Topics
Finance & Revenue
Finance & Revenue
LAUSD College Savings Account for Each 1st Grader
What is happening? Los Angeles United School District has established $50 college savings account for every 1st grader in the district.
Why is this important? The program began with a pilot in 2021 in high needs schools
How will this be important? Research that found that children — regardless of their background — are up to 7 times more likely to attend college if they have a savings account.
ABC 7 LA | LA launches largest children’s college savings account program in nation
What tax cuts are Republican Governors supporting?
What is happening? Inflation and cash reserves are moving tax breaks to the forefront.
Why is this important? With midterms this year, let’s see what Republican Governor are talking about:
- Iowa Gov. Kim Reynolds (R) championed a measure that replaced the state’s progressive income tax with a flat tax of $3.9%
- Georgia Gov. Brian Kemp (R) signed a $1.6 billion plan that would send refunds to people who paid taxes in 2020 and 2021
- Indiana Governor Eric Holcomb(R) initially opposed and then supported a 7 year plan to reduce the state income tax. The change in opinion came after seeing healthy state revenues.
- Idaho Gov. Brad Little (R) supports a one-time rebate and that includes future reductions in income taxes
How will this be important? The biennial legislatures will be considering similar ideas in 2023.
California’s Inflation Relief Proposals
What is happening? To cope with rising gas prices, California is looking for ways to ease the impact on its residents.
Why is this important? They can’t agree on how to get money back into the hands of Californians. Some say a $400 check to each taxpayer. Some say a tax refund payments to taxpayers under a certain income level starting at $200 and increasing based on a household’s number of dependents. Finally some say $400 per vehicle.
How will this be important? Rising gas prices and inflation aren’t just impacting California, other states will be grappling with this issue.
Sacramento Bee via Governing | Who Should Get California’s Proposed Inflation Relief Checks?
Pandemic Effect. Government Worker Resignation.
What is happening? 36% of public servants are considering leaving their jobs after having worked through the pandemic. That’s up from 20% in 2020.
Why is this important? IN 2020, 20% of government workers reported no remote working. Now, 70% report no remote working.
How will this be important? 49% are satisfied with their government employers. This has decreased from 52% in 2020.
Route Fifty | 36% of public servants Are Considering Quitting Their Jobs
Election Math. State Laws to Decide Tied Elections.
What is happening? Alabama is considering using a random method to determine a tied election. Currently this is allowed for county and statewide elections in Alabama. HB 144 (2022 | AL) would extend this to city elections.
Why is this important? Run offs or special elections are costly to administer. 28 states allow tied elections to be determined by drawing lots. Florida, Kentucky, and Mississippi have similar structures to Alabama.
How will this be important? Someone has to name the official coin flipper in these rare case situations.
Governing | Alabama Proposes Randomly Deciding Tied City Elections
COVID Effect. Less Funding for Arts
What is happening? Texas is 48th in Arts funding according to the National Assembly of State Arts Agencies.
Why is this important? Texas spends 39 cents per resident on arts funding. In comparison California spends $3.16 per resident, New York $2.39, and Florida spends $1.41
How will this be important? States vary on whether they dedicate tax revenue to arts. NJ and NV dedicate part of their hotel/motel tax. DC, MN, and MS all dedicate a portion of their sales tax. Arkansas dedicates a portion of their conservation tax, and Missouri dedicates part of the income tax on out of state entertainers and athletes.
Russian Divestment Bill
What is happening? States calling for Russian divestment is a hot topic. Maryland Legislature is in session and considering HB 1482 (2022 | MD) that would do the usual- divest state funds from Russia related interests.
Why is this important? This bill establishes these 2 exceptions, that would not require divestment if:
(1) the U.S. government affirmatively declares to be excluded from federal sanctions and
(2) the divestment cannot be executed for at least fair market value
How will this be important? During debate in the Maryland House, Republicans attempted to also divest from China.
Russia Effect. Cryptocurrency for Betting
What is happening? An Executive Order by President Biden on cryptocurrency is seen as a means to open gaming to cryptocurrency.
Why is this important? Some say cryptocurrency regulations may get fast tracked because “Russian individuals and companies might try to evade economic sanctions by using cryptocurrencies.”
How will this be important? Currently some Nevada based casinos have ATMs for cryptocurrency to allow for gaming.
Nevada Independent | Indy Gaming: Federal review of cryptocurrency policy welcomed by gaming
Tracking Russian Divestment in Florida
What’s happening? Florida Legislature for procedural reasons did not vote on a Russian divestment amendment. The Florida Governor has not called for divestment. Florida Sen. Rick Scott has called for states to “end relationships with the Russian governments.
Why is this important? In contrast, the Florida Governor pushed for divestment from Ben & Jerry’s.
How will this be important? The politicization of investment funds is a gaining steam.
Governing | Florida Avoids Voting on Divesting from Russian Companies
Precursor of New Tax Incentives in Texas
What is happening? The Texas House Committee on Ways & Means will dig into “a comprehensive review of the impact of not renewing Chapter 313, Tax Code. Evaluate tax incentives offered by other states and make recommendations for incentivizing manufacturers and other capital-intensive businesses to locate to Texas.”
Why is this important? Look at the target audience- manufacturers and capital intensive businesses.
How will this be important? Texas wants to bring the origins of the supply chain to Texas.
Municipal Management District Review in Texas
What is happening? Texas Legislature has a long tradition of creating special districts, like the Municipal Management District. This year the Texas House Committee on Urban Affairs is going to study Municipal Management Districts.
Why is this important? The Legislature will review the “Municipal Management District Legislative Template with respect to representation and accountability. Make recommendations for improving the template.” MMDs are largely identical.
How will this be important? The Legislature wants to improve transparency in a very insulated and high dollar enterprise- the MMD world.
Studying Procurement. Russia Edition.
What is happening? The Texas House Committee on State Affairs will be studying “… the impact of state government procurement of goods and services from businesses and other commercial entities owned or controlled by the Russian government or Russian nationals, and determine the need for restrictions on state government procurement. Consider the impact of any proposed procurement restrictions on state government efficiency and effectiveness and the state’s access to scientific and technological advances.”
Why is this important? Part of divestment is limiting contracts that have Russian ties.
How will this be important? It will be interesting to see if future divestment bills also have a procurement component.
Texas to Study Russian Divestment
What is happening? The Texas House Committee on Pensions, Investments and Financial Institutions will study “..the impact of investments by public retirement systems of their endowment and other trust funds in businesses and funds owned or controlled by the Russian government or Russian nationals, and determine the need for investment restrictions. Consider the impact of any proposed investment restrictions on fund performance.”
Why is this important? The number of corporations, financial institutions and more that are moving its goods, services and funds out of Russia keeps increasing as the Ukrainian crisis continues.
How will this be important? Divestment from Russian interests and the effectiveness thereof will test the power of divestment.
Taxing Online Gaming & “gamified” financial trading
What is happening? Legislatures are looking at how to tax online sports wagering. For sorts wagering, NJ taxes 14 percent of the winnings & NY taxes 51%!
Why is this important? Some are saying sports gaming taxes are akin to taxes that should be on the gamification of financial trading by “trading apps that critics claim often underplay risks and encourage emotional, impulsive behavior by rookie investors.”
How will this be important? If states tackle a financial transaction tax, some say a uniform multistate umbrella tax regime for short-term profits is the way to go.
Divestment. Russian Edition, Includes Vodka.
What’s happening? A running list of entities divesting from Russia
- Connecticut retirement plans and trust funds
- California retirement plans and trust funds
- Colorado retirement plans and trust funds
- Illinois retirement plans and trust funds
- New York retirement plans and trust funds
- Pennsylvania Liquor Board is pulling Russian vodka from shelves (technically its’ all Russian made alcohol)
- Ohio Division of Liquor Control halted sale of all Russian vodka
- Montgomery County, Maryland all products produced in Russia have been removed from the county’s Alcohol Beverage Services stores
- New Hampshire Governor Executive Order to remove all Russian made alcohol from sale
- Utah Governor Executive Order to to remove all Russian-produced and Russian-branded products
- Alabama Governor asked its Liquor Board to stop the sale of Russian produced and made products
- Colorado Higher Education Funds divestment from Russia
- “Gov. Greg Abbott (R) on Saturday called chief executives at interest groups representing restaurants, package companies and retailers to ask that they remove Russian-made products from their inventory.”
- Georgia Gov. Brian Kemp (R) said his state would also “fully divest” from Russian firms.
Why is this important? Divestment is a popular tool for governments to indicate which side of an issue they fall.
How will this be important?
Governing | Connecticut to Divest Russian-Owned Assets from Pensions
Route Fifty | States Look at Pulling Pension Investments From Russia
Route Fifty | The States and Counties Taking Russian Vodka Off Liquor Store Shelves
The Hill | Vodka, pensions, sister cities: Governors move to punish Russia
Yelp! For Procurement.
What is happening? A former Pennsylvania Procurement Officer developed Procurated which allows state and local governmental entities to leave Yelp like reviews on procurement contracts.
Why is this important? The Procurement Officer didn’t understand why he could google information about local restaurants but not about entities that want a $10 M contract from the government.
How will this be important? A meritocracy coming to government that’s potentially game changing.
Philadelphia Inquirer | Ex-Harrisburg official raises $10M for ‘Yelp for government’ review service
Updating the BlackRock v. Texas divestment conundrum
What is happening? State of Texas officials have asked that the State Comptroller include BlackRock on the divestment list maintained by the Comptroller. Some say BlackRock is on the side of divestment from fossil fuels.
Why is this important? “[Texas Comptroller] Glenn Hager’s office is still working this up… “
How will this be important? BlackRock also has a segment that focuses on how to make companies carbon neutral. Some say BlackRock encourages reliable energy supplies and affordable energy supplies. Balance that with the sustainability reports made publicly by major fossil fuel companies and perhaps everyone is talking about the same thing in the industry.
Maryland State Investments Must Consider Climate Change
What is happening? Maryland Legislature is considering HB 740 (2022 | MD) that would require state investments, like pensions, to consider climate change impact in their investment decisions.
Why is this important? A new report released in Maryland by Chesapeake Climate Action Network (CCAN) and 350 Montgomery County say the state pension systems “sacrificed significant returns in investment since 2010 by buying and holding “dirty energy stocks.”
How will this be important? According to the researchers, had Maryland divested from fossil fuels beginning in 2010, the pension would have seen gains of 143.77% instead of 128.58%. In short, for every $1,000 invested by the pension fund in 2010, the returns would be $150 greater today had the portfolio divested.
Maryland Matters | Study: Md. Pension Fund Is Losing Money By Holding on to Fossil Fuel Investments
US Supreme CourtWatch: Tribal Gaming in Texas
What is happening? Ysleta del Sur Pueblo v. Texas is before the US Supreme Court this week to determine if the tribe can continue Class II Gaming at its reservation near El Paso.
Why is this important? The US Supreme Court has a strong of pro-Native American rulings. If the tribe prevails here, it would be “A win for the tribe in this case will usher in a whole new era of gambling in Texas,” according to a professor at Nova Southeastern University’s Shepard Broad College of Law .
How will this be important? A professor at the University of Oklahoma College of Law thinks the US Supreme Court could hold that IGRA has effectively repealed that provision of the Restoration Acts for each of these tribes that required they abide by the gambling laws of the state.
Casino.org | Texas Tribal Gaming Case Arguments Today at Supreme Court, Other States Watching
Bipartisan Support. Gun Storage Tax Credit
What is happening? Tennessee passed a a one-year sales tax exemption that waives the 7% state sales and 2.5% local option tax on sales of firearm safety and storage items. The 1 year tax exemption is anticipated to cost $320,000 to general revenue.
Why is this important? 6 other states offer tax breaks for gun storage, including Connecticut, Maine, Massachusetts, Texas, Virginia, and Washington.
How will this be important? Some say storage equipment is cost prohibited for some gun owners and in lieu of support nonprofit entities distribute locks and other storage equipment.
Route Fifty | Gun Storage Tax Break Is Rare Point of Unity in Firearms Debate
CALPERS Divestment from Fossil Fuels Legislation
What is happening? SB 1173 (202 | CA) would require CALPERS to divest $9.9 billion from fossil fuels if the CALPERS Board finds in good faith that the action is consistent with the board’s fiduciary responsibilities established in the California Constitution.
Why is this important? The bill is looking for divestment from the Carbon Underground 200 — a list of companies considered to have the greatest potential for future emissions from their coal, oil and gas reserves.
How will this be important? The goal is to reduce emissions and address climate change. Before this notion is discarded as California oriented, 1,500 institutional investors from around the globe, with assets approaching $40 trillion, have pledged to divest their fossil fuel holdings.
Bill of Rights for Cats & Dogs
What is happening? California Legislature is considering AB 1881 (2022 | CA) that would establish a bill of rights for cats and dogs but does not punish people or organizations. It is a means to avoid animal cruelty.
Why is this important? Animal shelters and animal rescue centers would have to post a copy of the bill of rights on premise.
How will this be important? The group behind the legislation is animal advocacy group Social Compassion in Legislation
Sacramento Bee | A bill of rights for cats and dogs? California lawmakers are considering one
Voting ID in State Constitution
What is happening? Oklahoma is considering SJR 48 (2022 | OK) that would put Voter ID measures into the State Constitution
Why is this important? Opponents say they are not afraid of letting Oklahomans vote on the issue.
How will this be important? Opponents are saying that supporters are letting a national narrative take control of Oklahoma’s policy decisions.
KFOR | Senate head pushes for voting law Constitution change
Change Voter Threshold for Constitutional Amendments
What’s happening? Missouri lawmakers are moving a measure to require a majority vote of eligible voters to amendment the state constitution. Currently, the threshold is a majority of voters voting.
Why is this important? Walk through this. Say the state has 1 million eligible voters. Currently let’s say 500,000 voters usually vote. A constitutional amendment would currently pass with 250,001 votes. But, under this bill it would require 500,001 voters to approve, a majority of eligible voters.
How will this be important? No constitutional change would pass. Some want to shut down initiative and referendum and others want to protect the constitution.
AP | Missouri House Seeks to Raise Bar to Amend Constitution
34States Raise Minimum Wage
What is happening? According to a report from The Economic Policy Institute 21 states passed legislation to raise the minimum wage, 9 states have automatic inflationary increases kicking in this year, & 4 have minim wage increases scheduled.
Why is this important? 34 states red and blue are raising the minim wage
How will this be important? The report stresses that any pre-pandemic assumptions abbot the impact cannot be used because working conditions have changed dramatically.
Elected Official Transparency with Disappearing Text Messaging
What’s happening? The MD Governor and his executive staff have been using the App, Wickr, to communicate. The App deletes messages instantaneously or based upon user settings.
Why is this important? The Governor and his staff have been accused of not being transparent by using s system that automatically deletes messages.
How will this be important? SB 307 (2022 | MD ) would re-define public information to include disappearing text messages.
Baltimore Sun via Governing | Hogan and Staff Use Disappearing Texts, Worrying Lawmakers
COVID Effect. Local Ordinance Trend: Skip the Stuff
What’s happening? Denver is considering an ordinance that would require consumers to ask for — or affirmatively accept when asked – extras like plastic utensils, napkins, and soy sauce or ketchup packets with their takeout and delivery orders.
Why is this important? Denver is trying to limit the use of single use plastics and styrofoam.
How will this be important? So far the ordinance does not apply to single use water bottles. It’s all part of the Diminishing Takeout Drawers movement gained momentum during the pandemic.
Colorado Sun | Colorado wants to reduce plastic waste. Here are all the ways it’s happening.
Tobacco Taxes. Banning Single use Tobacco and Cannabis.
What is happening? California is considering Assembly Bill 1690, which prohibit the sale of single use tobacco and cannabis.
Why is this important? Supporters include coastal conservationists who are concerned about the cigarette butts and plastics from single use smoking products.
How will this be important? Some see the legislation as an end run against statewide smoking bans.
No cigarette butts? California would ban tobacco filters under a proposed law | Sacramento Bee
Economic Development Incentives that Aren’t Tax Breaks
What’s happening? As tax credits are met with political opposition, other economic development incentives include- electricity discounts, new college campuses near large projects, and infrastructure improvements like roads and bridges
Why is this important? State and local governments are getting increasingly competitive to our manufacturing projects
How will this be important? let’s keep watch at how creative the incentives get. When I lived in the California Bay Area, incentives included a year of in house chef services….who knows what they think of next.
Hotel Cannabis Lounges. Toke & Travel.
What is happening? The Patterson, a Denver Hotel, is adding a cannabis lounge for travelers. All thanks to Denver’s new marijuana hospitality program.
Why is this important? Modernizing the hotel scene for states with legal cannabis policies.
How will this be important? It is viewed as good for business and a way to get cannabis tourism off the streets and out of cars and into a safe hotel space.
9 News | Denver hotel moving forward with plans for marijuana lounge
The 2021 edition of Freedom in the 50 States
What’s happening? CATO released its 2021 edition of Freedom in the 50 States.”The personal freedom ranking includes all state & local policies affecting individual freedom, including #VictimlessCrimes, #guns, marriage, #tobacco, #education and others. “
Why is this important? Texas is in the bottom 5 with NY, NJ and HI. “Socially conservative states tend to restrict #alcohol, #gambling, #marijuana, and marriage freedoms “
How will this be important? The Top 5 includes NV, NM, ME, VT and NH.
Funding Disparities. Racial Disparities. 143 Mayors.
What is happening? 143 mayors signed a compact on racial equity acknowledging that structural racism exists.
Why is this important? Racial disparities will enter into the calculation as the local leaders spend billions of dollars of federal pandemic aid.
How will this be important?
- The mayor of Louisville, KY, will ask recipients to “show how the money will be used to advance racial equity.”
- “Chokwe Antar Lumumba, the Black mayor of Jackson, Mississippi, said his city is using part of its ARPA funding to make waterworks upgrades meant to improve the flow of water from the showers and faucets in poor communities, which can be only a trickle.”
- Tucson, AZ mayor said ““What we’re trying to do with American Rescue dollars is bring about transformative change through investments in the causes of poverty,”
- St. Louis mayor: ““It’s a priority for me to address the historic disinvestment of Black and Brown communities,”
Route Fifty | How Mayors are Factoring in Equity as Their Cities Spend Federal Aid
Anatomy of a Business Group for Cannabis
What is happening? Indiana Cann is a new group created by business leaders to support legalization in Indiana. They say if IN follows the CO model for regulation the state could see $171 million in annual revenue
Why is this important? Paint by numbers and create this group in your state
How will this be important? On repeat here— the legal marijuana industry has been recession/pandemic proof
WFYI | Business leaders launch advocacy group Indiana Cann to urge lawmakers to legalize cannabis
NY Estimates $1.25 Billion in Cannabis Revenue
What is happening? NYGovernor revenue estimates indicate over the first 6 years, NY will receive $1.25 Billion in revenue from cannabis if it were to legalize.
Why is this important? In year 1, there will be $56 million in revenue from licensing fees. Thereafter revenue is expected to be $95 million in 2024, $158 million in 2025, $245 million in 2026, $339 million in 2027 and $363 million in 2028
How will this be important? NY is planning to direct revenue from its proposed 9% excise tax, and 4% local tax, on cannabis as follows:
- education 40%
- community reinvestment 40%
- drug treatment 20%
- On the local tax counties get 25% and cities, towns and villages 75%
Phoenix Cannabis Revenue Numbers
What is happening? AZ has had legalized cannabis for a year and the revenue numbers are in from its 16% excise tax.
Why is this important? IN 1 year, Phoenix cannabis revenue is:
- $17.1 million for Phoenix’s Maricopa Community College District (a 33% share)
- statewide $513.5 million was spent on marijuana in 2021
- Revenue is further appropriated to municipal police and fire districts (31.4%), the Highway User Fund (25.4%), the Justice Reinvestment Fund (10%) and 0.2% to the attorney general
How will this be important? Revenue estimators predict similar returns in future years.
KTAR | Maricopa community colleges get $17.1M from cannabis tax in first year of legality
State Tax. Streaming Services.
What is happening? 33 of 45 states, with a general sales tax, added streaming services to their general sales tax according to the Urban-Brookings Tax Policy Center
Why is this important? The Tax Policy Foundation says that if a state extends its sales tax to streaming, it is a better policy decision to do it with a new law and not by administrative rule
How will this be important? As cable revenues continue to fall, states continue to look to alternative Revenue sources. DE added a gross receipts tax for streaming services. FL extended its communications services tax to streaming services. Some cities like Chicago are applying their amusement taxes to streaming services by classifying streaming services as electronically delivered amusements
Pew Charitable Trusts via Governing | Cities and States Find New Ways to Tax Streaming Services
Procedural. Gut and Replace Amendments.
What is happening? In Hawaii’s Legislature, a gut and replace amendment was a means to move legislation along more quickly when the process was slowing passage. In Hawaii, the League of Women voters sued, and the HI Super Court declared the amendments unconstitutional.
Why is this important? The Court found these amendments played fast and loose with germaneness.
How will this be important? California uses gut and replace amendments but has a voter approved required 72 hour layout for last minute amendments. 13 states, including Texas require that amendments relate to the bill’s original purpose. The long and short of it is that people are paying attention to amendments and rules.
Route Fifty | Legislators Return to Session No Longer Able to Use Shortcut for Passing Bills
Economic Development. Public Money. Public Scrutiny.
What’s happening? 3 states have pending legislation to require disclosure of economic development deals.
Why is this important? It is red states and blue states. Florida HB 6059 (02 | FL). New York S1196 (2022 | NY) Illinois SB 3038 (2022 | IL)
How will this be important? Disclosure would include elements of economic development deals not previously disclosed including tax incentives, payments in lieu of taxes, tax abatements, loans, grants and tax rebates, as well as bonds and notes.
Route Fifty | Legislation Seeks to Block Secrecy With Economic Development Deals
$31 B Budget Surplus Plan. Retail Organized Crime.
What is happening? California anticipates an $31 billion annual budget surplus. Proposals include funding for retail organized crime, paying down pension debt, stopping prison hazing, dyslexia education resources, early childhood education, infrastructure, and building up the social safety net.
Why is this important? Last year’s budget included COVID relief and stimulus checks to Californians.
How will this be important? As economic indicators remain positive, there will be more state budget surpluses.
Sacramento Bee via Governing | How Will California Spend Its $31 Billion Budget Surplus?
New Caucus. Working Families Caucus. Social Justice Effect.
What’s happening? The Hawaii Legislature has a new caucus, the Working Families Caucus. The membership includes Republican and Democrat legislators in both chambers.
Why is this important? The Working Families Caucus will support paid sick leave, a permanent and refundable state earned income tax credit, family leave programs a tax credit for renters.
How will this be important? As one member said, the political grounds shifted during the pandemic making this type of legislation more realistic.
Cannabis Revenue in Montana
What is happening? Montana has had recreational cannabis sales for 1 weekend. That weekend amounted to $1.5M in sales in MONTANA., that’s $300,00 in tax revenue.
Why is this important? Montana has a sales tax rate of 20% for cannabis. Montana will also allocate the first $6 million in revenue to fund a Medicaid program to increase behavioral health and addiction treatment. The next 20% to wildlife programs and following that $300,000 for law enforcement grants.
How will this be important? COVID has not slowed cannabis revenue
AP | Recreational marijuana sales in Montana top $1.5 million in first weekend
+1 GOP State for $15 minimum wage
What is happening? First came Florida, and now add Missouri. Missouri Gov. Mike Parson (R) also shot support for a $15 minimum wage by setting state government pay at a $15 minimum.
Why is this important? Missouri needs to retain and recruit employees. When essential workers for the state make less than retail jobs, the state struggles to obtain workers.
How will this be important? It is happening on the local level too with Milwaukee, New Orleans and Tallahassee, Florida all increasing minimum wages to $15/hr
Route Fifty | A GOP Governor Backs a $15 Wage Minimum for State Workers
Cryptocurrency and Institutional Investors. The Numbers.
What is happening? California Public Employees’ Retirement System and New Jersey’s Common Pension Fund have invested in companies that make money by mining for Bitcoin. Fairfax Co. VA retirement system invested in blockchain. 33% of institutional investors have invested in cryptocurrency. For CalPers the investment is 4% of their funds.
Why is this important? 33% is an increase from 22% in 2019. 90% say they will invest within 5 years
How will this be important? Times are changing, Securities and Exchange Commission Chairman Gary Gensler signaled that crypto exchanges should register with the SEC
Route Fifty | Why More Public Pension Funds Are Investing in Cryptocurrencies
Renaming Business Incentives
What’s happening? A bipartisan group of Michigan legislators have passed through its House economic incentives to lure and retain commercial and manufacturing interests in Michigan.
Why is this important? There’s a distinct messaging change from economic development or business incentives to…..calling the fund the The Strategic Outreach and Attraction Reserve and calling the incentive programs Michigan Strategic Site Readiness Fund and the Critical Industry Fund.
How will this be important? Let’s watch other states follow this lead and change the focus from the business receiving the funds to the monikers that focus on the needs of the state. It’s like self care for states.
Detroit News via Governing | Michigan Legislature Advances Business Incentive Program
State Freedom Caucus initiative
What’s happening? The federal Freedom Caucus is spreading its wings and creating the State Freedom Caucus Network.
Why is this important? More money, more resources for state organizations.
How will this be important? Like minded officials from these states will attend the initial meeting: Alabama, Alaska, Arizona, Connecticut, Florida, Georgia, Idaho, Illinois, Minnesota, Mississippi, Missouri, Ohio, Pennsylvania, South Carolina, Tennessee, Texas and Wyoming.
Route Fifty | House Freedom Caucus Takes Its Crusade to the States
Tax Credit for Journalism
What is happening? New York Legislature is considering S7554 (2021 | NY) that would create a tax credit to support small, local publications and broadcast stations
Why is this important? The tax benefits would be 2 fold:
- grant a personal income tax credit of up to $250 per year for taxpayers who subscribe to a “qualifying local news publication,”
- a business tax credit directly to qualifying publications and broadcast stations to help offset the cost of paying journalists. The credit would be based on a percentage of each reporter’s wages, up to $12,500 per quarter
How will this be important? Stakeholders crafting this legislation include New York Publishers Association
Route Fifty | Extra, Extra! State Lawmakers Propose Tax Credit to Help Save Local Journalism
ARPA Transparency Tool
What’s happening? Want to know how a variety of governmental entities are spending their ARPA, American Rescue Plan Act, funds, then look no further than http://results4america.org/tools/arp-dashboard/
Why is this important? Kevin up with the Jones is a rudimentary part of the governmental process. This tool will track spending types, instance, public health, offsetting lost revenues or infrastructure, and provide insight into whether the spending is equitable.
How will this be important? I can’t recall anther federal government tool that allowed for easy access tracking of federal funds.
Route Fifty | A Look at How 150 Governments are Planning to Use ARPA Funds
Meet the Living Wage Initiative
What is happening? The November 2022 ballot in California will likely include a proposition for the Living Wage Act of 2022 that will raise the minimum wage to $18 for all businesses by 2026.
Why is this important? The initiative would not only raise the minimum wage from he current $15, but would also remove the current staggered standards of $14 an hour for businesses with 26 or more employees and $13 an hour for smaller businesses.
How will this be important? just as the $15 minimum wage moved across the country, including successfully in Florida, this will pop up in other jurisdictions as well
L.A. Times via Governing | Momentum Builds to Get $18 Minimum Wage on California Ballots
Stopping Illegal Cannabis Sales by Suspending Cannabis Sales Taxes
What’s happening? San Francisco Commissioners unanimously approved the suspension of cannabis taxes through the end of the year to cut down on illegal cannabis purchases.
Why is this important? Legal cannabis retailers are struggling against illegal markets. A Legislative study showed that the illegal market grew as the sales tax rate increased.
How will this be important? The correlation between the tax rate an illegal sales may shape legislation
KPIX5 SF | San Francisco Suspends Cannabis Tax To Combat Illegal Marijuana Sales
Stable TV Film Incentives in OK
What’s happening? Oklahoma is offering incentives for tv and film production and it’s working.
Why is this important? Sundance film darlings, upcoming Martin Scorsese big-budget “Killer of the Flower Moon, and more had the OK Legislature in July 2021 pass incentives that include:
- $30 million cash rebate available — set until 2031 —
- a base rebate rate of 20%
- with the opportunity to reach 38% in a rebate
How will this be important? “The fact that there is such a direct and easy communication with the governor’s office, which is not obvious in other states, is truly helpful. You know, you have a problem. Let’s figure out a solution and address it,” says Dylan Brodie, associate production on FX hit series “Reservation Dogs” and owner of Eleven Hundred Studios Collective in Tulsa.
Variety | Oklahoma’s Stable Incentives, Studio Space and Crew Boosts Production
COVID Effect. Increasing Tourism
What’s happening? To offset the decline in tourism from COVID, Thailand is considering allowing tourists to pay with cryptocurrency.
Why is this important? It is the cooperation necessary for this to happen. Thailand’s Tourism Authority is working with regulators and a local crypto exchange to pave the way for the acceptance of digital tokens for travel.
How will this be important? If this model works, will others use it? Think of Miami, FL and Miami Coin. Is that the open door?
Boston Divests from Fossil Fuels
What’s happening? Boston’s new mayor, Mayor Michelle Wu, signed an ordinance that prohibits the use of city funds in investments in the fossil fuel industry.
Why is this important? Unlike blanket divestments, it applies to any company that derives more than 15% of its revenue from coal, oil, natural gas, and fossil fuel products.
How will this be important? It is estimated the ordinance will pull $65 M of Boston’s funds from fossil fuel invested companies. In June Maine divested from fossil fuels statewide. In January NYCs 2 main pension funds divested from fossil fuels.
Reducing Cannabis Production Taxes
What’s happening? San Diego is considering reducing cannabis production taxes from 8% to 2% to increase production of edibles.
Why is this important? The reduction in production tax is seen as a hurdle for small businesses to enter the market & address a gap in the local supply chain.
How will this be important? Ideally the increase in production will allow for more local product to be sold and reduce the trucking of supplies in San Diego.
Ballot Prop: Win for Short Term Rental Tax
What is happening? Voters in Ouray, CO approved a 15% increase in short term rental taxes.
Why is this important? 57% approval rating and a 30 year Sunset provision.
How will this be important? The revenue will be dedicated to water and wastewater treatment plant projects and future housing programs
City Adopts Child Savings Account Program and a Guaranteed Income Pilot
What is happening? Atlanta is testing out a new child savings account and guaranteed income program.
Why is this important? Child Savings Account Program offers a one-time deposit of $50 into an educational savings account for Atlanta Public Schools kindergarteners from low-income households. This program will be a partnership with Operation HOPE, Inc. to establish the program along with a $2 M contribution from the City.
The guaranteed income pilot will be a pilot partnership with the City and a Urban League of Greater Atlanta along with a $2M contribution from the City.
How will this be important? It is an innovative solution to the pervasive economic insecurity and income inequality.
Fox 5 Atlanta | Atlanta City Council passes child savings account, guaranteed income programs
Opportunity Zones & Transparency
What is happening? In 2017, we were gifted with Opportunity Zones that made promises of drawing down billions of dollars of investment to struggling communities across the country, providing needed capital for businesses and helping bolster local economies.
Why is this important? The economic benefits aren’t clear and some say Opportunity Zones only benefit is ” outsized tax benefits to the rich.”
How will this be important? “Without those reporting requirements there’s no possible way to have an honest, balanced hearing around the benefits that are really important to the poorest people in this country.” –U.S. Sen. Tim Scott, a South Carolina Republican
Route Fifty | With Scant Data, Questions Hang Over Opportunity Zones
Local Government Revocation of Single Use Plastic Ban
What’s happening? Sandwich, MA will vote whether to repeal the ban on single use plastic.
Why is this important? 10 of Sandwich’s neighboring towns have also passed the single use plastic ban
How will this be important? Those wanting the ban repealed are relying on these arguments: potential harm to small businesses, health concerns and the continued sale of sports drinks and soda in plastic bottles.
Nov. Ballot. Wealth Tax in Washington State
What is happening? Washington State voters rejected a proposal that would have created a 7% capital gains tax on more than $250,000.
Why is this important? The carafe outs created in the legislation, Senate Bill 5096, would exempt assets like sales of retirement accounts, real estate, livestock, some agricultural property and timber, sales of sole-proprietor businesses that have a gross revenue up to $6 million, and some auto dealerships.
How will this be important? Was this a timing issue or a substantive issue?
Ballot Initiative. College Sports Betting
What’s happening? New Jersey Voters voted down an expansion of sports betting in state college sports.
Why is this important? New Jersey will be the only state with legal sports wagering that does not allow bets on in-state college sports.
How will this be important? It is an interesting question for the other states that do not permit sports betting- is it ok for professional teams but not for colleges?
NJ.com | N.J. Election 2021: Voters reject college sports betting expansion, support more bingo
Nov. Ballot. BLM Effect: New Civilian Review Board for Police
What’s happening? Cleveland, voters approved a new civilian review board to investigate police misconduct.
Why is this important? Cleveland voters created this panel while Minneapolis voters voted to retain its current policing structure.
How will this be important? The results on policing ballot initiatives were scattered and not indicative of any clear trends.
Governing | Policing, Pot, Housing and the ‘Right to Food’: Which Ballot Measures Passed
Ballot: Cannabis Tax Rate Increase
What’s happening? Colorado had a ballot initiative to increase the tax on cannabis to fund education. It failed. A local initiative in Denver to increase cannabis taxes to fund pandemic research also appeared headed toward defeat.
Why is this important? Supporters of the initiatives said the cannabis revenue wasn’t doing enough for education or health care research. The argument didn’t win. Opponents said it is a regressive tax on people’s pain. That won.
How will this be important? Colorado was one of the first states to legalize cannabis, how its voters feel about the collection of cannabis revenue and its uses could be telling.
BLM Effect: Alabama Constitution Reform
What’s happening? Joint Interim Committee on the Recompilation of the Constitution of the Alabama Legislature, made up of people from Alabama, recommended removing racist language from the state Constitution.
Why is this important? The edits will include language related to slavery, the poll tax, segregation and Brown v. Board of Education.
How will this be important? Let’s think of texas where language in the Texas Constitution could be used to provide an exception to Obergefell v. Hodges.
Montgomery Advertiser | Alabama Constitution: Committee approves plan to remove racist language
Legislator Files: Operating & Voting
What’s happening? A Virginia legislator, who is also a surgeon, was fined by the medical board for operating while participating in 2 virtual committee hearings and voting.
Why is this important? The legislator said the surgery patients consented to her legislating while operating.
How will this be important? “Many state lawmakers across the country balance their legislative duties with full-time jobs. The National Conference of State Legislatures classifies the Maryland General Assembly as a “hybrid” model of government, meaning lawmakers there make more money than their counterparts in other states but “usually not enough to allow them to make a living without having other sources of income.””
Route Fifty | State Lawmaker Accepts $15,000 Fine for Legislating from Operating Room
Cannabis Business Applications Benefitted from COVID
What’s happening? Lansing Michigan began the process of moving applications for cannabis businesses online because of COVID. As a result, the process of an online application became faster for the applicant and for the city.
Why is this important? Application processing time west from 3 months (all paper applications) to 3 weeks (online applications). City worker application processing time also was reduced by 10 hours per application.
How will this be important? Legacy systems are being replaced in local and state governments largely thanks to the need for online/digital solutions that emerged due to the pandemic.
Government Technology | Online Marijuana Processing Smoother and More Efficient
What does Fantasy Sports Revenue Look like in Arizona?
What’s happening? Arizona authorized fantasy sports earlier this year. The 1st 4 days of fantasy sports generated just under $1,600 in tax revenue. The fantasy sports operators pay 5% of their profits as revenue.
Why is this important? State regulators anticipate sports betting will be a much stronger revenue source.
How will this be important? States are still considering fantasy sports and sports betting. States still like revenue sources.
Fox 10 | Arizona collects over $1,500 in fantasy sports tax during first 4 days in August
ARPA For Guaranteed Basic Income in Chicago
What’s happening? Guaranteed Basic Income programs are moving to states other than California. Chicago is using ARPA funds to give 5,000 low-income households $500 per month.
Why is this important? The pilot has support of aldermen, but received pushback from “the 20-member Black Caucus, which has urged Lightfoot to redirect the money to violence prevention programs”
How will this be important? let’s start counting how many local jurisdictions start a guaranteed basic impact program and whether the programs save the local governmental entities funds in other areas.
Halloween Taxes. Taxing Candy.
What’s happening? How states tax candy varies greatly by rate and by the definition of candy. For instance Illinois considers Reese’s peanut butter cups, gummy worms and Hershey’s milk chocolate bars to be candy and taxes them at 6.25%. While Twix, Twizzlers and Hershey’s Cookies ‘n’ Creme bars are not classified as candy and taxed at 1%. Illinois distinguishing characteristic is whether flour is involved.
Why is this important? Let’s read the above where candy that trick or treaters receive commonly are not considered candy.
How will this be important? People who want to kill joy in the world want to tax sugar and soda and butter and probably dairy and meat until we’re all eating some form of gruel that we saw on the Matrix. So, these killjoys will try to tax the hell out Halloween.
Route Fifty | Tax or Treat! State Laws on Candy Taxation Vary Wildly
TN: Vaccines Can Be Required. Proof CANNOT be Required.
What’s happening? Tennessee legislature is considering HB 9004 (2021 | TN) that would allow businesses in Tennessee to mandate vaccines but those businesses cannot require proof of vaccination.
Why is this important? The author says this how we treat other vaccines so it should apply to COVID too.
How will this be important? This is one to watch and whether other states follow suit.
Governing | Tennessee Allows COVID Vaccine Requirements but Blocks Proof
Beer is Science. Breweries Use Science. Brewery Super PAC Supports Science.
What is happening? A Brewery in Wisconsin created a Super PAC to help parents sue School Boards that did not follow CDC Guidelines on COVID, and to unseat anti-school board members.
Why is this important? The super PAC status allows for protection of the funding sources
How will this be important? Super PACs as a political voice version 10.2
ARS Technica | Wisconsinites plan to sue “every school board” that ignores CDC’s COVID advice
TX v. CA: Economic Policy Showdown
What’s happening? UT Austin and Stanford professors joined forces to see which state, TX or CA, had better economic policies.
Why is this important? Businesses and people are relocating from California to Texas. There’s got to be something to that, right?
How will this be important? The study says it’s not clear. Each side has its good points and runs through these, which are of personal preference:
- TX low taxes but low social program funding (foster care, mental health, health care network, etc…)
- CA remains king for venture capital funders
- TX has higher property taxes per capita
- CA has higher income taxes per capita (TX has no state income tax)
- CA spends more on students in public eduction
- TX graduation rates are higher than California’s
- TX has seen a population boom
- CA has surging per capita income and GDP
Stanford | A tale of two states: Contrasting economic policy in California and Texas
School Finance. Did Michigan find a loophole to vouchers?
What is happening? The Michigan Legislature passed legislation to by creating tax credits and deductions for businesses and individuals who donate to a scholarship fund, which would be used to give grants to students to use the money for approved educational expenses. SB 687 (2021 | MI)
Why is this important? Opponents say this is just a new way to package vouchers. Supporters say that vouchers concern tax revenue and this bill concerns private donations.
How will this be important? In Michigan the importance is that a Republican Legislature passed it but it faces a veto by a Democrat Governor. Elsewhere- copy, file the bill, repeat.
Detroit Free Press | Gov. Whitmer will veto Michigan GOP’s school voucher proposal
Job Growth in Manufacturing from Energy Policy Changes
What’s happening? A U.S. transition away from fossil fuels will lead to creation of jobs for making electric vehicles in the U.S. and Mexico.
Why is this important? The interconnectivity of the countries industrial manufacturing facilities for decades.
How will this be important? By 2030, Mexico plans to reduce greenhouse gas emissions by 22%. Climate activists say Mexico is second-largest greenhouse gas emitter in Latin America.
Reuters | U.S. energy transition to create Mexico auto jobs, climate envoy Kerry says
Revenue Estimate Increase = Tax Cut
What’s happening? Republicans in Iowa are calling for statewide tax cuts for Iowans because state revenues are exceeding estimates.
Why is this important? Republicans say pandemic policies strengthened the state. Democrats say the revenue estimates reflect the use of federal relief funds.
How will this be important? Will other Republican legislatures use revenue estimate increases as automatic calls for tax cuts.
Let’s look at Sin Taxes
What’s happening? Sn taxes are popular- taxing the drinkers, smokers, gamblers, soda drinkers- whatever society doesn’t think is ideal in a Victorian minute.
Why is this important? Results are varied. Prohibition says it’s not a great idea to flatly prohibit something. Heavy. taxes on tobacco did result in a tobacco use decline.
How will this be important? Accepting that the issue of taxing certain behaviors is it is a moral issue. Imagine if vegans controlled everything, they may want to tax all animal based products.
Governing | A Shot, a Beer and the Ever-Evolving Debate Over Taxing Sin
Increase Property Taxes on Short Term Rentals?
What’s happening? Colorado is considering imposing a higher property tax on properties that are vacation homes that are used for short term rentals. Bill Draft.
Why is this important? Some say the property taxes would more than triple. Others say it is taxing short term rental vacation homes like hotels and motels.
How could this be important? Eyeing new sources of revenue is not new.
Initiative to Raise Cannabis Tax in Denver
What is happening? An initiative in Denver, CO backed by billionaires, wants to raise the cannabis tax. The Mayor is opposed.
Why is this important? The increase the initiative is calling for is 13%, and industry does not know why it was identified as the source when proceeds will be used for pandemic research.
How will this be important? There is a swirling wind of whether initiative and referendum have gone too far, like the recall of Governor Newsom. Be on the look out for jurisdiction rolling back initiative and referendum.
Local Government Use of Cannabis Tax
What’s happening? Vista, California is found south of San Diego near the California coast. It has $5.1 million in revenue from the cannabis sales tax for the last fiscal year.
Why is this important? Her’s a breakdown of how Vista will spend its $5.1 million :
- $4 M to the general fund
- Cannabis decoy and enforcement operations: $20,000
- Youth cannabis prevention and early intervention: $100,000
- Youth scholarship program: $140,000
- Increased lighting in neighborhoods: $270,000
- Park restroom maintenance: $31,000
- New Sheriff’s deputy: $275,000
- Park Director Ranges (2): $277,000
- $1.1 million to spend on youth scholarships
How will this be important? Cannabis revenue is a viable way for the city to add safety elements from sheriff’s deputies to more ambulances.
KPBS | Money from marijuana sales tax will fund special projects in Vista
New Cannabis Rules in New Mexico
What’s happening? Santa Fe New Mexico has new zoning rules for cannabis shops that require 300 feet from school, daycares and religious institutions. 400 feet from other cannabis shops.
Why is this important? State rules set the 300 feet from schools and daycares. The local Santa Fe rules set the parameters for churches and other cannabis shops.
How will this be important? Add these to your running list of distancing standards.
Opponent Arguments to an EV Tax
What’s happening? Opponents to a EV tax in Saskatchewan in Canada think the province has a punitive tax against electric cars. In response opponents are calling for a sidewalk tax for walkers.
Why is this important? Grab a creative name for your opposition group like “Saskatchewanians for Sidewalk Sustenance” (SSS) & put out a statement like ““Every day, thousands of people walk all over our sidewalks, push heavy strollers and shopping carts, even use motorized vehicles and bicycles,” says Lou Acera, president of SSS. “But are they contributing to the extra upkeep? This makes sure they do.”
How will this be important? Represent an opponent to an EV tax in your area- here’s a quiver for your bow.
Electric | Canadian group satirizes Saskatchewan’s dumb EV tax by suggesting a sidewalk tax
+1 Local Pension Divestment
What’s happening? Baltimore is divesting its 3 local city pension from investments in fossil fuels. The City has also passed an ordinance to be net zero by 2050.
Why is this important? Baltimore isn’t alone, NYC, D.C., Los Angeles, New Orleans and Pittsburgh also have divested local pension funds of fossil fuel investments.
How will this be important? Supporters say it is a global movement to divest from fossil fuels
Maryland Matters | Baltimore Mayor Signs Bill Mandating City Pension Funds Divest From Fossil Fuels
How does a state pass voting reforms when statewide leadership is bipartisan?
What’s happening? PA Republicans looking for a way to implement voting regulations are opting to skip normal lawmaking and moving to constitutional amendments because the PA Gov. Wolff is a Democrat.
Why is this important? If the Legislature passes a constitutional proposition, the Governor has no authority over it.
How will this be important? Think of the other issues this might work for in your state.
WITF | Republicans aim to make big election changes in state constitution
Meet a Coalition for Improving Local Control
What’s happening? In Texas the Our Home Our Decision Coalition joined twitterers in January 2021 to support local control.
Why is this important? 17 coalition members can be found here. Partners range from city attorney association to fire chief association to association of school boards.
How will this be important? Their goal is to”emphasize the necessity for local decision making and to ensure the diverse needs of Texas communities can continue to be met by local government”
Ranking State + Local Government Debt Obligations
What’s happening? The Census Bureau is releasing aggregate local and state government debt data. Here’s a glimpse at the top 13
- New York
2. Connecticut
3.Massachusetts
4. Illinois
5. Alaska
6. California
7. North Dakota
8. Hawaii
9. Washington
10. Kentucky
11. Rhode Island
12. Colorado
13. Texas
Why is this important? The data is broken down in total, local, state % of GDP and per capita. Here’s who is on top and on bottom of each these.
- Total: CA with$ 506.7 Billion & Alaska with $9.5 Billion
- Local: CA with $361B (TX with $248B) & RI with $2.6B
- State % of GDP: KY with 24.7% of its GDP & NJ with 14.5%
- Per Capita state and local government debt: NY $18,411 & PA $9,778
How will this be important? These numbers have been increasing since the pandemic.
Governing | State and Local Governments With the Most Debt Per Capita
Taxpayer Costs for Wildfires
What’s happening? The taxpayer costs for California wildfires is adding up. The $604.2 million state emergency fund has already spent $849.1 million. Yes, they’re about $245 million over cost estimates.
Why is this important? California fills its emergency fund with general revenue from its personal income tax, sales tax and corporation tax.
How will this be important? Any legislation that emerges could serve as a model for other states that face wildfire costs such as the 2021 legislation, the $1.5 billion Wildfire and Forest Resilience Package to mitigate future significant wildfires
Sacramento Bee via Governing | How Much Are California’s Wildfire Efforts Costing Taxpayers?
Tracking unspent CARES Funds
What’s happening? In the name of transparency, we introduce you to pandemicoversight.gov that lets you know which jurisdictions are holding onto CARES funds.
Why is this important? Common talk is that CARES funds have to be spent by the end of 2021. In technical terms, CARES funds have to be spent on costs accrued during 2021.
How will this be important? There’s hubbub concerning how the funds can be spent and whether certain types of spending is proper under the terms which makes following the money interesting headline and campaign fodder. 64% of unspent funds is in state hands. Like texas which appears to have $1.2 Billion unappropriated.
Governing | State and Local Governments Still Have Unused COVID Funds
Whose Who in the MA Gig Worker Ballot Initiative
What’s happening? Massachusetts is following in California’s footsteps and will be voting on a ballot initiative concerning the classification of gig workers.
Why is this important? Let’s look at who is where on what for this vote:
- FOR HAVING GIG WORKERS BE INDEPENDENT CONTRACTORS
- Massachusetts Coalition for Independent Work: uber, Lyft, Instacart, Doordash, Postmates
- FOR HAVING GIG WORKERS BE CLASSIFIED AS EMPLOYEES
- AFL-CIO
- ACLU
- Boston Independent Drivers’ Guild
- Coalition to Protect Workers’ Rights
- Elizabeth Warren
How will this be important? Watch to see the impact of Elizabeth Warren’s support and the estimated $100 Million + that the Coalition for Independent Work is expected to spend
Boston Magazine | What You Need to Know about the Gig Worker Ballot Question
Change in the Fantasy Sports Hierarchy
What’s happening? DraftKings are no longer grabbing the King’s share of fantasy sports. This summer FanDuel nabbed the lions share of the market with 42%.
Why is this important? FanDuel was acquired by a Cambridge-educated engineer who bought a majority stake for $158 million in cash plus the contribution of Irish sports betting company, Flutter’s U.S. assets
How will this be important? Change in market leaders, change in regulatory frameworks
What Usurps a$15/hr Minimum Wage mandate? The Market.
What’s happening? In lieu of $15/hr minimum wage mandates, market forces are increasing minimum wages.
Why is this important? Data from job postings from 2019-2021, show that COVID saw many service-sector industries raise wages above a $15 starting wage during the period, often by significant margins
How will this be important? Wages are continuing to rise and are gaining steam during the COVID recovery. Economists say it is a sign that corporations are treating employees more fairly.
Other State Revenue Legislation to Counter Texas SB 8.
What’s happening? New York will establish the New York State Abortion Access Fund, a state-run account comprised of voluntary donations from taxpayers to fund access and travel for abortions for New York residents and nonresidents.
Why is this important? New York’s action follows more than 50 large corporations who will financially support women in need of an abortion outside of Texas.
How will this be important? New York Governor Hochul said, “”Abortion access is safe in New York – the rights of those who are seeking abortion services will always be protected here. This plan will affirm that in our state, and leaders like Senator Gillibrand will fight on a national level. To the women of Texas, I want to say I am with you. Lady Liberty is here to welcome you with open arms.”
Route Fifty | State Lawmakers Push to Allow Residents to Contribute to Abortion Access Fund
COVID NEW TAX TRENDS
What’s happening? States are trying a variety of measures to address tax revenue deficiencies including:
- MA wants to tax income earned while working from home in another state for its workers
- VT wants to expand its tax base by paying people to move there
- LA and NE both tried to tax services during the spring legislative sessions, both failed
- MD succeeded in passing a bill to tax digital ads (there’s now a court case)
- KS & WY are trying tot tax streaming services
- CO GA & MD applied their sales tax to some digital content
Why is this important? It’s not just the U.S. The UK expanded its VAT to more items.
How will this be important? Its looking like passive actions like broadening tax bases seem to have the most longevity
CPA Practice Advisor | Top Trends in State Sales Taxes and Policies
Cannabis Revenue in a Red State
What’s happening? Arizona has legalized cannabis. The tax revenue for August 2021 is $20 million in medical and adult-use marijuana.
Why is this important? This follows trends in other states like Maine where tax revenue from recreational cannabis is breaking records.
How will this be important? The revenue seems to fair well during the pandemic as California’s 2020-2021 tax revenue from cannabis totaled $817 million.
Marijuna Moment | Arizona Marijuana Tax Revenue Exceeds $20 Million In August, State Reports
What makes Recall Elections Easier now than 20 years ago?
What’s happening? The arm chair quarterbacks are out in full force post the California recall election this week. They say the reason recall, or referendum and initiative, works now better than before is technology. It’s a combination of social media, spread sheets, data, and cell phones.
Why is this important? Information is what makes these elections. Access to information. The movement of information. It’s easier to move information and make it look prettier now.
How will this be important? Whether the short term high of a recall election be enough to satiate those calling for a recall…
Governing | What’s the Future of Recalls Following Gavin Newsom’s Win?
The Cost of a Recall Election
What’s happening? This week was Election Day in California to vote on whether to recall its Governor. The recall failed and cost the state more than $276 million. Cost estimates for the election were more than $60Million under anticipated costs.
Why is this important? In recent weeks, other states have considered walking back their initiative and referendum process.
How will this be important? Keep an eye on states that don’t have initiative and referendum, and watch those moves.
SF Gate | Here’s how much the failed Gavin Newsom recall election cost California
Record Sports Betting Numbers
What’s happening? Estimates for sports betting in 2021 are coming and here’s where we are:
- 45.2 million Americans will place a bet
- Up 36.2% from 2020
- $27 billion have been wagered on sports over the first 7 months of 2021
- Fans in 26 states and DC have access to legal sports betting
Why is this important? The number of people betting and the bets placed are increasing over 2020 by as much as 70%
How will this be important? 18 of the 26 states that have legalized sports betting are home to NFL teams
S&P Global | As more states approve sports betting, record 45M will bet on NFL games in 2021
Bills to Clarify what that Recycle Triangle Means
What’s happening? The California Legislature is moving a bill that would ban companies from using the arrows symbol unless they can prove the material is in fact recycled in most California communities, and is used to make new products. SB 343 (2021 | CA)
Why is this important? The recycling triangle can be printed on items that as a whole are not recyclable. That means companies that process waste operate at 80% efficiency at best because more than 1/5 of the materials in their possession are not recyclable
How will this legislation be important? California would be the first in the nation to pass this legislation
New York Times | California Aims to Ban Recycling Symbols on Things That Aren’t Recyclable
Local Revenue Trend: Multiple Law Enforcement Agencies
What’s happening? The City of Austin is considering created a law enforcement agency solely for its transit agency
Why is this important? Transit agency says it is growing rapidly and is preparing for that growth with its own law enforcement agency
How will this be important? Dat shows that the number of calls for law enforcement to the transit agency did not decrease during the pandemic
Austin American Statesman via Governing | Austin Considers Separating Transit Security from Police
New Caucus: Progressive Caucus
What is happening? The Texas Legislature is now home to the Progressive Caucus
Why is this important? Founders state the caucus formed in response to “radical, right wing laws that hurt Texans”
How will this be important? First Republicans splintered off and formed Tea Party Caucus and Freedom Caucuses, and now a similar effect on the other side of the political spectrum
City Sues State Over Unconstitutional Budget
What’s happening? Phoenix sued the State of Arizona claiming the state’s approved budget violates the State Constitution by exceeding the one subject rule and changing substantive law.
Why is this important? One subject laws are common. First we had 1 Governor veto Legislative Funding, now we have several. Same with this- first we have 1 city suing its State…
How is this important? Local Control, preemption & the mandates on cities are moving to the courts, folks
KTAR News | Phoenix sues Arizona, claims budget bill violates state constitution
Phoenix.gov | City Files Lawsuit Against State for Violation of Constitution
Gig Economy. Worker Classification Round 3.
What is happening? A California Court ruled the very pricey initiative that declared gig economy workers were independent contractors is unconstitutional.
Why is this important? The court said that the initiative violates the right of the state legislature to pass future laws around worker safety and status
How will this be important? Other states, including Massachusetts, are trying to statutorily classify gig economy workers.
Tech Crunch | A California judge just struck down Prop 22: Now what?
Initiative & Referendum. Constitutionality.
What’s happening? Idaho Legislature passed a ban on initiative and the Idaho Supreme Court declared the ban unconstitutional. SB 1110 (2021 | ID)
Why is this important? Recalling elected officials whether the passed around petition in Austin, TX or the recall vote on Governor Newsom are increasing as partisan divides grow deeper.
How will this be important? It was a group of attorneys in Idaho that has been successful in initiatives in Idaho. Watch for gatherings of attorneys.
Governing | Idaho Law on Citizen-Led Initiatives Ruled Unconstitutional
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