A state commission dealing with workforce development is proposing a set of sweeping changes to pump more workers into Alabama’s economy.

The panel, created by the Legislature in 2019 and chaired by Lt. Gov. Will Ainsworth, on Tuesday released a plan with recommendations that could be considered in the upcoming legislative session beginning Feb. 6.

The Lieutenant Governor’s Commission on 21st Century Workforce is proposing reforms that “can make Alabama’s workforce development the envy of the nation,” Ainsworth said.

Earlier this month, Alabama Department of Labor Secretary Fitzgerald Washington announced Alabama’s labor force participation rate for December had increased to 57.2%.

The state’s percentage of prime-age workers increased by four-tenths of a percentage point to 78.5% over the year. Prime-age workers are those aged 25 to 54 years.

But workforce participation – the number of people who could work who are actually employed – has lagged behind nationally for several years, only recently resuming levels seen before the COVID-19 pandemic.

Joining Ainsworth on the commission were Senate Pro Tem Greg Reed, State Senators Dan Roberts, Donnie Chesteen, Linda Coleman-Madison, and April Weaver, State Reps. Danny Garrett, Kelvin Lawrence, Kelvin Lawrence, Joe Lovvorn and Debbie Wood, Business Council of Alabama President and CEO Helena Duncan, Alabama Power Company CEO Jeff Peoples, and PowerSouth Energy Cooperative CEO Gary Smith.

Among the commission’s recommendations are:

Consolidating the Department of Commerce’s Workforce Development Division, AIDT and the Department of Labor into a new entity – the Alabama Workforce Authority (AWA), to be led by a Cabinet-level Secretary of Workforce Development, appointed by the Governor. The AWA would be governed by a nine-member board of directors, advising the governor and Legislature on workforce priorities.

The AWA to develop a “regularly-updated” plan for how state agencies coordinate the recruiting, training and employment of Alabamians. The plan would include measurable benchmarks.

Develop a Career and Technical Education (CTE) diploma pathway that supports students accessing skills training during high school, and to reinvest in county CTE centers. In addition, removing barriers and restrictions preventing former, active and reserve military members from accessing career training funds.

Increase and centralize funding within the AWA for recruiting disconnected and underemployed individuals.

Centralizing funding for non-governmental organizations that provide services to job seekers.

Developing tax credits to incentivize employers to fund childcare, and childcare providers to expand access and quality. Tax credits would be made available for employers that provide on-site childcare or stipends to employees for childcare expenses.

Develop or expand low-cost and no-cost mental health and addiction diversion programs that help individuals access treatment and recovery programs, without negatively impacting their earning potential and career options.

State tax credits to fund affordable housing.