http://www.progressivestates.org/dispatch [1] Thursday, February 15, 2007In Today's Dispatch:
Taxing Big Oil's Windfall ProfitsStop the presses. Instead of receiving ridiculous tax breaks and taking home obscene amounts of money tax-free, big oil may actually be asked to pay its fair share of taxes for once. This week, Wisconsin Governor Jim Doyle proposed [7] taxing big oil companies to help pay for the state's transportation needs.
Governor Doyle is not alone in his idea:
Our January dispatch [11] highlighted the use of taxing windfall oil profits as a fair means of offsetting the many environmental costs of fossil fuel use. With these windfall profit tax proposals, big oil profits could help pay for public transportation, which would help mitigate some of the damage that is caused by fossil fuels. With President Bush last year rejecting [12] taxing oil profits and a federal bill not likely [13]to get anywhere with a veto threat, it's left to the states to lead the way and help their citizens, rather than letting big oil take us all for a ride.
Making Legislative Pay Match the WorkloadOne of the most politically challenging, and politically assailable, decisions a legislator can make is a vote increasing legislative pay. Yet, with legislative pay a mere pittance in most states, increasing it is necessary to prevent wealth from becoming a prerequisite to hold public office. A new report [14] by the Council of State Governments [15] shows that legislator pay in 28 states has actually declined in the past 20 years when adjusted for inflation, and $9,230 is the median income for so called "part-time" legislators in 18 states. In New Hampshire, $100 a year is all you get for spending more than half of your time writing laws. New Hampshire may be the extreme, but 27 states pay legislators less than $20,000 a year. Inadequate pay prevents good people without means from running for office. But addressing this problem requires a delicate political dance. Some legislators are coming up with creative ideas to increase pay and avoid the political pitfalls.
According to a 2003 NCSL report [24], legislators in 37 states reported spending more than 60% of their time on legislative work. Yet only nine states are full-time legislatures. The rest are part-time and many are referred to as "citizen" legislatures. To ensure a truly representative legislative body, pay must be in step with the times.
Strengthening Home Rule on Revenue PowersIf states won't raise the revenue needed for local needs, the least they can do is let those cities and towns tax themselves. At least that's the proposal by Massachusetts Governor Deval Patrick, who this week proposed eliminating some of the restrictions [25] that prevent Boston and other towns from raising local revenue through sales taxes, meals taxes or many other fees that comparable cities use. This proposal joins a slew of other proposals for expanding local revenue options:
These proposals have all run into stiff political opposition, but states might want to pay attention to a new report [29] released in conjunction with the Massachusetts home rule proposal. Limiting local revenue options also limits a range of planning tools based on tax incentives, creating, in the words of the report, "a competitive disadvantage at a time when all major cities are looking to deploy as many tools as possible in order to secure their economic future." The report links the limited home rule of the City of Boston to its lack of population growth, higher housing costs and underfunded public schools compared to other major cities with much stronger home rule powers-- a drag on economic development that more states should consider when they limit local home rule powers. Research RoundupResearch Roundup
A new Urban Institute study [30] finds that while the State Children's Health Insurance Program (SCHIP) has signed up close to 70 percent of its target population, 1.8 million eligible children nationwide are still not enrolled and new federal funding is needed to meet that goal. In From Bad to Good Jobs? [31], the Center on Wisconsin Strategy analyzes how the structure of career ladders in specific service industries are standing in the way of upward mobility for many Americans. In a companion piece, Stronger Ladders, Stronger Floors [32], author Laura Dresser suggests that states need to do more than funding training programs; they need to strengthen the job quality of industry sectors to make sure the training translates into a decent job. Policy Matters Ohio has laid out the principles for An Economy That Works [33], a blueprint for reviving Ohio's economy that focuses on strategic investments in universal pre-K and the state's whole education system, better infrastructure including internet access, energy independence, higher wage standards and a child care and health care system that includes everyone. A Pew Charitable Trusts report [34] finds that the prison population continues to grow, costing taxpayers an additional $27.5 billion in the next five years over and above what we are spending now. Most effected will be Alaska, Arizona, Idaho, Montana and Vermont which, under current sentencing rules, can expect to see a one-third increase in prison populations by 2011. Taxing Big Oil's Windfall Profits
WA House Bill 1510 [9], Providing for the community reinvestment of oil windfall profits Doyle Seeks to Tax Big Oil Firms [35] Pennsylvania Governor Plans Oil Profits Tax to Fund Transport [10] Progressive States Network, Raising Revenue Through Fair Tax Systems [11] Economic Opportunity Institute, Redirecting Windfalls for a Renewable Energy Future and a Sustainable Transportation Policy [36]. Making Legislative Pay Match the Workload
Stateline.org - Legislators' pay falling behind [14] National Conference of State Legislators (NCSL) - What Happened to the "Citizen" in the "Citizen Legislature?" [24] NCSL - Compensation Commissions [37] WA - Panel OKs pay boosts for Washington elected officials [38] Strengthening Home Rule on Revenue Powers
Boston Foundation, Boston Bound: A Comparison of Boston's Legal Powers Compared with Six Other Major American Cities [29] Indiana Association of Cities and Towns, Hometown Matters [39] Eye on the RightTX: Coal debate generates high-dollar ad campaigns [40] It seems the Astrodome isn't the only home for astroturf [40] in Texas. The proposed construction of 16 new coal power plants has sparked an intense media campaign in the Lone Star State. Enter Texans for Affordable and Reliable Power [40], a PR-frim-run group headed by a local mayor whose family sold the power company TXU the land they hope to build on. The ads [40] rival even last years "CO2: We Call it Life" [40] campaign, ending on such talking point gems as "[generating] enough power to keep the monsters away." 3 Steps Forward1. OR: House passes bills on payday lenders, rates [40] 2. CO: Senate panel rejects ban on abortions [40] 3. MT: Bill partially scrapping deregulation sails through House [40] 2 Steps Back1. Senate passes abortion ban, House leader vows to kill bill [40] 2. Cutbacks in Federal Payments for Rural Counties Hit by Logging Losses [40] Jobs & InternshipsCheck out current opportunities with Progressive States on the Jobs & Internships Page [41]. MastheadThe Stateside Dispatch is written and edited by: SuggestionsPlease shoot me an email at jbacino@progressivestates.org [42] if you have feedback, tips, suggestions, criticisms, or nominations for any of our sidebar features. John Bacino Progressive
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