statenews · 2018-01-26 · Susie Bush Jessica Downey proofreader Chris Pryor reprint permissions (800) 800- 9 0 [email protected] publication and advertising sales (800) 800- 9 0 [email protected]

thecouncilofstategovernments www.csg.org �

Vol. 49, No. 6 The Council of State Governments June/July 2006

”“A leader is best when people barely know

he exists, not so good when people obey and acclaim him, worse when they despise him. But of a good leader who talks little when his work is done, his aim fulfilled, they will say: We did it ourselves.

—Lao-Tzu

The Henry Toll Fellowship Program of inspiring great leadership20 years

statenews

� statenews june/july�006

8Planning PensionsBig Changes Ahead in State and Local Retirement Funding.

ByKristiGuillory

senior editorJackPenchoffmanaging editorMaryBranhamDusenberryassociate editorLauraColemangraphic design coordinatorSusieBushJessicaDowneyproofreaderChrisPryorreprint permissions(800)800-�9�[email protected] and advertising sales(800)800-�9�[email protected](859)�44-800�[email protected]

headquartersDanielM.Sprague,ExecutiveDirector�760ResearchParkDriveP.O.Box��9�0Lexington,KY40578-�9�0(859)�44–8000

washingtonJimBrown,GeneralCounselandDirectorHalloftheStates444N.CapitolSt.N.W.,Suite40�Washington,DC�000�(�0�)6�4–5460

easternAlanV.Sokolow,Director50BroadStreet,Suite5�0NewYork,NY�0004-�3�5(��)48�–�3�0

midwesternMichaelH.McCabe,Director70�E.��ndStreet,Suite�0�Lombard,IL60�48(630)9�5–�9��

southernColleenCousineau,DirectorP.O.Box98��9Atlanta,GA30359(404)633–�866

westernKentBriggs,Director��079thStreet,Suite650Sacramento,CA958�4(9�6)553–44�3

13Henry Toll Fellowship ProgramClass of 2006 profiles highlight the accomplishments of the members of the nation’s top program for emerging state leaders.

10TABOR on the Table

Colorado takes a timeout from strict spending limits, but other states are considering them.

ByMaryBranhamDusenberry

Departments

29Fair Share for Health Care?‘Wal-Mart’ bills would require companies to provide health insurance for employees.

ByLauraColeman

34Paying Debts to Society

Policymakers make recommendations on prisoners’ financial obligations.

ByKarenImasandRachelMcLean

4 Inside Story TollFellowshipProgramBeginsThirdDecade ByJackPenchoff

5 Toolbox GeorgiaMakingProgressinP–�6Reform

5 State Sources Aroundupofrecentreportsandresources forstateofficials

7 State Snapshots MedicareBeneficiarieswithCreditable PrescriptionDrugCoverage

31 CSG Spotlight HighlightsofactivitiesandeventsbyCSG, itsaffiliatesandotherassociations

34 Conference Calendar MeetingsandconferenceactivitiesofCSG, itsaffiliatesandotherassociations

35 Timeline Alookbackintime

4 statenews june/july�006

By Jack Penchoff It’shadtopindownthenatureofleadership.Isitaconcept?Isitaprocess?Or,isitmereintuition? Whateveritsnature,governmentofficialswanttoattainleadershipskills. There’snocleardefinitionofleadership.Somebelieve people are born leaders, others believeleadershipskillscanbetaughtordeveloped. InmembershipsurveysconductedbyTheCoun-cil of State Governments, respondents regularlyrankleadershipdevelopmentastheirtoppriority. Toaddressthatneed,forthepast20yearsCSG’sHenryTollFellowshipProgramhasbeenguidingstateleaderstowardhoningtheirleadershipskills.Theprogrammustbedoingsomethingrightbecausesomeof themore than700graduatesarenow,amongotherthings,membersoftheU.S.Congress,lieutenantgovernors,secretariesofstate,attorneysgeneral,statetreasurersandjudges. Thismonthinaspecial16-pagesection,weoffersomebackgroundabouttheTollFellowshipprogramplusasnapshotoneachofthisyear’s40TollFellows. CSG’scommitmenttoleadershipdevelopmentisunderscoredthroughregionalleadershipprograms.TheEasternRegionalConferencelastyearbegantheEasternLeadershipAcademy.TheMidwestLegislativeConferenceannuallyconductsTheBowhayInstituteforLegislativeLeadership(BLLD)ontheMadisoncampusoftheUniversityofWisconsin.AndCSG’swesternofficeannuallyholdstheWesternLegislativeAcademyforWesternlegislatorsintheirfirstfouryearsofoffice. Thejobforleadersinstategovernmentisnotgettingeasier.ThroughallofCSG’sleadershipprograms,stateofficialswillbebetterequippedtomeetthechallengesofthe21stcentury. Amongthosechallengesisfundingpost-employmentbenefitsforpublicemploy-ees.In2004,theSouthernofficeofCSGissuedareportcitingthenumberofstateretirementsystemsthatareunderfunded.Thismonth,KristiGuillory,seniorpol-icyanalystandassistantcounselinCSG’sWashington,D.C.,office,writesabouthowstatesarepreparingtoimplementarulingbytheGovernmentalAccountingStandardsBoardthatrequiresstateandlocalgovernmentstoreportaframeworkforfundingretireehealthcareoverthenext30years. Managingfinancesareacommonproblemallstatesshare.ThismonthMaryBranhamDusenberry,StateNewsmanagingeditor,reportsthatafter13yearsofdealingwiththeTaxpayersBillofRights,ColoradovotershavedecidedtotakeatimeoutfromthestrictspendinglimitsintheirTABORlaw.However,some15otherstatesareconsideringlawssimilartotheoneforwhichColoradoistakingatimeout.Andhealth care continues towreakhavocon statebudgets.Thismonth,LauraColeman,associateeditorofStateNews,reportsonamovementamongstatestorequirecompaniestoprovidehealthinsurancefortheiremployees.Some30stateshaveconsideredlawssimilartoMaryland’sFairSharehealthCareFundAct,com-monlyknownastheWal-Martbill.OpponentssaystateofficialsaremissingtherealculpritofrisingMedicaidbudgets—risinghealthcarecosts.

—Jack Penchoff is senior editor of State News magazine.

Executive Committee

PresidentGov.JimDouglas,Vermont

Chair

SenatePresidentEarlRayTomblin,WestVirginia

President-ElectGov.BradHenry,Oklahoma

Chair-ElectRepresentativeDeborahHudson,Delaware

Vice ChairRepresentativeKimKoppelman,NorthDakota

2006 executive committeeSen.CarolynAllen,Ariz.•AssemblymanJeffrionAubry,N.Y.•Sen.DonBalfour,Ga.•Mr.JerryBassett,LegislativeRefer-ence Service,Ala. •Mr. BruceBaughman,Alabama • StateEmergencyManagementAgency•Mr.RobertBippert,Dept.ofGeneralAdministration,Wash.•Sen.WalterBoasso,La.•Rep.DanBosley,Mass.•Sen.ShaneBroadway,Ark.•Del.AnthonyBrown,Md.•Sen.KateBrown,Ore.Rep.RayBunt,Pa.•Mr.DavidByers,SupremeCourt,Ariz.•Mr.MarkCarey,Minn.•Rep.JoeCarothers,Jr.,Ala.•Sen.BarbaraCegavske,Nev.•Lt.Gov.JohnCherry,Mich.•Mr.PhilipCherry,Dept.ofNaturalResources&EnvironmentalControl,Del. •Sen.John Chichester, Va. • Member Russell Copeman, QuebecNationalAssembly•Sen.KevinCoughlin,Ohio•Rep.BobDamron,Ky.•Sen.BartDavis, Idaho•Sen.BillDoyle,Ver-mont•Sen.DeniseDucheny,Calif.•Treas.RandallEdwards,Ore.•Sen.KarenFacemyer,W.Va.•Sen.HughFarley,N.Y.•Rep.CraigFitzhugh,Tenn.•Mr.TomFletcher,StateBudget&ControlBoard,S.C.•Rep.RobertGodfrey,Conn.•Ms.BeckyHarilson,OfficeoftheSen.President,Ky.•Sen.ToniHarp, Conn. • Sen. Douglas Henry, Tenn. • AssemblymanLynnHettrick,Nev.•Sen.LindaHiggins,Minn.•Sen. JohnHottinger,Minn.•Gov.MikeHuckabee,Ark.•Rep.DeborahHudson,Del.•Rep.JeanHunhoff,S.D.•JudgeRobertHunt-er,CourtofAppeals,N.C.•Rep.ThomasJackson,Ala.•Ms.Lilia Judson, SupremeCourt, Ind.•Gov.DirkKempthorne,Idaho•Dr.MichaelKing,LegislativeOffice forResearchLi-aison,Pa.•ChiefJusticeJosephLambert,Ky.Sen.T.D.Little,Ala.•Rep.WardLoyd,Kan.•Sen.MichaelMachado,Calif.•Gov.JoeManchin,W.Va.•Sen.JohnMarchi,N.Y.•Sen.Pres.KennethMcClintock,PuertoRico•Gov.RuthAnnMin-ner, Del. • Rep. Joe Miro, Del. • Rep. Jeff Morris, Wash. •Rep.MikeMurphy,Ind.•Gov.FrankMurkowski,Alaska•Sen.RaphaelMusto,Pa.•Gov.JanetNapolitano,Ariz.•Sen.DaveNething,N.D.•Lt.Gov.JaneNorton,Colo.•Gov.GeorgePataki,N.Y.•Gov.TimPawlenty,Minn.•Treas.JohnPerdue,W.Va.•Gov.SonnyPerdue,Ga.•Rep.DanicePicraux,N.M.•Ms.MaryRegel,Department ofCommerce,Wis. •Gov.JodiRell,Conn.•Rep.RogerRoy,Del.•Sen.StanRosenberg,Mass.•Rep.ChrisRoss,Pa.•Sen.SteveSaland,N.Y.•Sen.DiAnnaSchimek,Neb.•Sen.BobSchuler,Ohio•Mr. JohnSelig,Dept.ofHealthandHumanServices,Ark.•Rep.TomSloan,Kan.•Rep.MarySkinner,Wash.•Ms.AnneSoileau,Dept.ofStateCivilService,La.•AttorneyGeneralWayneStenehjem,N.D.•Rep.DonnaStone,Del.•AttorneyGen.PaulSummers,Tenn.•Sen.RonTeck,Colo.•Sen.RobertThompson,Pa.•Sen.DonneTrotter,Ill.•Rep.SteveUrqu-hart,Utah•Sen.LeticiaVandePutte,Texas•Ms.PamVarni,Legislative Affairs Agency, Alaska • Sen. Jeff Wentworth,Texas•Sen.Pres.DavidWilliams,Ky.•Ms.SandraWintson,WorkforceInvestmentBoard,Ark.

STATE NEWS, 1549-3628, June/July 2006, Vol. 49, No. 6— Published monthly with combined issues in June/July and Nov./Dec. by The Council of State Governments, 2760 Research Park Drive, Lexington, KY 40511-8410. Opinions expressed in this magazine do not necessarily reflect the policies of The Council of State Governments nor the views of the editorial staff. Readers’ comments are welcome. Subscription rates— In the U.S., $55 per year. Single issues are available at $6 per copy. POSTMASTER: Send address changes to State News, Sales Department, P.O. Box 11910, Lexington, KY 40578-1910.

Advertising—Black and white, two-color and full-color ad-vertising available. For complete circulation and advertising information, contact the advertising department at (800) 800-1910. Mailing lists are available for rent upon approval of a sample mailing.

Copyright 2006 by The Council of State Governments. Periodicals postage paid at Lexington, Ky., and at additional mailing offices.

insidestorySharing capitol ideas. TollFellowshipProgramBegins

ThirdDecade

thecouncilofstategovernments www.csg.org 5

toolboxGeorgiaMakingProgressinP–�6Reform

ThestatewasthefirsttohavestateandregionalP–16coun-cils,anditsregents’officeintheUniversitySystemofGeorgiaoverseesavarietyofprojectsthatfocusonconnectingK–12andpostsecondaryeducation. Thestate’sapproachtoK–16reformispartofaresearchproj-ectbytheNationalCenterforPublicPolicyandHigherEduca-tion and its partners, the Institute forEducationalLeadershipand Stanford University’s Institute for Higher Education Re-search.Thefindingsarepresented in case studiesof the fourstates:Georgia,Florida,NewYorkandOregon. Georgiahasdevelopedinnovativewaystoimplementandin-stitutionalizeP–16reform.Majoreffortsincludeinitiativestoim-provestudents’academicachievement,collegepreparationandways tokeep the“bestprepared”college students in the state.The governance reform began about 10 years ago, when theboardofregentsoftheUniversitySystemofGeorgiapartneredwiththeDepartmentofAdultandTechnicalEducationtoaddresstheneedsofstudentsacrossthestate.Thepolicyincludeddirec-tivesthatthetwosystemswouldhelphighschoolstudentsmake“themostappropriatepostsecondarychoicestomeettheirneeds”andthetwosystemswouldworktogethertoaddressthechoicesstudentsmade,includingastipulationthattheuniversitieswouldprovidetheoreticalgeneraleducationcoursesandthetechnicalinstitutionswouldprovideappliedgeneraleducationcourses. ThestudyoftheGeorgiacasefoundprogresshasbeenmadeinsuchareasasteachereducation,K–12standardsdevelopment,mathandscienceinstructionalpolicy,andportfolio–basedas-sessment. But the report acknowledged much work remains.

TranslatingtheP–16visionintopracticehasbeendifficult.Thereportfoundthat,likemostoftheP–16orK–16reformaroundthecountry,theissueofinstitutionalizationisunresolved.TheeffortsinGeorgia,thestudyconcludes,provideusefulinsightsforotherstatesgrapplingwithP–16issues. For more information on the experiences of the four statesinvolved in the research project, visit www.highereducation.org/reports.

statesources

Manyseniorsnotgettinglow-incomesubsidiesformedicines Enrollment in the low-income drug subsidy program forMedicarePartDisverylow,accordingtoareportreleasedinMaybytheconsumerhealthorganizationFamiliesUSA. The low-income subsidy program—for those whose annualincome is less than $14,700—would cover such expenses astheirPartDpremiums,out-of-pocketcostssuchasdeductibles,andco-paymentsandtheeliminationofcoveragegapssuchastheso-called“doughnuthole.”

TheFamiliesUSAreportfoundthat:

Only1.7million low-incomeseniors—24percentof the7.2 million eligible for special subsidies—have enrolledintheprogram;

In16statesandtheDistrictofColumbia,atleastfouroutoffiveseniorseligibleforlow-incomesubsidiesarenotre-ceivingthem;and

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Inonlysixstates—Arkansas,Delaware,Kentucky,NorthCarolina, Texas and Vermont—has enrollment exceededone-thirdofthoseeligibleforlow-incomesubsidies.

Thereportalsofoundthatthe“dualeligibles”—thosese-niors who receive both Medicare and Medicaid—wereworseoffthanbeforePartDbegan,because:

The6.3milliondualeligiblesfacednew,morerestrictiveformulariesandutilizationmanagementrulesthatlimitedtheiraccesstoprescribedmedicine;

Abouthalfofalldualeligiblesarechargedhigherco-pay-mentsthantheypaidwhentheyhadMedicaiddrugcover-age;and

Manyencounteredconfusionatpharmaciesduringtheear-lieststagesofthenewprogram,andsomedidnotreceivetheirmedicines.

Acopyofthereportcanbeaccessedatwww.familiesusa.org/

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ManySeniorsNotGettingLow-IncomeSubsidiesforMedicine

NewStateOfficial’sGuidetoWellnessisreleased

statesources


RANDStudyRevealsAmericansLackRecommendedHealthCare

ArecentlyreleasedRANDreportpublishedintheNew Eng-land Journal of Medicinestatesthatnosocietalordemographicgroupisimmunetoreceivingpoor-qualityhealthcare. TwopreviouspublicationsfromRANDHealthindicatedthatAmericans receive just half of recommended care, regardlessofwhere theylive.“Differencesexist,”said leadstudyauthorStevenM.Asch,“buttheypaleincomparisontothechasmbe-tweenwherewearetodayandwhereweshouldbe.Thesefind-ingstellusthatnoonecanaffordtobecomplacent,andtheyunderscore that thequality-of-careproblem in this country isprofoundandsystemic.” Thestudyfoundthat:

Womenreceivedahigherproportionofrecommendedcarethanmen;

Women weremore likely thanmen to receivepreventiveservices;

Youngerandwealthierparticipantsweremorelikelytobescreened,butlesslikelytoreceivefollow-upcarethanolderparticipants;

Thosewithannualincomesover$50,000hadqualityscoresthatwerejust3.5percentagepointshigherthanthosewithincomeslessthan$15,000;and

Insurancestatushadnorealeffectonquality.

Inaddition,blacksfaredbetteroverallandwithchronicdis-easecare,andHispanicsweremorelikelytoreceivescreening. Toreadtheabstractofthestudy,visit www.rand.org/health.

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Howcanstateshelpmakeiteasierfortheirresidentstostaywell? Foranswers, statepolicymakerscannow turn to thenewlyreleasedState Official’s Guide to Wellness. The65-pageguide,producedbytheHealthyStatesInitiative,explainshowstatescanhelpeveryonemakehealthierchoicesatwork,athomeandinthecommunitieswheretheylive.The

guidedescribestheeconomictollofmajorchronicdiseasesandpresentsmanyexamplesofstatewellnessinitiatives—includingeffortstargetedatthegeneralpublic,stateemployeesandpri-vatecompanies.Theguidealsohighlightsscience-basedpolicyrecommendationsforeffectivestate-levelwellnessinitiatives. The initiativehasalsorecently releaseda relatedelectronicpublication,TrendsAlert: Costs of Chronic Disease: What Are States Facing?,whichdescribesstartlingtrendsinhealthcosts,chronic disease rates, and Medicaid costs for these diseases.TheTrendsAlertalsoincludesdescriptionsofsomeofthemostrecentstatepoliciesandprogramstopreventdiseasesandpro-motegoodhealthamongAmericans. TheHealthyStatesInitiativeisapartnershipdesignedtohelpstateleadersmakeinformeddecisionsonpublichealthissues.The partnership includes The Council of State Governments,the Centers for Disease Control and Prevention, the NationalBlack Caucus of State Legislators and the National HispanicCaucusofStateLegislators. To access copies of the two publications, please visit theHealthyStatesWebsiteatwww.healthystates.csg.org.


United States 43,404,884 1,031,758

Alabama 765,�73 589,548

Alaska 53,��8 39,3�4

Arizona 797,�08 6�0,�6�

Arkansas 479,834 337,99�

California 4,3�5,86� 3,4�3,994

Colorado 5�9,44� 4�7,6�8

Connecticut 537,386 356,368

Delaware ��8,690 98,55�

District of Columbia 77,��8 56,3��

Florida 3,094,899 �,307,435

Georgia �,045,8�8 785,�99

Hawaii �86,�57 �5�,69�

Idaho �93,�07 ��8,764

Illinois �,734,57� �,��6,3��

Indiana 9��,883 630,085

Iowa 499,3�4 340,944

Kansas 408,800 �6�,�08

Kentucky 690,9�8 498,�4�

Louisiana 659,�49 450,984

Maine �39,4�4 �73,660

Maryland 708,98� 5�7,�69

Massachusetts 999,�� 7�9,906

Michigan �,5�9,��3 �,08�,56�

Minnesota 7��,498 503,�97

Mississippi 465,96� 334,535

Missouri 930,083 67�,585

Montana �50,764 97,934

MedicareBeneficiarieswithCreditablePrescriptionDrugCoverage

statesnapshots

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) added prescription drug coverage to Medicare (Medicare Part D), beginning Jan. 1, 2006. Medicare’s elderly and disabled beneficiaries can enroll in private plans that contract with Medicare to provide the drug benefit. People on Medicare can obtain the Medicare drug benefit through two types of private plans. Beneficiaries can join a stand-alone prescription drug plan (PDP) for drug coverage only and get their other Medicare benefits through the fee-for-service program, as the majority of people with Medicare currently do. Alternatively they can join a Medicare Advantage (MA) plan, such as an HMO or regional PPO, that covers drugs and all other Medicare benefits. Private plans can operate in one or more of 34 PDP regions and 26 MA regions nationwide. For more information, visit Kaiser’s Resources on the Medicare Drug Benefit, available at http://www.kff.org/medicare/rxdrugbenefit.cfm. Source: www.statehealthfacts.org

Nebraska �66,386 �9�,366

Nevada 30�,537 ��8,9�9

New Hampshire �90,�7� ��0,705

New Jersey �,�6�,�80 873,3�0

New Mexico �70,�05 ��,3�4

New York �,858,747 �,904,739

North Carolina �,�88,8�7 994,334

North Dakota �05,800 74,7��

Ohio �,797,3�0 �,339,53�

Oklahoma 550,500 399,�08

Oregon 546,754 380,�47

Pennsylvania �,�74,756 �,394,360

Rhode Island �76,960 �30,358

South Carolina 654,600 489,695

South Dakota ��7,�75 88,�78

Tennessee 933,03� 707,847

Texas �,570,08� �,949,�4�

Utah �37,900 �73,56�

Vermont 98,336 69,885

Virginia �,00�,�50 737,509

Washington 83�,�36 574,363

West Virginia 363,�00 �65,586

Wisconsin 844,�� 504,354

Wyoming 7�,489 48,08�

Residence Unknown NA 40,�8�

Guam NA NA

Puerto Rico 6��,993 �9�,607

Virgin Islands NA 6,�66

by Type, as of May 7, 2006

Total Medicare Beneficiaries

Beneficiaries w/ Creditable Drug Coverage

Total Medicare Beneficiaries

Beneficiaries w/ Creditable Drug Coverage

lanning ensionsBig Changes Ahead in State and Local Retirement Funding

State and local governments will be required to report plans for fully funding post-employment benefits in fiscal 2008. The requirement is part of a 2004 ruling by the Governmental Accounting Standards Board, which effectively dictates accounting principles used by state and local governments.

By Kristi Guillory


Thesebenefits,knownasOPEB,includeretireebenefitsthatarenotpartofapensionplanandarelargelycomprisedofhealthcarebenefits. Governmentspreviouslyoperatedona“pay-as-you-go”(PAY-GO)systemofOPEBreportingwhereformeremployees’ben-efitswerepaidoutofcurrentrevenues.Retireebenefitsdidnotcostgovernmentalentitiesanythinguntiltheemployeeretired.Localitieswerenotrequiredtoestimatethesizeoftheircom-mitment to retireehealthcareon theirannualbudgets,whichresultedinmostgovernmentsfailingtosetasidesufficientfundstopayforretireehealthbenefits. UnderGASB45,localgov-ernmentswillstillnotberequiredtosetasidefundstopayfortheseobligations,butwillberequiredtoprovideaframeworkforhowtheyanticipatefundingtheseobligationsoverthenext30years. GASB45comesatatimewhenhealthcarecostshaverisendramatically.Healthcarespendinghasincreasedatthreetimestherateofinflationsince1999.Thisincreasecanbelinkedto

StatesaregrapplingwithhowtoimplementarulingbytheGovernmental Accounting Standards Board (GASB) that re-quiresstateandlocalgovernmentstoreportanddelineatethemechanismforfullyfundingpost-employmentbenefits. The GASB—an independent, private, nonprofit organiza-tionthateffectivelydictatesaccountingprinciplesusedbystateandlocalgovernments—inJune2004issuedStatementNo.45,Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions (OPEB). UnderStatementNo.45,stateandlocalgovernmentswillberequiredtoreportaframeworkforfundingretireehealthcareoverthenext30yearsasreflectedinanestablishedanddefinedplanformeetingthisobligation. ForgovernmentswithJunefiscalyear-ends,reportingunderGASB45willberequiredbeginninginfiscalyear2008. Thisimprovedfinancialreportingwillresultinmoreaccuratedataonthetotalcostsofthebenefits,aswellasprovideabet-terfoundationforpotentialmethodsoffinancingthesebenefits.


lanning ensions

severalfactors,suchasincreasesinhospitalandphysiciancare,butmostnotably,theincreaseinthecostofprescriptiondrugs. One strategy that governments have used to manage theirOPEB costs under GASB 45 is a reduction in overall retireehealthbenefits.Thisstrategycanbeproblematicbecausepen-sionandretirementbenefitsareusuallyprotectedbystatecon-stitutions, and a reduction in benefits can also be limited bylaboragreements. ThecityofArlington,Texas,decided tono longerofferre-tiree health benefits to any employee hired after 2006. ThisdecisionreducedArlington’shealthcareobligationfrom$196million to $150 million. Alabama, Utah and Ohio also havescaled back benefits by raising health care premiums and in-creasing the length of time that employees must work beforebecomingeligibleforretireehealthcare. Anotherstrategyavailabletolocalitiesistomodifyemployeeretirementplans.Anemployermaybeabletomodifythenum-berofyearsinwhicharetireecanreceivehealthbenefits.Forexample,aformerlifetimebenefitcouldbechangedtoendatage65.Employmentpackagesofferedtonewemployeescouldincludelowerbenefitsandhigherco-pays. Retirementplanscanalsobechangedtodefinedcontributionplans which consist of individual accounts for plan membersspecifyinghowcontributionsaretobedetermined,ratherthanspecifying the income or other benefits to be received afterseparationfromemployment.In2005,Alaskabecamethefirststateinthecountrytoautomaticallyenrollallfuturepublicem-ployeesinadefinedcontributionplan. SomestateshavebeenabletoachieveconsensusonhowtoaddressthereportingrequirementsunderGASB45,whileoth-ersarestillworkingonit.NevadaGov.KennyGuinn,wasmet

withheavyoppositionwhenheproposedtodiscontinuehealthbenefits for any state government employee hired after July1, 2006. Thisproposal ultimately failed in theNevadaStateAssembly.InAlaska,Gov.FrankMurkowskicalledaspecialsessiontoexamineretirementfunding.Changesweremadeinpensionandretirementbenefits fornewstateemployeesmak-ingthemeligibleforplanswithhigherdeductiblesalongwithparticipationinhealthsavingsaccounts. In addition to reducing benefits or modifying employee re-tirementplans,anotheralternativethatlocalitiescanemploytomanageOPEBcostsunderGASB45 is to issueOPEBbondstofundalloraportionof theirunfundedliability. Therearebenefits associated with this strategy. Some state laws allowfor a broader range of investments for this type of fund thanforgeneralgovernmentalrevenues.StatescanalsoexperienceimmediatebudgetreliefbyissuingOPEBbondsbecausetheircurrentyearcontributionstoapensionplancanbesecuredfromthebondproceeds. Alongwithbenefits, there are risks associatedwith issuingOPEBbonds,suchaspossiblestatelawuncertaintyontheau-thoritytoissuebondsofthistypeandtheriskthatfutureun-fundedliabilitiescouldsurface.Thereisalwaysthepossibilitythat the market may not generate sufficient revenues to coverthe interest rate. Oncea state issuesabond, theyare lockedintopayingthedebt. In1997,NewJerseyissued$2.8billioninbonds inhopesof receiving returns exceeding7.6percent,whichwastheinterestitwaspayingonthebonds.However,thestateonlysaw5.5percentreturns.Asaresult,thebondscostNewJersey$10.3billion. While some states have yet to start calculating the cost ofimplementing GASB 45, some states have made great stridesinfundingtheirretireehealthcareliability.Californiahasnotyetdetermineditsliability,butsomepredictitsobligationcouldtotal inexcessof$40billion. NewYork isalsoyet todeter-mineitsliability.Ohiohasputmoneyasidetohandleitsliabilitybycreatingahealthcaretrustfundvaluedat$12billion,withactivestateemployeescontributing4percentoftheirsalaries.Currentretireehealthcostsarefundedwiththeinterestaccruedfromthisaccount. In addition to the legal and political implications of com-plying with GASB 45, there are also other important seriousconsequencestoconsider.WhileGASBcannotrequirethatlo-calitiescomplywith its rulings,FitchRatings reported that iflocalgovernments fail toplan forOPEBfundingordon’t actquicklyenough,theycouldseetheircreditratingsfallandtheirbondsdowngraded. Thiswill limit their ability toborrowatfavorableratesandcouldpotentiallyresultinincreasedcostfortaxpayerstofundcapitalimprovements.Ifgovernmentsdecidetoreduceretireehealthbenefits,theymaylosetheirabilitytoattractqualifiedapplicantsforpositions. ThetimeforcompliancewithGASB45isapproachingfast.Someof themethodsstateand localgovernmentsmayuse tocomplywithGASB45willbemetwithpoliticaloppositionandotherswillbemetwithpraise.Whateverthecasemaybe,stateandlocalgovernmentswillhavetodevotetimeandenergytothinkingabouthowtheywillfundretireehealthcarebenefitsoverthenext30years.—Kristi Guillory is senior policy analyst and assistant counsel in The Council of State Governments’ Washington, D.C., office.

�0 statenews june/july�006

Colorado voters last year put the “Taxpayers Bill of Rights” on hold as the state tries to rebound from a downturn in the economy. Meanwhile, legislatures in 15 other states are considering consti-tutional amendments similar to Colorado’s TABOR law, which has drawn both praise and scorn.

By Mary Branham Dusenberry

Colorado takes a timeout from strict spending limits, but other states are considering them

TABORTon the Table

They’recalled“Taxpayers’BillofRights”because,supporterssay,suchlawsgivetaxpayerscontroloverhowmuchthey’llspendforrunningthestate.Opponents,however,sayTABORlawsputa“strait-jacket”onlegislaturesandstateofficialsintermsofgoverning.Coloradovotersapprovedstringentspendinglimitsontheirpolicymakers,tyingthegrowthinstaterevenuetopopulationgrowthplusinflation.Theconstitutionalamendmentonthebookssince1992alsolimitsannualincreasesinthestateoperatingbudgetto6percent. Butlastyear,after13yearsofdealingwithTABORcutsinspending,voterspassed“ReferendumC,”whichallowedthestatetotakeatimeoutfromthestrictlimitstofreeupspending.“WhatReferendumCallowedustodowasto,really,maintainstateservicestowhattheywerelastyearafterwemadeallthosecuts,”saidColoradoSen.RonTeck,chairmanofCSG-WEST.“Wedidrestoresomecuts—$100millionoutofabilliondollarswe’dcut.” Ifvotershadn’tapprovedthetimeout,Tecksaid,thestatewouldhavehadtocutanother$650millioninspending.TABORwasintendedtopacethegrowthofstategovernmentwiththeeconomy,whichitdid,accordingtoTeck.

thecouncilofstategovernments www.csg.org ��

TABORenoughtofund“theongoingcostofgovernmentyearafteryear. “Inflation is a consumer price index,” she said. “It doesn’tmeasurethecostofwhatgovernmentbuys.” Whileconservativegroupstouttherefundstotaxpayers,Lavandothersquestiontheimpactofdecreasedprogramfunding.“Ithinkpeopleareveryconcernedaboutthat…thatacoupleofdollarsintheirpocketwhentheirqualityoflifeisdeterioratingisnotnecessarilyagoodtradeoff,”shesaid. AccordingtoCanagaRetna,inthe13yearsTABORhasbeenin place in Colorado, the state dropped from 35th to 49th inK–12 education spending; higher education funding droppedby31percent;andthenumberoflow-incomechildrenwithouthealthinsurancedoubled. Those outcomes of TABOR have muted the enthusiasm forsuchlawsinotherstates,CanagaRetnasaid.“Constitutionalman-dates…wouldstraitjacketstates’flexibilityinreactingtothosenecessaryexpenditures.Policymakersareawareofthatandyoudon’tseethekindofenthusiasmasyoudidbefore,”hesaid. Proponents of TABOR laws—those limits written into theconstitution by an amendment—say they’ve made changes toavoidsomeoftheproblemsColoradoexperienced. “IthinkpeoplehavelearnedfromColoradoandtighteneditupwheretheythoughtthereweremistakesandmissedoppor-tunities,”Norquistsaid.HebelievesTABORworkedasitwasintended—limitskeptthegovernmentfromgrowingandittookavoteofColorado’scitizenstoremovethelimits.

The Impact of TABOR ButO’Halleran said inTABOR“there’sno recognitionofhowgovernmentworksindownwardeconomiccycles.Aswego intoaneconomicdownturn,TABORsayswe follow thatbasedown.Asunemploymentincreases,therearemanyneedsonthehealthandwelfaresidethatplaceincreasingdemandsongovernment.” Lavsaidhergroup,theCenteronBudgetandPolicyPriori-ties,conductedastudyofTABOR’seffectsonColorado.“ThemostmisleadingclaimisthatTABORcausedsomeeconomicmiracleinColorado,”shesaid.“ThereisnoevidencethatTA-BORimprovedColorado’seconomy.Itdidn’tgetanybetterthanneighboringstates…comparedtoanyothercategorizationofstatesthanitwouldhavewithoutTABOR.” Arizona experienced the same economic boon in the 1990sasColorado,andO’Halleransaidthestatecuttaxes11straightyears,untilthedownturnintheearly2000s.In1995,O’Halleransaid,Arizonacuttaxesby$84million.Thattranslatesintoaboutan$800millionlossinrevenueovertheyears.Thattaxcut,hesaid,is“asclosetobeingpermanentasanythingcanbe.”Colo-radogaveone-timerebates,hesaid,ratherthancuttaxes. “Oneofthesurewaystomakesurepeopledon’thavetopayasmuchintaxesistodiversifytheeconomy,”O’Halleransaid.“Youdon’tdothatbysimplysaying‘wegavearebatelastyear.’” Colorado’s13-yearexperimentisprovingthattobethecase,Lavcontends.“Therehavetobeschoolsandschoolshavetobeoperating,” she said. “In Colorado, kids were sitting in downjacketsbecausetheschoolscouldn’tbeheated.” Therewereothersimilarsituationscreatedwiththedecreasein funding for public services. The Denver Post detailed theimpact ofTABOR in a series of articles inSeptember, 2005,explaining the referendums considered by voters. Among the

“Ifwedidn’thaveTABORinthe90’s,wewouldhavebeensorelytemptedtospenduptoourincomelevel,”hesaid.“Wewouldhavebeenoutofwhack.” Theproblemcamewiththeeconomicdownturnmanystatesfacedafterthe2001terroristattacksledtoanationaleconomiccrashandtheworstbudgetcrisesinthe50statessinceWorldWarII.Coloradosawa16percentdropinstaterevenuesfrom2001to2003,resettingthebasefromwhichTABOR’srefundmechanismistriggered.Lastyear,thestatefaceda$234mil-lionbudgetshortfallinthebiennium,whilelookingatarefundtotaxpayerstotaling$345millionoverthesameperiod. TheColoradolawhasabuilt-in“ratcheting”effectwhichre-verts spending to a lowerbaseline in an economicdownturn.“Whenourrevenuesstartedgettinggoodagain,wecouldn’tre-cover,”Tecksaid. Moststatesarefacinganeconomicupswing,butthatdoesn’tmean they’re quite out of the woods yet, according to SujitCanagaRetnaofTheCouncilofStateGovernments’ southernoffice,theSouthernLegislativeConference.“Eventhoughrev-enuenumbershaveimproveddramatically,wehaveaseriesofproblems that are going to plague state finances: health care,retirement,education,transportationandinfrastructure,whichallhavehugeneeds.” Opponentssaytheconstitutionalspendinglimitsimposedaretoorigidtodealwithsuchcosts,whichfluctuatebasedonneeds.

The Growth of TABOR WhileColoradoistakingabreakfromTABORlimitations,15 other state legislatures have considered or are consideringsimilarspendingamendmentsthisyear.ThespreadofspendinglimitslikethoseimposedbyTABORinColoradoisinevitable,accordingtoGroverNorquist,presidentofAmericansforTaxReforminWashington,D.C. “Inthenext10years,therearegoingtobe25oftheminthestates,”Norquistsaid.“Twenty-fiveyearsfromnow,they’llallhavethem.” Norquistsaidsuchlawsareimportantbecausetheylimitthegrowthofstatespending.And,hesaid,whenmorestatesestab-lishspendinglimits,thefederalgovernmentislikelytofollowsuit. “Each state that passes a spending limitmeasure is alsohasteningthedaywegetitatanationallevel,”hesaid. ThetemporarysuspensionoftheTABORprovisionsinCol-oradomaycause lawmakers inother states tobalkatputtingsimilarmeasuresbeforetheirvoters. “Moststates,”saidCanagaRetna,“havesomekindoflimitsonspending.Colorado’sisthemoststringent.” With those limitations in place, says Arizona Rep. TomO’Halleran, constitutional amendments creating additionallimitsaren’tneeded.ATABOR-likelawhasbeenproposedinArizonathisyearandthepastthreeyears.“We’vebeenabletohaveitnotbecomelawinArizonabasicallyduetotheratchet-ingeffectandlackofrecognitioninTABORinhowtodealwithphenomenalgrowthandthedemandsitputsontheinfrastruc-turesystem,”O’Halleransaid. “IthinktheproblemwiththeTABORlaw—ithasnoidenti-ficationwiththetrueeconomicwealthofastate.Inflationandpopulationgrowtharenotindicatorsofeconomicwealth.” And,says IrisLav,deputydirectorof theCenteronBudgetandPolicyPriorities, the formulas inTABOR-like laws aren’t

�� statenews june/july�006

servicesimpacted:prisons,roadsandprenatalcare,accordingtoaSept.13,2005,storyinthePost.Thenewspaperfound:

In1990Coloradoranked23rdinaccesstoprenatalcare;by2004,ithaddroppedto48th.Duringthatsametimeframe,thepercentageoflowbirthweightbabiesrose.

Theprisonpopulationgrewfour timesas fastas thestate’spopulation,whileprisonstaffwascut.Accordingto thePost,prisonersattackedguards50timesin1994;thatnumbergrewto173by2000. In1994,65percentofColorado’sroadswereinpoorcondi-tion.Thatnumberswelledto73percentby2001.ThePostquot-edfiguresfoundbytheSurfaceTransportationPolicyProject,anonprofitgroupthatstudiesroadpolicy. “Maybethereweresomepeoplewhowerebetteroff,butev-erybodyridesontheroad,soIthinkmostpeoplepreferredthepublicservicestotherebates,”Lavsaid. While some might consider the decreased funding for suchprograms a pitfall of TABOR, Norquist disagrees. “What youhadwasleftwinggroupscomplainingthattheydidn’tgetenoughfortheirfavoriteprograms,”hesaid.TABOR,hesaid,requiresgovernmenttoestablishandfundprioritiesforpublicdollars.

Other Options to TABOR Manypeoplebelievestatespendingcanbeheldincheckwith-out the strict TABOR requirements. Scott Pattison, executivedirectorof theNationalAssociationofStateBudgetOfficers,saidConnecticut’s lawdealingwithbudgetingconstraints, forinstance,“worksfairlywellbecausethere’ssomeflexibility.” PattisonsaidTABOR“providessome limitationsandsomeuncertaintyfromyeartoyear”forthosepreparingstatebudgets,buttherealissueswiththespendinglimitamendmentsarefrompoliticalandpolicystandpoints. Hesaid49states—allexceptVermont—requiresomeformof

n

abalancedbudget.“Indoingso,”Pattisonsaid,“theyhaveadefactorestrictiononspending.Theoretically,it’sunlimitedatthefederallevel,butit’snotatthestatelevel.” Lav says making the budget process more transparent andgivingthepublicabetterunderstandingofwhat’sinastatebud-getcanhelpkeepspendingincheck.“Youholdaccountablethelegislatorsyouhaveelected,”shesaid,“ratherthananautopi-lotformula.Ifyouhaveamajorplantclosingandmaybesomepeopleneedassistanceinonepartofthestate…ahumanbeingwillunderstandthat.Arigidformulawillnot.” O’HalleranwaspleasedtheTABORproposalnevermadeitswaytothefloorsoftheArizonaHouseandSenate. “Ingeneral,it’sanideathathasfailedandhasfailed,Ithink,rathermiserably,”hesaid.“Ifyou’relookingforshort-termre-wardsandapoliticalpatontheback,TABORmightbegoodforashortperiodoftime. “Asyouarelookingintothefutureandtheneedsofsociety,TABORishighlyrestrictive.Youcandoaneffectivejobofthebudgetprocesswithoutformulatedgimmicksthatarenotrela-tivetoreality.” Meanwhile,ColoradoisinatimeoutfromTABOR,butwillstill operateunder theguidelinesplacedby the constitutionalamendment. Teck would like to see the legislature revisit theTABORlawandaddresstheratcheteffectthatwastheimpetusforthereferendumslastyear. “IthinkTABORservedausefulpurposeinkeepingusfromgettingrealspendylikeotherstatesdidinthehalcyonyearsofthe’90s,”Tecksaid.But,hesaid,“youneedtolettheGeneralAssemblyhavetheabilitytoaddressacrisissituationwithouttying their hands with a constitutional amendment, which iswhatwe’vedoneinColorado.”

—Mary Branham Dusenberry is the managing editor of State News magazine.

“”

I think people are very concerned about that … that a couple of dollars in their pocket when their quality of life is deteriorating is not necessarily a good tradeoff.

—Iris Lav, Center on Budget and Policy Priorities

”“The final test of a leader is that he leaves

behind him in other men the conviction and will to carry on. . . The genius of a good leader is to leave behind him a situation which common sense, without the grace of genius, can deal with successfully.

—Walter Lippmann




nHenryWolcottToll,aColoradosenatorfrom�9��until�930,was aHarvard educated lawyerwhofoundedTheCouncilofStateGovernmentsin�933.

nTheToll Fellowship Program was begun in �986 toequip talentedstatepolicymakerswith theskillsandstrategiestomeet future challenges.

nThisyear’sprogramwill includesessionsdedicatedtoimprovingleadershipskills,dealingwiththemedia,team-buildingandcrisis management and response.

nWithitsgraduation,the�006TollClasswillmarkthe20th anniversaryoftheTollFellowsProgram.

nAmongthegraduatesoftheTollFellowprogramarecurrentmembersofCongress, lieutenant governors,secretariesofstate,attorneysgeneral,statetreasurersandjudges.

“The experience rejuvenated me and

reminded me why I originally wanted

to serve in the legislature.”

—Colorado Senate President Joan Fitz-Gerald—2001 Toll

Boot Camp for Leaders

“ ”The Henry Toll Fellowship helped me identify my own leadership strengths, work more effectively with my colleagues and strengthen my relationship with the media.

—U.S. Rep. Adam Schiff of California—1997 Toll

thecouncilofstategovernments www.csg.org �5

of inspiring great leadership

nEachyear’sprogramincludesasessionaddressingpressingpolicyissuesandtrendsshapinggovernanceonthestatelevel.Previ-ous topicsdiscussedhave included immigrationand theagingpopulation.

nThisyear’sprogramwillincludearoundtablediscussiononcrisismanagementusingapotentialavian flu epidemicscenario.

nPastToll Fellow session leaders have included nationally renowned media expert Arch Lustberg, pollster John Zogby, formerKentuckyGov. Martha Layne Collins andArkansasGov. Mike Huckabee

nTheToll Fellows Program is an“intellectual boot camp”whereparticipants gain valuable insights andperspectivesnotreadilyavailableinthecourseofeverydaypublicservice.

nTheTollFellowshipisoneofthenation’s most prestigious leadership development programs, and the only oneopentoofficialsfromallthreebranchesofstategovernment.

nEachyear40ofthemost impressive state leaders—�0fromeachofCSG’sregions—areselectedtoparticipateinthefive-night,six-dayprogram.

nTheToll Fellowship Program is located in Lexington, Ky.—theheartofBluegrasshorsecountry.

Boot Camp for Leaders

“”

I firmly believe the Toll Fellowship Program is an excellent resource for anyone hoping to better their

leadership capability as well as build their character.—Lt. Gov. Beverly Perdue

of North Carolina—1992 Toll



MichaelBertrandbelieveswhenthecostofrunningstategovernmentrisesfasterthanavailablerev-enue,the“answerliesinmakinggovernmentmoreefficientandeffectivetoensurethatourlimitedre-sourcesaremaximized.” Heemphasizestheneedforefficiencyingovernment,andspearheadedthemergeroftwodepartmentsintoasingleDepartmentofLabor,whichsavedtaxpayermoneyandcreatedamoreresponsiveentity.

Fast facts: Former commissioner, Labor and Industry • Primary advisor to governor, Regional Green-house Gas Initiative • Chair, Strategic Enterprise Initiative

Michael Bertrand Vermont Deputy Secretary of Administration

Sen.DennisDamonknowswhatmakeshisstateunique—itsnaturalbeauty,quaintfishingcommunitiesandfriendlycitizens. Damonisinterestedinimprovingthestate’seconomicdevelopmentefforts.HehashelpedestablishfourgeographicregionsthatgroupMaine’sworkforceandtradesintoeconomicclustersthatallowforstrengthindevelopmentandbargaining.HealsochairedthecommitteethatproducedMaine’sfirstcomprehensivetaxreformlegislationinmorethan30years.

Fast facts: Began public service 14 years ago as county commissioner • Maine High School Coach of the Year • Owns Mount Desert Spring Water

Dennis Damon Maine Senator

AssemblyMemberRussellCopeman,chairmanoftheCommitteeonSocialAffairs,rankseducationamonghistopconcerns. “Iamconcernedthatwearefailingtoadequatelyprepare(children)fortheresponsibilitiesassociatedwithadulthood,”saidCopeman.“IamparticularlyconcernedaboutthefateofadolescentboyswhosufferfromaseriousdropoutrateinQuebec.” Copeman’sinterestinsocialaffairsalsofeedsadesiretoimprovetherelationshipbetweencitizensandgovernment.

Fast facts: Born in Montreal • BA in political science from McGill University; graduate degree in public administration from Concordia University

Russell Copeman Assembly Member, Quebec

East“

”Leadershipisaboutcapturingtheimagination

andenthusiasmofyourpeoplewithclearlydefinedgoalsthatcutthroughthefoglikea

beaconinthenight..

—Unknown



Rep.JaneEberlerecognizesthatasastatebuiltontraditionaleconomieslikeitsfishingindustry,Mainefaceschallengeswhencompetingintheglobaleconomy.EberlealsorecognizesthatoneofMaine’smostpricelessassetsisitsnaturalbeautyandcharm. “Iwillbeusingmyvastexperienceinenvironmentalandeduca-tionalissuestopromoteastrongereconomythatreliesonamoreeducatedworkforceandcleanenvironment,”shesaid.

Fast facts: Volunteers in local schools • Serves on state PTA

“”

A healthy environment is not only critical to the

health of the people of this state. It is also essen-tial to the growth of the

Maine economy.

Jane Eberle Maine Representative

MichaelElmendorfbeganalifededicatedtopublicservicewhenheranfortheboardofedu-cationasaseniorinhighschoolatage18. Havingrecognizedtheimportanceofgovernmentandpublicserviceatayoungage,Elmen-dorftriestohelpthenextgenerationofleadersfindthemselvesaswell.In2000,heservedasaninstructorforthePresidentialClassroom,aprogramheattendedin1992.

Fast facts: Served in the Pataki administration during the TWA Flight 800 disaster, the 2003 blackout and the Sept. 11 terrorist attacks

Michael Elmendorf New York Director of Intergovernmental Affairs

MichaelS.Jacksongrewupinacivic-mindedfamilyandknewhewantedtheopportunitytocontributetosociety. Jacksonhasworkedsince1998intheDelawareOfficeoftheBudget,whereheledabudgetmanagementinitiativein2002thatresultedinmorethan$90millioninsavings.In2004,heassistedinclosinga$300millionstructuralbudgetdeficit.

Fast facts: Served as budget director on the School Financing Equalization Committee • Imple-mented a performance review process and increased state employee training opportunities

Michael S. Jackson Delaware Director of Budget Development, Planning and Administration

—Russell Copeman“ ”IranfortheAssemblyessentiallybecauseIwanted,andstill

want,tohelppeople,particularlypeoplewhodon’thavemuchofavoiceinourpublicpolicyprocess.

—Jane Eberle



Sen.DominicPileggiquicklyestablishedareputationasa“thought-ful, thorough and perceptive legislator” when he was first elected inOctober,2002. Hebelievesasuccessfulfuturedependsonongoingdiscussionsbe-tweenlegislatorsandtheexecutivebranchandinputfromabroadrangeofinterests. HeischairmanoftheSenateUrbanAffairsandHousingCommittee,andisamemberofseveralothercommitteesandtheStatePlanningBoard.

Fast facts: Former mayor, Chester, Pa. • President, J. Lewis Crozer Library Board of Directors • Recipient, Burn Foundation’s 2005 Presi-dent’s Award for Public Service

“”

I believe that the fluc-tuating relationship

between the federal government and the

states is the most pressing issue con-

fronting state officials.

Dominic Pileggi Pennsylvania Senator

Afterbeingasenatorforonlythreemonths,JoséGarriga-Picówasgiventhetaskofmanagingabilldeal-ingwith“themostthornyanddivisiveissueinPuertoRicanpolitics”–thequestionofstatus.Theresultwasanhistoricunanimousapproval. Drawingonhis considerable training and experience inpolitical science,Garriga-Picóhopes tohelpbuildconsensusandrestoreordertoasenatethatlatelyhasbeenplaguedbyacrimonyandinfighting.

Fast facts: Political science professor at University of Puerto Rico • Former political analyst in the Puerto Rican media

José Garriga-Picó Puerto Rico State Senator

Aspartofafamilywithaproudhistoryofpublicservice,Sen.Shawn-MichaelMalonefoundthedeci-siontoenterpublicserviceaneasyone. Malonehasdedicatedhistimeinofficetoreform.Heisresponsibleforpassinglegislationthatcreatedincreasedfiscal andperformance accountability in stategovernment.He isworking to restructure theeducationsystem,reformcurriculum,improveteacherandguidancecounselorsalaries,andmodernizephysicalplants.

Fast facts: Great-grandson of Rosa Raymo Barthlett, a founding member of the Virgin Islands Demo-cratic Party • Chair, Rules, Education and Government committees • Sponsored legislation to establish the Virgin Islands’ Fifth Constitutional Convention

Shawn-Michael Malone Virgin Islands State Senator

CristineMcCombs—oneofsixfemaleemergencymanagementdirectorsinthenation—isrecognizedasaleaderinemergencymanagement.McCombshastransformedanagencywithareputationformismanage-mentinto“oneoftheshiningstarsinMassachusettsStateGovernment.” AsMEMAdirector,McCombshasensuredthatMassachusettshasanemergencymanagementsystemthat“effectivelyintegrateslocal,state,federal,volunteerandprivateresourcesandcapabilities.”

Fast facts: First female emergency management director in the nation • Led preparations to host 2004 Democratic National Convention • 15 years of emergency management experience

Cristine McCombs Director, Massachusetts Emergency Management Agency (MEMA)

—Dominic Pileggi


of inspiring great leadership”

Ascommissionerofadministrationfrom 1991 to 1993, Dana Badgerowled the Commission on Reform andEfficiency, a public-private partner-shipthatrecommendedatotalreorga-nizationofstategovernment.In2004,sherejoinedstategovernmenttoleadtheGovernor’sDrivetoExcellence. “Thereisarealchancetosavemon-ey,makegovernmentmoreaccessibleto citizens and position governmentfor the dramatically shrinking workforceweknowiscoming,”shesaid.

Fast facts: Leads the Governor’s Drive to Excellence

Dana BadgerowMinnesota CommissionerDepartment of Administration

Rep. Laura Brod believes healthcare costs, if left unchecked, will“strangle”states’abilitytofundotherpriorities. “I believe that we are at the forkin theroadonhealthcareandstatesneedtohaveaprominentplaceatthetable in national health care discus-sions,”shesaid. She’s also concerned about edu-cation, employment, economic sus-tainability and demographic shiftsin Minnesota that will result in theelderly population outnumbering thejuvenilepopulationby2020.

Fast facts: 2003 American Council of Young Political Leaders delegate to Turkey • 2005 German Marshall Fellow • Serving second term • As-sistant Majority Leader

Laura Brod Minnesota Representative

Midwest

—Abraham Lincoln“ ”Leavenothingfortomorrow

whichcanbedonetoday.

�0 statenews may�006


Asasenatorinasparselypopulatedandruralstate,TomHansenfacesmanyuniquechal-lenges, including remaining incontactandavailable tohisconstituents. To remedy this,hewritesaweeklycolumnduringthelegislativesession. HansenalsorecognizesthatSouthDakota,despiteitssmallpopulation,hasawealthofre-sourcestooffertherestofthenation,includingabundantagricultureandcoal.

Fast facts: Hobbies include running, reading and woodworking • Has served on CSG’s Inter-national Committee • Served in the South Dakota House from 2001-2003

Tom Hansen South Dakota Senator

Asaformerprosecutorandmunicipalattorney,KevinElsenheimerthoughthewouldhavesomethingtoofferasaMichiganlegislator. Michigan’stermlimitslawmeantthelossofexperiencedlegislators. Elsenheimerknowshistimeinofficeisalsolimited,andthathasprovidedaddedincentivetomakealastingimpactwithlawsgroundedingoodpolicy,notpolitics.“Theideaofmid-careerpublicservicewasveryattractivetome.”

Fast facts: Sponsored Brownfield legislation • Created a unified zoning law • Chaired the tort reform committee

Kevin Elsenheimer Michigan Representative

Achampionofeconomicgrowthanddevelopment,Sen.DavidFordledtheefforttocreatecom-mitteesinboththeIndianaSenateandHousetofocusoneconomicdevelopmentandtechnology,andintroducedthelegislationthatcreatedtheIndianaEconomicDevelopmentCorporation. “Ibelievethatleadership,likeallskills,mustbecontinuouslystrengthenedthroughtheexplo-rationofnewideasandapproaches,”saidFord.

Fast facts: Named 2004 Government Leader of the Year by Indiana State Chamber of Com-merce • Pee Wee Football coach • Supports technological development

David Ford Indiana Senator

Sen. Brandt Hershman learned the importance of government growing up on his smallfamilyfarminIndiana,wherehediscovered“…governmentwasonlyasgoodasthepeoplewillingtoserve.” Hershmanhasmadehismarkwith telecommunicationspolicy.Hewasprincipleauthorofnationallyacclaimedtelecommunicationsreformlegislation,forwhichhehelpedgetbipartisansupportintheHouseandSenate.ItwassignedintolawinMarch.

Fast facts: Committee member, Appropriations; Governmental Affairs and Interstate Com-merce; and Homeland Security, Utilities and Public Policy • Chairman, Regulatory Affairs Subcommittee • Senator since 2000

Brandt Hershman Indiana Senator


“It became clear to me that we were losing a great deal of legislative memory as the first term of legislators began leaving the legislature ...” —Kevin Elsenheimer



Rep.KathyMileshasspecialinsightintothechallengesfacedbyhealthcareinSouthDakota.Thenursehastakentheleadinanumberofhealthissues. Mileshassponsoredlegislationaddressingthecreationofastateriskpool,createdaPharmacyandTherapeuticsCommit-tee tooversee statemedicationsandutilizationandexpandedthe tuition reimbursement program for physicians to includedentistsduetoanticipatedfutureshortages.

Fast facts: Member, Health and Human Services and State Af-fairs committees

Kathy MilesSouth Dakota representative

A member of Minnesota’sHouse of Representatives since1997,KathyTingelstadtakespar-ticular pleasure in helping newlegislators learn to become ef-fectiveleaders.Forthepasteightyears,shehasassistedmorethan80 new House members in theFreshmen Orientation trainingprogram. Tingelstad also enjoys takingon issues such as homeland se-curity, emergency management,technological streamlining ingovernmentandbioterrorismis-suesrelatingtopublicschools.

Fast facts: Chair, Committee on Governmental Operations and Veterans Affairs • Chair, Legisla-tive Commission on Minnesota Resources

Kathy Tingelstad Minnesota Representative

Rep. Robin Weisz says NorthDakotafaceschallengesonbothendsoftheagespectrum—arap-idly increasing elderly popula-tionandquestionsabouthowtofundeducationequitably. The state has been sued overfunding issues for local schooldistricts. “Providing a good ed-ucation for our children in ourruralareasisagreatconcerntome,”hesaid.

Fast facts: Chair, Transportation Committee • Member, Human Services Committee • Spon-sored legislation laying out long-term transportation plan

Robin Weisz North Dakota Representative

CommissionerMiguelRivera’sbackgroundincorporateAmer-icaledhimtoreorganizetheDepartmentofLabortoimproveef-ficiency,whilecollectingseveralmilliondollars inoutstandingpenaltiesandfees. Rivera leda teamofacademics, industryrepresentativesandgovernmentofficials thatdevelopedIndiana’sfirstundergroundminetrainingprogramatVincennesUniversity.

Fast facts: Former Indiana deputy attorney general • Former vice chairman, Indiana Parole Board • Six Sigma Black Belt • First Hispanic in state history to serve in governor’s cabinet

Miguel Rivera Sr.Commissioner, Indiana Department of Labor

“ ”Themostprominentchallengefacingthelegislatureisalwaysbalancingthebudgetwithoutraisingtaxes.Itisonly

throughbipartisannegotiationsthatthiscanbeaccomplished.

—Kathy Miles


�� statenews may�006


RestoringcivilitytotheMissouriSenatehasbeenapriorityforSen.MaidaColeman.TheminorityleaderhasworkeddiligentlywithmajorityleaderstoensuretheSenateremainsaplaceforhealthy,civildebate. Colemancitesherfamilyasthemajorfactorinherdecisiontoworkinpublicservice.“Watch-ingmyparentsandotherfamilymembersprovidetoothershasinstilledinmeadesiretoalsoprovideforothers,”shesaid.

Fast facts: Former Missouri representative • American Red Cross volunteer • Member, special committee to investigate Medicaid fraud

Maida Coleman Missouri Senator

“ForSen.JulieDenton,ensuringgovernmentefficiencyisacriticalcomponentofherjob.Hergoalsasastatelegislatorincludemakingsureprogramsandregulations“arecarefullymanagedsothatfundsareavailableforthosewhotrulyneedassistance.” ShehopestherecentlegislativeeffortstargetingMedicaidwastewillenableKentucky’sstategovernmenttoprovidebettercareforneedyindividualswhilemaintainingfiscalresponsibility.

Fast facts: Chair, Senate Health and Welfare Committee • Won first race for public office in 1994 • Priorities include balanced budgets and modernized tax structure

Julie Denton Kentucky Senator

ChrisCorbinhasworkedintheprivatehealthcarefieldandrecognizedthepotentialforKen-tuckystategovernmenttoinfluencethehealthcaremarketandaddresssuchchallengesasrisinghealthcarecostsandthegrowingnumberofuninsured. Corbin ishelping tocoordinate thegovernor’sWellnessandPhysicalActivity Initiative, astatewideefforttoimprovethehealthandwell-beingofKentuckians.

Fast facts: Introduced smoking cessation program available to state employees and depen-dents through state’s employee health insurance plan • Training for 2006 Chicago Marathon

Chris Corbin Kentucky Cabinet for Health and Family Services

South“ ”

Theultimatemeasureofamanisnotwherehestandsinmoments

ofcomfortandconvenience,butwherehestandsattimesofchallengeandcontroversy.

—Martin Luther King Jr.

�� statenews june/july�006



As a former political scienceprofessor and a leading scholaron state legislatures and termlimits,Dr.RickFarmerhasstud-iedthepoliticalprocessformuchofhiscareer.HejoinedtheOkla-homa House of Representativesasthedirectorofcommitteestaffin2004. “Having built a career in po-liticalscience, Iamnowable tocontribute something unique totheprocess,”hesaid.

Fast facts:Developed new House rules that enhanced public access to House deliberations • Estab-lished college internship for stu-dents to observe and participate in the legislative process

Rick FarmerDirector of Committee Staff,Oklahoma House of Representatives

ChadGallagherwas15whenheservedasavolunteerontheU.S.SenatecampaignforArkan-sasGov.MikeHuckabee,whosededicationtopublicserviceinspiredGallagher. He was recently appointed director of the Arkansas Tobacco Control Board and hopes topromoteinitiativestoreducetobaccouse,limitsalestominorsandfosteranoverallcultureofhealthinhisstatethroughcollaborativeeffortsbetweenthepublicandprivatesectors.

Fast facts: Served as Arkansas governor’s liaison to the White House • Former mayor of De Queen, Ark.

Chad Gallagher Director of Intergovernmental Affairs, Arkansas Governor’s Office

AppellateJudgeMarthaGeerbelievesit’simportantforpeopletounderstandtherelevanceofthecourtsystemindailylife. Shefrequentlyencouragespeopletodiscussandunderstandtheimportanceofjudicialselec-tionandregularlyteachesseminarsintheareasoftrialandappellatepractice,ethics,aswellasemployment,constitutionalandcivillibertieslaw. BeforejoiningtheNorthCarolinaCourtofAppeals,Geerdidextensiveappellatework,ap-pearingbeforeseveralstateandfederalcourts.

Fast facts: Founding partner, Patterson, Harkavy, Lawrence • Member, American and North Carolina bar associations, North Carolina Association of Women Attorneys • Recipient, Dybwad Humanitarian Award

Martha Geer North Carolina Court of Appeals


�4 statenews may�006


Asstatebudgetdirector,DavidMcCoyhelpeddevelopaplantobalanceNorthCarolina’sbudgetinfiscalyears2000-01,2001-02and2002-03despitesignificantrevenueshortfalls. Assecretaryoftransportation,McCoyworkedcloselywiththeNorth Carolina Department of Environmental and Natural Re-sources,theEnvironmentalProtectionAgency,theArmyCorpsofEngineersandotherstateandlocalagenciestobuildandmaintainroadswithfewernegativeenvironmentalconsequences.

Fast facts: Director, statewide donations program after Hurri-cane Fran • Lead negotiator in Indian Gaming Regulatory Act com-pact • Oversaw automation of governor’s office

“”

State government can-not expect to operate in a collaborative lead-ership environment if

there is a lack of trust and respect at any level.

David McCoy North Carolina State Budget Director

JohnMarshall beganhis career inpublic service as aVirginiaStatePolice trooper. He rosethroughtherankstospecialagent,trainingacademyinstructor,sergeantassignedtofieldoperationsinNorthernVirginia,andeventuallybecameaU.S.Marshal. InhisroleassecretaryofPublicSafety,MarshalliscommittedtoensuringVirginiaispreparedforallpossibledisasters. Marshallisalsointerestedinensuringallpeoplehaveequalaccesstoqualityeducation.

Fast facts: First African-American director of the U.S. Marshal Service • Led the state level public safety assistance to Louisiana and Mississippi following Hurricane Katrina • Presented the Whit-ney M. Young Jr. Leadership in Civil Rights and Social Justice Award in 2004.

John Marshall Secretary of Public Safety, Commonwealth of Virginia

CarteGoodwinhasrecentlybeeninvolvedindraftingnewlegislationto improvethesafetyofundergroundminesinthewakeofrecentminingtragedies. HeisespeciallyinterestedinthejudicialprocessselectioninWestVirginia,oneofthefewstatesinthecountrythatelectseverymemberofitsjudiciary.

Fast facts: Former law clerk for Fourth Circuit Court of Appeals Judge Robert B. King • Partner, Goodwin & Goodwin, Charleston • General counsel to the governor since 2005

Carte Patrick Goodwin General Counsel to the Governor of West Virginia

AnativeofNewOrleans’St.BernardParish,Rep.NitaRusichHutteriswellawareofthechal-lengesofmaintainingtheLouisianatransportationsystem.Shealsohasakeeninterestinimprovingthequalityoflifeforherconstituents,frominfrastructuretoschools,housingandhealthcare. Education, she said, is imperative to attracting businesses to Louisiana. “We must support themeansthatwillbringasignificantchangeinoureconomy—educationandtrainingofourcitizens.”

Fast facts: Former public school teacher • Great-granddaughter of Sebastian Roy, the “Father of Roads” in St. Bernard Parish • Entered public service 11 years ago

Nita Rusich Hutter Louisiana Representative

—David McCoy



of inspiring great leadership West”

Sen. Curtis Bramble personallybelievesinthedutyofAmericanciti-zenstoactivelyparticipateincommu-nityandgovernment,evidencedbyhisnearlythreedecadesinpublicservice. The chairman of the Senate Rev-enue and Taxation Committee, hehas become an invaluable resource,helping to “ensure that the revenueandtaxpolicyofthestateareononehand equitable andon another handequal to the demands of a rapidlygrowingstate.”

Fast facts: Certified public accoun-tant • Hot air balloonist • State chair, American Legislative Exchange Council

Curtis Bramble Utah Senator

Rep. John Coghill has worked inthelegislatureforthepasteightyearstorestoreconfidenceinrepresentativedemocracy. Coghillworkstoprotectthestruc-ture and integrity of government forAlaskans.Heisespeciallyinterestedin the economic impact of naturalgas,theeconomicdisparitiesbetweenurbanandruralpopulations,andcre-ative solutions to the uniquely com-plex issues facingAlaska as a resultofitsgloballocation.

Fast facts: Former U.S. Air Force staff sergeant • House Majority Leader • Pastoral family counselor • Believes in collaboration and cooperation

John Coghill Alaska Representative

“ ”Weourselvesfeelthatwhatwearedoingisjustadropintheocean.Buttheoceanwouldbelessbecauseofthatmissingdrop.

——Mother Teresa

—David McCoy




Sen. Hollis S. French, a formeroil industry production operator,believes Alaska faces a uniquechallengeduetothecurrentenergysituation—budgetsurplusesasare-sultofhighworldwideoilprices. “Thestate’sfinances,”hesaid,“riseandfallwiththepriceofabarrelofoil,whichmeansthatrevenuesraisedduringflushtimesmustbesavedfortimeswhenoilpricesarelow.”

Fast facts: Twice climbed to Mount McKinley summit • Received Out-standing Legislative Effort Award in 2004 from the Alaska Network on Domestic Violence and Sexual Assault • Former assistant district attorney

Hollis French II Alaska Senator

Rep.FredJarretthasservedasanelectedofficial fornearly aquartercenturyandhehasworkedtofostercommunication and understandingbetweenpublicservants. Even after his many years as anelectedofficial, Jarrettcontinues tobepassionateaboutissuesaffectingthe state of Washington includingeducation,theagingpopulation,un-derfundedservices,tradepolicyandtheenvironment.

Fast facts: Former administrative officer for the U.S. Air Force • Boe-ing employee for nearly 30 years • Former mayor of Mercer Island, Wash.

Fred Jarrett Washington Representative

—Fred Jarrett

“”

IsuspectthelargestdifficultythestateofWashingtonwillfacestemsfromthestate’sinabilitytodealwiththetensionbetween

desireforservicesandunwillingnesstopayfortheservices.

Although relatively new tooffice, Secretary of State BradJohnson has wasted no timepushing Montana toward moreresults-oriented services. He ispassionate about making votingmore accessible and secure forallMontana’scitizens. “Toooftenwehearpeoplesaythat voting is too inconvenient,orthat‘myvotedoesn’tcount’,”hesaid.“Wecannotcontinuetosurviveasafreenationifwedonot correct these kinds of self-defeatingattitudes.”

Fast facts: Volunteer, Nixon presidential campaign • Active in National Association of Secretar-ies of State • Sponsor, Montana’s first national e-government con-ference in September

Brad Johnson Montana Secretary of State



Sen.JoeSimitianisaninnovatorandachampionofcitizenparticipation.Hewasmotivatedtobecomeapublicservantbyhisstrongbeliefthatgovernmenthasthepowerto“makethingsrightwhentheyarewrong.” Simitian’sstrongbeliefingovernmentandinterestinissuessuchaseducation,elderabuseandwaterresourceshavedrivenhimtohisnearlyquarter-centurystintinpublicservice.

Fast facts: Participated in refugee relief and resettlement in Albania and Kosovo • Received Leg-islator of the Year awards from four different organizations • Former mayor, Palo Alto, Calif.

Joe Simitian California Senator

Anexpertinagriculturaleconomicsandagribusiness,Sen.MichaelMachadoiscommittedtoimprovingCalifornia’swaterinfrastructure,waterqualityandecosystem. Machadoworksfrequentlywithurbanandrural,environmental,agricultural,manufacturingandstatefiscalintereststoensureCaliforniaisreadytomeettheneedsofthe21stcentury.

Fast facts: Served in the U.S. Navy during Vietnam conflict • Owns and operates a third generation family farm • Worked for the Agency for International Development in Eastern Europe and Russia

Michael Machado California Senator

Committedtoenhancingintegrityingovernmentandprotectingthestateconstitution,Rep.BlakeOshirohasemployedhisbroad legalexpertise throughouthis sixyears in theHawaiilegislature. Arelativelyyounglegislator,OshirohasrisenquicklythroughtheranksandhasrecentlybeenelevatedtoHouseMajorityLeader.

Fast facts: Appeared in Strathmore’s 2000-2001 Who’s Who in America list • Former camp counselor • Environmental lawyer

Blake Oshiro Hawaii Representative

AsanewlyelectedmemberoftheWashingtonlegislature,Rep.BrendanWilliamshasrisenquicklytovice-chairmanoftheHouseJudiciaryCommittee.Alawyerandaformeremployeeofeachofthethreebranchesofgovernment,Williamsisuniquelyqualifiedtoworkonfederalismandinterbranchissues. Williamsisparticularlyinspiredtohelpshapetheworldthroughissueslikefederalismandunfundedmandates,educationandenvironmentalpreservation.

Fast facts: Published law scholar • Youngest executive director of a nursing home association in the nation in 2002

Brendan Williams Washington Representative

Rep.PhilLopes is devoted toparty cooperation andmutual trust.Heworks to fosterun-derstandingbetweenpartiestoimprovebothgovernmentoperationsandpublicperceptionofelectedofficials. Influenced by his long experience in the Peace Corps, Lopes is concerned not only withimprovinghumancapitalinvestmentinArizona,butalsotheperceptionoftheUnitedStatesthroughouttheworld.

Fast facts: Served in Peace Corps as volunteer, associate director and country director • Flu-ent in Spanish and Portuguese • Extensive knowledge of health care systems development

Phil Lopes Arizona Representative



ItishardtobelievethatayearhasgonebysinceIflewdowntoKentuckytoparticipateinthe2005TollFel-lowshipprogram.Iremembergoingwiththeexpectationthatthisweeklongadventurewasgoingtopreparemetogoforthwithabasketofskillsfocusedonbeingastrongleaderinmypoliticallife.

Tomysurprise,theTollProgramwasnotabouttheoutsideappearanceofbeinganelectedofficial—itwasaboutwhatwasontheinsideofeachindividualwhowaschosentoparticipate.Iwasastoundedandthrilledtofindthateveryworkshopaskedmetounitemyhearttomyhead,whetheritwastalkingaboutpersonalgoalsorhowtodealwiththepress.Thedelightofwitnessinghoweachparticipantconnectedandworkedwithoneanother,whetherclimbingatreeordiscussingthestrengthsandweaknessesofpolling,wasinspiring.

Whileitisimportanttoknowaboutthehard-corerealitiesoftaxreformandeconomicdevelopment,ourfast-pacedexistenceoftenleavesbehindwhatisreallyimportant—beingabletocommunicateonapersonallevelwithourconstituents—lettingthemknowwearehuman.Leavingtheheartbehindinabrainycon-versationwillonlydetachthewhatfromthewhy.Inmytravels,Ihavelearnedthatmostpeoplewillneverrememberwhatyousaidbutratherhowitmadethemfeel.

WhenIappliedtoTollitwasbecauseIhaddecidedtopursuealeadershippositioninmyowncaucusandhadnoideawheretostart.PeoplesaidIdidnothaveenoughexperienceorpoliticalknow-how.IspentthefirsttwotermsofmylegislativecareerworkingonchangingMaine’sConstitution—manysayingthatmynaivetékeptmeworkingatlegislationthatmostwouldwaittoattemptafteryearsofexperience.WhatwasItryingtoaccomplish?

MyeffortstoprotectthecommercialfishingwharvesofMainecamefrommyheartnotfromanycerebralstormorpoliticalbackground.Mypassionwasbecauseawayoflifewasbeingthreatenedanditwastimetogettoworktopreservethisheritage.Confirmingthewhyandpayingattentiontomyinstinctsstirredthenaturalleaderinme.

TheTollFellowshipProgramchangesyourlife—whetheryoucontinueasanelectedofficialorgoofftostartyourownbusiness,theTollprogramstrengthenstheintuitivesenseeachofushasaboutwherewearegoing.Weallfacesimilarobstaclesinourhomestate—whetheritisaffordablehealthcareortaxes—itreallyisn’twhatyoudoaboutitasmuchasitishowandwhyyoudoit.Policiesbuiltwithcompassionwillbemuchstrongerthantheircounterparts.

Connectingwiththeother39TollFellowsinmyclassexpandedmyhorizonsandtheirs.Itreinforcedmydeepbeliefthathopehasmuchmorepowerthanapathy.Thedeeplevelofcommitmenttodoingwellforpeoplewasatthecoreofallwhoparticipated,andtheTollprogramempoweredthesenaturaltendencies.Itisonlywhenyouleavetheheartoutofpoliticsthatonegetsintrouble…andTollremindsyoutostayheart-centeredandfocusedonthisultimategoal.

Classof2006—enjoyyourweekinKentucky.Remembertobreathewhentryingsomethingnewandaskquestionsthattakeyououtsideofyourself.Staywell.

—Leila J. Percy is a state representative from Maine and the 2005 Toll Fellows class representative.

Keeping the Heart in Politics The Henry Toll Fellowship Program

By Leila J. Percy


Health Care?forFair Share

Bills to mandate companies provide health care for their employees have been brought before legislatures in 30 states. Supporters of such laws say when employers, like Wal-Mart, provide health insurance for their employees, states will save money on Medicaid spending. Opponents say the real problem is the cost of health care in the country.

Proposed bills would require companies to provide health insurance for employees

By Laura Coleman




ixty-one percent of Americans with healthinsurancereceiveitasanemployeebenefit.To offset state costs for providing healthcarefortheuninsured,somestateshavepro-posed bills requiring employers to providehealthinsurance.Maryland’sFairShareHealthCareFundActplaces employers’ roles in providing healthcarecoveragedirectlyonlawmakers’radars.Thelawrequirescompanieswithmorethan

10,000employeeseithertospendatleast8percentoftheirpay-rollsonhealthbenefitsorplacethemoneydirectlyintothestate’sprogramforthepoor.TheonlycompanyaffectedinMaryland—andinotherstatesproposingsimilarbills—isWal-Mart. The rising cost of providing health care for the uninsuredhasbecomeaseriousdrainonstatebudgets.Accordingtothe

CentersforMedicareandMedicaidServices,Medicaid,thesin-gle-largestareaofgovernmentspending,willcontinuetogrowfaster than theoverall economy for the foreseeable future. Itwillriseatanaverageannualrateof8.6percentforthenationasawholefrom2006to2014—3.6percentagepointsfasteran-nuallythanprojectedeconomicgrowth. However,someeconomistsbelievemandatingthatlargeem-ployers provide health benefits only shifts economic burdensfrom Medicaid to the general fund, due to potential drops inwages—taxableincome—thatcouldresult.

A Word from Industry Leaders Wal-Mart,whichin2005wasAmerica’slargestemployer,re-ported$16.86billioninsalesfor thefour-weekperiodendingApril28.Thecorporationemploysabout1.8millionpeopleand

S

“

”

The issue is cost and we said that over and over again. Bring down costs to afford better benefits. These bills allow lawmakers to say they’ve done something about health care without addressing costs and allow lawmakers to say they’ve done something on health care when they have really done nothing.

—Paul Kelly, Retail Industry Leaders Association

boasts savingworking families$2,329peryear in low-pricedmerchandise. Forty-sevenpercentofWal-Martassociatesarecoveredbyemployerhealthinsurance,20percentfewerpeoplethanthenationalaverage. NaomiWalker,directoroftheStateLegislativeProgramfortheAFL-CIO,however, is adamant thatbills likeMaryland’sarenottargetedattheretailgiant. “Wedon’tcall it theWal-Martbill,”saidWalker.“Theyareoneofthebiggestoffenders,but they are not the only large employer that fails to provideadequatehealthcarebenefitsforitsemployees.” AhealthcarebackgrounderfromtheUnitedFoodandCom-mercialWorkers’(UFCW)Websiteindicatesthatmorethan60percentofWal-Martemployees—600,000people—areforcedtogethealthinsurancecoverageeitherfromthegovernmentorthroughtheirspouses’plans. PaulKelly,seniorvicepresidentofFederalandStateGovern-mentAffairsfortheRetailIndustryLeadersAssociation,thinksstatehealthcaremandatesonlymasktherealproblem—theris-ingcostofhealthcare. “Weareuniformlyopposedtothesekindsofstatemandatesprincipally because we believe as large multi-state employerstheyneedandshouldcontinuetohavetheflexibilitytodesignhealthbenefitstomeettheneedsoftheiremployees,”saidKelly.“Whenstategovernmentsmandate,thatreducesflexibility. “Wearecommittedasanassociationandanindustrytoworkwithlawmakersateveryleveltobringdownhealthcarecosts.Itisdifficultforindividualstoaffordinsurance,butnotbecauseofanythingretailershavedone,”hesaid. RILA,whosemembersincludeWal-Mart,BestBuy,Lowe’sand Home Depot and their suppliers, testified against theMaryland bill in April 2005. The organization advised thestatetobringdowncostssoemployerscouldaffordtoprovidebetterbenefits. ButWalkersaidhistoricallylargeemployersoverwhelminglyprovidedhealthcarefortheirworkers.Thatnumber,however,isdecreasing.Andwithprofitsofapproximately$11billionannu-ally,saidWalker,Wal-Mart“shouldn’tbeallowedtoforcestategovernmentsandtaxpayerstopickuptheirhealthcare.” Walker said the Health Care Disclosure Act, sponsored bytheAFL-CIOandenactedinthreestates,wouldrequirestatestocollectanddisclosenamesofcompanieswhoseworkersareforced to rely on publicly funded health care. Twenty-threestateshavereleasedcompanynames—Wal-Marttopsthelistinatleast19states.TheAFL-CIOsaysinthisway,Wal-Martdi-rectlycontributestothenation’sMedicaidcrisis. ButAaronYelowitz,associateprofessorofeconomicsat theUniversityofKentucky,notedthatWal-Martdoesofferhealthinsurancetoitsemployees.“ThethingthatmostpeoplenoteisthatWal-MarthasthemostpeoplewhohavedependentsonMed-icaid,butitisalsothelargestcompanyintheU.S.,”hesaid.“IntheMarylandcontexts,Wal-Martapproximatelypaysbetween7and7.5percentofpayrollofhealthcareexpensesalready.” AFL-CIOPresidentJohnSweeneywroteinThe Washington PostinJanuary2006that“Wal-Martcomplainsthatit’sbeingsingledoutinMaryland,butWal-Martisn’ttheonlycompanyaffected by the Fair Share Health Care bill. It’s just the onlycompanythatthinksitsworkersdon’tdeserveanybetter.” Michael Wilson, the international vice president of theUFCW, agrees. “The problem for Wal-Mart is that because

ofthesizeoftheircompanyandtheirownemployeesthatareonstatehealthcareplans,theycomeupatthetopofthelistineverystate,”hesaid.“ThesebillsarenottargetedatWal-Mart,butbecausetheyusethissubsidysomuch,theygetblamedfortheproblemthatexists.”

Economically Speaking Kellysaidhealthinsurancepremiumsrose9percentlastyearandareexpectedtorise10percentthisyear.“Americaspends16percentofGDPonhealth insurance,”saidKelly. “This isunsustainableandwillbankruptindustry. “Theissueiscostandwesaidthatoverandoveragain.Bringdowncoststoaffordbetterbenefits.Thesebillsallowlawmak-ers to say they’ve done something about health care withoutaddressing costs, and allow lawmakers to say they’ve donesomethingonhealthcarewhentheyhavereallydonenothing,”hesaid. Yelowitz foundfromhispreviouswork that if legislation ispassed in several states,Medicaid spendingwould fall some-what. But he also offers this example: “The federal govern-mentpays$3forevery$1thestatepaysinKentucky,”hesaid.“ImaginethatweshiftonepersonfromMedicaidtoWal-Mart.InKentucky,$2,000wouldbeshiftedtoWal-Mart insteadofMedicaid.Kentuckysaves$500ofthose$2,000andthefederalgovernmentsaves$1,500.WhenpeopletalkaboutsavingMed-icaiddollars,thefederalgovernmentispaying.” Inthesameresearch,Yelowitzfoundthatinplaceswhereem-ployerparticipationinprovidinghealthcareismandated,wagesare likely to fall or not grow quickly. “Imagine that I madeyou pay $1 for health insurance,” he said. “Health insurancewedon’tcollectstateincometaxeson,butwageswedo.ThatoffsetsthesavingstotheMedicaidprogram.”

Fair Share Across the Nation? Industry representatives on both sides have differing viewsofwhetherfairshareemployermandateswillbecometheruleratherthantheexception. Kelly said the legislation lackedmomentum inmost states.“ThereisactivelegislationinNewYorkandRhodeIsland,butat thispoint itwouldappear that lawmakershavefiguredoutthatthisisnotthebestcourseofaction.”

Employer health care mandate proposalshave been brought before legislatures in30 states. The stipulations of the bills dif-fer,andrangefromaffectingcompanieswith�00to�0,000employees.Checkoutstatesconsidering these proposals at http://www.restaurant.org/government/state/healthcare/bills_mandates.cfm.

thecouncilofstategovernments www.csg.org 3�

3� statenews june/july�006

Kellyalsosaidfromalegalstandpoint,itisobvioustoRILAthat theseproposalsviolate theEmployeeRetirement IncomeSecurity Act of 1974 (ERISA), which states that the federalgovernmentsetsminimumstandardsforvoluntarilyestablishedpensionandhealthplansinprivateindustry. “ERISAbasicallysaysthatifyouareamulti-stateemployerandyou self-fundyourhealthbenefitsprogram, thatprogramisgovernedbyfederallaw,notstateorlocallaws,”saidKelly.“ThisisgroundsforalawsuitwiththestateofMaryland.” WilsonsaidmoststateofficeholderswithwhomUFCWhasspokenthinkit’sunfairforthemtohavetosubsidizehealthcarecoverageforprofitablecorporations.“Idon’tthinkthesebillsarewaystoavoidthereal issue,”hesaid.“Thereareongoingefforts to improve health care access and quality. We need afundamental change inhealthcare,but there isno reason forstatesandemployersnottotakesmallstepstosaveoncostsanddealwithissuesofqualityandaccess.” To economist Yelowitz, however, that fundamental changedoesnotnecessarilyinvolvehealthcaremandates. “Firstandforemost,thesemandatescouldhaveseriouseffectson the labormarket,” saidYelowitz. “Theway it isoftenpor-

trayedisthatit’saverysmallandincrementalstep.InMaryland,itwasprettysmall.ThethingisthatsomestatestakeMaryland’slegislationandmassivelyexpand it tofirms thathave100em-ployees,likeCalifornia’spayorplaymandate.WhatstartsoutasonlyWal-Martrapidlycoulddevolvetootheremployers.” Yelowitz said economists think of things differently frompoliticians. “Economists worry about if positives outweighnegatives,”hesaid,“andnotaboutwhowinsor loses. Threethousanddollarsmoreinhealthcaredoesn’taccountfornotget-tinga$3,000increaseinsalary.Soyouhaven’treallywon.” Yelowitz said individual mandates, like the one passed inMarylandinApril,arenotacrazyoption.Hesaidthelargestgroupofuninsuredpeopleisthe23-to29-year-olddemograph-ic,andthoseindividualswouldnotbetooexpensivetoinsure. “Mandates like thatalongwith taxcreditswouldbeawaytoward making a dent in the uninsured,” said Yelowitz. “Itcoulddocumentdramaticdropsintheuninsured,butisnotthatexpensive.IfIwereagovernorrunningforre-election,Iwoulddothat.”

—Laura Coleman is associate editor of State News magazine.

“”

We don’t call it the Wal-Mart bill. They are one of the biggest offenders, but they are not the only large employer that fails to provide adequate health care benefits for its employees.

—Naomi Walker, AFL-CIO

Healthy States Pre-Conference for State Legislators: Public Health Policy Roles for State Legislators and CDC’s Public Health Law Conference

June 11–14, 2006 • Atlanta, GA

Healthy States Summit for State Legislators: Building Healthier Communities for Our Youth and Adults

July 17–19, 2006 • San Francisco, CA

Four upcoming meetings for state legislators and policymakers are

designed to highlight innovative state solutions to public health issues.

These conferences allow state legislators the opportunity to discuss proven

state approaches with experts and other policymakers. Sponsored by the

Healthy States Initiative and the Robert Wood Johnson Foundation Active

Living Leadership Partnership, these meetings are offered in a variety of

locations to accommodate your personal schedule and location

preferences. Travel scholarships are available. The Healthy States Initia-

tive is a partnership of The Council of State Governments, the National

Black Caucus of State Legislators and the National Hispanic Caucus of

State Legislators.

”“When state policymakers come back

from a CSG meeting, they come back armed with practical

policy ideas and a renewed passion for public health.

—Arkansas Governor Mike Huckabee

You Need to Know More . . . .

For more information please visit www.healthystates.csg.org or call (859) 244-8000

Healthy States Forum for State Legislators:Transforming Science Into Policy for a Healthier Nation

August 24–26, 2006 • Boston, MA

Robert Wood Johnson Foundation Forum for State Legislators and State Policymakers:Healthy Lifestyle Behaviors: Childhood and Beyond

September 10–12, 2006 • (Location TBD)


By Karen Imas and Rachel McLean

Amanreleasedfromprisonafterservingafewyearsforcom-mittingafelonysuchasburglarytypicallyowestensofthousandsofdollarsinvictimrestitution,childsupportarrears,mandatoryfelonysurcharges,courtcosts,incarcerationfeesandothercharg-esrelatedtoinvolvementinthecriminaljusticesystem. Onceinthecommunity,hisprospectsforgettingajobandfind-inghisownplacetolivearedim.Hewilllikelybecontendingwithuntreatedsubstanceabuseandmentalhealthissues.Underthesecircumstances,accordingtotheBureauofJusticeStatistics,itishardlysurprisingthathewilllikelybere-incarceratedwithinthreeyearsofrelease,andhisfinancialobligationstohisfamilyandthevictimsofhiscrimewillremainunfulfilled. Abipartisangroupofpolicymakersmet inApril todiscussthe extent to which financial obligations—such as fines, feesand surcharges—whenadded to thepoorprospects for re-en-trysettheaveragepersoncomingoutofprisonupforfailure.Thegroupalsosoughttodeterminewhethercurrentpoliciesarethebestmeansforensuringaccountabilitytosociety,victimsofcrimeandthefamiliesofpeoplewhoareincarcerated. “Atsomepoint,wehavetobeabletosaytopeoplewhohavebeenincarcerated,andservedtimeonprobationorparoleuponrelease, ‘youhavepaidyourdebt to society,’” saidSen.AlanCropsey, R-Mich., who chairs the Judiciary Committee andservesontheAppropriationsCommitteeinhisstate.“Wehavegottohelppeoplemoveontoleadingproductivelives.” Cropseyjoinedthegroupoflegislators,judicialbranchmem-bers, probation, parole and corrections officials, victim advo-

cates,childsupportenforcementofficials,andcommunity-basedorganizationswhichwasconvenedinWashington,D.C.,byTheCouncilofStateGovernments’Re-EntryPolicyCouncil(RPC),withfundingsupportfromtheBureauofJusticeAdministrationandtheNationalInstituteofCorrections. Participants at the meeting began developing recommenda-tionsforpolicymakersafterconsideringways:

to prioritize the financial obligations for people releasedfromprisonsandjails;

toimprovecollectionspractices;

toensurepaymenttovictimsandfamilies;

toincorporateaperson’sabilitytopayintopaymentplans;

toweightheneedsforcourtsandcorrectionsdepartmentstogeneraterevenue;and

toassistpeoplecomingoutofprisonsandjailswithfulfill-ingtheirfinancialobligations.

Prioritizing financial obligations Afterdiscussionofprioritizingvariousfinancialobligations,the group came to a clear consensus—victim restitution andchildsupportshouldbeofprimaryimportance.Paymentofoth-erfinancialobligationssuchascourtfines,supervisionfeesandsurchargestypicallyusedtofundcourtsystemsshouldnotcom-promiseanindividual’sabilitytomakepaymentstowardchildsupportorrestitution.

n

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Paying Debts to Society

Policymakers make recommendations on prisoners’ financial obligations

Policymakers at an April 6 meeting in Washington, D.C., discussed practical solutions to financial obligations of people released from prisons and jails

Victimrestitutionhelpsvictimsrecoversomeofthefinanciallosstheyhavesustained.Italsoholdsaccount-able thosepeoplewhohavecommittedcrimes.Childsupportpaymentsserveasanimportantmeansfornon-custodialparentstoassistwiththecostofchildrearingandtodemonstratecommitmenttotheirfamilies. Participants highlighted federal law, which priori-tizeschildsupportpaymentsoverotherobligationstothe state, and statutes in Wisconsin and Iowa, whichprioritizethepaymentofvictimrestitutionoverthatofotherdebtstothestate,suchascourtcosts.

Increasing the rate of collections Participants agreed that policymakers should adoptamulti-faceted response to improvepaymentof resti-tutiontovictimsandcollectionofothercourt-orderedobligations. For example, Julie Begona, field divisiondirectoroftheMaricopaCounty,Ariz.,ProbationDe-partment,saidhercounty’sFinancialCompliancePro-gram utilizes specialized caseloads and a system ofstructured rewards and sanctions that range from anearlysuccessfulreleasefromsupervision,whereappro-priate,toprobationrevocationandincarceration.Casesareassignedtospecializedcaseloads,andprofessionalcollectorsworkinteamswithprobationofficerstode-veloppaymentplansandtoprovidebudgetclassesforparticipants. Budgetingskillsarecrucialforpeoplecomingoutofprisons and jails.Nationally, nearly two-thirdsof jailinmatesreportincomeslessthan$12,000peryearpriortoarrest,accordingtotheBureauofJusticeStatistics.

Meetingparticipantsalsodiscussedstrategiesforimprovingtheabilityof re-entering individuals tomeetfinancialobliga-tionsuponreleasefromprisonorjail,includingprovidingiden-tification,jobtrainingandemploymentprograms. “Forpeoplewithloadsofdebtfromcourtfines,supervisionfees,restitutionandotherchargesrelatedtotheircrime,gettingoutofprisonisnofreshstart,”saidtheHonorableJudgeJohnAndrewWestof theCourtofCommonPleas inOhio. “Theycomeoutofthegatealreadyatadisadvantage.” Other policy alternatives include allowing people who aretrulyunabletopaytheirfinancialobligationsforreasonssuchasphysicalormentaldisabilitytoperformcommunityservice;andmakingcourtfines,feesandsurchargesdiscretionary.

Navigating the challenges of a fee-driven system Thegrouphadmoredifficultyreachingagreementonfund-ing for court systems and corrections departments. Increas-ingly,courtsandcorrectionsdepartmentshavebeenpressuredtogeneraterevenueandtobeself-sustaining.Membersof thejudiciaryacrossthecountryhaveexpressedconcernaboutthispressure,raisingquestionsabouttheabilityofthejudiciarytoremainimpartial.Forexample,inhisaddresstotheRhodeIs-landHouseandSenatelastmonth,stateSupremeCourtChiefJusticeFrankJ.Williamsexpressedconcernthatthepressuretogeneraterevenue“hardlyleave(s)ourcourtsdisinterestedifweareforcedtocollectfinesandcostsforouroperatingrevenue.”

Legislatorsareoftenunawarethatcourtsrelyonafee-driv-ensystem. AsamemberoftheNevadaStateAssemblyandasthespe-cialtycourtscoordinatorinReno,AssemblywomanSheilaLes-liehasauniqueperspective: “Courtswithavolatilerevenuesourceareforcedtooperatewithlesswhencollectionsofcourtcostsarelowerthanantici-pated.At thesame time, legislatorsare reluctant to introducenewtaxestofundtheoperationsofthejudiciary,”shesaid. Inadditiontocostsleviedbythecourtforoperations,correc-tionsdepartmentsmaycharge similar fees for thecostsof in-carcerationandcommunitysupervision.Legislatorsperiodicallyintroducenewsurchargesthatareunrelatedtoanyspecificcrimetogeneraterevenueforpurposesrangingfromcrimelaboratoriestowildanimalprotection.Whileanew$30probationfeeor$10surchargemayseeminconsequential,thetotalamountofchargestoanindividualcanbesubstantial.Meetingparticipantsworriedthatthepressuretogeneraterevenueforcourts,correctionsde-partmentsandstategeneralfundsdetractedfromtheimportanceofensuringpaymenttovictimsandfamilies. “Legislationimposingfinancialobligationshastypicallybeenpassedincrementally,”saidGeorgeKeiser,chiefoftheCom-munityCorrections/PrisonDivisionattheNationalInstituteofCorrections.“Thereisadangerintackingfeesuponfeeswithnoendinsight.Itisimportanttoreviewthemandatesinplacebeforeintroducingnewfinancialpenalties.” The group discussed revenue-generation issues, which in-cludemakingfines,feesandsurchargesdiscretionary,anden-couraginglegislatorstorefrainfromintroducingnewfines,feesandsurcharges.Thegroupalsosuggestedthatanylegislationintroducingnewfines,feesandsurchargesshouldincludeanas-sessmentofitspotentialimpactontheabilityofpeoplecomingoutofprisonsandjailstosuccessfullyre-entersociety. Meetingparticipantsreviewedasetofdraftpolicyrecom-mendationsfortheRPC’sforthcoming“GuidetoPrioritizingFinancialObligations.”Due insummer2006, theguidewillhelp policymakers develop policies that increase the likeli-hood of prisoners’ safe and successful re-entry and ensuretheiraccountabilitytovictims,familiesandthecriminaljus-ticesystem. For more information, visit the Re-Entry Policy Council’sWebsiteatwww.reentrypolicy.org—Karen Imas is communications manager for The Council of State Governments/Eastern Regional Conference. Rachel McLean is a policy analyst for Criminal Justice Programs.

to Society


“”

At some point, we have to be able to say to people who have been incarcerated, and served time on probation or parole upon release, ‘you have paid your debt to society.’ We have got to help people move on to leading productive lives.

—Michigan Sen. Alan Cropsey

csgspotlight

ASummerofPublicHealthMeetingsforStateLegislators

Statelegislatorsandotherstatepolicymakerswillhaveplentyofopportunitiestolearnaboutinnovativesolutionstourgentpub-lichealthissuesthissummer.TheHealthyStatesInitiativeandtheRobertWoodJohnsonFoundationActiveLivingLeadershipPartnershiparesponsoringfourupcomingmeetingsinavarietyoflocations.Statelegislatorsareeligiblefortravelscholarshipstothesefourmeetings:Healthy States Pre-Conference for State Legislators:Public Health Policy Roles for State Legislatorsand CDC’s Public Health Law ConferenceJune11–14,2006,Atlanta,GA

Healthy States Summit for State Legislators:Building Healthier Communities for Our Youth and AdultsJuly17–19,2006,SanFrancisco,CA

Healthy States Forum for State Legislators:Transforming Science Into Policy for a Healthier NationAug.24–26,2006,Boston,MA

Robert Wood Johnson Foundation Forum for State Legisla-tors and State Policymakers:Healthy Lifestyle Behaviors: Childhood and BeyondSept.10–12,2006,(LocationTBD) Formore informationabout themeetings,pleasevisitwww.healthystates.csg.org.

GallupPollstertoKickoffCSG-WESTAnnualMeeting

WhatareAmericans’moodsas we head into 2006 elec-tions? What issuesgetvot-ersupatarms?TheGallupPoll’s editor in chief, FrankNewport, will bring hiscrystal ball to answer thoseand other pressing ques-tionsat theCSG-WEST an-nualmeeting,Aug.10–13inBreckenridge, Colo. Don’tmiss the summer’s best op-portunitytocheckthepulseofAmerica.Western legislators, fami-lies and guests are invited

tovisittheheartoftheRockiesforameetingfilledtothebrimwithpolicydiscussions,professionaldevelopmenttrainingandworldclassrecreationalvenues. “AlliancewithanAttitude”isthethemeofthisyear’smeet-ing,andparticipantswillbeintroducedtosomeofthenation’sleadingexpertsoncoalitionbuilding.Ifyouwanttohoneyourleadership skills, spendadayatALTA, thenewCSG-WESTannuallegislativetrainingassembly.ALTAwilldeliverafullday’s training that will include a workshop on the popular

FranklinCovey8thHabit. AndCSG-WESTwill set out thepopcornforanafternoonexploring“LeadershipattheMovies”withtheHartwickInstituteofNewYork. ForWesternerswhocan’tgetenoughwaterorwaterdiscus-sions,makeplanstojoindiscussionsattheinauguralColoradoRiverBasinForum.CSG-WESTpolicycommitteesalsowilltacklehottopicssuchastheurban-ruraldivide,lightrailandincreasing traffic in the West, energy security, how to adaptstate tax structures to amobile economyandahostofotherWesternissues. Therewill alsobe important sessionsonhigher education,what lawmakersneed toknowwhendisasterstrikesandhowstatesshouldplanaheadforpandemicflu. Aftertheday’sworkisdone,theColoradoLegislaturehostswillofferexceptionalsocialevents.A“TasteofColorado”willshowcase suchculinary specialties as elk stew, rainbow troutandbuffalosteaks.Anda“Riverwalk”dinnerwithentertain-mentalongthebanksoftheBlueRiver,whereminerspannedforgold,willbeanunforgettableeventforthewholefamily. ComeearlyandstaylateinthischarmingVictorianminingboomtownoftheOldWest.Fromhorsebackridingtohikingtoriverrunningtofishing,Breckenridgeoffersvenuesforjustabouteveryoutdoorsportyoucanimagine. Formore informationor to register for theCSG-WEST an-nualmeeting,visitwww.csgwest.comorcall(916)553-4423.



csgspotlightMidwestSets6�stAnnualMeeting

HundredsofstatelegislatorsfromtheMidwestwillgatherinChicagothissummertoexchangeideasandlearnmoreaboutissuesofcriticalim-portancetotheregion. The 61st Annual Meeting of the MidwesternLegislativeConferencewillbeheldAug.20–23.TheregistrationdeadlineisJuly17. Belowisalookatsomeoftheeventsplannedfortheconference.

During policy sessions and MLC commit-teemeetings,lawmakerswillexaminestateefforts to bolster biofuels production anduse, improveK–12educationsystems,addressrising energy prices and improve disaster-preparednessplans.Othersessionswillfocusonimmigration,thefutureofMidwestcities,GreatLakesprotectionandconsensus-buildingstrategiesforlegislators.

This year’s meeting will close with a speech by PulitzerPrize-winninghistorianDorisKearnsGoodwin.Herlatestbook,theaward-winning“TeamofRivals,”examinestheleadershipgeniusofAbrahamLincoln,andshewillshareheruniqueinsightsaboutIllinois’favoritesonwithMLCmeetingattendees.

Other speakers will include regional economist DianeSwonk,whowilldiscussfutureprospectsfortheMidwest’s

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economy, and political analysts Donna Brazile and RichGalen,whowillpreviewthe2006fallelections.RenownedbroadcasteranddocumentarianBillKurtiswilltalkabouttheimportanceofsavingsmall-townAmerica.

Severalsocialeventshavebeenplannedforattendeesandtheirguests.Eveningactivities includeanopeningrecep-tionatNavyPier,FamilyNightattheFieldMuseumandtheStateDinneronaLakeMichigancruiseship.Numer-ousdayeventshavebeenplannedfortheadultguestsandchildrenofattendees.

Registration can be completed online at www.csgmidwest.org.Formoreinformationaboutthemeeting,pleasecall(630)925-1922.

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Doris Kearns Goodwin

Bill KurtisRich Galen Donna Brazille


conferencecalendar ThiscalendarlistsmeetingsasdesignatedbyCSG’sAnnualMeetingCommittee.Fordetailsofameeting,callthenumberlisted. “CSG/” denotes affiliate organizations of CSG. Visitwww.csg.orgforupdatesandmoreextensivelistings. Othermeetingshavevaluetostateofficials.Purchaseameet-inglistingbycalling(800)800-1910orbye-mailingsales@csg.org.Announceyourmeetingstothousandsinthestategovern-mentmarketthroughanadvertisementoraWeblisting.

June 2006June3–6 CSG/National Association of State Telecommunications Direc-

tors—2006 Midwestern Region Seminar—Topeka,KS—CapitolPlazaHotel.ContactPamelaJohnsonat(859)�44-8�[email protected]:www.nastd.org.

June��–�4 CSG—Healthy States Pre-Conference for State Legislators: Pub-lic Health Policy Roles for State Legislators and CDC’s Public Health Law Conference—Atlanta,GA—WestinPeachtreePlaza.ContactAnnKellyat(859)�44-8�[email protected].

June��–�4 CSG—The Public Health and the Law in the 21st Century 5th Annual Partnership Conference—Atlanta, GA—WestinPeachtree Plaza. For more information, visit www�a.cdc.gov/phlp/conference�006.asp.

June��–�5 CSG/National Association of State Telecommunications Direc-tors—NASTD 2006 Southern Region Summer Seminar—Ashe-ville,NC—AshevilleRenaissanceHotel.ContactPamelaJohnsonat(859)�44-8�[email protected].

June��–�5 CSG WEST—Western Legislative Academy—Colorado Springs,CO.ContactMaryLouCooperat(9�6)553-44�[email protected].

June�4–�8 CSG/National Association of State Telecommunications Direc-tors-NASTD 2006 Western Region Seminar—Welches, OR—TheResort of theMountain.Contact Pamela Johnson at (859)�44-8�[email protected].

June�4–�8 CSG/National Association of State Chief Administrators (NAS-CA) and National Association of State Facilities Administrators (NASFA)—Joint National Conference and Resource Expo—Mi-ami, FL—FairmontTurnberry Isle Resort. Contact Marcia Stoneat(859)�44-8�8�[email protected].

July 2006July7–�� CSG Midwest—12th Annual Bowhay Institute for Legislative

Leadership Development—Madison,WI—FlunoCenter for Ex-ecutiveEducation.ContactLauraA.Tomaka, [email protected]://www.csgmidwest.org/About/BILLD.htm

July8–�3 CSG—Henry Toll Fellowship Program—Lexington, KY.ContactGladysParksat(859)�44-80�[email protected](859)�44-8�[email protected].

July9–�3 CSG/National Association of State Treasurers—NAST and CSPN Annual Conference—White Sulphur Springs,WV—TheGreenbrier.ContactAdnéeHamiltonat(859)�44-8�[email protected].

July�5–�7 Southern Governors Association—SGA Annual Meeting—NewOrleans,LA.ContactLizPurdyat(�0�)6�[email protected].

July�7–�9 CSG—Healthy States Summit for State Legislators: Building Healthier Communities for Our Youth and Adults—SanFrancisco,CA.ContactPamGoinsat(859)�44-8�4�[email protected]

July�7–�9 CSG/National Lieutenant Governors Association—2006 Annual Meeting—Seattle,WA—CrownePlazaHotel.ContactJuliaHurstat(859)�83-�400orvisitwww.nlga.us.

July�3–�6 CSG/American Probation and Parole Association—31st Annual Training Institute—Chicago, IL. Contact Kris Chappell at (859)�44-8�[email protected].

July�3–�6 CSG/National Association of Government Labor Officials—An-nual Meeting—Portland,OR—MarriottPortlandDowntownWa-terfront.ContactLeslieScottat(859)�44-8�8�[email protected].

July�9–Aug.� CSG/Southern Legislative Conference—60th Annual Meet-ing—Lousiville,KY—MarriottDowntownLouisville.ContactNaiHallmanat(404)633-�[email protected].

July30–Aug.� CSG/Eastern Regional Conference—Annual Meeting—Philadel-phia,PA—MarriottPhiladelphiaDowntown.ContactPamelaStan-leyat(��)48�-�3�[email protected].

August 2006Aug.�0–�3 CSG-WEST—Annual Meeting—Breckenridge, CO. Contact

CherylDuvauchelleat(9�6)553-44�[email protected].

Aug.��–�6 CSG/National Association of State Personnel Executives—An-nual Meeting—SanAntonio,TX—HyattSanAntonioontheRiv-erwalk.ContactLeslieScottat(859)�44-8�8�[email protected],orvisitwww.naspe.net.

Aug.�0–�3 CSG Midwest—61st Annual Meeting of the Midwestern Legislative Conference—Chicago, IL—Sheraton Chicago Hotel andTowers.ContactMikeMcCabeat(630)9�5-�9��[email protected].

Aug.�4–�6 CSG—Healthy States Forum for State Legislators: Transforming Science Into Policy for a Healthier Nation—Boston,MA.ContactPamGoinsat(859)�44-8�4�[email protected].

Aug.�6–3� CSG/NASTD—2006 Annual Conference & Technology Show-case—Scottsdale,AZ—TheWestinKierlandResort.ContactPa-melaJohnson,(859)�44-8�[email protected].

September 2006Sept.�0–�� CSG/Robert Wood Johnson Foundation Forum for State Leg-

islators and Policymakers: Healthy Lifestyle Behaviors: Child-hood and Beyond. ContactRobbyMorton, (859)�44-8�[email protected].

Sept.�8–�� CSG/National Emergency Management Association—Annual Conference—OrangeBeach,AL—PerdidoBeachResort. Con-tactKarenCobuluisat(859)�44-8�[email protected].

November 2006Nov.�9–Dec.�State International Development Organization—Annual Meet-

ing—Phoenix,AZ.ContactChrisWhatley at (�0�) 6�[email protected](�0�)6�[email protected].

Nov.30–Dec.3CSG—2006 Annual Trends and Leadership Forum—Phoenix,AZ.ContactWandaHinesat(859)�44-8�[email protected].

timeline

40 Years Ago—June-July 1966Group Charters Future Role of Legislatures Agroupofabout80people fromacross thecountrydevel-opedan18-pointprogramofrecommendationsduringafour-dayconferenceon“StateLegislaturesinAmericanPolitics”atColumbia University’s prestigious American Assembly at Ar-denHouse. The76membersoftheAssemblyobservedthemeetingwasa“decisivemoment in thedevelopmentofAmericanpolitics”andprovidedan“unprecedentedopportunity”tore-evaluatetheroleofstatesand improvetheircapacity toparticipate infed-eral-statepartnerships. Thegroupcametoseveralmajorconclusionsandrecommen-dations,including:

Legislatures should be of a size to make the position oflegislatormoreimportantandvisible;

Legislaturesshouldmeetinannualplenarysessionswith-outlimitationoftimeorsubject,andshouldbeempoweredtocallthemselvesintosession;

Compensationandotherbenefitsforlegislatorsshouldbeincreased,andlegislaturesshouldbeprovidedadequateof-ficesandequipmentinthestatecapitaland,insomecases,homedistricts;

Astrongsystemofstandingcommitteeswithbroadwell-definedjurisdictions,shouldbeestablished;and

Competent professional staff should be provided for themajorityandminorityleadershipandonayear-roundbasisforcommittees.

25 Years Ago—June-July 1981States Explore Alternatives to Prisons Overcrowdingwasamajorproblem in the stateprisonsys-tems across the country. Not only was there no room for in-mates,theovercrowdingwasalsoblamedforviolenceandpoorconditionsinprisons.AState Government NewsstoryinJuly,1981,predictedifthetrendatthetimecontinued,adropintheprisonpopulationwouldn’tbeexpecteduntilthemid-1990s. SomeexpertsandastudybyABTInc.AssociatesofCam-bridge,Mass.,fortheU.S.DepartmentofJustice,questionedthewisdomofimprisonmentfornonviolentandlessseriousoffend-ers.Onceaninmateisinprison,studiessaid,therearewaystospeedrelease,includingsentencingguidelines,pre-trialreleaseanddiversion,restitution,probationandcommunityservice.

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Althoughthefederalgovernmenttendstogetmoreattention,stateofficialsareoftenonthefrontlinesofcutting-edgetrendsandissues.Ontheotherhand,sometimesinthecommunityofstategovernments,themorethingschange,themoretheystaythesame. Inprintsince1958,State News(formerlyState Government News)haschronicledmanyofthechanges…andcontinuities.

Here’swhatwereportedon:

TheState Government Newsstorydetailedefforts inseveralstates to reduce thenumberofprisonersbyadoptingnewsen-tencingguidelines,usingcommunityserviceasanalternativetoimprisonmentandreclassifyinginmatestolessersecuritylevels.

Update: Some states turned to private prisons as a way to deal with high prison populations. By 2001, according to a story on State-line.org, more than 150 private correctional facilities operated in 31 mostly southern and western states. But there was some evidence—such as the closure of a private prison in Ohio and a California decision to offer drug offenders treatment instead of jail time—that states were turning away from prison privatiza-tion. Ira Robbins, professor of criminal law at American Uni-versity’s Washington College of Law, told Stateline that prison privatization appeared to be more of a fad rather than a long-term trend. States are still grappling with ways to deal with prison over-crowding. The U.S. Justice Department reported the prison population rose 2.6 percent in 2002. The report found that state prisons were operating between 1 percent and 16 percent over capacity at the end of 2002. While some states, like Pennsylva-nia, were building prisons to deal with overcrowding, some ex-perts said states would probably soon be exploring options other than prison, such as parole and rehabilitation, particularly for first-time, nonviolent offenders.

10 Years Ago—June-July 1996States Bet on Gambling… and Win Manystateswerejoiningthegameofcasinogamblingintheearly-tomid-1990s.State Government Newsassessedthewin-nersandlosersinaJune-Julyarticle.Casinosnationwidepaidanestimated$1.9billioninstateandlocaltaxesin1995.Thatwas an increaseover thepreviousyear’s total of$1.4billion.The taxmoney,however,wentprimarily to10states thathadstate-licensedcasinogamingatthetime. A March, 1996, report by the University of Southern Mis-sissippiDivisionofBusinessAdministrationconcludedgaminghadapositiverippleeffectontheGulfCoasteconomy,bring-ingthetotalunemploymentratebelowthenationalaverageandcreatingasynergyforfurthereconomicgrowthonthecoast.

Update: All but two states—Hawaii and Utah—now rely on gambling to help pay for schools, health care and other basic services. Sujit M. CanagaRetna, senior fiscal analyst for The Council of State Governments’ southern office, the Southern Legislative Confer-ence, told Stateline.org last year that “every aspect of gambling has been expanded. States really need this extra revenue.”


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