Weekly Policy Clips (September 5-10, 2006)

Illinois: Governor ups value of lottery proposal

Gov. Rod Blagojevich said… that the state could get more than the $10 billion initially estimated if the lottery is privatized to raise money for schools. “We think we can get 10, 12 maybe 15 billion dollars,” the governor said during a candidate forum put on by the Metropolitan Planning Council. Lawmakers would have to approve any such deal, and some have been skeptical of the proposal.

Blagojevich appeared alone at the planning council event, which was scheduled because he was invited to but did not attend the group’s main candidate forum last month. GOP challenger Judy Baar Topinka appeared alone at that event before a crowd of about 1,000 people; only about 100 people turned out Thursday to hear Blagojevich speak.

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Iowa: Vilsack—Don’t federalize the Guard

Gov. Tom Vilsack has asked members of Iowa’s congressional delegation to reverse themselves and scrap provisions of defense bills that would allow the president to place National Guard troops under federal control without a governor’s consent. Legislation pending in Congress, in response to problems in responding to Hurricane Katrina, would expand presidential authority over Guard troops. Normally, in peacetime, state governors are commanders-in-chief of their Guard forces.

“There is a better way to avoid the difficulties that were experienced a year ago on the Gulf Coast and in New Orleans,” Vilsack said Thursday in an interview. This would include a joint command structure where a governor would still have control of Guard troops, while an on-the-ground coordinator would have direct responsibilities to federal authorities, he said.

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Maine: Governor pushes for more rail

As ridership on Amtrak’s Downeaster train increases and Maine’s highways grow more congested, Gov. John Baldacci is ordering a plan for expanded passenger rail service to interior and coastal communities.

Baldacci’s executive order, which he signed Friday and announced Monday, also calls for clearer economic development plans near train stations along the existing route of the Downeaster, which connects Boston’s North Station and Portland, Maine.

The passenger train stops in Old Orchard Beach, Saco and Wells in Maine; Dover, Durham and Exeter, N.H., and Haverhill and Woburn, Mass.

Baldacci’s executive order could set the stage for passenger service north of Portland to Brunswick and Lewiston-Auburn, with seasonal and excursion links to Rockland, Bethel, and other destinations in Maine.

“Every month the Downeaster is breaking new ridership records,” Baldacci said. “We’ve made the trains faster and better. The Downeaster is bringing new energy to downtown economic development in Old Orchard, Saco, and other communities. It’s time to head north.”

The Downeaster finished the fiscal year that ended in June with the biggest increase in ridership since the start of the service in 2001. The train’s 329,265 passengers was an increase of 31 percent over the previous year, accounting for the biggest on a percentage basis anywhere in the Amtrak system during the period, a spokeswoman said.

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Montana: Schweitzer administration again to seek closure of tax loopholes

The Department of Revenue plans to renew legislative efforts to close what it contends are tax loopholes often abused by out-of-state corporations and wealthy landowners.

The Revenue Department will pitch its proposed legislation to an interim legislative committee later this week, saying the agency has refined and adjusted the proposed laws killed by the 2005 Legislature amid objections from corporations, accountants and others.

“The proposals are all about fairness for Montana taxpayers and Montana business,” said Dan Bucks, Revenue Department director. “They ensure Montana business do not face unfair competition from out-of-state businesses that do not pay the same taxes as Montana businesses.”

Last time around, lawmakers worried there were holes in the proposed laws, and the bill backed by Gov. Brian Schweitzer’s administration that targeted large multistate corporations, wealthy taxpayers and out-of-state residents was called vague and confusing by opponents.

One group that opposed the bill in 2005, the Montana Society of Certified Public Accountants, said it has been working with the Schweitzer administration on the latest version. Jane Egan, the society’s executive director, said the group hopes to get a final version of the bill that is supportable.

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New Jersey: Corzine plans to create jobs, entice business

Governor Corzine’s new economic growth strategy is one that many New Jersey businesses and families can relate to: Do more with less. Squeezed by a tight budget and faced with a softening economy, Corzine on Thursday outlined an economic growth plan to aggressively promote the state as a business center, mostly by redeploying existing resources.

The governor told business leaders in Newark that New Jersey has many commercial strengths – including a well-educated workforce, good transportation links and a rich history of innovation and entrepreneurial achievement. But it needs to attract new businesses and create more well-paying jobs to maintain its high standard of living, said Corzine.

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Oregon: Governor Rolls Out Plan To Strengthen Oregon Public Schools, Higher Ed

Governor Ted Kulongoski… issued the details of his “Education Enterprise,” a blueprint for reducing class sizes, restoring lost academic programs, and expanding access to higher education for Oregon students.

“My Education Enterprise Plan will reduce class sizes and provide Oregon students access to a quality education, so they have the tools to succeed,” the Governor told a gathering of school officials, teachers, and community leaders outside Portland’s Buckman Elementary School….

The Education Enterprise would commit at least 61 percent of the state’s general fund every biennium to Oregon’s public education system¿pre-K through post-secondary education. It would also guarantee a minimum 10-percent increase in funding for each sector of the enterprise every biennium, over the previous budget.

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Tennessee: Bredesen issues executive order aimed at illegal immigration

Gov. Phil Bredesen on Tuesday signed an executive order aimed at making sure companies contracting with the state are in full compliance with prohibitions against employing illegal immigrants. Executive Order No. 41 requires executive agencies within Tennessee government to spot check the personnel records of state contractors and subcontractors and to issue fines to businesses employing illegal labor.

The move is meant to strengthen legislation signed by Bredesen in June that prohibits state contracts from going to companies or individuals that knowingly employ illegal labor. That law goes into effect in January, but many of its provisions will be implemented immediately through the executive order.

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Wisconsin: Doyle proposes child-care tax deduction

Child-care costs up to $6,000 a year would be tax deductible under a plan announced by Gov. Jim Doyle, a move he said would save a family with two children about $400 annually. Doyle, a Democrat seeking re-election against Republican challenger U.S. Rep. Mark Green of Hobart, said his proposal would cost the state $16 million and benefit more than 100,000 families….

The child-care plan is the second tax cut proposal Doyle has announced in three weeks. Last month, Doyle said he would propose exempting all health insurance premiums from state taxes, which would cost $50 million.

Should Doyle win re-election, the proposal will be included in his budget next year. Any tax cut Doyle would propose is subject to approval by the Legislature, which currently is controlled by Republicans.

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Wyoming: State proposes cuts in workers’ comp premiums

Workers’ compensation premiums would drop across Wyoming under a proposal from state regulators.

The Wyoming Department of Employment proposes new rates that call for workers’ compensation premiums to decrease 5 percent across the state. Some industry classes with better than average loss experiences could see rates drop as much as 10 percent, while no industry classes would see an increase under the state proposal.

Gov. Dave Freudenthal said the decrease is good news and further establishes Wyoming’s business-friendly climate.

“I’m pleased that safety has played a role in the decreasing rates, as the health and well-being of the Wyoming work force is a tremendously important factor in keeping Wyoming families strong,” Freudenthal said.

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