My state, your state

The 2012 Legislative session opens next week Wednesday, January 18, 2012. Bills will be introduced, new and old ideas will be debated in hearings and in the media, and the Capitol will be aflutter with people coming and going.

Before our session starts, let’s take a look at what other state legislatures are doing or considering.

The National Conference of State Legislatures magazine touches on a few odd and some controversial issues facing state lawmakers, including prisoner food cuts for Texans, the chimichanga as Arizona's state food, giving farmers unlimited control in North Dakota, and banning campaign fundraising while the Utah legislature is in session. Read more here.

In case you're wondering, Hawaii doesn’t have a state food.

What do you think about banning campaign fundraising during the legislative session? Some lawmakers in Utah don't believe they would have enough time to raise money before an election. According to NCSL, 28 states restrict giving and receiving campaign contributions during the session.

But wait. There's more.

Will we be seeing 51 stars on the American flag?

One lawmaker in Illinois thinks that Chicago should become its own state because of the "different and firmly seated views" it has from its neighboring counties. Rep. Bill Mitchell says that the cities liberal policies are an insult to the rest of the state's traditional values. His main concerns are Chicago's higher tax rates and stricter gun laws. If the measure driving this idea passes, it will be voted on by constituents in the next election, and if successful there, it must be approved by Congress and the president.

NCSL press conference on Main Stream Fairness Act

Mahalo to The Thicket for sharing this information.

The ability for states to collect sales tax, or in Hawaii's case, the general excise tax on internet purchases has been an issue across the country. The National Conference of State Legislatures held a news conference at the 2011 annual meeting to encourage Congress to pass a federal streamline sales tax through legislation called the Main Street Fairness Act. Twenty-four states have passed state legislation to collect internet sales tax, but even those states are having a difficult time enforcing the law. Here's what several lawmakers have to say about it:



In the video below, NCSL's Neil Osten explains what the Main Stream Fairness Act is all about and why Congress needs to pass it:

Alcohol and Tobacco

States across the country turned to raising the tax on alcohol and tobacco as a way to increase revenue and close budget gaps. Here's a recap on what passed in 2010 for FY2011 by state:

California

Lawmakers proposed increasing the alcohol tax by 60% to generate an expected $210 million.

Hawaii

Enacted: The State Attorney General is pursuing the collection of the state tobacco tax from Hawaii residents who purchase cigarettes via the Internet but did not pay tax on them. The Attorney General estimates that the state could be missing between $600,000 and $700,000 in uncollected tax revenue.

Enacted: HB 1985 raised the cigarette tax by 20-cents per pack. The measure also increases the taxes on small cigars by 1-cent per cigar. The measure is expected to generate $10 to $14 million a year.

Minnesota

Enacted: The Dept. of Revenue issued a new sales tax rate on cigarettes. The new rate, effective Aug. 1, 2010, is $.0346 per pack.

Mississippi

Lawmakers proposed privatizing liquor stores.

Nebraska

Enacted: Measure expands hours of operation for bars. Bars will be permitted to stay open till 2am.

New Mexico

Enacted: The cigarette tax will increase by 75-cents per pack for four years. The state’s cigarette tax would rise from 91-cents to $1.66 per pack. The measure would generate an estimated $33 million in FY 2011.

New York

Enacted: Budget includes a $290 million tax increase on cigarettes and other tobacco products, raising the tax from $2.75 a pack to $4.35.

South Carolina

Enacted: A 50-cent increase in the tax per pack of cigarettes.

South Dakota

Governor proposed increasing the cigarette tax to offset a proposed corporate income tax cut. Bills pending in the General Assembly propose per-pack increases ranging from 30-cents to 86-cents.

Utah

Enacted: Enacted budget increases cigarette tax from $0.695 to $1.695 per pack. Tax on cigars will increase from 35% to 86% of the manufacture’s sale price. Tax on moist snuff will increase from $0.75 to $1.83 per ounce. The tax increase is expected to raise $43 million for FY 2011.

Virginia

Governor proposed increasing markup on alcoholic beverages by 2%.
Governor proposed privatizing liquor stores.

Washington

Group of lawmakers proposed privatizing liquor stores to receive $350 million in revenue over 5 years.
Enacted: House approved increased taxes on beer which would tax non-microbrewed beer at 50 cents per gallon.

Governor proposed increasing tax by a $1 per pack, generating an estimated $95 million in FY 2011.
Enacted: House approved increased taxes on cigarettes.

Guam

Governor signed into law early February a cigarette tax increase of $2 per pack.

For the full list from NCSL of failed and enacted legislation for alcohol and tobacco, click here.

Hawaii represented on Asian Pacific American Caucus

Last week during the National Conference of State Legislatures annual summit, the National Asian Pacific American Caucus held elections for officers, and policy committee chairs and co-chairs. Hawaii is well represented:

Executive Committee

Chair: Rep. Sharon Tomiko Santos, Washington

Vice-Chair: Rep. Pono Chong, Hawaii

Second Vice-Chair: Sen. Brian Taniguchi, Hawaii

Secretary: Asm. Upendra Chivukula, New Jersey

Treasurer: Rep. Hubert Vo, Texas

STEERING COMMITTEE

Rep. Sharon Tomiko Santos, Washington

Rep. Pono Chong, Hawaii

Sen. Brian Taniguchi, Hawaii

Asm. Upendra Chivukula, New Jersey

Rep. Hubert Vo, Texas

Rep. Ken Ito, Hawaii

Rep. Kyle Yamashita, Hawaii

Rep. Roy Takumi, Hawaii

Sen. Clarence Nishihara, Hawaii

Rep. John Mizuno, Hawaii

Rep. Scott Kawasaki, Alaska

Policy committees

1. Economic Development

Chair: Rep. Ken Ito, Hawaii

Co-Chair: Rep. Kyle Yamashita, Hawaii

Rep. Jerry Chang, Hawaii

Rep. Bob Hasegawa, Washington

Rep. Clift Tsuji, Hawaii

2. Education

Chair: Rep. Roy Takumi, Hawaii

Co-Chair: Sen. Clarence Nishihara, Hawaii

Rep. K. Mark Takai, Hawaii

3. Health & Human Services

Chair: Rep. John Mizuno, Hawaii

Co-Chair: Rep. Scott Kawasaki, Alaska

Asm. Fiona Ma, California

Political Malapropisms

I had a good laugh today when I read The Thicket's post on various malapropisms from politicians across time and space. Entitled "A Box of Pandoras and Other Political Malapropisms", the title was inspired by a story about former New Mexico Governor Bruce King, a cigar smoker no doubt, who once said of a certain legislative proposal: "That will open up a whole box of Pandoras."

I'm sure that Hawaii politicians have come up with some pretty funny ones themselves. I once had to tell a former lawmaker, prior to an interview, "Actually Rep, it's 'omnibus bill' not 'ominous bill'.

Here are some good examples from Texas taken from the The Thicket's post. And if you have some local stories to share, please do.

"It's the sediment of the House that we adjourn."--Texas House Speaker Wayne Clayton

"Let's do this in one foul sweep."--Texas House Speaker Wayne Clayton

"This is unparalyzed in the state's history."--Texas House Speaker Gib Lewis

"I am filled with humidity."--Texas House Speaker Gib Lewis

"I want to thank each and every one of you for having extinguished yourselves this session."--Texas House Speaker Gib Lewis.

"We'll run it up the flagpole and see who salutes that booger."--Texas House Speaker Gib Lewis

"There's a lot of uncertainty that's not clear in my mind."--Texas House Speaker Gib Lewis

UPDATE:

And here's a few more from one of the members of the Hawaii press corps at the State Capitol...

"You can't have your cake and eat it all."

"We should iron our situation here."

"This is way down on the food channel."

"We can't rest our laurels on this."

"We came up smiling like a rose."

UPDATE 2:

Gems from Rep. Roy Takumi, but he's not spilling the beans on who said what on the House floor:

"This is so important it should be compulsatory."

"All doctors have to take the hypocrisy oath."

2010 Offshore Drilling Legislation in Other States

The National Conference of State Legislatures (NCSL) has compiled a list of offshore drilling legislation passed or being considered by various states in the 2010 session, as well as a listing of offshore drilling laws already on the books. Most favor offshore drilling, especially as a means of revenue. Here's a link. Here's a summary:

2010 Legislation

South Carolina

*Pending bill requires anyone permitted to drill offshore in state waters to provide a portion of the lease or royalty payments to help fund the state's transportation infrastructure, and a portion to the preservation of the state's natural resources.

*Considering bill to allow offshore drilling to anyone who provides "economic viability".

*Considering bill to allow offshore exploration, drilling and production in the part of the Atlantic Ocean that is within the state's jurisdiction.

Virginia

*HB756 enacted. Requires percentage of offshore drilling revenues and royalties to go to the state's Transportation Trust Fund, the State Coastal Energy Resource Consortium, and to localities for improvements to infrastructure and transportation.

California

*Considering legislation to create a board to approve oil or gas extraction from lands in the State Coastal Sanctuary.

Louisiana

*Reviewing bill that urges Congress to end the outer continental shelf moratorium on oil and natural gas exploration and production.

New Jersey

*Pending legislation prohibits the state Department of Environmental Protection from issuing permits or approving activities with offshore drilling for oil and natural gas.

Offshore Drilling Laws

Florida

*Prohibits drilling within one mile of the seaward boundary of any state, local, or federal park, or aquatic or wildlife preserve.

*Imposes a coastal protection tax on each barrel of pollutants produced in Florida or imported into the state. If a discharge occurs, the tax may be increased for a period of time.

Virginia

*Prohibits drilling in the waters of the Chesapeake Bay or any of its tributaries. However, those who want to drill in prohibited areas can apply for a permit by completing an environmental assessment.

Alabama

*Collects a tax from any party that is drilling. Tax is 8% of the gross value of the oil at the point of production.

California

*The responsible party is liable for any discharge into marine waters from sources such as oil rigs or platforms. The responsible party is not liable if the discharge is due to an "act of God" or authorized by state or federal permit.

North Carolina

*A responsible party is liable for all clean up and removal costs that arise from the discharge of oil into offshore waters.

Texas

*Responsible party liable for all response costs of any threatened or actual discharge of oil from any offshore drilling or production facility.

Sin and Taxes

"Why pick on us? What about a tax on alcohol?" Guaranteed, that's one of the first things out of a smoker's mouth on the issue of rising tobacco taxes. So, what about alcohol?

An NCSL report comparing the 50 states on alcohol taxes vs cigarette and tobacco taxes revealed that there are far fewer states that passed laws on alcohol, although many have tried. View the comparison chart here.

Here are some of the states' efforts on taxing alcohol:

California: Lawmakers have proposed targeting liquor and wine for a "dime a drink" surcharge.

Delaware: Lawmakers proposed a 50% increase to the alcohol tax. The measure did not pass.

Illinois: Their enacted budget raises the taxes on beer (25%), wine (90%, from $0.73 per gallon to $1.39 per gallon), and distilled spirits by (90%, from $4.50 per gallon to $8.55 per gallon).

Kentucky: The governor signed a measure that will apply a 6% sales tax on packaged alcohol sales starting April 1, 2009 (the exemption of alcoholic beverages from the state sales tax was ended). The measure is expected to generate $51.9 million in FY 2010.

Maryland: Lawmakers proposed raising the state's excise tax on alcohol to the equivalent of $0.05 per drink. The tax rate on liquor would have been raised to $6 per gallon from the current $1.50 per gallon. Additional taxes would have been assessed for beverages containing more than 50% alcohol. The tax rate for beer would also have risen to 36-cents per gallon from the current 9-cents per gallon. Wine taxes would have increased to $1.60 per gallon from the current 40-cents per gallon. These proposals did not pass.

Massachusetts: Enacted budget extends the state's sales tax to the retail purchase of beer, wine, and hard liquor. This measure is expected to generate $78.8 million in FY 2010.

Michigan: Governor has proposed doubling the annual liquor license fees that now range from $600 to $1,200. Governor has proposed enacting a fee for allowing bars to stay open extended hours.

Nevada: Lawmakers proposed, but did not pass, increasing the state's alcohol tax. Lawmakers proposed increasing the tax on a gallon of liquor from $3.66 to $7.87. Taxes on wine would have risen to $1.77 per gallon, compared with the current 70 cents. Taxes on a gallon of beer would have jumped to 69 cents per gallon, compared to 16 cents.

New Jersey: Lawmakers increased the tax per gallon of alcohol (except for beer) by 25%. The measure is expected to generate $22 million in FY 2010.

New York: Higher alcohol tax enacted. Tax on beer was increased 3-cents per gallon to a total of 14-cents per gallon. Tax on wine was increased 11-cents per gallon to a total of 30-cents per gallon. The alcohol tax increases are expected to generate $14 million.

North Carolina: Enacted budget increases alcohol taxes by 0.8 cents per can of beer and by 4 cents per bottle of wine.

Oregon: Lawmakers proposed increasing the beer tax by 1,900%. Currently the tax is 1-cent per gallon and lawmakers have proposed raising it to $1.60 per gallon. This measure was not enacted. The Oregon Liquor Control Commission imposed a temporary 50-cent tax surcharge on every bottle of liquor sold in the state.

Vermont: Legislature passed a budget that extends the state's 6% sales tax to include hard liquor. Beer and wine are already subject to the state's sales tax.

Washington: The Washington Liquor Control Board voted to increase the state markup on liquor by an average of $1 a liter. Beer and wine are exempt.

State Legislatures Send Letter to Congress on Healthcare

The National Conference of State Legislatures (NCSL) sent this letter dated September 23, 2009, to Senators Max Baucus (Chair) and Charles Grassley(Ranking Member) of the Finance Committee, outlining the states' collective position on the healthcare reform bill, aka America's Health Future Act. Here are the request highlights:

*No unfunded federal mandates and full funding of any eligibility categories, services and increases for reimbursements.

*Automatic countercyclical stabilizer.

*Investments for improvements to the medicaid program.

*State regulation of health insurance.

*Long-term care initiatives.

*Disproportinate Share Hospital payments.

*Medical malpractice innovations.

State capitol garden

Photo: Vermont State House Garden. Cabbage harvested in June 2009

I was excited to read on NCSL's blog the Thicket that Vermont has a State House Garden, making it the first and possibly the only vegetable garden to be planted on a state capitol lawn.

Located in Montpelier, the garden is maintained by local volunteers. All the food harvested goes directly to local food banks. Vermont lawmakers approved the garden as part of an effort to promote sustainability, and to encourage residents to plant their own gardens.

Here's a link to the harvest report. This is the first year of the garden, and they reaped their 4th harvest of the year earlier in September. The bounty, posted by applescott:

"The fourth harvest was great, even if a little surreal with the Kansas protesters spitting nasty epithets at passers by, and the anti-protesters smiling serenely back and holding a bake sale! All the food we harvested—and there was a lot—went to the Bethany Soup Kitchen, which really appreciated every beet, carrot and bean.

Cabbage – 8 lbs – 4 oz
Carrots – 5 lbs – 4.5 oz
Beans – 3 lbs – 14 oz
Beets – 27 lbs
Kale – 5 lbs – 12.25 oz

More kale, collards, broccoli, lettuce, beets and spinach were planted."

Is this an idea that could be planted for the Hawaii State Capitol ?

States Raised Taxes in 2009

It's not news that state legislatures raised taxes in 2009 in order to close significant budget gaps. What is noteworthy is that trends emerged, and NCSL has filed a useful report on the subject. The report lists which states did what, but here are some examples:

*States reported $142 billion in budget gaps.

*36 states reported raising taxes to help close the gaps, increasing revenue by an estimated $24 billion. (I assume that means that budget cuts were the main tool used to close budget gaps, as they were in Hawaii.)

*19 states made no signifcant tax policy changes.

*Trend - states relied heavily on raising personal income tax, a source that has not been tapped in recent years.

*Trend - states specifically turned to higher-income wage earners.

*Trend - more than a dozen states applied new tobacco and alcohol taxes.

*Trend - business tax breaks scaled back.

*Trend - new assessments on health care industry.

*Trend - incentives for renewable energy and transportation initiatives slowed.

*Noteworthy - some state actually cut taxes. North Dakota cut individual and business taxes by $50 million.

*Noteworthy - Massachusetts and California raised their sales tax.

*Noteworthy - Florida raised tobacco tax and generated more than $1 billion in fee increases.

*Noteworthy - Delaware added sports betting to its gaming activities to generate $53 million.

*Noteworthy - Delaware also approved a tax on crude oil transfers.

Federal Stimulus Update

U.S. Commerce Secretary Gary Locke spoke to legislators today on the status of the federal stimulus funds. Read the NCSL news story here. Locke's key points:

Even though there has been much criticism of the effect of the stimulus, Locke is confident that the Obama administration is on the right track.

*The administration's goal is to move 70% of the stimulus funds out to the states by September 2010. Today, 28% of the funds have been distributed.

*By the end of this summer, the administration will make $15 billion in grants to broadband, high speed rail and smart grid.

*Locke urges lawmakers to make utility regulation changes that encourage the use of renewable energy.

*He specifically supports more flexible pricing, where consumers would be charged more for usage in peak hours. This complements the use of the smart grid, where consumers can see for themselves their energy use in real time.

*Locke cited the upcoming U.S. Census which will start next year. This will not only provide a significant number of temporary jobs, but will determine the number of seats each state has in the U.S. House of Representatives.

We are not alone

The National Conference of State Legislatures has compiled a comparison on what other states are doing in terms of layoffs and furloughs to address the economic crisis. It includes actions and proposals. The chart is here.

William Pound, Exec. Director of NCSL, to address House Finance Committee

Photo: Courtesy of NCSL. William Pound, Exec. Dir. and Carl Tubbesing, Deputy Director


WHAT: Mr. William Pound, Executive Director of the National Conference of State Legislatures (NCSL), will provide an update to the House Finance Committee on:

· Current fiscal conditions of all of the states
· Strategies being employed to meet budget shortfalls across the country
· Status of the proposed American Recovery and Reinvestment Act

WHEN: Thursday, February 12, 2009 – 1:30 p.m.

WHERE: Hawaii State Capitol – Conference Room 308

NCSL reports:

“The latest news on state budgets reveals the severity of the current situation. For both FY2009 and FY2010, more states are reporting budget problems, and the size of the gaps has increased.

Even though some states have taken corrective actions, the current FY2009 gap still stands at $47.4 billion. This is on top of the $40.3 billion shortfall already closed for this fiscal year.

Next year’s projected gap is staggering as well. As states prepare to craft their FY2010 budgets, the imbalance is pegged at $84.3 billion, up from $64.7 billion in November.”

Statement from William T. Pound:

“The proposed American Recovery and Reinvestment Act could provide more than $300 billion in aid to states. These funds will help lower, but will not erase, state budget shortfalls. State lawmakers still face enormous challenges as they take on the mandatory task of balancing their budgets.”

Rhode Island has us Beat!

I was surprised to learn from The Thicket that Hawaii does not have the most Democratic legislature in the country. According to NCSL, there are seven state legislatures with a more than 2/3rds Democratic majority. They are:

Rhode Island - 90.3%
Hawaii - 89.5%
Massachusetts - 89%
West Virginia - 79.9%
Connecticut - 73.8%
Maryland - 72.9%
Arkansas - 72.6%

There are three state legislatures with a more than 2/3rds Republican majority. They are:

Idaho - 76.2%
Utah - 71.7%
Wyoming - 71.1%

Top Ten States Issues

Tis the season for Top Ten Lists. Also for developing Majority Packages. The National Conference of State Legislatures has put together their Top Ten list of issues facing the states in 2009:

Top 9 issues of 2009

Issue #1 - State Budgets Gaps. Money will be the No. 1 issue for states in 2009. It is the starting and stopping point for virtually every state program and service. That's why the current fiscal crisis is so alarming. Shrinking state revenues will squeeze every area of state government. More bad economic news is reported almost daily, so, short of a dramatic and unexpected turnaround, state fiscal conditions are expected to continue their downward slide. New programs in a majority of states are likely to be shelved as lawmakers focus on essential state services. Even high-priority programs could get pinched. In this dire fiscal climate, flat funding may be considered a victory. The bottom line: States are battening down the hatches and bracing for the worst fiscal storm in decades.

Issue #2 - Transportation and Infrastructure. The continuing gap between transportation needs and available funds is the key transportation issue for 2009. Revenues for transportation at all levels of government continue to flatten or diminish. Maintaining crumbling infrastructure, fighting congestion and meeting burgeoning demand for public transportation is straining transportation budgets. Gas tax receipts, the mainstay of transportation for the last 50 years, no longer meet the nation's growing needs due to inflation, less driving and more fuel-efficient vehicles. To keep pace, at least 15 states will consider raising the state gas tax and/or motor vehicle fees. Others are looking at tolls and public-private partnerships, though tight credit has slowed consideration of these approaches. With an eye to the future, a number of states including Oregon, Idaho and Minnesota are studying the per mile vehicle fee to eventually replace the gas tax and pay for infrastructure maintenance and new transportation facilities.

Issue #3 - Higher Education. AffordabilityIn today's world, where a college degree is necessary for most jobs, should states ensure the opportunity for everyone to attend post-secondary education? If the answer is "yes," states will need to make sure in 2009 that funding for higher education is adequate enough so all students, not just the wealthy ones, can afford college. Higher education is often one of the first areas to be cut during tough fiscal times. In response, state universities and colleges typically tend to raise tuition to make up for these lost revenues, which is an additional financial burden on families. During 2007 and 2008 most states were able to increase their budget appropriations for higher education but this is not likely to be the case in 2009 with bleak economic conditions.

Issue #4 - Health Costs and Reform. Health costs keep rising at the same time that state budgets are in trouble. An immediate challenge for states in 2009 will be to maintain and retool current health programs, especially Medicaid and diverse programs aimed at covering the uninsured. As the numbers of unemployed increase, Medicaid rolls will grow. State legislatures will face competing demands such as helping those without health insurance coverage, investing in prevention and wellness, and adopting health information technology such as exchangeable electronic medical records and “e” prescribing. States already striving to provide near-universal health care coverage, Massachusetts and Vermont, worry that shrinking state revenues will become a real obstacle. At the same time others with future health reform proposals, including California, Pennsylvania and New Mexico, may have to defer action due to budget constraints. Meanwhile renewed federal funds for children’s health (SCHIP) and “stimulus” funds for Medicaid are important to states, while they also seek a strong voice in the national discussion of comprehensive reform.

Issue #5 - Clean Energy and Alternatives. Developing and using alternative energy will be a top issue for legislatures across the country. State legislatures will be looking for solutions to a host of energy challenges in the coming year, and integrating renewable energy (generated by wind, solar, geothermal and biomass) with existing energy resources will be at the top of their agenda. Roughly 30 states have now enacted some sort of standard for renewable electricity. Some state leaders see renewable energy as having many benefits, such as encouraging local job growth and economic development; reducing the volatility of energy prices; and meeting new growing energy needs without increasing greenhouse gas emissions. In 2008, nine states passed new or strengthened existing standards. Continued activity is expected during 2009. Policymakers will also be exploring how new technologies can generate clean energy from America's vast coal resources and how they can assist the development of these technologies.

Issue #6 - Sentencing and Corrections. Without change to current corrections and sentencing policies, by 2011, state prison populations are projected to grow by nearly 200,000 inmates at a cost to states of $27.5 billion. Bipartisan efforts in a growing number of state legislatures seek to alter this destiny with actions aimed at safely supervising certain offenders in the community and reducing crime with mental health, substance abuse and other rehabilitative programs. Strained state budgets make cost-effective corrections options and policies an even greater priority in state legislatures in 2009. Ten states indicated they are considering cuts to corrections in NCSL's State Budget Update. Four states exempted corrections in their budgets. States such as Texas and Washington are expanding capacity for offender treatment and community supervision; and similarly Connecticut, Kansas, Pennsylvania and others are improving probation and parole supervision, including use of evidence-based practices.

Issue #7 - Homeownership. More states are looking at ways to help residents afford to purchase a home during these tough financial times. States are also helping halt foreclosures by creating emergency assistance programs and changing foreclosure processes and procedures. California, Delaware, Hawaii, Idaho, Maine, Maryland, Minnesota, Nebraska, New Hampshire, Oregon, Virginia and Washington have regulated foreclosure consultants so they cannot take advantage of desperate homeowners. With the high number of foreclosures across the country, several states have established protections for tenants who are renting homes facing foreclosure.

Issue #8 - Working Families. One-third of families in this country has no net worth, or is in debt; and the looming recession is about to make things worse. In this climate, state legislatures have an opportunity to think long term and encourage families to build up their own financial foundations, which have become fragile. Today, 20 percent of Americans are asset poor, meaning they lack the resources to live above the federal poverty level for more than three months after losing their income. Already strapped, working families are increasingly worried about daily expenses and apprehensive about long-term goals, such as college tuition and retirement. Hamstrung by tight budgets, states have a chance to create incentives for families to invest in the key components of a strong financial future -- savings, education and, when the time is right, homeownership -- assets that pay dividends over time.

Issue #9 - Unemployment. Unemployment rates are on the rise and state unemployment compensation funds are experiencing shortfalls due to an increase in claims for unemployment benefits and a decrease in revenue from payroll taxes. Indiana, Michigan, California, New York and Ohio have less than three months of reserves on hand to pay unemployment benefits. Eight other states have reserves of less than six months and it's recommended that states have at least a year of reserves on hand to see themselves through a recessionary period. Close to 4 million unemployed workers are currently receiving unemployment benefits, a level not seen since 1983. State governments levy payroll taxes on employers to pay for unemployment insurance benefits. Many states are going to have to address shortfalls in their unemployment accounts.

Congressional Quarterly buys TrendTrack

The Congressional Quarterly is one of the most comprehensive resources for following federal legislation, and with their purchase of TrendTrack, CQ will also track legislation from all 50 states.

The Thicket has the story here. It includes other sites dedicated to tracking state legislation.

More full timers, less attorneys

Those are a couple of trends over the past 40 years describing state legislators across the country. Here are some interesting statistics from NCSL.

*It used to be that attorneys made up the largest occupational group in state legislatures. That number has dropped from 25% to 15%. Full time legislators are now the largest occupational group at 16.4% and retired legislators make up another large sized group at 12%.

The Thicket explains why the number of full time legislators has increased:

The single largest reason for the steady increase in state legislators who serve without other sources of earned income is the increasing professionalization and time demands of legislative life that has occurred over the past quarter century. Legislative sessions have grown longer, and other time commitments to session-related activities have increased. The number of interim committee assignments has increased significantly. As the U.S. population has grown larger while the number of legislators has remained static, legislative districts have grown larger and more diverse, generating more demand for constituent service.

The bottom line is that as legislative service demand more time, lawmakers are finding it more difficult to pursue a career outside the legislature.

*The average age of a state legislator is 56. That number has increased over the years due to the increase of retired legislators. 10% are age 70 or older, 38% are 60 or older, 61% are between age 30 and 60, and only 1% are under age 30.

*As expected, the number of women serving has increased over the years and now stands at 22.6%. About 60% of women legislators are Democrats. For the first time in history, the New Hampshire Senate will have more women than men. However, the North Carolina Senate is now 100% male.

The Big 7

Leaders of the Big 7 state and local government organizations sent a message to the presidential candidates a few days ago. The message: "Don't forget us! Pay more attention to state and local governments when you draft national policy."

The Big 7 are the National Governors Association (NGA), the National Conference of State Legislatures (NCSL), the Council of State Governments (CSG), the National Association of Counties (NACo), the United States Conference of Mayors (USCM), the National League of Cities (NLC), and the International City/County Management Association (ICMA).

Together, they sent out a press release on Monday, September 29th, to remind the candidates of the vital relationship between federal, state and county governments, and to follow two main principles:

+To consult with state and local leaders on the effects of national policy and programs on the citizens of their area.

+To encourage the next administration to promote innovation at the state and local level, and to maximize flexibility by the state and local governments in implementing federal policy.

The press release was issued by Pennsylvania Gov. Edward G. Rendell, NGA; Representative Donna Stone, NCSL; Representative Bob Godfrey, CSG; Supervisor Don Stapley, NACo; Mayor Doug Palmer, USCM, Mayor Kathleen Novak, NLC; and City Manager David Limardi, ICMA.

In addition, they call upon the next administration to take the following actions within 60 days of taking office:

• Reaffirm an Executive Order on Federalism;
• Establish an Office of Intergovernmental Affairs within the White House to serve as a conduit between the President and state and local leaders immediately after taking office; and
• Meet with members of the Big 7 state and local organizations to discuss how best to develop a strong partnership to address national policy.

The Highway Trust Fund is Going Broke

According to U.S. Transportation Secretary Mary Peters, the federal Highway Trust Fund will be out of funds by the end of this month. NCSL's blog, The Thicket, alerts us with this post.

Peters issued a press release on Friday, Sept. 5th, outlining the situation. She immediately blamed Congress for ignoring "three years worth of warnings." NCSL points out, however, that the administration opposes and has threatened to veto the Department of Transportation's legislation which calls for 1)$8 billion transfer from the general fund to the highway fund, and 2)pay states a proportional reimbursement until the transfer is completed.

The policy is that states pay for their road repairs and then receive reimbursements from the highway fund. Now it appears that states would receive 75% of reimbursements, if any.

Now, for the bitter pill. NCSL's Surface Transportation Reauthorization Working Group has been concerned about the situation for awhile. When the group met in July at the national conference, they sent letters to Congress raising red flags and requesting the adoption of new policies and strategies. Up to now, states have led the way in developing innovative ways to fund road improvements, but they still require funding from the Highway Trust Fund which is depleting rapidly due to the high cost of gasoline.

Oregon state Senator Bruce Starr, who leads the working group, stated that the only way to maintain the Highway Trust Fund is to increase the federal gas tax. Ouch.

State Legislatures - A Road to the Presidency?

The Thicket, NCSL's blog, points out today that now that Senator McCain has selected Gov. Sarah Palin as his running mate, Barack Obama is the only candidate on the national ballot who is a former state legislator.

Back in 2000 (geez, can it be 8 years already?) there was only one former state legislator on the national ballot. That was former Connecticut state senator Joe Lieberman. The last time there were two former state legislators running for president or vice president? You'd have to go all the way to 1936 when Franklin Roosevelt (New York) and John Nance (Texas) ran as the Democratic team.

State legislatures seem to becoming a less popular breeding ground for presidents. Of the 43 presidents, 22 have been former state or colonial legislators, however, 14 of the 22 served prior to the Civil War.

There were 5 former legislators who served as president in the 20th century, and they were Thedore Roosevelt, Warren Harding, Calvin Coolidge, Franklin D. Roosevelt, and Jimmy Carter.