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Archive of Taxes & Budget on Friday May 09, 2008
Facing prison, Kohring blames government but says his conscience is clear
ANCHORAGE, Alaska -- Facing a prison sentence of 3 1/2 years, a former Alaska lawmaker said he's broke and has lost respect for the U.S. government, but that his conscience is clear. Read More
Kohring sentenced to 3 1/2 years
A federal judge sentenced former Wasilla state Rep. Vic Kohring to 3.5 years in prison Thursday for taking bribes in a scheme to keep Alaska oil taxes down. Read More
Senate blocks grocery tax bill
Democrats in the Alabama Senate fell one vote short Thursday of bringing up a bill that would remove the state sales tax from groceries by no longer allowing Alabamians to deduct the federal income taxes they pay from their state income taxes. Read More
Land auction raises concerns
An Arizona land auction for a Pinnacle Peak resort site has neighbors worried that development would reduce access to an adjacent hiking trail. Read More
GOP lawmakers offer ideas for tackling deficit
With Gov. Arnold Schwarzenegger set to unveil his revised budget next week, Republican legislators on Thursday announced a series of proposals they said would save money and help the state run more efficiently. Read More
Perata drops 'Dump Denham' campaign
After millions of dollars raised and spent and a long trail of acrimonious campaigning, Senate President Pro Tem Don Perata, D-Oakland, said Wednesday he is dropping his bid to recall Sen. Jeff Denham, saying he worried it would get in the way of fixing the state's precarious fiscal condition. Read More
Big MTBE settlement to benefit California
Chevron Corp. and other big oil companies have agreed to pay $422 million to settle a major lawsuit over the gasoline additive MTBE, and much of the money will go to plaintiffs in California. Read More
Senate Democrat Jack Scott named to lead California community colleges
A former college president-turned-lawmaker has been named the next chancellor of California's community college system, making him think twice about his role in crafting the education budget. Read More
California picks 12 counties to share $750 million in jail funds
Twelve California counties, including Yolo, are in line to receive a combined $750 million in jail construction funds under recommendations released Thursday by the state Corrections Standards Authority. Read More
California tax proposals target beer-loving, pornography-watching yacht owners
As state leaders hunt for politically palatable solutions to the swelling budget shortfall, some Democrats are proposing unorthodox ways to generate cash. Read More
Urban districts cue DPS about shared schools
Separate programs or schools will probably share buildings in Denver by 2009, a change that has advantages but also could pose difficulties. Read More
Special session expected on conveyance tax
Cities and towns have nothing to fear. That was the word from the state Capitol on Thursday as Democratic lawmakers and Republican Gov. M. Jodi Rell said they expect the legislature to convene a special session so that municipalities can continue receiving $40 million from an extension of the tax on real estate sales. Read More
Rell - Low-interest loans OK'd for Norwich fire victims
NORWICH, Conn. - Gov. M. Jodi Rell says victims of the April 26 fire that destroyed a Norwich apartment complex can apply for low-interest federal loans. Read More
Democrats plan special session
Democratic lawmakers said they are committed to calling the state legislature back in for a special session this spring, citing their desire to extend a critical source of revenue for cities and towns. Read More
Cash-strapped Florida gives $9.1M to Orlando military training facilities
Despite Florida's economic funk and billions of dollars in recent budget cuts, the Legislature has cleared the way for Orlando's military training facilities to receive an unprecedented $9.1 million, local officials said Thursday. Read More
Crist has a $2.4-billion change of heart
Gov. Charlie Crist said "God bless Gov. Chiles" as the 2008 Legislature drew to a close last week, thankful for $2.4-billion in reserves made possible by the late Lawton Chiles. Read More
Options to gas-tax holiday sought
While gasoline prices continue to set new highs both nationally and locally, members of Hawaii's congressional delegation say Congress should explore options other than a summertime suspension of the federal gasoline tax to try to bring down costs. Read More
'Win-win' situation
In April, the Idaho Water Resource Board announced it had completed its $26 million purchase of the Pristine Springs fish farm operation, a multi-party deal it said would solve surface water mitigation calls and provide the city of Twin Falls a way to solve its arsenic issues. Read More
Governor against plan to stop prison closing
Gov. Rod Blagojevich Thursday panned a plan aimed at stopping him from closing the state prison in Pontiac. Read More
Soldiers could get break on vehicle fees
Soldiers stationed overseas may soon get a break on their vehicle registration fees if a proposal that passed the Illinois House Wednesday makes it into law. Read More
Union -- Mandatory overtime hurts services at 24-hour state facilities
Mandatory overtime is jeopardizing services at 24-hour state facilities, a labor union representing state employees claimed in a report released Thursday. Jessica Becket believes the extended hours contributed to her accident. Read More
Forby -- Governor had talked about moving state jobs out of Springfield
State Sen. Gary Forby, D-Benton, whose district could get the nearly 150 Illinois Department of Transportation jobs that Gov. Rod Blagojevich's administration wants to move out of Springfield, said Thursday that Blagojevich told him in the past he wanted to move state jobs out of the capital city. Read More
Will the capital city be able to gamble on racing?
Harness racing up to nine months a year at the Illinois State Fairgrounds could help raise money for fairground improvements and the Sangamon County emergency dispatch system, according to Rep. Raymond Poe. Read More
Ill. senators get personal in dispute over pay raises
Democrats got personal Thursday in their dispute over legislative raises, with one state senator calling a colleague "filthy rich" and accusing House members of being hypocritical. Read More
'Pay-to-play' ban goes to full Senate but hits a snag
A Senate panel unanimously approved a ban on "pay-to-play" for state contractors Thursday despite a last-minute threat from Senate President Emil Jones to add a provision proponents said would derail the legislation. Read More
Republicans propose moratorium on closing Illinois prisons
Republican lawmakers are proposing a ban on closing any Illinois prisons until a study is done on the needs of the state corrections system. Read More
Pay raise feud gets personal
The debate in the General Assembly over pay raises for lawmakers got personal Thursday, with a Senate Democrat chastising another for her wealth and blaming state representatives for using the Senate to get their money. Read More
Union for state workers wants mandatory overtime eliminated
It's not every day organized labor asks management for less overtime, but that's what the largest union representing state employees is doing as it negotiates a new contract with the Blagojevich administration. Read More
NIU's Cole Hall to be remodeled
The head of Northern Illinois University said the school has a $7.7 million plan to remodel the lecture hall where five people were slain by a suicidal gunman on Valentine's Day. Read More
'Pay to play' ban advances, faces uncertain Senate future
Legislation to combat "pay to play" politics in Illinois advanced to the Senate floor Thursday, where it faces an uncertain future because of what the Senate president calls a "gaping loophole." Read More
Legislature's issues in 2008 mirrored nation's
Kansas lawmakers spent the 2008 session wrestling mightily with problems of national, even global scope, and their failures were nearly as big. Read More
Session marked by little progress
State political leaders on Thursday assigned praise and fault for the outcome of the 2008 legislative session the day after House and Senate ended the four-month marathon. Read More
Opinion of legislative session depends on perspective
If the 2008 legislative session produced unanimity in one area, it was that most everyone was glad when it ended. Read More
Budget includes bonds for pharmacy school
For the Kansas University School of Pharmacy, the Legislature?s final budget bill was just what the doctor ordered. Read More
Local issues played a role in session
For the second time in as many years, lawmakers said with a unified voice that Kansas hates funeral protests. Read More
Tuition increases scaled back
Facing some of the angriest public remarks by a group of Kentucky university presidents in memory, a panel gave the initial vote of approval Thursday to higher tuition at the state's public universities and community colleges, including five institutions whose requests were cut. Read More
Group urges cuts in some tuition hikes
Five of Kentucky's higher-education institutions -- including the state's community and technical college system -- should not be allowed to raise tuition and fees as much as they propose. Read More
Roads chief says program bankrupt
Louisiana's road-building agenda will suffer because a special program for 16 projects has gone bankrupt, state Transportation Secretary William Ankner said Thursday. Read More
House committee divided on method for cutting taxes
Members of a House tax-writing panel expressed support Thursday for a massive tax-cut bill, but they remained divided on what form it should take. Read More
Board finds no conflict in roles
The Louisiana Board of Ethics said Thursday that Sean Cummings, a private developer who also leads a city agency called the New Orleans Building Corp., can continue to steer two public developments because he does not have a "substantial" financial interest in the projects. Read More
Panel tacks on to outlay list
Lawmakers added $9.2 million in projects Thursday to the state's construction budget. Read More
Tuition increase battle likely
Bills that would increase tuition at the LSU and Southern University law schools breezed through a House committee Thursday, but both are expected to trigger controversy later. Read More
BRAC backs Jindal plans
The Baton Rouge Area Chamber formally backed several initiatives of the Jindal administration this week to ramp up state economic development efforts, including requests for $307 million more in deal-making money for big projects and a nearly $8 million increase to the Governor?s Rapid Response Fund. Read More
Tax break vote set
Lawmakers delayed a decision Thursday night on legislation that would eventually eliminate the state income tax. Read More
Panel plans income tax vote Monday
A House committee will decide Monday whether to recommend a total repeal of state income tax or reduce the tax. Read More
Higher-ed officials fear 'crippling' cuts
Proposed higher education budget cuts could "cripple" Louisiana's public colleges and universities if they are adopted, according to officials at the state Board of Regents. Read More
Panel adds few projects to budget
A House committee added a smattering of new projects to the state's annual construction budget late Thursday before moving it to the full House for more debate. Read More
Little left in tank for 2 local projects
Two New Orleans area projects to be financed by a special 4-cent state gasoline tax are in jeopardy because the revenue being generated is not enough to keep up with soaring construction costs, the head of the state's transportation agency said Thursday. Read More
College endowment tax is studied
Massachusetts legislators, demonstrating a growing resentment against the wealth of elite universities in tight economic times, are studying a plan to levy a 2.5% annual tax on the portion of college endowments that exceed $1 billion. Read More
State agency seeks to cover 30,000 more uninsured
The authority overseeing the state's healthcare law is exploring ways to cover an additional 30,000 uninsured residents, a step that could increase the annual cost of the program by more than $250 million within a few years. Read More
Union won't back slots
Breaking with the state teachers union, the Montgomery County Education Association voted Wednesday night not to endorse Maryland's slot machine gambling referendum, according to a news release from Marylanders United to Stop Slots. Read More
Divided over slots
Large organizations are having as difficult a time with the issue of bringing slot machine gambling to Maryland as the General Assembly had in bringing the issue to the November ballot. Read More
Detroit cops seek state aid
Detroit Police Chief Ella Bully-Cummings found herself in the awkward position Thursday of asking state lawmakers for $1 million to help run her crime lab, only a couple of weeks after shutting down the lab's firearms section for incorrectly classifying evidence in a double homicide. Read More
State GOP still trying to clean up its books
MINNEAPOLIS, Minn. - Even as the state Republican Party calls DFL U.S. Senate candidate Al Franken to task over problems with his personal finances, the party continues to try to clean up its own bookkeeping problems. Read More
I-35W Bridge Collapse / I-35W bridge collapse victims 'grateful' for compensation
Minnesota's creation of a $38 million fund won't erase the emotional or physical pain that survivors of last year's Interstate 35W bridge collapse feel, several victims said after Gov. Tim Pawlenty signed the fund measure into law Thursday ? but it helps. Read More
Budget talks said to be going well, but ...
To hear Minnesota legislative leaders and Gov. Tim Pawlenty talk, budget negotiations aimed at closing a projected $935 million budget gap are going well. Read More
Minn. pays victims of bridge collapse
ST. PAUL, Minn. - A close-knit coalition of Minneapolis bridge collapse victims - some in wheelchairs and others still wearing casts - looked on yesterday as Governor Tim Pawlenty signed a $38 million package to compensate them for their injuries and losses. Read More
Duluth Air National Guard base may get $4.2 million for project
Duluth?s 148th Fighter Wing may receive money for a major construction project. Read More
Missouri professors protest campus spending
COLUMBIA, Mo. - Some University of Missouri professors are rallying against a plan that would boost their salaries - but only at the expense of other cuts on campus. Read More
MU faculty members voice concerns over cuts
COLUMBIA, Mo. - The frustrations of some MU faculty members over a shortage in state funding and a proposed plan to increase faculty salaries by freezing teaching positions were heard at a special meeting Thursday afternoon. Read More
Barbour wraps up Gaming Summit
Gov. Haley Barbour will call up the bill to place a moratorium on casinos during the upcoming special session, but will call the tax-incentive bill for casinos only if it has the needed support. Read More
Governor slammed by Dems
WASHINGTON - House Democrats on Thursday questioned Gov. Haley Barbour's use of billions of dollars in Hurricane Katrina recovery grants, saying too little was done to rebuild low-income rental housing and help low-income homeowners. Read More
Barbour signs bill killing reservoir boating fee
The boating fee for Ross Barnett Reservoir is officially dead. Gov. Haley Barbour today signed the appropriations bill funding the Pearl River Valley Water Supply District without change. The bill forced the District to repeal the fee, which was to be effective July 1. Read More
$600M port plan taken to task
WASHINGTON -- Mississippi's plans to transfer $600 million from post-Katrina housing assistance to restore the Port of Gulfport came under scrutiny in a congressional hearing Thursday as three lawmakers said the diversion hurts efforts to provide desperately needed housing for the state's poor. Read More
Hardin jail defaults on bonds
HARDIN, Mont. -- An empty $27 million jail in Hardin has defaulted on its bonds, as the city heads to court Friday to try to get out-of-state inmates into the facility. Read More
Auditor declines regents' request
The state legislative auditor said Thursday he cannot conduct a performance audit of two Montana student loan groups as the Board of Regents requested last week. Read More
Easley seeks money for children, workers and sex crime victims
Gov. Mike Easley on Thursday offered a teaser -- the good news only -- of his proposed state budget for 2009. Read More
Students debate sales tax
The public debate on the proposed half-cent Cass County economic development sales tax will be settled by voters on June 10. Read More
Cigarette tax likely to stay flat
House budget writers proposed delaying a potential 25-cent cigarette tax increase yesterday to see if a pending tax increase in neighboring Massachusetts will drive smokers to New Hampshire despite high gas prices. Read More
Senate panel backs a school voucher plan
New Jersey taxpayers yesterday moved closer to making a clean -- if expensive -- break with the fractured market for bonds known as auction-rate securities. Read More
Legislation on new water tax is delayed
A legislative committee yesterday delayed action on a bill that would ask voters this fall to dedicate a new water tax to finance $150 million in annual purchases of new parks and farmland. Lawmakers said they need time to consider also using the money for historical preservation projects. Read More
Lawmakers to see budget cuts
Nevada Gov. Jim Gibbons will submit a package of budget cuts to lawmakers for their approval to satisfy the requirements of state law, his attorney says. Read More
Union pushed; Trop fell
The owners of the Tropicana might have filed for bankruptcy protection regardless of labor union tactics. Read More
Senate wants state agencies and public authorities to release spending reports
Members of the state Senate are pushing for an "Accountability in Government Spending" plan that they say will save taxpayers money, reduce government waste and ensure greater transparency and accountability. Read More
Dann's ethics form for Washington trip missing
As a state senator, Marc Dann railed against then-Gov. Bob Taft for failing to disclose golf outings and other freebies on his annual financial disclosure statements filed with the Ohio Ethics Commission. Read More
House passes electric utility measure
Legislation that would authorize investor-owned electric utilities and rural electric cooperatives to serve new customers in annexed areas of cities was approved by the Oklahoma House Thursday despite opponents who said it could harm municipal power companies. Read More
Lawmaker encourages disaster funding
A state lawmaker is encouraging the Legislature to approve a plan to secure state dollars for emergency disasters in Oklahoma. Read More
Ministers appealing assessor's decision to end pastoral tax exemption
ARDMORE, Okla. -Carter County Assessor Kim Cain recently ended a controversial property tax break on ministers? private residences that had been in effect for approximately 14 years ?? but that hasn?t ended the controversy. Read More
Montco proposes novel funding plan for road project
With federal and state funding prospects looking grim, Montgomery County officials have devised an unorthodox plan to pay for a road linking downtown Norristown to the Pennsylvania Turnpike, a $160 million project considered essential to the community's long-delayed revitalization. Read More
Tribe ready for share of state's gambling money
After refusing for more than two years, the Narragansett Indian tribe is now ready to accept its share of the state's gambling revenue if Chief Sachem Matthew Thomas can get clarification about precisely how the money can be used. Read More
House plan will run out of gas
Maintenance at S.C. State University will have to wait, and school buses will run out of fuel by spring, under a tighter House budget passed Thursday. Read More
SC House approves budget, bill heads to conference committee
The House approved a final version of the state's $7 billion budget Thursday that falls short of meeting a basic state function: getting children to schoolhouses. Read More
Tax break would bring no relief
While a summer holiday from gas taxes might seem like a relief for financially strapped South Dakotans, it would do more harm than good, according to state Sen. Alan Hoerth and former Clinton administration Energy Secretary Federico Pena. Read More
Tennessee higher-education officials work to keep tuition hikes below 10 percent
Tennessee higher-education leaders pledged Thursday to try to keep tuition hikes below 10 percent for in-state, undergraduate students, despite Gov. Phil Bredesen's plans to cut $55 million from their operating budgets. Read More
Bredesen focuses on schools but tightens belt
Gov. Phil Bredesen maintained his dedicated stance to state education on Thursday as he discussed the elimination of new funding for K-12 schools and a reduction in current funding for colleges and universities. Read More
Officials revisit tuition increases
Higher-education officials say they hope to keep tuition increases below 10 percent despite a $55 million cut in state funding. Read More
State of Tennessee will shed 2,000 jobs
State workers welcomed news from Gov. Phil Bredesen on Wednesday that his administration hopes to use voluntary buyouts rather than layoffs to trim the payroll by about 2,000 employees. Read More
Nashville nonprofits can apply in new grant program
Nashville nonprofit organizations have about three weeks to apply for $2 million in Metro government grants under a new program Mayor Karl Dean announced Thursday. Read More
Bill aids counties paying to jail illegal immigrants
WASHINGTON -- Iowa counties would be eligible for additional federal dollars to help pay the costs of jailing illegal immigrants under a bill the House unanimously approved Thursday. Read More
Facebook safeguards will protect young users
HARTFORD, Conn. - Facebook, the world's second-largest social networking Web site, will add more than 40 safeguards to protect young users from sexual predators and cyberbullies, attorneys general from several states said Thursday. Read More
Group critical of gas, sales tax ideas
With the governor preparing to unveil his transportation proposal next week, a group yesterday warned that the two types of tax increases being debated by Democrats would both disproportionately hurt the poor. Read More
Tax increases would hurt poorest, group says
Some of the taxes and fees being considered by Virginia lawmakers to fund the state's transportation needs could hit the neediest residents the hardest, according to a report released yesterday. Read More
VSAC finds new source for student loan money
WINOOSKI, Vt. - The Vermont Student Assistance Corporation will work with KeyBank to provide education loans to students and their parents for the 2008-09 school year. Read More
VSAC ensures student loans
College loans will be available to Vermonters as usual this fall, the state's principal lending agency announced Thursday. Read More
WA invests $25 million in biofuels WSU lab
RICHLAND, Wash. -- There?s been backlash recently on using food crops like corn and soybeans for fuel. Read More
WA lawmakers on the road to discuss property taxes
Majority Democrats in the Washington legislature did not tackle property tax reform this year -- despite promises to do so. Now they?re hitting the road for a series of election year property-tax forums. Read More
Corrections official reviews sick leave use
State Corrections Secretary Rick Raemisch said Thursday he has no plans to change his agency's sick leave policy but is reviewing it in light of a Journal Sentinel investigation that identified examples of correctional officers using sick leave in questionable ways. Read More
Closing tax loophole could fix state budget
A state lawmaker says there's a simple solution to Wisconsin's budget crisis. Read More
Oh say, is that banner made in the U.S.A.?
Lawmakers in 10 states have taken steps to require that American flags bought with state funds be manufactured in this country. While not all the legislation has passed, one state’s new law even bans the sale of foreign-made American flags in that state. Read More
Parents turn to states for autism help
(UPDATED 4 p.m. EDT, Thursday May 1) One of the toughest problems facing autism patients, their families and policymakers is paying for treatment. Families are increasingly relying on states to help them cope with the financial, medical and educational needs. Read More
Legislators prod Congress on Medicaid, Real ID
As some states tumble into what they fear is a recession, state lawmakers from across the country are pushing Congress for relief from impending federal rules that would force states to pick up more Medicaid costs and spend billions to make drivers’ licenses more secure. Read More
23 states face budget gaps in '09
Like a college student fishing for stray quarters in the sofa cushions, states are tightening their belts, dipping into their rainy day funds and hoping revenues will pick up. But the faltering economy already has punched a $26 billion hole in 23 state budgets for 2009 – and it could get worse, according to a new report issued today (April 25). Read More
Congress encroaching on state priorities
Far scarier than the economic downturn for states is the growing trend on the part of Congress to restrict state revenue and spending prerogatives and to replace them with congressional priorities, writes Raymond C. Scheppach, executive director of the National Governors Association, in his latest commentary for Stateline.org. He cites provisions in two bills now making their way through Congress as important examples. Read More
The economic downturn: an opportunity for governors?
Most governors recognize that they have the best political job in America. Most also would concede that the job is more satisfying when the economy is strong and revenues are growing than during an economic downturn, when cutting budgets becomes the major task. But even a recession can present opportunities for governors to make improvements that yield lasting benefits for their states. Read More
Governors pitch ambitious programs
Billion-dollar deficits in California, New York and Arizona haven’t stopped governors there and elsewhere from proposing big-ticket items for 2008. Stateline.org looks at proposals from governors’ 2008 "state of the state" speeches and provides an exclusive summary of all the addresses so far.
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The recession, the states, and economic stimulus
Red ink in state budgets could prolong the economic downturn and could necessitate a second economic-stimulus package, warns Raymond C. Scheppach, executive director of the National Governors Association, in his latest commentary for Stateline.org. Read More
Medicaid: Biggest insurer is a budget buster
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