Gov. Robert Bentley, the state's physician-in-chief, has examined Alabama's ailing finances and delivered his diagnosis to lawmakers.

The news is grim: Alabama faces a deficit of more than $400 million, and the state must make painful cuts to a range of agencies and departments already stretched thin by declining revenue.

Bentley discussed his budget plan and a variety of state issues during an hour-long interview at the Press-Register on Friday.

"We considered just putting a dire budget out there for the general fund and let it stand in contrast to a relatively good budget on the education side," he said. "That would really show the difference and why I believe we really need one (unified) budget. But I decided that was just presenting a problem without a solution, and I wanted to give a clear solution."

Initial response has not been good. Both Democratic and Republican legislators alike have rejected Bentley's proposal to shift money from the state's Education Trust Fund to pay for Medicaid expenses, prisons and other state agencies.

Bentley, however, said lawmakers have yet to realize the extent of the state's financial problems

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Press Register

Early reaction in Huntsville Tuesday was also positive to the elevation of Lightfoot's deputy, Gene Goldman, to the post of acting Marshall director. Goldman's management experience includes a past stint at Marshall and as director of the key engine-testing Stennis Space Center in Mississippi.

One Huntsville aerospace executive called Lightfoot's move to headquarters "very good" news for Huntsville. It means "someone who understands space transportation is now in a key leadership spot," said Steve Cook, director of space technology development for Dynetics and former NASA Ares rocket project manager.

"Robert has been an asset to the Marshall Space Flight Center, and I know he will continue to advocate for Huntsville," Huntsville Mayor Tommy Battle said in a statement.

Another former Marshall director, Dynetics Executive Vice President David King, said the move is good for NASA, too. "Robert is a strong leader and will do the agency well," King said late Tuesday. "It won't hurt to have someone who knows the centers well at HQ in such an important position."

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Huntsville Times

The bill would extend tax breaks for companies building data centers that employ at least 20 people earning an average pay of $40,000, and supporters say it will level the playing field as Alabama competes with other states for the projects.

"When it comes to economic development in Alabama, we've just sort of been getting beat in the last year or two with a lot of stuff," said state Rep. Dan Williams, R-Athens, the bill's sponsor. "And now with the economy as it is, you sort of have neighboring states raiding another state, trying to get a company to move there. So really these incentives are something we need to counter that."

The push reflects the fact that data centers -- sprawling facilities used to store and manage computer servers -- have become a coveted prize for economic developers, despite the fact that the projects don't always create many jobs.

The Alabama Data Processing Center Economic Incentive Enhancement Act of 2012, or HB154, passed the House earlier this month on a vote of 72-18. It's now in the Senate committee on Finance and Taxation Education. If it gains approval this session, the bill would reduce the employment level a data center project needs in order to qualify for tax credits from 50 jobs to 20, as long the average wage requirement is met. The bill also would extend the period for tax abatements from 10 years to 30.

Barry Johnson, who graduated from The Altamont School and whose parents live in Hoover, is the executive director of SelectUSA, a U.S. Department of Commerce initiative created by President Obama last year to help recruit foreign investment and to support the expansion of domestic and foreign-based companies.

As executive director, Johnson manages a program that works with state and local governments and business leaders to encourage job-creating business investments. SelectUSA maintains a state-appointed liaison in each of the 50 states, five U.S. territories and the District of Columbia.

On Wednesday, President Obama during an appearance at Master Lock Co. in Milwaukee announced that later this year the Commerce Department will host its first SelectUSA Investment Summit, bringing companies from around the world to meet with governors, mayors, federal agencies, state and local economic development organizations to discuss the benefits of investing in the U.S.

Johnson, in an interview, said SelectUSA aims to be a single-point of entry to the federal government for companies based in the United States and overseas looking to expand.

Johnson said Alabama is a perfect example of the important role foreign investment can play in stimulating economic growth. U.S. subsidiaries of foreign firms now employ 78,400 workers in Alabama, including 45,200 factory jobs, according to the Department of Commerce. That's about 5 percent of the state's private-sector work force.

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Birmingham News

A Dothan-based business is expanding its operations, a move expected to bring at least 20 new jobs to the area this year.

Panhandle Converter and Scrap Co. announced Wednesday the purchase of a new building and an expansion plan that will create between 20 and 25 new jobs within the next year and a half.

Panhandle specializes in recycling catalytic converters and selling the scrap metal to various entities around the world.

The company now hopes to expand its customer base and is moving into recycling steel, iron and other ferrous metals.

"We're making a national push," said Panhandle Chief Operating Officer Lyle Peluso Jr. "It involves some investment in new facilities along with the creation of around 22 jobs that we need to find skilled workers for. We're currently in three locations. We've actually added a new facility, which is consolidating two of our smaller facilities. This will allow us to do our own manufacturing and regional sales and administration in our executive offices out of the new building. We're also expanding on Beverlye Road."

Panhandle has purchased a building on Murray Road that once belonged to Dunbarton Corp., a move that gives the company about 120,000 square feet of space and 14 additional acres for future growth.

Peluso said five to seven job openings are immediately available, with more to come as the plan develops throughout the year.

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Dothan Eagle