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A year ago, during the dying days of the
global economic boom, state officeholders
throughout the land glowed in the anticipation
of continued prosperity. When the National Conference
of State Legislatures (NCSL) reported on the fiscal
health of states in November 2007, not a single state
Top Story SNCJ Spotlight
Save Our States
State Net Capitol Journal
gave a pessimistic appraisal of its prospects. Indeed, governors across the land were
unveiling creative initiatives that seemed to ratify Supreme Court Justice Louis
Brandeis’ famous declaration that states are laboratories of democracy.
The boldest plan came from CALIFORNIA, where Republican Gov. Arnold
Schwarzenegger proposed a far-reaching health care program that would have
covered most of the uninsured. Five other states — ILLINOIS, MISSOURI, NEW
MEXICO, NEW YORK, and PENNSYLVANIA — also planned to expand health
insurance in significant ways. In ARIZONA, Gov. Janet Napolitano (D) proposed free
college tuition for every child in the state who graduated from high school with a B
average. WASHINGTON talked of providing its citizens with paid family leave.
All these rosy ideas were blown away like autumn leaves by the housing collapse
and the subsequent economic implosion. When NCSL issued this year’s November
report, 38 states had budget gaps and many of them were trimming programs or
freezing payrolls in an effort to reduce deficits. “The state budget situation is grim and
getting worse with each new revenue revision,” the report said. Corina Eckl, director
of fiscal programs for NCSL, said in an interview that the situation will become
“frightening” in fiscal 2010, which for all but four states begins on July 1. Every source
of state revenue is plunging fast. As unemployment rises, income tax revenues decline.
As housing foreclosures intensify and people spend less, sales tax revenues fall.
States that depend on tourism, such as NEVADA and HAWAII, have been hurt by a
decline in travel. Even the handful of states, such as WYOMING and TEXAS, that are
relatively well-off because of income from resource taxes, have been hurt by slumping
oil prices. In ALASKA, where the state budget was supposed to be perpetually
balanced, a deficit opened this month after the price of oil dropped below $65 a barrel.
The plight of the states exacerbates a downturn that economists say has the potential
to become the worst since the Great Depression. The human costs are high, particularly
in jobless benefits and health care services. Thirty states are at risk of having the funds
that pay out unemployment benefits become insolvent by late spring or early summer;
MICHIGAN and INDIANA are already borrowing funds from the federal government
to make these payments. Several governors have asked Congress to provide additional
funds for the Medicaid program that serves the poor and disabled.
Testifying before Congress on Dec. 11, NEW JERSEY Gov. Jon Corzine (D) said
that the decline in revenues in his state had impacted child welfare agencies, prisons,
and aid for the developmentally disabled and mentally ill. He asked for federal help for
infrastructure projects he said were “shovel-ready.” At the same hearing WISCONSIN
Gov. Jim Doyle (D) said he faced a $5.4 billion gap, 17 percent of the fiscal 2010 budget,
despite a 10 percent cut in the state work force. “We will be forced to cut the very tools
and services that people depend on to pull them out of recession,” Doyle said.
In total shortfall, populous California is far and away the dubious leader.
CALIFORNIA anticipates a $41.8 billion budget gap by July 2010, nearly half the
$86 billion in revenue the state expects to collect during the coming fiscal year.
State Net Capitol Journal
Unless the budget is soon balanced,
warns State Treasurer Bill Lockyer
(D), the state will need to shut
down hundreds of public works
projects — exactly the opposite of
what it should be doing during a
recession. CALIFORNIA’s troubles
are only partially to blame on the
economy; for years, the state’s
dysfunctional Legislature failed
to address a persistent structural
deficit. The gimmick-laden budget
passed this year by the Legislature
after months of delay was out of
balance before the ink was dry on
the document. Still, half a dozen
states have larger budget gaps
than CALIFORNIA if measured
as percentages of the general
fund. Six states — ARIZONA,
GEORGIA, NEVADA, NEW
HAMPSHIRE, RHODE ISLAND
and SOUTH CAROLINA — have
deficits of more than 10 percent
of their general funds, and NCSL
projects this number to grow to at least 15 states in 2010.
Since states are required to balance their budgets and the federal government
is not, governors will be coming hat in hand to the incoming administration of
Barack Obama in hope of bailouts. This is the reverse of the situation that faced the
states during the early years of President Franklin D. Roosevelt’s “New Deal for
the American people.” The federal safety net was virtually non-existent when FDR
came into office in 1933 — indeed, the New Deal created most of it, including Social
Security. What little help there was for America’s jobless, a quarter of the work force,
and for the poor came from the states. “Practically all the things we’ve done in the
federal government are like things Al Smith did as governor of NEW YORK,” FDR
said early in 1936, when he would be re-elected by a landslide. And it wasn’t just
NEW YORK. Animated by the Progressive movement, states such as CALIFORNIA,
MINNESOTA, NEW JERSEY, and WISCONSIN created early in the 20th century
unemployment insurance and welfare programs designed to cushion families in hard
times. Now, during our Great Recession, the states are supplicants, as much as the
banks and the insurance companies and the automakers.
Are there rays of light in this darkness? Perhaps.
FL
RI
MA
ME
CT
NJ
NH
VT
DE
KY MD
TX
IA
MT
AZ
WA
AK
CO
NM
ND
AL GA
SC
TN
MO
OH
VA
CA
OR
NV
UT
WY
SD
NE
HI
MN
NC
AR
LA
MS
IL
MI
IN
PA
NY
WV
OK
KS
Projected 2009 budget gap less
than 10% of state budget
Projected 2009 budget gap 10-15% of state budget Projected 2009 budget gap more than 15% of state budget
ID WI
Source: National Conference of
State Legislatures
Bird’s eye view
State budget gaps widen
The National Conference of State
Legislatures (NCSL) released its latest
update on the states’ fiscal health this
month. The national survey of legislative
fiscal officers found that, despite closing
a cumulative budget gap of nearly $40
billion going into FY 2009, states are
now $31 billion in the hole, due to gaps
that have opened up since they completed their budgets. The
report also shows that 26 states are projecting a cumulative
shortfall next fiscal year of $65 billion, a number that is only likely
to grow as more states assemble their FY 2010 forecasts.
State Net Capitol Journal
States are no less likely than individuals to exaggerate the impact of both booms
and busts. Scott Pattison, executive director of the National Association of Budget
Officers and a former director of finance in VIRGINIA, told Stateline.org that he
wondered if the forecasts that were once so rosy are now excessively grim and “might
slightly overcorrect.” Beyond this possibility — which amounts to a hope that the
recession will be shorter and milder than generally predicted — states may benefit from
the gigantic federal stimulus that Barack Obama has said he will propose to rebuild
roads, bridges, and other parts of the nation’s crumbling infrastructure. The conundrum,
as The Economist observed, is “that it is hard to spend both rapidly and wisely.”
Clearly, the President-elect has a sense of this difficulty: he has pledged that his
administration will choose the “best” projects based on overall utility rather than on
political considerations. But this is not a promise Obama can redeem by himself. To
succeed, he will necessarily rely on the recommendations of states, vital partners in
America’s federal system. If the stimulus is to be spent wisely, states will have to do
more than identify the projects that are, in Gov. Corzine’s words, shovel-ready to begin.
— Lou Cannon
Budget & taxes
DEMS LAUNCH BUDGET END RUN IN CA: CALIFORNIA’s
Democratic legislative leaders hatched a bold plan last week to ease the
state’s fiscal crisis: raise gas, sales and income taxes through a series of
legal maneuvers that circumvent the state’s two-thirds majority requirement for
— and Republican resistance to — tax increases.
The gambit would raise $9.3 billion through a three-quarter-cent increase in
the sales tax, a 13-cent-per-gallon hike in the gas tax and a 2.5 percent income tax
surcharge. Combined with billions in cuts to schools, healthcare and other programs,
it would almost halve the $41.8 billion budget shortfall projected for the state over
the next 18 months.
The plan hinges on the legal distinction between taxes, which are imposed
broadly and used for general purposes, and fees, charged to users of specific public
benefits, such as roads, and an arcane loophole in state law allowing the passage of
a tax bill with a simple majority vote as long as the tax doesn’t raise more revenue.
What the Democrats intend to do is eliminate the gas tax and some other existing fees
and substitute them with tax increases, including the income tax surcharge and a 9.9
percent levy on oil extraction. Then the Democrats would re-impose the gas fees at
higher levels (fees can also be raised with a simple majority vote), generating billions
of dollars in new revenue.
State Net Capitol Journal
With Republicans having repeatedly blocked their budget and tax proposals,
Democrats said the plan was the only way to break the budget deadlock, which
has dragged on for over a month since Gov. Arnold Schwarzenegger (R) called
lawmakers into special session.
“I still believe in bipartisanship,” said Senate President Pro Tem Darrell Steinberg
(D) at a Capitol news conference before voting on the proposal last Wednesday. “But
there is an even greater responsibility than practicing bipartisanship, and that is to
govern. And that is what we intend to do here today.”
Republicans saw things a little differently.
“Raising taxes on people and playing funny math and calling it fees is not
governing,” said Assembly GOP leader Mike Villines. “That’s trickery, is what that is.”
Jon Coupal, president of the Howard
Jarvis Taxpayers Association, said the
Democrats’ plan violates Proposition 13,
the 1978 initiative capping property taxes
and requiring all other tax increases to be
approved by a two-thirds vote.
“If they proceed with this proposal to
raise taxes with a simple majority vote, they
will be sued and they will lose,” Coupal said. “So we’re very confident this is more of
a ploy than anything else.”
Legal experts said there was no way of knowing how the courts would rule on the
law if it passed. Judges might strike it down, fearing a recall effort like the populist
uprising that led to Prop. 13, they said, or the courts might refuse to take action that
could plunge the state into insolvency.
“It is absolutely a shell game,” said Kirk Stark, a professor at UCLA School of
Law, although he pointed out that “in the 30 years since Prop. 13 was enacted, the
courts have been accommodating of legislative ingenuity.”
But the proposal faces another stumbling block that could prevent it from ever
making it to the courts. A spokesman for Schwarzenegger said the governor wouldn’t
sign the bill unless it included mortgage relief, provisions allowing more of the
construction and management of government facilities to be done by private firms,
and cuts to the state’s workforce, which public employee unions are resisting.
“If it doesn’t have these components, then the vote...is nothing more than a drill,”
the spokesman said. (LOS ANGELES TIMES)
STATE-LOCAL GOVERNMENT STIMULUS SPAT: The nation’s worsening
economy is increasing tension between state and local governments. Case in point: a
report sent Dec. 15 by the National League of Cities and the National Association of
Counties to Obama’s transition team advising them of the best way to distribute the
infrastructure money from the economic stimulus package that is in the works.
“Raising taxes on people
and playing funny math
and calling it fees is
not governing. That’s
trickery, is what that is.”
State Net Capitol Journal
“The quickest, most effective way to achieve the
intended results of a federal stimulus package is to
send federal funds directly to local governments,” the
report said.
City and county leaders, bothered about state
officials slashing local government aid to shore up their
own budget gaps and about the governors’ visit with
Obama earlier this month to ask him to direct stimulus
money to the states, felt the need to make their case
that cities and counties should actually get most of the
money because they have most of the infrastructure.
The local officials focused on Obama’s assertion
that speed is critical in order for the stimulus effort to
be effective.
“We must make sure that the funding is
spent quickly, and not stuck in federal or state
bureaucracies,” said Miami Mayor Manny Diaz,
president of the U.S. Conference of Mayors, which
submitted a $90 billion infrastructure plan to the
transition team.
State officials countered that giving the money
directly to cities and counties wouldn’t save time,
and Congress set up the current system, with state
transportation departments making the majority of the
spending decisions, because states are able to look at
the big picture and not just the transportation concerns
of a single area.
“It has to do with setting priorities,” said Raymond
C. Scheppach, executive director of the National
Governors Association. “You have to plan statewide.”
A spokesman for state transportation officials seemed inclined to agree. He said
state officials aren’t trying to pick a fight with cities and counties.
“But we have a proven system that works. All we have to do is get the money in
the pipeline.” (STATELINE.ORG)
BUDGETS IN BRIEF: For the first time in a quarter of a century, states expect
to see a decline in spending this fiscal year, according to a report released last week
by the National Association of State Budget Officers and the National Governors
Association. State spending grew only 5 percent last fiscal year, well below the 9
percent rate in FY 2007 and even lower than the 30-year average of 6.4 percent
(STATELINE.ORG). • FLORIDA legislative leaders announced last week that they
The week in session
States in Regular Session: CA, IL, OH
States in Recess: DC, IN 2009, MI, NJ,
NY
States in Special Session: CA 2009 “a”,
CA 2009 “b”
Special Sessions in Recess: DE “b”
States in Informal Session: MA
In Pro Forma Session: US
States in Perfunctory Session: IL
Special Sessions “a”-”z”
States Currently Prefiling or Drafting
for 2009: AL, AR, AZ, CT, FL, GA, IA, KY,
MO, MT, ND, NH, NM, NV, OK, SC, SD, TN,
TX, VA, WA, WY
States Adjourned in 2008: AK, AL, AZ,
CA, CO, CT, DE, FL, GA, HI, IA, ID, IN, KS,
KY, LA, MD, ME, MN, MO, MS, NC, NE, NH,
NM, OK, PA, RI, SC, SD, TN, UT, VA, VT,
WA, WI, WV, WY
State Special Sessions Adjourned in
2008: AK “c”, AK “d”, AL “a”, AR “a”, CA “a”,
CA “c”, CT “a”, CT “b”, CT “c”, CT “d”, CT “e”,
DE “a”, KY “a”, LA “a”, LA “b”, ME “a”, MS “a”,
NC “b”, NE “a”, NH “a”, NM “a”, NV “a”, NY “a”,
NY “b”, OR “a”, PA “a”, UT “a”, VA “a”, VA “b”,
WI “c”, WI “d”, WI “e”, WV “a”, WV “b”
Letters indicate special/extraordinary sessions
— Compiled By JAMES ROSS
(session information current as of 12/18/2008)
Source: State Net database
State Net Capitol Journal
will convene a two-week extraordinary session Jan.
5 to close the state’s growing $2.3-billion budget
hole (ST. PETERSBURG TIMES). • Last week,
ALABAMA Gov. Bob Riley (R) announced a 12.5
percent across-the-board spending cut, the largest
since education spending was reduced 14.1 percent in
1961 (ASSOCIATED PRESS, SUN HERALD [BILOXI]). NEW YORK Gov. David
Paterson (D) released a 2009-10 budget proposal last week calling for massive cuts
to education and healthcare, elimination of a residential property tax rebate program
and 88 new taxes and fees (DEMOCRAT AND CHRONICLE [ROCHESTER]). •
ILLINOIS Gov. Rod Blagojevich (D) signed SB 1981, legislation that raises the
state’s film tax credit to 30 percent. The credit, which was previously 20 percent, is
given to filmmakers for money spent on goods and services purchased in the Prairie
State, including wages paid to state residents (CHICAGO TRIBUNE).
— Compiled by KOREY CLARK
Politics & leadership
A TALE OF TWO U.S. SENATE SEATS: These are the best of times and
the worst of times for ILLINOIS, home of both the first African-American
president-elect of the United States and the national scandal over his
U.S. Senate seat. The melodrama continued last week, with the attorney for Gov.
Rod Blagojevich (D), Ed Genson, appearing before the House committee weighing
whether to recommend the governor’s impeachment.
Genson told the committee it would be illegal for them to use material from the
federal wiretaps of Blagojevich discussing selling and trading Obama’s Senate seat,
which he simultaneously dismissed as “people jabbering.” He also took exception to a
rule adopted by the committee stipulating that the governor’s legal representation not
be provided “at public expense.” He even challenged the panel itself, saying some of its
members ought to be removed because of statements they’d made about the governor.
“A number of people on this committee expressed views that were perfectly clear
that they already made up their minds,” he said.
The committee’s chairwoman, Rep. Barbara Flynn Currie (D), rebuffed Genson’s
objections, saying the panel was committed to “due process and fair play,” it was “not
the appropriate venue” for deciding whether Genson should be paid by the state’s
taxpayers, and it had wide latitude on handling evidence.
“We’re not a court of law. We’re not quite a grand jury,” she said. “We’re not
bound by specific rules of evidence.”
Upcoming elections
12/18/2008 - 1/8/2009
01/06/2009
Virginia Special Election
House 081 (Suit, Terrie L.)
State Net Capitol Journal
Blagojevich had been invited to attend the hearing
but had elected to remain in Chicago. He told reporters
before going for a morning jog, however, that he was
eager to discuss the allegations against him.
“I can’t wait to begin to tell my side of the story
and to address you guys and, most importantly, the
people of Illinois. That’s who I’m dying to talk
to,” he said.
Even without telling his side of the story, the
governor scored a big victory last week, when the
state Supreme Court denied an emergency request
from the state’s attorney general, Lisa Madigan —
who’s been mentioned as a possible candidate both
for Obama’s Senate seat and for governor in 2010
— to remove him from power. Madigan had argued
that “the pervasive nature and severity” of the federal
corruption case against Blagojevich had rendered
him “incapable of legitimately exercising his ability
as governor.” But without issuing an opinion, the
court rejected Madigan’s request along with a second
motion for a temporary restraining order that would
have barred the governor from making Senate
appointments, cutting off one of the state’s shortest routes out of its current straits.
The Democrats who control the state Legislature closed off another one,
adjourning without bringing a plan to fill Obama’s Senate seat through a special
election up for a vote. Republicans accused the Democratic majority of trying to hold
onto the seat by denying the public a
right to vote.
“We need leadership from
majority Democrats in the
Legislature; instead, what we are
getting is the same old insider
political games,” said Deputy
Republican Leader Christine
Radogno. She added: “Frankly,
after the past week, most people in
Illinois are wondering how much
more embarrassment the state must endure. Apparently, legislative Democrats think
the state needs more embarrassment.”
Democrats maintained that a special election would be too costly and that
they were trying to figure out the best alternative. Clearly, one that ends with the
In the hopper
At any given time, State Net tracks tens of thousands
of bills in all 50 states, the US Congress
and the District of Columbia. Here’s a snapshot
of what’s in the legislative works:
Number of 2009 prefiles last week: 797
Number of 2008 Intros last week: 448
Number of 2009 Intros last week: 58
Number of bills enacted/adopted last
week: 91
Number of 2008 prefiles to date: 21,697
Number of 2009 prefiles to date: 7,314
Number of 2008 Intros to date: 93,582
Number of 2009 Intros to date: 214
Number of bills enacted/adopted overall
to date: 28,532
— Compiled By JAMES ROSS
(measures current as of 12/17/2008)
Source: State Net database
“Frankly, after the past week,
most people in Illinois are
wondering how much more
embarrassment the state
must endure. Apparently,
legislative Democrats
think the state needs more
embarrassment.”
State Net Capitol Journal
appointment of another Democrat to the U.S. Senate would be the most desirable
for them. With a special election and Blagojevich’s removal from office by the state
Supreme Court off the table, that basically leaves the governor’s criminal conviction,
impeachment or resignation.
The first two options may not be particularly expeditious, but it doesn’t seem
likely the governor will be delivering his “It is a far, far better thing I do, than I have
ever done” farewell speech any time soon.
Another U.S. Senate seat also made headlines last week: the one soon to be
vacated by Sen. Hillary Rodham Clinton (D-NEW YORK). Caroline Kennedy, the
daughter of President John F. Kennedy, publicly disclosed her desire to enter the
family business by succeeding the Secretary of State-to-be. The news was broken last
Monday by NEW YORK Gov. David Paterson (D), but Kennedy confirmed it herself
two days later on a road trip across the state, reminiscent of Clinton’s own outreach
tour in 1999 and 2000, the first time she ran for the Senate.
“I just wanted to say, as some of you may have heard, I would be honored to be
considered for the position of U.S. senator,” Kennedy told reporters as she left Syracuse
City Hall. “I wanted to come upstate to meet Mayor Driscoll and others to tell them
about my experience and also learn how Washington can help upstate New York.”
Kennedy’s handlers ushered her off when she was asked what her qualifications
for the U.S. Senate were. But Clinton had never held public office before she was
first elected. And Kennedy briefly spoke to the experience issue at a subsequent stop,
in Rochester.
“I just hope everybody understands that it is not a campaign but that I have had a
lifelong devotion to public service,” she said. “I’ve written books on the constitution
and the importance of individual participation. I think I really could help bring
change to Washington.”
Paterson has said he won’t name a replacement until Clinton is confirmed,
which isn’t likely to happen until at least the end of January. But Kennedy is the
highest profile name to throw a hat in the ring. Attorney General Andrew Cuomo,
son of former NEW YORK Gov. Mario Cuomo, is also believed to be on Paterson’s
short list, but he hasn’t said publicly whether he’s interested. A Siena College poll
released the day of Kennedy’s outing showed nearly identical approval ratings for
her and Cuomo.
Republicans immediately pounced on Kennedy’s lack of government experience.
“If anything, it makes me more determined to run,” said Rep. Peter King (R) of Long
Island, who’s expressed interest in the seat, which was once held by Caroline’s uncle,
Robert F. Kennedy. “As far as record of achievement, I strongly believe that I’m
much more qualified, much more experienced, and have an independent record,” he
said. “Nothing against Caroline Kennedy, but I don’t think anyone has a right to a
seat.” (WALL STREET JOURNAL, ASSOCIATED PRESS, YAHOO NEWS, NEW
YORK TIMES CHICAGO TRIBUNE, TIMES UNION [ALBANY])
10
State Net Capitol Journal
POLITICS IN BRIEF: The nation’s 538 electors
performed their constitutional duty last week, casting
their ballots in accordance with the popular votes in
their states without exception and officially electing
Barack Obama the 44th president. The election will
not be complete, however, until Congress certifies the
outcome of the Electoral College vote at a joint session
scheduled for Jan. 6 (USA TODAY).
— Compiled by KOREY CLARK
Governors
ARIZONA GOP URGES MORATORIUM ON EXEC ORDERS:
With ARIZONA Gov. Janet Napolitano (D) soon to join the Obama
administration, incoming Republican legislative leaders are calling on her
to refrain from issuing any further executive orders. The request came as Napolitano
prepared to issue an order that would grant about 25,500 state workers a labor
authority known as meet-and-confer, which would allow those employees to vote on
whether they’d like union representation and, if so, require that agency directors meet
at least quarterly with the chosen union representatives.
Senate President-elect Bob Burns and House Speaker-elect Kirk Adams issued a
joint statement last week urging Napolitano to hold off on that order as well as any
others she may be considering before she
resigns in January.
“It would be unprecedented for an
outgoing governor to issue last-minute
executive orders that tie the hands of the
incoming administration,” Adams said.
“Unless it involves a state emergency, the
governor should not be creating new policies
that will not be her responsibility to oversee.”
Burns added that union involvement in
the state’s ongoing budget process would “complicate and stall” devising a solution for
an anticipated $1.2 billion shortfall. That didn’t get a lot of sympathy from Napolitano
spokesperson Jeanine L’Ecuyer. “If they’re worried about the budget, they might want
to get to work on it,” she said, a not so subtle dig at GOP leaders for not supporting
Napolitano’s call for a special session that would have dealt with closing the budget
hole. L’Ecuyer also indicated that the governor does not intend to self-curb her
executive order powers.
“It would be
unprecedented for an
outgoing governor to issue
last-minute executive
orders that tie the
hands of the incoming
administration.”
Upcoming stories
Here are some of the topics you will see
covered in upcoming issues of the State
Net Capitol Journal:
- Coping with Recession
- No Child Left Behind
- A view from Europe
11
State Net Capitol Journal
“She has the right to do executive orders,” L’Ecuyer said, “And when she
believes they are good policy, as she does on this one, we move forward.”
(ARIZONA REPUBLIC [PHOENIX])
CRIST EVERGLADES DEAL MOVES CLOSER: After months of
negotiations, FLORIDA water managers agreed to buy nearly 300 square miles of
land from United States Sugar last week for $1.34 billion. Fans of the land purchase,
most notably Gov. Charlie Crist (R), who has championed the deal for more than a
year, say it could ultimately revive and reshape current Everglades restoration efforts.
But even those supporters acknowledge there is a chance the state’s deepening
financial crisis could undermine the entire project.
“When push comes to shove, I’m not sure we can afford this deal,” said Shannon
Estenoz, an environmental activist and the governing board vice chair of the South
Florida Water Management District, which approved the deal. The District was in fact
so concerned about the state’s worsening budget situation that it added an amendment
to the contract that says the purchase must not “adversely affect” core district operations
like flood control.
Even with those concerns, Crist called the purchase “the most important step in
the history of true Everglades restoration.” There is, however, at least one more major
hurdle for the state to clear. Last week’s affirmative vote started a 60-day auction
period, in which United States Sugar’s shareholders must consider competing offers.
One other major offer has been made, by a family-owned farming company called
the Lawrence Group. Florida Crystals, a politically powerful competitor that owns
strategically located land for restoration, has also sued to stop a state court from
approving the contract. (NEW YORK TIMES, MIAMI HERALD)
GOVERNORS IN BRIEF: • President-elect Barack Obama has named former
IOWA Gov. Tom Vilsack (D) to lead the U.S. Department of Agriculture. Vilsack
also sought the 2008 Democratic presidential nomination before dropping out early
in the race (ASSOCIATED PRESS). • MICHIGAN Gov. Jennifer Granholm (D), on
the other hand, said last week that she does not want to be considered for an Obama
cabinet position (DETROIT FREE PRESS). • FLORIDA Gov. Charlie Crist (R)
tied the knot last week, marrying the former Carol Lynn Rome in St. Petersburg. The
event drew about 150 protesters, most of whom were there to advocate for samesex
marriage in the Sunshine State (TALLAHASSEE DEMOCRAT). • TEXAS
Gov. Rick Perry (R) became the longest-serving governor in Lone Star State history
last week. Perry, who became governor in 2000 when George W. Bush was elected
President and has since twice won re-election, also plans to seek another term in
2010 (AUSTIN AMERICAN-STATESMAN). • OHIO Gov. Ted Strickland (D)
said he will veto legislation that would raid the state’s “Rainy Day” fund in order to
give veterans of the 1990-91 Persian Gulf War and the ongoing fighting in Iraq and
12
State Net Capitol Journal
Afghanistan bonuses up to $1,000 before Christmas. Strickland said he supports the
concept of the bonuses, but believes the state should sell bonds to fund the project
(DAYTON DAILY NEWS).
— Compiled by RICH EHISEN
Hot issues
BUSINESS: An OHIO court says a Buckeye State law that bars residents
from bringing in alcohol purchased out of state is unconstitutional. The
court said the statute conflicts with federal law that regulates interstate
commerce (CINCINNATI ENQUIRER). • CALIFORNIA-based Toymaker Mattel,
Inc. agrees to pay $12 million to settle charges that it violated consumer laws in 39
states by selling lead-tainted toys in 2007. Mattel and its Fisher Price unit recalled
more than 21 million Chinese-made toys last year, fearing the items were tainted with
lead paint and tiny magnets that children could accidentally swallow (ASSOCIATED
PRESS). • The MASSACHUSETTS Senate approves HB 4508, legislation allowing
the Bay State insurance commissioner to establish regulations to protect members of
the military and their families from unscrupulous sales practices of companies that
sell insurance. It moves to Gov. Deval Patrick (D) for review (MILFORD DAILY
NEWS). • The NEW JERSEY Assembly approves AB 2650, which would require
developers of major projects to submit audited annual financial statements, post
performance bonds worth 110 percent of the public funds dedicated to the project
and to spend at least $1 in private money for each $5 in public funds. The new
requirements, which would also set aside one-tenth of the taxpayer funds until the
project is complete, would apply to all projects using more than $50 million in federal
funds. It moves to the Senate, which has its own similar bill under consideration
(STAR-LEDGER [NEWARK]). • Still in NEW JERSEY, the state Supreme Court
rules that lawyers named to lists such as “Super Lawyers” or “Best Lawyers in
America” may include that information in their advertising. The court said such
information is constitutionally protected free speech (STAR-LEDGER [NEWARK]).
• Back in OHIO, the Senate approves HB 79, legislation that preserves the state’s
current group rating system for workers compensation insurance. A Buckeye State
court ruled in November that the system is unfair to businesses unable to access
a group, but lawmakers said they must maintain the system in order for those
businesses in special pricing groups to avoid rate hikes. The bill moves now to the
House (CLEVELAND PLAIN DEALER). • Also in OHIO, the House rejects HB
230, which would have required those under age 18 to get a doctor’s prescription in
order to use a commercial tanning bed (CLEVELAND PLAIN DEALER).
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State Net Capitol Journal
CRIME & PUNISHMENT: The OHIO
Senate unanimously passes HB 215, making it
illegal to sell or possess the highly hallucinogenic
herb Salvia Divinorum. The measure now moves to
Gov. Ted Strickland (D), who is expected to sign it
(CLEVELAND PLAIN DEALER).
EDUCATION: The MASSACHUSETTS House
and Senate endorse HB 4396, a measure that bars
registered sex offenders from being employed as a school bus driver. Current Bay
State law prohibits only those convicted of certain sex-related crimes from driving
the buses. The legislation moves to Gov. Deval Patrick (D) for consideration (STATE
NET). • NEW JERSEY officials announce that students using the Garden State’s
NJClas college loan program will no longer be able to defer making payments
until after they graduate. Loan program officials say they made the changes after the
number of students choosing to defer payments grew to more than 50 percent of all
loan recipients this year (STAR-LEDGER [NEWARK]).
ENVIRONMENT: The CALIFORNIA Air Resources Board orders owners of
heavy-duty diesel trucks to install soot traps on exhaust pipes of older, high-polluting
rigs or take them off the road. The new rules go into effect in 2011 (SACRAMENTO
BEE). • Still in CALIFORNIA, officials launch a “green initiative” that would
eventually require labeling on every consumer product to reveal its “environmental
footprint.” The plan is expected to require a significant number of legislative
measures and new regulations and take as long as 10 years to develop (LOS
ANGELES TIMES). • State and federal officials agree to allow bison to migrate
into parts of MONTANA from Yellowstone National Park. The move will allow at
least some bison leaving the park to avoid being shot by hunters as part of a program
meant to guard against transmissions of the disease brucellosis to cattle. More than
3,000 bison have been killed outside the park in recent years, including more than
1,600 last year (BILLINGS GAZETTE).
HEALTH & SCIENCE: The OHIO House overwhelmingly endorses SB
203, legislation that would require Buckeye State pharmacy technicians to pass
a competency test as well as a criminal background check. It moves to Gov. Ted
Strickland (D) for review (CLEVELAND PLAIN DEALER). • ILLINOIS Gov. Rod
Blagojevich (D) signs SB 934, legislation that requires health insurance companies
to cover the cost of treating autism in individuals under age 21. The statute caps
required benefits at $36,000 per year (DAILY HERALD [ARLINGTON HEIGHTS]).
• FLORIDA-based Airborne Health, makers of a top-selling product marketed as a
cold prevention and treatment remedy, signs a $7 million settlement related to false
In case you missed it
State lawmakers and governors in 2009
will face a plethora of major challenges as
they struggle to guide their states through an
historic economic downturn. Last week, in
the second of a two-part series, the State Net
staff examined some of the key issues we see
lawmakers considering in the coming year.
In case you missed it, the article can be
found on our Web site at
http://www.statenet.com/capitol_journal/12-15-2008/html
14
State Net Capitol Journal
advertising claims leveled by 32 state attorneys general and the District of Columbia.
The settlement also bars the company from claiming its products treat cold symptoms
or prevent colds, flu and infections unless it provides “reliable and competent
scientific evidence” to verify the claim (SEATTLE TIMES).
SOCIAL POLICY: The OHIO Senate endorses HB 280, which would require
clinics that perform abortions to post signs noting that the procedure is voluntary.
The bill, which also increases the penalty for domestic violence against a pregnant
woman, returns to the House for expected concurrence on changes made in the Senate
before it can be sent to Gov. Ted Strickland (D), who has indicated he will sign it into
law (COLUMBUS DISPATCH, DAYTON DAILY NEWS).
POTPOURRI: The MASSACHUSETTS House and Senate each approve SB
2103, which requires drivers on multi-lane highways to give wide clearance for
roadside emergency vehicles with flashing lights. Violators could face a ticket of
up to $100. The bill moves to Gov. Deval Patrick (D) for review (STATE NET). •
The OHIO House approves SB 269, which would bar musical groups from billing
themselves as a widely recognized group unless the current lineup contains at least
one member of the original group. The measure now goes to Gov. Ted Strickland
(D) for review (COLUMBUS DISPATCH). • Still in OHIO, lawmakers endorse
legislation that requires kids younger than age 9 and less than 4-foot-9-inches tall
to sit in a booster seat when riding in a car. It also moves to Gov. Strickland, who is
expected to sign it (DAYTON DAILY NEWS, STATE NET).
— Compiled by RICH EHISEN
Once around the
statehouse lightly
BUT I CAN’T SEE THE WHITE HOUSE: ALASKA Gov. Sarah Palin
may not have won the second banana job at the White House, but she did
have the top quote of 2008. Well, kinda sorta. According to the Los Angeles
Times, Fred Shapiro, the man responsible for the Yale Book of Quotations, has listed
“I can see Russia from my house!” as the nation’s most memorable public utterance
this year. Of course, Palin herself never said that. The words actually came from
comedian Tina Fey, who was famously satirizing Palin’s lack of foreign policy
experience on NBC’s Saturday Night Live. One of the gov’s real quotes –- one in
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State Net Capitol Journal
which she struggled to name a single newspaper or magazine that she reads — did
finish second, however.
LOW BLOW: Speaking of SNL, Palin supporters complained regularly during
the presidential campaign that the show was unfairly hammering the governor.
Now, the New York Times reports, the hue and cry is coming from the office of
NEW YORK Gov. David S. Paterson. Risa Heller, Paterson’s communications
director, took great exception to a recent skit that depicted the gov as something of a
buffoon, repeatedly mocked the governor’s blindness and made several references to
Paterson’s admitted previous drug use and marital infidelity. Heller castigated SNL
for choosing “to ridicule people with physical disabilities and imply that disabled
people are incapable of having jobs with serious responsibilities.” Both NBC and
SNL had no comment on Heller’s critique.
‘TIS THE SEASON: As if folks in the ILLINOIS statehouse don’t have enough
to worry about right now, there is apparently a sign thief running loose under the
Capitol dome! According to the State Journal-Register in Springfield, an atheist
group recently decided to protest the display of religious symbols in the statehouse by
placing a sign decrying religion amidst the holiday brick-a-brack currently adorning
the Capitol rotunda. But within the week someone had pilfered it. The group vowed
to replace the sign, but said this time they will add a second one that implores
potential thieves to remember one of the most basic Biblical commandments: Thou
shall not steal.
COLLATERAL DAMAGE: Much has been made of the potential career
damage done to the peripheral players in the ongoing corruption scandal involving
ILLINOIS Gov. Rod Blagojevich. But while those close to the fire on this one may
ultimately get burned, none are as likely to suffer from an association with Blago
as the man he replaced, former Gov. George Ryan, currently serving a 6 1/2 year
sentence for his own widespread corruption scandal. Ryan was hoping to convince
President George W. Bush to grant him clemency before Barack Obama takes office,
but as the Chicago Sun-Times reports, that now seems highly unlikely. At the least,
says former Gov. Jim Thompson, the man leading the call for Ryan’s clemency,
Blagojevich’s situation “certainly isn’t helpful” to Ryan’s cause. It probably also
doesn’t help that Blagojevich gave his public support to the clemency request just
days before his own arrest.
— By RICH EHISEN
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State Net Capitol Journal
Editor: Rich Ehisen — capj@statenet.com
Associate Editor: Korey Clark — capj@statenet.com
Contributing Editors: Virginia Nelson, Art Zimmerman
Editorial Advisor: Lou Cannon
Correspondents: Richard Cox (CA), Steve Karas (CA),
Bruce McKeeman (CA), Jeff Kinnison (CA), James Ross (CA), Linda Mendenhall (IL),
Lauren King (MA) and Ben Livingood (PA)
Graphic Design: Vanessa Perez
©2008 State Net ISSN: 1521-8449
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