’s American Rescue Plan Act Funding

The COVID-19 crisis has created enormous new challenges for Alabama, while shining a harsh light on long-neglected ones. To strengthen and expedite recovery, the American Rescue Plan Act (ARPA), passed by Congress in March 2021, is pumping $4 billion into Alabama’s economy over the next three years. New funding at this scale can be transformative for our state, but only if we take a transformative approach to how we spend it.

The starting point is recognizing and breaking our old mindset of scarce resources, limited possibilities and patchwork policy solutions. For too long, Alabama’s leaders – and the voters who empower them – have settled for poor outcomes in health, education, community development and other measures of shared prosperity, because they thought we couldn’t tackle such deep problems. The pandemic is challenging us to reclaim – and redefine – the common good. ARPA funding gives us a rare opportunity to meet the challenge, if we’re willing. The undersigned organizations offer the following six principles as a framework for seizing this unprecedented opportunity to build a better Alabama for all.

  1. Engage local communities at every step.

    The COVID pandemic has hit people where they live, work, learn and play. The best use of ARPA funds will reflect the needs and goals identified by ordinary Alabamians through a process that solicits, accommodates and heeds public input.

Crucial question

How are local leaders, advocates and community members involved in identifying and prioritizing both needs and solutions?

Recommendations
  • Identify or create effective, inclusive, results-oriented, nonpartisan, community-based councils in each county or region to develop recommendations for local ARPA funding priorities. Potential lead organizations may include United Way, community foundation or Community Action Agency advisory bodies; children’s policy councils; university extension services; or community round tables convened by local governments. Make it a priority to engage segments of the community underserved by the status quo, such as Alabamians of color, people who work for low wages or have lost jobs, and those who lack adequate basic services.
  • Provide opportunities for broad public participation in developing and finalizing local, regional and state ARPA spending plans. State leaders should agree not to appropriate ARPA funds until the public engagement process is completed.
  • Review existing community and state needs assessments to identify common local concerns, as well as gaps in information and perspective.
  • Facilitate information-sharing and coordination among local, regional and state efforts to enhance efficiency, leverage capacity and avoid duplication.
  • Designate a statewide source of technical assistance, best practices and other aids to local and regional decision-making.
  1. Aim for equity in outcomes.

    Some regions, counties, municipalities and populations have suffered deeper blows than others from the pandemic because of chronic gaps in resources, infrastructure, services and opportunities. Rural Alabamians, people of color, people with disabilities, and women have faced disproportionate impacts from both the health and economic crises. Simply restoring the prior status quo is not transformation. ARPA funding decisions should take into account the un-level playing field of COVID recovery, targeting investment toward improving the basic standards of living for areas and people long left behind. Assistance to those most deeply impacted by COVID-19 should come with as little “red tape” and administrative delay as possible. Direct cash assistance to people with low incomes should be a priority.

Crucial question

How do proposed funding allocations contribute to the removal of historic barriers to individual, family and community well-being?

Recommendations
  • Within each jurisdiction (state, region, county, city), use socioeconomic indicators such as poverty, unemployment and workforce participation rates, and racial/ethnic health disparities to target strategic, expedited community investments.
  • Provide grants to minority- or women-owned small businesses, especially those that did not receive earlier federal business loan assistance.
  • Provide up to $13 per hour in bonus or “premium” pay – on top of their regular pay – to essential public and private workers, up to $25,000 per worker per year, as allowed under the Rescue Plan, for work performed during the public health emergency, awarding the largest bonuses to the lowest-paid workers.
  • Provide cash assistance to SNAP food assistance recipients with incomes below 50% of the Federal Poverty Level.
  • Provide a grocery tax rebate to households earning less than 200% of the federal poverty level.
  • Fund and train organizations that already help people access SNAP, Medicaid, tax credits and other supports as navigators for the full range of ARPA assistance, including the expanded federal Child Tax Credit.
  1. Maximize well-being by addressing health in all policies.

    What began as the COVID-19 health emergency quickly became an economic and social crisis. In turn, the toll the virus has taken on communities of color, people with disabilities and the uninsured revealed how deeply socioeconomic conditions are connected to health risks and outcomes. Nutrition, housing, transportation, education and other factors are widely recognized as social determinants of health, but Alabama has been slow to broaden our approach to health policy and funding. ARPA offers us the chance to apply the lessons of COVID-19 and design a recovery plan that puts eliminating health disparities and improving health at the center of investments in every sector.

Crucial question

How does this funding proposal advance the goal of a healthier Alabama?

Recommendations
  • Name it and claim it: There’s enough ARPA funding to achieve significant health improvement in Alabama if leaders set clear, ambitious goals and plan accordingly. 
  • Engage public health experts to incorporate health goals and strategies across the full span of ARPA allocation planning.
  • Increase professional staffing at county health departments.
  • Strengthen our workforce, families and communities by using the generous ARPA incentives (an estimated $720 million) to expand Medicaid and close the coverage gap for 340,000 Alabamians with low incomes.
  • Invest in mobile mental health crisis services and expand mental health crisis centers.
  • Expand school nurse programs and school-based mental health services.
  • Fund Healthy Food Financing grants for fresh food markets, including mobile markets, as well as local worker-owned food cooperatives to boost local economies, provide jobs and expand availability of fresh foods in food apartheid areas (where healthy food access is hindered by racially discriminatory economic or political factors) and food swamp neighborhoods (where food and beverage sources like fast food outlets, convenience stores and liquor stores crowd out healthier food options).
  1. Invest in existing assets and capacities to help funds work faster, go farther and avoid duplication.

    Over recent decades, budget cuts to education, public health and other essential services – and our failure to expand Medicaid – have left Alabama unprepared for a prolonged emergency like COVID-19. Similarly, charitable nonprofit organizations across the state have faced unprecedented demand for their services during the pandemic and risen to the challenge. By directing ARPA funds to restoring critical services and supporting experienced, trusted charitable nonprofits, state and local governments can strengthen community resources, meet needs efficiently, avoid reinventing the wheel, and multiply the economic benefit.

Crucial question

What programs and organizations are already working to meet the goals of this ARPA funding proposal, and how can a partnership approach improve outcomes?

Recommendations
  • Fund organizations that are well-positioned to reach people with significant barriers to accessing support, such as immigrants, people with disabilities and people of color with low incomes.
  • Expand community schools in neighborhoods where the pandemic has taken a particularly heavy toll.
  • Provide additional funding for existing in-home early childhood education services like HIPPY, Parents as Teachers and Nurse-Family Partnership programs.
  • Increase support for school-based social and health services, particularly in high-poverty neighborhoods and districts.
  • Help children catch up on unfinished learning by expanding the teacher workforce through pay increases and other supports for early childhood teachers, child care workers and special education teachers who work in at-risk communities and schools.
  • Expand existing in-home and community-based services for the elderly and people with disabilities.
  • Expand or develop local alternatives to incarceration such as specialized courts, community correction programs, re-entry programs and services for people at risk of offending.
  • Invest in workforce development by creating subsidized apprenticeships, two-year scholarship programs, and subsidized certificate programs for low-income workers.
  1. Think big and create a 21st-century infrastructure for the common good.

    Alabamians have long recognized the human cost of inferior and outdated public works and services like sanitation, health care, transportation and information technology systems. But the monetary cost has kept our leaders from modernizing them. COVID has revealed the deadly consequences of that neglect, and ARPA includes massive funding aimed at moving states forward on all of these fronts, including a large share for education (not addressed in these recommendations because of specific earmarking). The opportunity calls for bold leadership and vision. Our spending plan must seek to coordinate local, regional and statewide investments for fundamental and long-lasting impact.

Crucial question

How will today’s investments benefit future generations of Alabamians?

Recommendations
  • Modernize and align state agency computer systems to create a “no wrong door” approach to streamlined eligibility and enrollment across benefit programs.
  • Modernize and improve state unemployment insurance (UI) technological infrastructure, application and payment systems.
  • Upgrade water and sanitation systems, prioritizing communities with a history of unsafe water quality and waste-water disposal.
  • Provide critical infrastructure and equipment (such as trucks, refrigeration, trainers, lift gates, etc.,) to local food banks and food pantries to expand emergency food distribution.
  • Expand Alabama’s affordable housing capacity, stabilize families and communities and reduce homelessness by seeding the Affordable Housing Trust Fund with $25 million and providing grants for eligible new construction, renovation and maintenance.
  • Recognizing that lack of reliable transportation is a major hindrance to health care, economic activity and workforce development in many areas of the state, seed the Public Transportation Trust Fund with $20 million and provide state match for increased federal public transportation funding.
  • Promote equity in high-speed internet access by targeting earmarked broadband funding to help local service providers expand into underserved areas and by ensuring community oversight of access and quality standards.
  • Provide state technical assistance to localities in consolidating, evaluating and negotiating broadband contracts to minimize the danger of approving projects with little public benefit.
  1. Build public trust and engagement by following the highest standards of documentation, transparency and accessibility of information about funding awards and expenditures. 

    Spending taxpayer dollars is always a tremendous responsibility. When it comes to spending billions in a short time, the potential for slow uptake, poor decisions and misuse only increases. Alabama can ensure that the generous ARPA funds do their appointed job by establishing clear guidelines and full disclosure for the entire funding process, from eligibility of applicants to allocation decisions to project expenditures and results.

Crucial question

How will Alabamians be able to track the allocation, use and impact of their federal ARPA tax dollars in the state?

Recommendations
  • Create and maintain a public database of state and local ARPA funding allocations and expenditures, easily searchable and sortable by project or partner name, policy topic, service area, grant amount, award date, expenditure date and other key factors.
  • Adopt simple, accessible application and reporting requirements that allow grantees and recipients to establish their credibility and tell their story without jumping unnecessary bureaucratic hurdles.
  • Use local ARPA planning groups as conduits for ongoing reporting and feedback about plan implementation, obstacles, impact and sustainability. Build a robust outreach operation to help people access available federal, state and local aid.

Town Hall Tuesdays 2020: What we heard from Arise supporters

Listening is often an underdeveloped skill, yet it is critical for mutual understanding and working together for meaningful change. That’s why Arise is committed to listening to our members, to our allies and most importantly, to those directly affected by the work we do together. We depend on what we hear from you to guide our issue work and our strategies.

This year’s COVID-19 pandemic challenged us to be creative in finding ways to listen. Instead of our usual face-to-face meetings around the state, we hosted a series of six statewide online Town Hall Tuesdays. We held events every two weeks, starting in June and ending Sept. 1. We averaged 65 attendees at each session. Here’s some of what we heard from members and supporters:

  • Affirmation for Medicaid expansion, untaxing groceries and other current Arise issues as important for achieving shared prosperity.
  • Empathy for those who were already living in vulnerable circumstances further strained by the pandemic.
  • Concern about ongoing, intentional barriers to voting, especially during the pandemic.
  • Desire to see more resources to meet the needs of our immigrant neighbors.
  • Alarm about payday and title lending and its impact on people’s lives and our communities.
  • Passion and concern about many other issues, including housing; living wages and pay equity; prison and sentencing reform; gun safety; juvenile justice reform; defunding the police; the Census; environmental justice; quality and funding of public education; and food insecurity and nutrition.
  • Willingness to take informed actions to make a difference in the policies that impact people’s lives.
  • Hope that Alabama can be a better place for all our neighbors to live despite systemic issues and ongoing challenges.

Notes from each town hall

Overviews of the town halls are below. Click the title for a PDF of the notes from the breakout sessions at each town hall.

June 23 – Money talks
We examined how to strengthen education, health care, child care and other services that help Alabamians make ends meet. And we explored ways to fund those services more equitably.

July 7 – Justice for all
We discussed Alabama’s unjust criminal justice system and how to fix it.

July 21 – Getting civic
Discussion focused on protecting voting rights and boosting Census responses during a pandemic.

Aug. 4 – Shared prosperity
We looked at policy solutions to boost opportunity and protect families from economic exploitation.

Aug. 18 – Feeding our families
We explored ways to increase household food security during and after the recession.

Sept. 1 – Closing the coverage gap
Discussion focused on how everyone can help expand Medicaid to ensure coverage for hundreds of thousands of struggling Alabamians. We also heard about the expansion campaign strategies of the Cover Alabama Coalition, headed by Arise campaign director Jane Adams.

Get in touch and stay in touch with Arise

Remember, we didn’t stop listening because the town halls ended. We want to hear from you, and we encourage you to contact the Arise organizer in your area:

We hope to see you at Arise’s online annual meeting Oct. 3!