Gov. Kay Ivey calls for employee pay raises, rural investments in State of State

Jan. 10--With an eye on past troubles -- and future elections -- Gov. Kay Ivey Tuesday called for pay raises for state employees and legislation to improve health care and broadband access in rural areas in her first State of the State address.

Using a phrase deployed frequently over the past nine months, Ivey reviewed her work of "righting the ship of state" following the departure of former Gov. Robert Bentley, while promising to deliver government that is "conservative, practical and wisely funds state services."

"Despite our differences, despite our varying viewpoints, despite party labels, I sincerely believe we all have one common goal -- to each play our part in making Alabama a better place to live, raise and educate our children, own a home and create jobs and business opportunities," Ivey said in the speech.

The speech -- notably nonpartisan and noncontroversial -- reflected what analysts say will be one of the best budget pictures in recent state history and a desire from state legislators to avoid controversy after a wrenching series of leadership scandals over the past four years.

"That would be my plan," said House Speaker Mac McCutcheon, R-Monrovia, after the speech, while adding that he didn't know how issues -- particularly with prisons and CHIP -- might play out.

Like her predecessors, Ivey tended to shy away from details of her policy proposals. The governor did not, for instance, provide a specific number on the size of the pay raises she sought, though a budget presentation earlier on Tuesday suggested she would seek about a two percent raise for teachers, and about a three percent raise for state employees.

But unlike recent years, the speech was devoid of fist-shaking at the federal government or the Affordable Care Act, a common target for Bentley in his State of the State addresses. And in what might be a first for a State of the State in Alabama, Ivey spoke at length at the end of her speech about the composer Johann Sebastian Bach and his commitment to write music "for the glory of God and the good of all mankind."

"From the moment our country declared its independence, we embraced the truth that to be an American is to seek the impossible, to dare to dream despite opposition," she said. "Together, let us dream of a brighter Alabama that, in keeping with Bach's example, brings glory to God and brings about a greater good in the lives of our people."

The speech did allude to one major problem facing the state: A federal ruling that mental health care in Alabama's prisons is "horrendously inadequate." Ivey said officials "must work diligently to provide appropriate care to those placed in custody of the Department of Corrections."

"I will present to the people a workable solution to this generational problem," she said. "I am committed to meeting this challenge head-on."

The governor did not allude to the other major problem confronting the state budgets. Congress has not provided long-term reauthorization of the Children's Health Insurance Program (CHIP), which covers 150,000 children in the state over two separate programs. The federal government has provided a short-term extension, but it's unclear if a renewal will continue the most recent funding scheme -- where the feds picked up the entire cost of Alabama's program.

The Alabama Department of Public Health has requested $53.6 million for the program should Congress demand matching funds, and legislators say the CHIP uncertainty is a cloud over the generally sunny picture for the budgets.

The governor did not specify the size of the raise she sought. A budget presentation from the Department of Finance earlier on Tuesday suggested she was seeking about a two percent pay raise for teachers, and roughly a three percent pay raise for state employees. The final decision rests with the Legislature.

Ivey's first State of the State speech came as elected officials of all stripes prepare for the elections in November. The governor faces a number of opponents on the Republican side, including Huntsville Mayor Tommy Battle, Sen. Bill Hightower, R-Mobile and Agriculture and Industries Commissioner John McMillan. On the Democratic side, Tuscaloosa Mayor Walt Maddox and former Alabama Chief Justice Sue Bell Cobb are the leading candidates.

The speech tended to focus on noncontroversial items, such as increased funding for the state's pre-kindergarten program; incentives to bring health care providers to rural areas and tax breaks to encourage businesses to hire veterans. In some ways, it mirrored legislators' hopes for the 2018 session as one that will steer away from controversy after four years of nothing but, including the conviction of a former House speaker on ethics charges and Bentley's resignation amid a sex scandal.

Ivey loaded the front of her speech with examples of her breaks with the past, including a more cooperative relationship with legislative leadership and her firings of several former Bentley cabinet members.

"My cabinet and staff are capable, honest and dedicated," she said. "They take their charge to serve the people of Alabama seriously. They provide the people of Alabama with the open, honest and transparent government that they deserve."

Elections traditionally make state legislators open to pay raises, and legislators Tuesday sounded cautiously optimistic that they could make them happen -- if Congress can find a fix for CHIP.

"There's an attitude that we think it's doable because of revenue," said Senate President Pro Tem Del Marsh, R-Anniston. "The only thing that could throw wrench into it is CHIP."

Democrats also signaled they would support the raise but suggested it should be higher. House Minority Leader Anthony Daniels, D-Huntsville, said state employees had seen their purchasing power eroded by inflation and increased expenses for retirement.

"As a consequence of actions taken in previous years, I think we're getting back to purchasing power, pre-2010," he said.

Raises have broad, bipartisan support.

"It's about time," said Rep. Paul Beckman, R-Prattville, who has several state employees living in his district.

Ivey tried to strike a nonpartisan tone throughout the speech, generally encouraging cooperation between legislators and looking toward the future.

"The ship of state has been steadied," she said. "Together, let's move it in a new direction toward progress and sustainability."

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