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GENETIC GREENS CYBERTAX FUROR SPORTS FEVER

4 state government news june/july 2000

featuresfeatures

agriculture

A season of discontent 10State officials give regional perspectives on issues facing agriculture.

by Jonathan Watts Hull, Cindy J. Lackey, Sandra Kiil Leber and Anne McCann

agriculture

Biotech crops sow debate 17States are grappling with concerns over genetically modified crops.

by Laura Williams

economic development

Play ball 20Sports teams are demanding new and rebuilt stadiums.

by Chester Hicks

skill session

Connecting with voters 23People have to like you to vote for you.

by Arch Lustberg

e-commerce

Internet tax freedom costs states 24State and local governments could lose big in the rush to e-commerce.

by Elaine Stuart

health

Rx for drug costs 28A look at one state’s effort to help the elderly.

by Allison Hirsch Fore

regulatory

Building faster for less 29Streamlining building codes pays dividends for businesses and people.

by Brandon Stidham

june/july 2000 volume 43, number 6

on the cover:Agricultural concerns vary byregion as the debate is framedfor discussing the new federal

farm bill.

photo credits:East, courtesy of Vermont Dept.

of Agriculture, Food andMarkets; West, courtesy of

Arizona Dept. of Agriculture;South, courtesy of Kentucky

Dept. of Agriculture

managing editorElaine Stuart

associate editorMichael J. Scott

graphic design coordinatorSkip Olson

production systems administratorConnie P. LaVake

contributorsHeather Heath-Bakondy

Kristin CormierEd Janairo

Cindy J. LackeyKaren Marshall

Malissa McAlisterJohn Mountjoy

Allison SpurrierFred J. Vickers

Laura Williams

advertisingKristi Swanson(859) 244-8118

reprint permissionsSusan Haney

(859) 244-8246

publication sales(800) 800-1910

[email protected]

fax(859) 244-8001

[email protected]

internetwww.csg.org

A Publication of The Council of State GovernmentsA Publication of The Council of State Governments

G O V E R N M E N T N E W S

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the council of state governments 5

departmentsdepartments

6 statesnews■ a new kind of union■ Vermont broke new ground by legalizing civil unions.■ marijuana as medicine■ Hawaii legislators say pot can treat the ill.■ toss the welfare, keep the health care■ States are told to reinstate Medicaid benefits for the working poor.■ Ohio House builds houses■ A speaker goes national with a house-building campaign.

31 policy pageSix states reach out to Asia.

by Magdalena N. Mook

32 excellence in actionCSG activities and events, and those of affiliates, are highlighted.

by Allison Spurrier

37 conference calendarMeetings and conference activities of CSG, affiliates and other associationsare listed.

by Amy Lindon

38 trendsForces shaping states.

by Keon S. Chi

Executive CommitteechairDeputy Minority Leader Rep. Tom Ryder, Ill.

presidentGov. Paul Patton, Ky.

chair-electSenate President Pro Tempore Manny M. Aragon, N.M.

president-electGov. Dirk Kempthorne, Idaho

vice chairSenate President Pro Tem John Chichester, Va.

vice presidentGov. Parris Glendening, Md.

executive committeeSen. Pres. Brady Adams, Ore. • Rep. David Adkins, Kan. •Assemblywoman Elaine White Alquist, Calif. • Rep. RamonaBarnes, Alaska • Rep. Gail Beam, N.M. • Sen. Pres. LaneBeattie, Utah • Sen. John O. Bennett, N.J. • Treas. MarshallBennett, Miss. • Carl Bianchi, Director, Legislative Services,Idaho • Rep. Dan Blue, N.C. • Rep. Dan Bosley, Mass. •Michele Brown, Commissioner, Dept. of EnvironmentConservation, Alaska • Sen. David Cain, Texas • Rep.Deborah Capano, Del. • Rep. Charlie Capps, Miss. • Gov. MelCarnahan, Mo. • Rep. Robert Clayton, Mo. • Rep. JohnConnors, Iowa • Sen. Jim Costa, Calif. • Rep. Paul Crowley,R.I. • Sen. Bob Cupp, Ohio • Rep. Bob Damron, Ky. • SpeakerJo Ann Davidson, Ohio • Gov. Howard Dean, Vt. • Sen. BillDoyle, Vt. • Sen. Hugh Farley, N.Y. • Ed Ford, DeputySecretary, Executive Cabinet, Ky. • Speaker Tim Ford, Miss. •Rep. Sally Fox, Vt. • John Gillig, Counsel to the Speaker, Ky. •Sen. Maryellen Goodwin, R.I. • Ellen Gordon, Administrator,Emergency Management Division, Iowa • Sen. Toni NathanielHarp, Conn. • Treas. David Heineman, Neb. • Sen. DouglasHenry, Tenn. • Lt. Gov. Steve Henry, Ky. • AssemblymanLynn Hettrick, Nev. • Treas. Jim Hill, Ore. • Rep. Kip Holden,La. • Sen. John Hottinger, Minn. • Gov. Mike Huckabee, Ark. •Judge Bob Hunter, N.C. • Sen. Tim Jennings, N.M. • Sec. ofState Bill Jones, Calif. • Lilia Judson, Executive Director,Division of State Court Administration, Ind. • Gov. AngusKing Jr., Maine • Speaker Douglas Kristensen, Neb. • Sen. SueLandske, Ind. • Gov. Michael Leavitt, Utah • Rep. VictorLescovitz, Pa. • Rep. Paul Mannweiler, Ind. • Sen. Vice Pres.Pro Tem John J. Marchi, NY. • Sen. Kenneth McClintock, P.R.• Rep. Ed McKechnie, Kan. • Stan McKinney, Director, Div. ofEmergency Preparedness, S.C. • Chief Justice Robert A.Miller, S.D. • Senate Majority Leader Roger Moe, Minn. •William Montgomery, Director, Division of Research, LegislativeCouncil, Del. • Sec. of State Ralph Munro, Wash. • SpeakerThomas B. Murphy, Ga. • Sen. David Nething, N.D. • Rep.Marcus Oshiro, Hawaii • Gov. George Pataki, N.Y. • RonaldPenny, Director, Office of State Personnel, N.C. • SpeakerChuck Perricone, Mich. • Sen. Pres. Ray Powers, Colo. • VirgilPuskarich, Executive Director, Local Government Commission,Penn. • Mary Regel, Administrator, Division of InternationalDevelopment, Wis. • Heather Rein, Committee Administrator,Minn. • Speaker Jody Richards, Ky. • Gov. Pedro Rosselló,P.R. • Paula K. Roy, Executive Director, Health CareCommission, Del. • Sen. Brian Rude, Wis. • Gov. George H.Ryan, Ill. • Sen. John Sandy, Idaho • Rep. Ray Short, Utah •Attorney General Carla Stovall, Kan. • Rep. Jessie Stratton,Conn. • Richard Thomas, Director, Real Property ManagementGroup, N.Y. • Gov. Tommy G. Thompson, Wis. • Sen. Pres.Earl Ray Tomblin, W.Va. • Sen. Donne Trotter, Ill. • RayWahl, Juvenile Court Administrator, Utah • Lt. Gov. OleneWalker, Utah • Gail Wekenborg, Division of InformationServices, Mo. • Jeff Wells, Counsel, Dept. of Labor andEmployment, Colo. • Sen. Jeff Wentworth, Texas •Assemblyman Robert C. Wertz, N.Y.

STATE GOVERNMENT NEWS, ISSN 0039-0119, June/July 2000,Vol. 43, No. 6 — Published monthly with combined issues in June/Julyand Nov./Dec. by The Council of State Governments, 2760 Research ParkDrive, Lexington, KY 40511-8410. Opinions expressed in this magazinedo not necessarily reflect the policies of The Council of StateGovernments nor the views of the editorial staff. Readers’ comments arewelcome. Subscription rates — In the U.S., $39 per year. Otheraddresses, $45 per year, surface mail. Single issues are available at $6 percopy. POSTMASTER: Send address changes to State Government News,Sales Department, P.O. Box 11910, Lexington, KY 40578-1910.

Advertising — Black and white, two-color and full-color advertisingavailable. For complete circulation and advertising information, contactthe advertising department at (859) 244-8118. Mailing lists are availablefor rent upon approval of a sample mailing.

Copyright 2000 by The Council of State Governments. Periodicals postagepaid at Lexington, Ky., and at additional mailing offices.

council offices

Daniel M. Sprague, Executive Director

headquarters2760 Research Park Drive

P.O. Box 11910Lexington, KY 40578-1910

(859) 244-8000

washingtonJim Brown, General Counsel & Director

Hall of the States444 N. Capitol St., N.W., Suite 401

Washington, DC 20001(202) 624-5460

easternAlan V. Sokolow, Director

5 World Trade Center, Suite 9241New York, NY 10048

(212) 912-0128

midwesternMichael H. McCabe, Director

641 E. Butterfield Road, Suite 401Lombard, IL 60148

(630) 810-0210

southernColleen Cousineau, Director3355 Lenox Road, Suite 1050

Atlanta, GA 30326(404) 266-1271

westernKent Briggs, Director

121 Second Street, 4th FloorSan Francisco, CA 94105

(415) 974-6422Denver, CO: (303) 572-5454

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fter two days ofdebate, the South CarolinaHouse voted May 10to removeConfederateflags flyingfrom theStatehousedome and inboth legisla-tive cham-bers. TheGOP Houseagreed to aSenate bill toinstead fly aversion of the flag elsewhereon the Capitol grounds. TheNational Association for theAdvancement of ColoredPeople had launched aneconomic boycott of thestate over the flag. On April

labama Gov. DonSiegelman signed into law ameasure making domesticviolence a crime separatefrom assault and mandat-ing jail time for repeat

Civil unions sanctionedermont legally recognized unions between same-sex

couples in April. The measure grants homosexual couplesmany rights and protections conferred by marriage, suchas inheritance rights and property transfers. After July 1,couples may obtain licenses and have a civil union certi-

fied by a justice of thepeace, a judge or amember of the clergy.The family court maydissolve the union. Thelaw restricts marriage toone man and one womanand other states maychoose not to recognizethe Vermont unions. TheLegislature acted after theVermont Supreme Courtin December ruled thestate could not constitu-tionally deny legal rightsto gay couples.

Slightly more than halfof Vermont residents disapprove of the new law, while 42percent support it, according to a public opinion poll.Those polled said the law would not affect their choice of agubernatorial candidate in November, however.

Alabama protects victims

S.C. to remove rebel flag

awaii became the firststate legislature to permituse of marijuana as amedical treatment with abill passed April25. Votersin fiveotherstateshavepassedballotmeasuresallowingrestrictedmedicaluse ofmarijuana,but no state legislature hasacted before Hawaii. The

Medical marijuana approvedbill has the support of thepublic, according to polls.Gov. Benjamin J. Cayetano

said, “We look forward torecognition on a

federal level toproviderelief tothosesuffering.”

The billlimits usersto growingsix plantsand specifiesthe illnessesqualifyingfor treat-

ment and the conditions ofuse.

resident Clinton lauded North Carolina’s efforts to closethe so-called “digital divide” in a speech in Whiteville,N.C., April 27. The president said Internet access wouldhelp move more people out of poverty and into employ-ment, especially in rural areas. North Carolina’s threemajor local phone companies, BellSouth, Sprint and GTE,have agreed to proved high-speed, affordable Internetaccess to all of the state. Also, Qualcomm Inc. said it wouldinvest $1 million in wireless, high-speed Internet connec-tions for Whiteville and other rural communities, and MCIWorldCom will expand wireless access in North Carolinaand elsewhere.

Digital divide

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offenders. Supporters saythe law is needed because in1998, 60 percent of domes-tic-violence cases weredropped or resulted inacquittals.

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Find the latest state news on CSG’s Web site — www.csg.org

AA 28, the NCAA, the govern-ing body of major collegesports, said it would cancel

its events in thestate if the flagstill flew byAug. 11. TheSouthern Crossflag was raisedover the domein 1962.

The votecame on thefirst statewideConfederateMemorial Day

holiday, which the Legisla-ture created this session intandem with becoming thelast state to adopt theMartin Luther King Jr.holiday.


andidates for congressional or legislative seats inNevada will not be labeled as to whether they support oroppose term limits, the attorney general ruled April 5.Attorney General Frankie Sue Del Papa said the state couldnot enforce the provision for labels, approved by voters in1996 and 1998. Courts in eight other states have foundthis type of provision undermines the right to free speech.

aryland Gov. Parris N. Glendening signed into law aseries of bills promoting technology before leaving for atrip to Silicon Valley in April. The governor first stopped

at Cisco Systems in San Jose,Calif., to boast of Maryland’stechnology initiatives. Newlaws included the UniformComputer InformationTransactions Act, whichprotects software and otherintellectual property, and theUniform Electronic Transac-tions Act, which gives legalstanding to electronic con-tracts. Public libraries alsomust adopt policies to protectchildren from obscenematerial on the Internet.Other measures expanddelivery of government

services over the Internet, set rules for collecting personalinformation on individuals by the state and increasepenalties for breaking into computer systems.

E-commerce friendly

No labels in Nevada

lorida continued itsschool voucher program inApril, following a stay ofLeon County Circuit JudgeL. Ralph Smith’s Marchorder voiding the program.The ruling was blockedwhen the state sought anappeal. The program offers

Vouchers continue for now

laska voters this November will have their say on aconstitutional amendment that would take wildlife

management out of the citizen-initiative process. The

Legislature approved theamendment April 25.The amendment wouldforbid citizen initia-tives from regulatinggame, seasons ormethods for taking

wildlife. The Legislaturepassed the amendment in

response to a 1996 initia-tive approved by voters that

banned land-and-shoot wolfhunting. The Legislature also restricted the ban by passingS.B. 267 this session.

No hunting initiatives

CC

FF to pay private-school tuitionfor students in public schoolsdeemed failures by the state.As many as 60,000 studentsin 80 schools could beeligible in the new schoolyear. The state gave schoolsuntil May 22 to sign up toaccept the vouchers.

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he Maine House andSenate passed two supple-mental budgets, which Gov.Angus King signed into lawApril 25. The budgetsallocate $30 million fromthe state surplus and $20million from other sourcesfor technology in schools,expand health insurancefor poor residents, increaseaid to schools, provide $27million for school renova-

Maine settles budgettions and $31 million forhigher education. Themeasures also cut taxes byeliminating the tax onsnack food, indexing theincome tax to inflation andgiving retirees a tax breakon the first $6,000 ofpension income.

In addition, Maine approveda bill giving patients the rightto sue their managed-carehealth insurers.

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tate and local govern-ments can compel theiremployees to use compensa-tory time instead of payingovertime, the U.S. SupremeCourt ruled May 1. Thecourt in Christensen et al. vs.Harris County et al. heldthat nothing in the FairLabor Standards Actprohibits states and theirpolitical subdivisions from

Comp time legalcompelling use of compen-satory time. The caseinvolved sheriff’s deputiesin Harris County, Texas,who sued when the countyscheduled them for time offafter their comp timereached 480 hours. Afterthat, the county would havehad to pay them cash forovertime worked.

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Maryland Gov. Parris N.Glendening


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ew Jersey’s law requiring public notification when aperson convicted of a sex offense moves into the neighbor-hood was ruled a violation of privacy by a federal court. Athree-judge panel of the U.S. Court of Appeals for theThird Circuit in Philadelphia suspended public notifica-tions April 25. New Jersey’s 1994 Megan’s law is themodel for numerous other laws across the country. About20 states now post information on released sex offenderson the Internet.

For example, more than 500 convicted sex offenders areregistered in Indiana, Kentucky and Ohio under Megan’slaws in those states.

Sex-offender rights protected

State leaders eye Congress

he U.S. Supreme Court will hear arguments on theconstitutionality of California’s system of open primaries.California allows voters of any party to participate inprimary elections, but political parties want to keep theirprimaries closed.

Open primaries in court

AA number of statehouse leaders are vying for seats inCongress this fall as term limits take effect, according toan April 4 article in The New York Times. Among them,Florida Rep. Elaine Bloom, after two decades in theStatehouse, is carrying the Democratic banner againstU.S. Rep. E. Clay Shaw Jr., a 10-term Republican. StateSen. Patsy Kurth, a Democrat, is running against three-term GOP U.S. Rep. Dave Weldon.

In California, state Sen. Hilda L. Solis won the Demo-cratic primary over nine-term, U.S. Rep. Matthew G.Martinez. In addition, three other term-limited Californiastate legislators are seeking seats in Congress this fall. InOhio, Rep. Pat Tiberi, majority leader of the House, defeated astate senator in the Republican primary to run for the seatheld by U.S. Rep. John R. Kasich, who is retiring.

Kansas adopts tight budgetansas adopted a tight

budget without a general taxcut April 29, ending yearsof budget increases and taxcuts. The $8.7 billion budgetfor the fiscal year startingJuly 1 is less than 2 percentmore than the currentbudget. Unexpected federalfunds helped fund someservices in the face of state-revenue shortfalls.

In other actions, law-

makers approved measuresto relieve prison crowding,increased aid to education,adopted a plan to help low-income senior citizens buyprescription drugs andprovided a plan for accept-ing abandoned babies. TheLegislature also appropri-ated $30 million forchildren’s programs andjuvenile justice fromtobacco-settlement monies.

he Clinton administra-tion ordered states to rein-state people they improperlycut off Medicaid afterlosing welfare benefits. Theadministration said stateshad clearly eliminatedeligible children and parentsfromMedicaid.TheHealthCareFinancingAdminis-trationtold statesin an April7 letter to search computerfiles to identify familiesthat lost Medicaid whenthey left welfare. States alsowere told to correctproblems that led to peoplebeing improperly deniedMedicaid benefits. States

Medicaid cutoffs illegalmust reinstate disabledchildren who were requiredto receive Medicaid afterthey lost supplementalSocial Security benefits.Medicaid enrollment droppedabout 200,000 to 41.4 millionin 1998. Federal officials did

not estimatehow manypeople’sbenefitswereimproperlyterminated,but studiessuggest theycould

number in the hundreds ofthousands.

Pennsylvania and Wash-ington recently worked toreinstate benefits to familiesand children improperlydenied coverage. (See SGNMay).

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A tax holidayII owa shoppers can buyless-expensive clothes tax-free during the firstweekend in August, just intime for back-to-schoolshopping. The sales-taxholiday is part of a packageof cuts totaling $32 millionover the next two budgetyears. Several other states,including Florida, NewYork and Texas, have hadsimilar sales-tax holidays.


MMSS tates that copy a Virginia program, Project Exile, areeligible for a share of $100 million in federal aid to crackdown on crime. Project Exile, since its start in 1994, hascurbed by half murders in Richmond, Va. The projectfocuses on federal, state and local law enforcementagencies working together to prosecute offenders. Theprogram has the support of the National Rifle Associationand some gun-control groups.

ississippi teachers willget their largest-ever pay-raise package under a lawsigned by Gov. Ronnie

inority youths aremore likely than theirwhite counterparts to be

arrested, held in jail, sentto court for trial, convictedand imprisoned for longerterms. A report released inApril by the U.S. JusticeDepartment found stunningdisparities in the severityof treatment black andHispanic youth receive in

Teachers get pay raiseCracking down on crime

Minority youth jailedmore often

the justice system comparedwith white teen-agers.Among juveniles never

imprisoned,juvenile courts aremore than sixtimes more likelyto sentence blacksto prison as whites.For drug offenses,blacks are 48 timesmore likely thanwhites to besentenced to

juvenile prison. The report,“And Justice for Some,” isbased on national and statedata compiled by govern-ment agencies and nationalassociations. Six founda-tions helped the JusticeDepartment underwrite thecost of the report.

hio Speaker Jo Ann Davidson is challenging statelegislatures across the nation to build houses for the needy.If her plan succeeds, 7,400 new Habitat for HumanityInternational homes could be built nationwide in the next

three years. Davidson, joinedby Gov. Bob Taft,

launched the national“The House the

Assembly Built”campaign inApril. The effortinvolves Habitatfor HumanityInternationaland its affiliates,

state legislatures,businesses, unions,

nonprofits andothers committed to

building affordable housingfor low-income families.

Davidson announced the campaign at the ground-breaking for the first Assembly house in a Columbussuburb. The speaker also is heading an effort to build aHabitat home in each Ohio House district.

Speaker builds housesMM

Musgrove May 1. The$337.9 million plan wouldraise the state’s average payfrom $31,913 to the

Southeasternregional predictedaverage of $41,000in six years.Musgrove said hehopes the raiseswill reduce thenumber of teachersleaving the state forhigher pay elsewhere.

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dmitting that he doesn’t know a lot about hundreds ofbills he voted on this session, Virginia Del. Robert F.McDonnell said the system needs some fixing. McDonnelland Sen. Thomas K. Norment are leading an effort to findremedies and report to the Legislature by year’s end. Thenumber of bills introduced each year has increased to3,000, and this year’s session passed more than 1,000 bills.

Busy sessionsAA

Visit CSG on StatesNewswww.csg.org

Visit CSG on StatesNewswww.csg.org


State officials talk about the

issues facing agriculture in their

regions and their priorities for

the 2002 farm bill.

agricultureagriculture

imes are tough down on the farm thesedays. Lower prices, commodity sur-pluses and foreign recessions the past

two years have fueled a downturn in the U.S. agri-cultural economy.

In addition, droughts and weather disasters havehit producers in the Northeast and South espe-cially hard in recent years.

These events are causing many to question thewisdom of a fundamental shift in federal farmpolicy Congress made in 1996. At that time, Con-gress abandoned price and supply controls in fa-vor of a market-oriented agricultural economy.Since then, a roller-coaster ride of record high andlow prices has left many questioning the decisionsmade in the 1996 farm bill, known as the FederalAgriculture Improvement and Reform Act orFAIR.

While Congress is scheduled to revisit federalfarm policy in 2002, some are saying changes areneeded sooner. In the months ahead, lawmakersin the nation’s capital and in the states will dis-cuss the existing policy and the future of U.S. agri-culture.

The Council of State Governments will holdregional forums this summer and fall for stateofficials to suggest policy recommendations. Thefollowing interviews with state legislators andagriculture commissioners give regional perspec-tives on agriculture and federal farm policy.


Although the Northeast is not generally perceived as anagricultural region, it is home to more than 135,000 small-and medium-sized family farms, totaling more than 20million acres and more than $10 billion in annual sales.Many of these smaller family farms are disappearing as farm-ers sell their land to escape economic ruin because of his-

torically low commodity prices and recent severe weatherconditions.

In the Northeast, some believe the region’s agriculturecrisis partly stems from a national policy that is based onthe interests of other regions of the country. “The problemwith the 1996 farm bill is that it is based on formulas thataffect Midwest farms and are not appropriate for small farmsin the Northeast,” said New York Sen. Nancy LarraineHoffmann, chair of the Senate Agriculture Committee. She

said cost-sharing andset-aside programs thatwork elsewhere are notpractical for Northeastfarmers and may causethem to take a loss inthe long term.

Northeast farmersalso did not benefit asmuch from disaster as-sistance despite crop

losses exceeding $2 billion from a fierce drought last sum-mer, followed in September by severe flooding due to Hur-ricane Floyd. Instead, federal emergency assistance in 1999

predominantly provided pricesupports for farmers in the Mid-west and South.

The 1996 farm bill eliminatedmany of the key emergency as-sistance programs, while otherswere unavailable because ofstrict eligibility requirements.The 1996 act eliminated theLivestock Feed Program, whichcovered losses for eligible farm-ers with insufficient feed tomaintain their livestock. Ver-mont Sen. Sara Branon Kittel,chair of the Senate AgricultureCommittee, said because of that,“We’ve had to appropriate statemoney for droughts and floods.”

Current disaster-assistanceand crop-insurance policies failto cover specialty crops grown inthe Northeast, said Robert W.Spear, commissioner of theMaine Department of Agricul-ture, Food and Rural Resources,and incomingchair of the

Northeast Association of State Depart-ments of Agriculture. “We here in theNortheast are looking to protect more thanjust the commodity crops,” Spear said.“Some of the smaller agriculture cropsgrown in the Northeast don’t get the at-tention that the large commodity cropsget.” He calls for expanding federal pro-grams, including crop insurance, to spe-

Saving small farmsEASTTheThe

New York Sen.Nancy LarraineHoffmann

PennsylvaniaRep. TomArmstrong

Vermont Sen.Sara BranonKittel

Drought and floods in the East hurt farmers with livestock to feed. Photo courtesyof K-P Ag Relations, Trumansburg, N.Y.


cialty crops that dominate much of Northeast agriculture.Pennsylvania Rep. Tom Armstrong said he would like

for future federal programs to better account for severeweather conditions. He criticized current disaster assistanceprograms that base payments on five-year average yields.Armstrong said, “A drought year could really skew the num-bers.” He suggested eliminating the lowest production yearto avoid distortions in the event of disastrous weatherconditions.

Land preservation and coordination with environmentalpolicies also are concerns. “We need a strong national policyto promote the conservation of land,” Kittell of Vermontsaid. “We need to pay farmers for their land and for bufferstrips, and put more resources into conservation programs.”

New York’s Hoffmann wants to see “the myriad of envi-ronmental programs support agriculture in the Northeast,which is closer in proximity to urban areas than in otherparts of the country.”

Northeast state officials remain optimistic for the upcom-ing farm bill. “Fortunately for us, many Northeast mem-bers of the [U.S.] House and Senate understand these is-sues and are anxious to make things right in the 2002 bill,”Hoffmann said.

Armstrong cautioned, “We will be watching very closelyto see how the bill is drafted.”

— Sandra Kiil Leber is senior policy analyst,CSG Eastern office

chair of the Senate Agriculture Committee, said the centralproblem “is farm policy, plain and simple.” Muegge said,“The other issues are important, but farm policy, particu-larly at the federal level, is driving agriculture to a centralizedsystem that lowers prices but can’t increase consumption.At some point, we have to ask if this is the kind of systemwe want.”

Agriculture in the South, as in much of the rest of thenation, has undergone a radical structural shift over the pastdecade, with fewer companies participating in the market.

Transition painsSOUTHTheThe

Southern agriculture is in trouble. Southern farmers arefeeling the pinch after two seasons of drought and near-drought conditions, a predicted third dry season and record-low commodity prices. While the evidenceof a crisis in the rural South is clear, thereis little unanimity on the causes for thissituation.

Ask any legislator from a rural districtabout the top issues facing agriculture, andgrab a chair. Most lawmakers can list ahalf dozen or more pressing concernswithout pause. They will cite the weather,low prices, consolidation and the struc-ture of agriculture, Freedom to Farm, loanvalues, inadequate crop insurance, land-use pressures, regulation and poor overseas markets.

Facing this range of issues, Oklahoma Sen. Paul Muegge,

Oklahoma Sen.Paul Muegge

Missouri Rep. Gary Wiggins, vice chair of the House Agri-culture Committee, points to this and the loss of marketsfor independent producers. “Consolidation,” he said, “hasresulted in three or four firms controlling major portions ofthe markets.”

Many state lawmakers and federal politicians lay theblame squarely on the shoulders of the landmark FAIR Act.“The 1996 act is causing feed grains, wheat, rice and soy-bean production to shift out of the South into more com-petitive regions,” said South Carolina Sen. Phil Leventis,chair of the Senate Agriculture Committee. “The short-termimpact of the act has been negative in that it has causedlower prices for the farmers, thus forcing many of them togo out of business.”

Not everyone is critical of the 1996 farm bill, however.“In general, Texas producers are happy with the act and thefreedom that they receive under this law,” said Texas Sen.Tom Haywood, chair of the Senate Agriculture Committee.“The only concern Texas has is the lack of an adequate safetynet to account for disasters due to weather or low prices.”

Low prices, Haywood said, are a function of not being

Cotton once was king in the South. Photo courtesy of theMississippi State University/the Mississippi Departmentof Agriculture and Commerce


able to trade U.S. products aswidely as farmers would like.More open international mar-kets, including opening the vastChinese market to more Ameri-can agricultural products, wouldgo a long way to relieving thepain on American farms, Hay-wood said.

Not everyone echoes this sen-timent, however. Muegge con-tended that the internationalmarket has absorbed as muchAmerican production as it can.The FAIR Act’s reliance on over-seas markets for the health of theAmerican farm “is fundamen-tally flawed,” Muegge said.

In addition to the turmoil ininternational markets, the South

faces a shrink-ing domestic market for tobacco. Declin-ing tobacco consumption and increased re-liance on imports has caused drastic quotareductions for producers over the pastthree years. As several tobacco-state law-makers noted, the question of the futureof the quota system creates tremendousuncertainty in tobacco communities. Formost tobacco farmers, there are no viablealternative crops that will generate suffi-

cient returns to sustain farmers and farm communities, andthe loss of tobacco income could be the death knell for anumber of small, rural communities.

— Jonathan Watts Hull is a regional representative,CSG Southern office

CSG regional forumsIn partnership with the National Association of StateDepartments of Agriculture, The Council of StateGovernments is organizing forums for legislators andagriculture commissioners to discuss the 2002 farm bill.Each CSG regional office will host a forum and put forththe resulting regional recommendations on the federalfarm policy. A national forum then will draft a unifiedstate government position. The CSG forums for stateofficials will complement NASDA’s public regional fieldhearings.

CSG forumsCSG Eastern Regional Conference Annual Meeting

Aug. 6-7 Providence, R.I.CSG Midwestern Legislative Conference Annual Meeting

Aug. 6 MinneapolisCSG-WEST Annual Meeting

Nov. 14-15 San DiegoCSG Southern Legislative Conference Fall LegislativeIssues Conference

Nov. 15-16 Coral Gables, Fla.

NASDA field hearingsJune 14 Louisville, Ky.June 15 Castile, N.Y.July 20 Boise, IdahoJuly 26 Kansas City, Mo.

of recent years. Even though the region has some of themost fertile farmland in the nation, many farmers are won-

Texas Sen. TomHaywood

Drive along any highway in the Midwest and you willfeel fairly certain that the agricultural economy is as strongas ever. Like a scene from an Andrew Wyeth painting, quaintfarms dot the landscape, and cows and pigs tend to outnum-ber people in most areas.

But the endless rows of corn and beans belie the fact thatfarmers in the Midwest are struggling to survive. Ask justabout anyone in the region and they will tell you that thearea has been hit hard by the record-low commodity prices

Weaving a safety netMIDWESTTheThe

Despite the appearance of abundant crops, Midwestern farms aren’t faring well.


Free market vs. supportsThe 1996 Federal Agriculture Improvement and Reform

Act changed policies that grew out of the Great Depressionwhen the federal government decided that farmers couldnot earn a livable income in a free market. To even outprice levels and to increase farm income overall, Congressbegan supporting farm prices by paying farmers to reduceplanting and buying surplus production. Until 1996, Con-gress periodically tweaked farm programs and fundinglevels, but kept to its strategy of intervention.

In 1996, Congress abandoned intervention in favor ofa free-market approach. The so-called “Freedom to FarmAct” was intended to let farmers decide what and howmuch to plant or produce. The act, which is in effect throughthe 2002 crop year, eliminated supply management andincome supports. In addition, global trade agreements alsocalled for an end to the market-distorting policy of pricesupports and supply management.

While the new farm policy allows producers to reapthe rewards of the market, it also exposes them to morerisk. Critics say it did not give farmers the tools to respondto this risk. In particular, the act did not create a suffi-cient “safety net” in times of dramatic price drops.

In the first two years of the FAIR Act, expanding worldmarkets and strong prices led to record-high farm income.However, average prices received by farmers for all farmproducts fell 5.6 percent in 1998 and 5.9 percent in 1999.The U.S. Department of Agriculture predicts a contin-ued decline in 2000.

Under the old farm policy, farmers received deficiencypayments when prices did not reach set targets. Under it,farmers would have received payments in 1998 and 1999,

but not in 1996 and 1997. The 1996 farm bill replacedthese deficiency payments with fixed annual “transition”payments that decline over a seven-year period. Since thetransition payments decrease over time, farmers receivedless federal money in 1998 and 1999, when their incomeswere falling.

Only record-high government payments to farmersstaved off a crisis in farm income. Emergency assistanceand budgeted funds, such as transition payments, totaled$22.7 billion in 1999. The U.S. Department of Agricultureanticipates another emergency aid package will be neededthis year.

Some argue that Congress should not change the market-oriented premise of the 1996 farm bill. Others are callingfor fundamental policy changes. The Clinton administra-tion does not want to wait until 2002.

The administration said the “collapse in farm pricesthe past two years revealed serious problems with thefarm-income safety net,” and its fiscal 2002 budgetproposed improvements in income support and riskmanagement.

Congress this year is considering S. 2251 and H.R. 2559,which are intended to increase participation in the crop-insurance program by improving premium rates, acceler-ating new policy approvals and bolstering the complianceand enforcement programs.

Defenders of the FAIR Act argue that some of its keycomponents were never put in place. Crop-insurance im-provements, regulatory and tax reforms, and aggressivetrade policies would have eased the impact of the 1998and 1999 price declines. — C.J.L.

dering how they are going to pay the billsand feed their families.

“I’ve been telling people that I’ve gottwo nonpaying jobs — the Legislature andfarming,” said Kansas Sen. Steve Morris,chair of the Senate Agriculture Commit-tee, who raises wheat in the southwest-ern part of his state. “I think that the flex-ibility that Freedom to Farm offers is goodfor everybody involved — in particular the

grain farmers,” he said. “But, it is very difficult when youhave receipts coming in that are equal to what you had 50years ago.”

Others are not so generous in their views of the federallegislation. Iowa Rep. Dolores Mertz, said, “I call it theFreedom to Fail Act.” Mertz, whose sons are the fourthgeneration to farm her family’s land in north-central Iowa,said she has discouraged her grandson from returning homeafter college to take over the farm. “I’d love for him to be the

fifth generation to farm the land, but I told him to waitawhile, get a job, save a little money and then see. I don’t seethat agriculture will turn around for another three or fouryears.”

Morris and Mertz, like many others in the region, feelthat there is much that the federal government could do to

turn around the current farm crisis. “Ithink that the design of the 1996 farm bill[assumed] that we were going to have atrue open market and the demand wasgoing to take care of the pricing,” Morrissaid. “As everyone knows, it hasn’tworked that way. So, I think there’s goingto have to be a safety net built in becausethe next few years could be pretty toughas far as prices go.”

Even those who have not fared sopoorly under the FAIR Act agree that safety nets should bereinstated in the 2002 version of the bill. Kansas Rep. Dan

Kansas Sen.Steve Morris

Iowa Rep.Dolores Mertz


Some blame concentrationEconomists blame the current agricultural price slump

on weak overseas economies and high worldwide pro-duction. Some farm groups and policy-makers, however,maintain the trend toward concentration drives downprices.

Agriculture and food production have become increas-ingly consolidated and industrialized since World War II.Farms are getting larger, processors are becoming fewerand many farmers produce under contract. Once a dis-tinct sector of the economy, agriculture now looks muchlike other industries.

The USDA estimates that two companies control 42

percent of U.S. corn exports, a third of soybeans sold over-seas and at least 20 percent of wheat exports. Four meatpackers control 80 percent of the nation’s beef, comparedwith 36 percent two decades ago.

Critics say that large, corporate farms are driving fam-ily farms out of business and making the market less com-petitive in the process.

Others say consolidation is a logical progression in theindustry as producers try to reduce costs through econo-mies of scale. To date, the USDA and the U.S. Depart-ment of Justice have not found reason for alarm as theymonitor the market and enforce antitrust laws.

Johnson cited 1999 as one of his very bestyears on his ranch but admitted that thefarm bill only worked in his state with theaugmentation of emergency funds. “I can’ttell you off the top of my head how manymillions of dollars came from the federalgovernment into the state,” he said.

Some argue, however, that those safetynets are only a signal that federal farmpolicy is not working. “The extra paymentat the end of last year boosted farm in-

come but that’s not the way it should be,” argued Iowa Rep.Ralph Klemme. “It should be that our products movethroughout the world and we receive more money for thatproduct.”

— Anne McCann is a policy analyst,CSG Midwestern office

Affairs Committee, said, “The answer you’ll get from ev-erybody — low commodity prices.” Idaho grows a varietyof minor crops, such as peas, potatoes and sugar beets.“They’ve almost all been hit by low prices,” Jones said.

The FAIR Act has not helped Western farmers in the pricecrisis. “Most of my people would say [the act] has had a

Iowa Rep.Ralph Klemme

Improving the bottom lineWESTTheThe

Like their colleagues across the coun-try, Western officials said low prices arethe main problem facing agricultureproducers. The challenge for the 2002farm bill will be making farming profit-able again. The West’s concerns includefair treatment of minor crops and fullfunding for environmental policies.

When asked to identify the key issuefacing agriculture in Idaho, Rep. DouglasR. Jones, chair of the House Agricultural

negative impact,” Jones said. “Because there weren’t pricesupports in place, the Asian economic crisis hit our produc-ers hard.” Asia and the Pacific Rim are key export marketsfor Idaho and other states in the Pacific Northwest.

Colorado Sen. Gigi Dennis wants the 2002 farm bill to

Westerners say farm policy discriminates against minor crops, suchas tomatoes. Photo courtesy of Arizona Department of Agriculture

Idaho Rep.Douglas R.Jones


CSG resourcesThe CSG Agricultural Policy Task Force, composed of

legislators, agriculture commissioners and CSG Associates,represents state government on national agriculture issues.

The Eastern Regional Conference coordinates theNortheastern States Association for Agriculture Steward-ship, an organization of the legislators and agriculture com-missioners that promotes the region’s agricultural interests.

The Midwestern Legislative Conference’s AgricultureCommittee provides a vehicle for addressing agriculturalissues that impact the Midwest, including internationaltrade regulations, commodity prices, water quality and foodsafety.

The Southern Legislative Conference’s Agriculture andRural Development Committee works on issues impor-tant to Southern agriculture and cooperates with publicand private agencies, local and federal officials, and theland grant university system to assure the continued vital-ity of the region’s farm and rural communities.

For CSG and regional publications on agriculture, visitwww.csg.org and the CSG regional Web sites.

respond to the dramatic price swings thatcome with a free market. “Unless agricul-ture is profitable, we will continue to losefarms and ranches, and our rural commu-nities, which depend upon this industry,will continue to suffer,” Dennis said.

Sheldon Jones, director of the ArizonaDepartment of Agriculture, shares thatconcern. “The No. 1 priority of farmpolicy should be creating an infrastructure

that ensures profitability for farmers and viability of U.S.agriculture,” he said.

Western officials say the federal farm policy disadvan-tages their producers because it favors the major crops, suchas corn, wheat, soybeans and cotton, over minor crops,

which can be high in value but are not grown widely. “Con-gress focuses on the major crops but ignores the minor crops,which may be very important in the regions where they’regrown,” Jones of Arizona said.

For example, the 1996 farm bill was supposed to encour-age producers to use crop insurance as a replacement forprice supports. “But a lot of minor crops aren’t eligible toparticipate,” Jones of Idaho said. “The 1996 farm bill didn’tgive producers any protection, but it also didn’t give themthe ability to protect themselves.”

Environmental protection and water are critical issuesfor Western agriculture. Dennis wants the 2002 farm bill toinclude adequate funding for conservation measures. “So-ciety should be willing to pay for the conservation practicesit demands of agriculture,” Dennis said. “This burden can-not rest entirely on the backs of farmers.”

“[Conservation programs] can be a supply-managementtool to increase competitiveness, not just address environ-mental issues,” Jones of Arizona said. He wants increasedfunding for the Conservation Reserve Program and similar

approaches that pay farmers to set asideenvironmentally sensitive land. By takinglow-yield, high-cost acres out of produc-tion through these programs, farmers canreduce their costs.

Jim Jesernig, director of the Washing-ton state Department of Agriculture, sup-ports the conservation elements of the1996 farm bill because they try to balanceeconomic and environ-mental concerns. “TheConservation ReserveProgram gives landown-ers a reason to partici-

pate,” Jesernig said. He encourages moresuch voluntary, incentive-based programsrather than regulatory approaches toachieving environmental goals.

“Water is the issue in Western states,”Jesernig said. Agriculture competesagainst growing urban populations andenvironmental protection goals for theregion’s limited water supply. Federal leg-islation on water, particularly the Endangered Species Actand Clean Water Act, exacerbate the tension. The farm billcan encourage more flexible approaches to complying withthese laws, Jesernig said.

— Cindy J. Lackey is a senior policy analyst,CSG Center for Leadership, Innovation and Policy

Jim Jesernig,director,WashingtonstateDepartment ofAgriculture

Sheldon Jones,director,ArizonaDepartment ofAgriculture

Water remains crucial to Western agriculture. Photocourtesy of Arizona Department of Agriculture

Colorado Sen.Gigi Dennis


egislators in 15 states are grap-pling with bills that put them inthe middle of a growing contro-

versy over genetically modified crops.State legislators are weighing issuesthat affect farmers, markets, consum-ers and the environment. In doing so,they are sorting through a barrage ofinformation on the crops’ benefits andperceived risks.

The California Legislature, for exam-ple, this session considered measuresinvolving consumer notices, food la-beling, serving biotech foods in schoolsand vandalism of biotech facilities.

Across the nation, more than twodozen bills related to biotechnologywere introduced in 15 states in 2000,and a ballot initiative was introducedin Colorado. The majority of the billsfocused on mandatory food labeling for

States are getting in the

middle of a debate

among farmers, business,

foreign nations,

environmentalists and

consumer advocates over

the value and perceived

risks of genetically

modified crops.

BY LAURA WILLIAMS

products containing genetically modi-fied ingredients. Other proposals pro-moted the restriction of usage ofbiotech foods in schools, required stateseed registration or certification forbiotech crops and sought to imposemoratoriums on growing biotech cropspending more research. As of earlyApril, bills in three out of 14 statesaddressing these issues had eitherfailed or been withdrawn, and the oth-ers were still under debate, many rest-ing in legislative agriculture committees.

Legislators are facing constituentswho press them to react quickly, all thewhile struggling to reach a delicatebalance between responding to farm-ing constituencies, whose fields areplanted with genetically modifiedcrops, and consumers, who may befearful of the perceived impact.

_______________Laura Williams is corporate relationsmanager for The Council of StateGovernments in Lexington, Ky.

agricultureagriculture

Biotechcropssow debate

More than half the U.S. soybean crop is genetically modified.


Among the legislators dealing withthe issue is California Sen. Jim Costa,chair of the Senate Committee on Ag-riculture and Water, who plans to pro-pose legislation calling for a task forceto examine biotech issues. The bill,Costa said, will be part of a strategy tobring California agencies together withnationally recognized scientists and

ing, and Nebraska has passed a reso-lution calling for a study.

Minnesota this session had sevenbills on biotech issues. Minnesota De-partment of Agriculture CommissionerGene Hugoson said that as of mid-April, none of the bills had received aformal hearing. The Senate held aninformal hearing on biotech topics to

farmers have embraced the use of ge-netically modified crops as yet anothertool to help them keep costs down andyields high.

As knowledge of genetics advances,scientists are developing crops with add-ed nutritional value (vitamin-added orhigh-oil varieties) or enhanced medi-cal properties (for example, built-invaccines for hepatitis). These potentialadvancements have great promise fordeveloping countries, where burgeon-ing populations and lack of arable landoften create a tight food supply andwidespread health problems.

Despite the apparent advantages ofcrop biotechnology, consumer and en-vironmental groups have growing con-cerns. Prompted by alarm in Europeover the safety of biotech foods, U.S.consumers are taking a closer look atthe products on their grocery shelves.Concerns range from the loss of plantbiodiversity to the lack of any long-term testing of biotech foods — theeffects of these new plants in the envi-ronment simply aren’t known. Someworry that genetically modified plantscould kill beneficial insects, leave tox-ins in the soil or transfer genes over toweeds to create “super weeds.”

Exports at risk?

Though the biotech industry hasbeen regulated at the federal level sincethe early 1980s, critics worry thatit’s not enough. Responsibility isshared between the U.S. Food and

Drug Administra-tion, the EPA andthe Department ofAgriculture. Nearly60 crops enhancedthrough biotechnol-ogy have been ap-proved by the U.S.government. Themore than 76 mil-lion U.S. acres ofbiotech crops ac-

counted for about 57 percent of thesoybeans, 65 percent of the cotton and38 percent of the corn grown in thenation in 1999.

Legislation pending

Pending ballot initiative

Failed legislation

Biotechnology bills 2000(as of 3/31/00)

Source: Grocery Manufacturers of America

federal agencies. It also directs the stateDepartment of Food and Agricultureto work with scientists, federal agen-cies such as the U.S. EnvironmentalProtection Agency on these issues, andthe California Trade and CommerceAgency to engage in discussions withthe federal government and U.S. trad-ing partners to address trade issues.

“As someone who was born andraised in an agricultural family, I amacutely aware that biotechnology of-fers enormous opportunities,” Costasaid. “It also raises questions to be an-swered. As state public policy-makers,we have a responsibility to take a seri-ous look at the entire issue — bothadvantages and drawbacks — so thatscience determines where we go next.”

Other states also are consideringtask forces or commissions to study theissue. Vermont has a study bill pend-

allow proponents and opponents aforum to lay out the issues.

Hugoson’s department does notwant to discourage biotechnology, hesaid, because it offers exciting possi-bilities, such as potential cures for anumber of diseases. At the same time,he said the state must be sensitive tothe concerns of consumers. An edu-cational approach is needed, he said.

Promises and concerns

While public concern over geneti-cally modified crops is relatively recent,for years farmers have turned to sci-ence to help them improve the qualityand quantity of crops. Selective breed-ing and hybridization enabled farmersto increase production and developsome defenses for crops against devas-tating pests and disease. Since 1994,

California Sen.Jim Costa


CSG resourcesA State Official’s Guide to Sound

Science (order #C191-9800) isavailable for $20 by calling CSGat (800) 800-1910 or visiting theCSG online store at www.csg.org.

A CSG South regional resource,Agriculture and Biotechnology byJonathan Watts Hull, Feb. 2000,is available from the CSG South-ern office, (404) 266-1271.

More is on the Web sites of theU.S. Department of Agriculture,www.aphis.usda.gov/biotechnol-ogy, and Economic Research Ser-vice, www.econ.ag.gov.

Farmers wonder about the impactof the European Union’s newly adopt-ed labeling regulations for foods contain-ing biotech ingredients, anda similar trend in other coun-tries such as Japan and Aus-tralia. For the farmer whogrows biotech and nonbio-tech crops, the cost could besignificant to segregate thecrops — to harvest, store andtransport them separately.

Currently, 18 percent ofthe U.S. corn market is ex-ported — the rest is useddomestically. Of the cornexported, 94 percent goes toLatin America, Japan, Africaand the Middle East. Whilea few of the biotech-corn va-rieties grown in the UnitedStates have been approved bythe EU, there are still a num-ber of varieties that have not.However, EU purchases ofcorn represent less than 1percent of U.S. corn exports.

Forty-two percent of theU.S. soybean market is ex-ported, 33 percent to the EuropeanUnion. Though the EU buys the larg-est share of the U.S. crop, the biotechsoybean commercially grown in theU.S. now is EU-approved, so the USDAcontends it is unlikely EU countrieswill stop the soybean trade. The inter-national soybean market is very com-petitive, however, and is carefullywatched.

Benefits of biotechnology

From the perspective of many farm-ers, genetically modified crops havebeen a saving grace, curbing the costsof production.

“(Genetically modified) crops haveabsolutely been a lifesaver to me,” saidBill Blackford, a Kentucky farmer whoraises genetically modified corn andsoybeans. “Due to the reduction in theamount of pesticide used and applica-tions necessary, my costs for raising

soybeans have gone from $60 an acreto $21 an acre.”

Biotechnology companies and thosewith related businesses also play a sig-

nificant part in the debate.“Outreach to consumers, lawmakers

and regulators on food biotechnologyhas been a top priority for GMA,” saidChip Kunde, vice president of StateAffairs for the Grocery Manufacturersof America. “That’s why we workedwith food, farm, retail, nutrition andscientific groups to create the Alliancefor Better Foods, a coalition of morethan 40 organizations dedicated to pro-viding fact-based information to con-sumers about food biotechnology. Ourgoal is to facilitate a discussion sur-rounding food biotechnology that isbased on sound science.”

State agricultural experts also valuebiotechnology. Texas Agriculture Com-missioner Susan Combs said, “Biotech-nology offers tremendous opportunitiesfor the agricultural industry. Geneticenhancement is helping to increase thenutritional quality of food, to improvethe environment and to reduce the

Genetic research holds promise for better crops.

costs of production. There are manybenefits to agriculture and the growingworld population from biotechnology.”

Legislators across the nation might

expect more legislation dealing with bio-technology in future sessions. For now,states are tending toward studying theissue rather than passing legislation tohalt the growth of the industry.


economic developmenteconomic development

Playball!

n Wisconsin, the hottest politicalfootball tossed about this legislativesession was a bill to help finance

renovation of the Green Bay Packersfootball stadium.

Officials in Wisconsin were notalone in debating the merits of financ-ing sports facilities — similar debatesoccurred in Arizona, Connecticut,Florida, Minnesota, Ohio and otherstate legislatures in recent sessions.

While the Packers did not threatento relocate, professional sport fran-chises elsewhere have threatened tomove if they don’t receive aid for newfacilities and some have moved. Often,what determines whether a franchisewill stay in an area depends on thewillingness of state and local govern-ments to foot the bill for the renovationor construction of a sports facility.

Whether there are any significantpublic benefits associated with the highcosts involved depends on who youask. Numerous studies by economistshave concluded that sports stadiumshave little, if any economic impact fora state or regional area based on thenumber and the wages paid of jobs theygenerate.

However, studies by private consult-ing firms, such as Deloitte & Touche,have concluded that sports facilitiescan economically uplift blighted cen-tral cities, as well as become a sourceof civic pride. Regardless of the valid-ity of the opposing arguments, stategovernments continue to allow localvoters to decide whether to institute anew tax or taxing district to fund theconstruction of sports arenas. Issuessurrounding the debate of stadium fi-nancing focus on the three R’s: Rev-enue, Renovation and Referendum.

Revenue

If there is one word that explains therationale behind public subsidies for

State financing of

sport facilities

continues to be a hot

issue.

BY CHESTER HICKS

sports stadiums, it is revenue. The as-tronomical increase in players’ salarieshas forced team owners to search forother revenue streams that help covertheir expenses. Revenue also comes inthe form of new taxes, tax increases ortaxing districts that help governmentalentities pay for stadium construction.

Stadiums generate revenues in avariety of ways, and in today’s worldof professional sports, they are the keysto profitable teams. This is why manyteam owners claim they cannot affordto keep teams in old stadiums unlessthey receive earnings from specialluxury seating, food and beverage con-cessions, team paraphernalia and mer-chandise, and stadium advertising.

Team owners argue that a new sta-dium will generate more revenues,putting the franchise in a better posi-tion to bid for quality players. This willresult in a better team that will drawmore fans, which will result in morerevenues. This argument is supportedby the fact that most teams playing innew stadiums have improved as teams

_______________Chester Hicks is Midwestern regional

coordinator for The Council of StateGovernments.


and in fan attendance.John Shaw, president of the Na-

tional Football League’s St. LouisRams, said venue-related revenueshave increased by 25 percent since theteam moved into the new Trans WorldDome in 1995 and began earning morefrom luxury boxes and a variety of cor-porate sponsorships.

“The stadiums in L.A. are economi-cally obsolete,” said Shaw, whose teamwon the 2000 Super Bowl. “The lastyear we were in Anaheim we were thelowest revenue-generating club in theleague. Now, we are the second high-est, and that is directly a factor of sta-dium economics.”

However, such an argument maynot fly so well in Minnesota. In No-vember 1999, voters in St. Paul denieda 0.5 percent sales tax to help fund anew ballpark for professional base-ball’s Minnesota Twins. As far as argu-ments that the current Metrodome hasinadequate revenue streams, Gov. JesseVentura offered a counterargument.

“Maybe the Twins need to fill it up

once,” he said. “The Twins need to puta winning team on the field first, andthen come back and say they can’tmake it.”

Renovation

In Wisconsin, during this legislativesession, policy-makers locked hornsregarding a $295 million proposal bythe Green Bay Packers to renovateLambeau Field. Several senators eitherpolled their constituents on publicfinancing or submitted alternativeproposals.

The proposal called for the creationof a stadium district that could issue$160 million in revenue bonds or bor-row $160 million from the state public-land trust. This September, residentsof Brown County, where LambeauField is located, will vote on a 0.5 per-cent sales tax that would be used topay off the bonds or loan.

Two Wisconsin senators, RogerBreske, D-Eland, and Alberta Darling,R-River Hills, sponsored polls, both

online and through a toll-free number,to gauge the support or opposition tothe Packer plan. “Ever since I waselected to the state Senate, I have re-lied upon the people I represent fortheir input and suggestions about stategovernment,” Breske said. “This is justanother way for them to contact me.”

“The Packers have said that theysupport a referendum,” Darling said.“I think of this as a way that I can of-fer my constituents their own form ofa referendum, to ensure that their voiceis heard.”

After the Assembly had approvedthe measure 73-22, Senate MajorityLeader Chuck Chvala kept the proposaloff the floor, saying he was concernedabout the possibility of a gubernatorialline-item veto of the proposed legisla-tion. However, five days after the leg-islative session was scheduled to end,Chvala relented and the Senate onApril 6 approved the proposal 28-5.

“We have assurances, which we be-lieve are adequate, from the governor,the Green Bay Packers and others, tobelieve that this package, as it stands,the substantive aspects of this package,will remain intact,” Chvala said.

“Finally, it appears the people ofBrown County will get the opportunityto vote on the Lambeau Field renova-tion plan as they should,” Gov. TommyThompson said.

Referendum

As in Wisconsin, policy-makersoften refer the taxes to pay for sportsfacilities to voter referendums.

In the waning hours of its session,the Arizona Legislature April 18 ap-proved a measure to let MaricopaCounty voters decide the fate of a new$331 million stadium for the ArizonaCardinals. The bill passed the Housewith the minimum required 31 votes.Six representatives changed their votesafter earlier voting down the proposal.

Senate Bill 1220 would raise mostof the money by taxes on hotels andrental cars in the county. The vote willtake place Nov. 7. Under the bill, the

Voters in a local taxing district approved funds to build Mile High Stadium for theDenver Broncos. Photo credit: HNTB Sports Architecture


Cardinals will keep all NFL revenuesand stadium-naming rights. The publicauthority that would own the stadiumwould be responsible for maintenanceand operation costs.

Gov. Jane Hull had appointed a taskforce to develop plans for a new sta-dium. The Legislature did not desig-nate a site for the new stadium, leavingit up to Phoenix, Mesa and Tempe tocompete for the site. The Cardinalsnow play in Tempe.

In 1996, voters in Hamilton County,Ohio, approved a half-cent county salestax increase to pay for new stadiumsfor the NFL’s Cincinnati Bengals andbaseball’s Cincinnati Reds. The foot-ball stadium, named after Paul Brown,former Bengals head coach and gen-eral manager, will cost $400 million,including costs of land, piping, roadbuilding and other expenses. As con-struction continued for the openingkickoff this fall, so did the controversy,with several lawsuits filed over aspectsof the public financing.

Green Bay’s Lambeau Field redevelopmentCost ...........................................................................................$295 millionPublic funds ...........................................................................$169.1 millionSeats .................................................................. 71,000 (vs. 60,890 current)Suites ........................................................................... 167 (vs. 198 current)Club seats .............................................................. 6,260 (vs. 1,920 current)

A legislator in Colorado, whoseBoulder district in 1998 voted againsta six-county tax to build a new NFLstadium for the Denver Broncos, pre-sented a bill in the 2000 session to ex-pand the tax base to more surroundingareas. Colorado voters two years agoempowered a newly established Met-ropolitan Football Stadium district toissue a $260 million bond and raisetaxes by $39 million to build a stadiumin Denver. This session, Rep. RonTupa, D-Boulder, sponsored H.B. 1367to add another 80,000 people to thecurrent six-county taxing district tohelp pay for the new $364.2 millionBroncos stadium.

Tupa said the taxing district is in-equitable because it does not includeareas 15 miles from the stadium, whileincluding areas 40 miles away. Tupa’sbill would have required a vote by all2.2 million electors in the six-countydistrict, not just the areas Tupa wantsannexed into the district. Tupa said thebill was killed on the floor of the House

in a move supported by legis-lators whose districts in thesurrounding area were notpaying the tax.

“It’s not right and it’s cer-tainly not fair,” Tupa said.“You have football freeload-ers who are freeloading offthe rest of us.”

The strategy used in Den-ver of grouping the stadiumwith other local area projectsmade it easier to gain voterapproval. The strategy, devel-oped by Rick Horrow, theNFL’s consultant on facilitydevelopment, typically joinsa tax for a stadium withschool projects, a conventioncenter or a center for the arts.Such proposals are difficult to

oppose.“The public is put in the position of

approving or not approving infrastruc-ture in one integrated package,” Hor-row said. “No group of constituentsever supports all infrastructure devel-opment. But most agree that retoolingof infrastructure is necessary.”

In another instance of this strategy,Oklahoma City approved a nine-project, $265 million package in 1993that included money for riverfrontdevelopment, a state-of-the-art library,a convention center, a canal, a minor-league stadium and a music hall.

This session, lawmakers in Con-necticut approved a similar project thatincludes a $771 million riverfront devel-opment in Hartford, called Adriaen’sLanding, as well as a $90 million foot-ball stadium for the University of Con-necticut Huskies. State spending willtotal $455 million on the project.

Just as lawmakers this spring de-bated public assistance for new sportsfacilities, the cry of “Play ball” openednew major league baseball parks inDetroit, San Francisco and Houston.Moreover, with a half-dozen majorleague baseball teams clamoring fornew digs, more legislators likely willbe weighing the three R’s of revenue,renovation and referendum.

This artist’s rendering shows what Green Bay’s Lambeau Field would look like followingproposed development.


any of you readingthis have alreadymade up your mind

which candidate or whichparty or which issue you fa-vor, and will get your vote inthe coming election. It maybe hard for you to believethat most voters don’t havea clue about how they’ll voteeven as the conventionsare picking their nominees.Some people won’t evenbother to vote. Some feel they’re toobusy, others are bored by politics, oth-ers are just turned off by the processand the candidates. Some will votebecause they feel it’s their “patrioticduty,” not because they want to vote.

The critical group, the people whodecide every election, are those whogenuinely want to vote but are tornbetween two candidates, most oftenbecause they don’t really want either.When they vote at all, they’ll vote forthe candidate they:

• like better,• dislike less,• connect with.Contrary to popular belief, there

were no “Reagan Democrats.” Therewas no covert movement within theDemocratic Party to recruit voters forRonald Reagan. They were merelyundecided or independent or uncom-mitted voters who said, “I like that guy.I’ll vote for him.” Roosevelt won thosevoters in a big way. So did Eisenhower.And then there’s Bill Clinton. Mostpeople didn’t really trust him, but theyfound him far more likable than histwo opponents. He connected with the

_______________Arch Lustberg is a frequent and popularspeaker at CSG’s meetings. Hiscommunication videotape series is for saleon CSG’s online store, www.csg.org. He canbe reached by e-mail at [email protected] at his Web site www.lustberg.net or 1899L St., N.W., Suite 200, Washington, D.C.20036, (202) 833-4343, fax (202) 833-1986.

voters. Bush and Dole just didn’t.That brings us to Election 2000.I believe there will be a very light

turnout for the simple reason that nei-ther candidate is connecting with thevoters. Oh, I know, there are partisansamong you who are devoted to yourparty, who have a favorite and maybeeven really like the guy. But for thoseuncommitted voters, George W. Bushhas gone all the way from confident tococky to arrogant in a few shortmonths. At the same time, the speechesand debates of Al Gore have progressedall the way from boring to boring.Meanwhile, the campaign tactics ofboth Republicans and Democrats arebecoming reminiscent of “The CarvilleMethod of Communication.” No won-der the undecided voters are notturned on. They’re turned off.

My message is this: Whether you’rerunning for office, applying for a job,pleading a case in court or just havinga heart-to-heart with your family, youneed to connect. You need for them tosee you as a warm and caring person.So relax and enjoy yourself. Don’t beafraid to display a sense of humor, but

skill sessionskill session

Connecting with votersThe key to winning elections is getting voters to like you.

BY ARCH LUSTBERG

be genuine. Don’t try toimitate Robin Williams orBilly Crystal. Loosen up,but be yourself as you do.Remember Bob Dole’s com-ment to David Lettermanafter he lost the election:“Now I can go back to be-ing myself.” He had tried sohard to show that he waspresidential that he nevershowed us the real BobDole. If he had had as much

fun campaigning as he’s having sell-ing Viagra, he might have been electedpresident.

In every election, there are peoplewho know they’re going to vote for youthe day you announce your candidacy.Don’t ignore them, but don’t concen-trate on them. Also, there are peoplewho know they’re going to vote foryour opponent. Forget them.

The undecided voters are — orshould be — your only target. They’rethe ones who can win the election foryou if you win them over.

And here’s the really big news aboutthose voters; issues don’t really mat-ter until or unless voters like you. Oncethey like you, they’ll listen to what youhave to say and if they like that, you’vegot their votes.


he future of state and local gov-ernments’ ability to fund vitalpublic services hangs in the bal-

ance as Congress considers exemptingelectronic purchases from sales taxes.

At press time, the U.S. House May10 approved H.R. 3709 to extend thecurrent moratorium on new Internettaxes for five years. Moreover, theHouse bill would eliminate the abilityfor 10 states, which were exemptedunder the current moratorium, to col-lect Internet access taxes. The Houseacted quickly after receiving the con-gressional Advisory Commission onElectronic Commerce’s report April 3.

The ACEC, created by Congress in1998, split 11-8 on many issues. Busi-ness members and Virginia Gov. JamesGilmore aligned with the majority side.

The majority view in the report asksCongress to pre-empt the current taxlaw of many states. This pre-emptionwould jeopardize funds for essentialpublic services and give significant taxsystem benefits to e-commerce retail-ers at the expense of Main Street re-tailers. In an April press conference,state leaders of The Council of State

State and local

governments could be

shortchanged on

revenues to fund

public services should

Congress adopt

proposals for freeing

e-commerce from taxes.

BY ELAINE STUART

Governments urged Congress not toembrace the majority report. CSG op-poses action by Congress this year, es-pecially extension of the moratoriumon Internet taxes.

State leaders speak out

“The plan allows larger, and oftenwealthy, Internet companies to avoidbeing taxed themselves and to avoidcharging taxes to customers,” said Illi-nois state Rep. Tom Ryder, CSG chair-man. “Yet, loyal, local Main Streetretailers pay these taxes and may becrippled in their competitiveness if theplan is adopted.”

In addition, the report’s proposalscould turn the digital divide into a can-yon as wealthier people buy online tax-exempt, while low-income people buyat local stores where they pay salestaxes.

“Government policy that furtherwidens the digital divide betweenhaves and have nots must be rejected,”said Kentucky Gov. Paul Patton, CSGpresident.

The majority view in the reportcalled for:

e-commercee-commerce

Internet tax freedomcosts states

Kentucky Gov. Paul Patton urges Congress not to hurt MainStreet retailers by extending special tax breaks to Internetcommerce.

PHOTOS BY MICHAEL LAWSON, INTERNATIONAL CITY/COUNTY MANAGEMENT ASSOCIATION


• Eliminating existing sales taxeson items such as books, compactdiscs and newspapers whether soldin local stores in nondigitized formor over the Internet in digitized form.This would pre-empt current tax lawin many states and jeopardize statefunding for public services such aseducation, public safety, health andwelfare.

• Allowing e-commerce companiesto avoid paying income, property andother taxes by affiliating with com-panies in states without those taxes.

• Giving special tax treatment to“dot.com” businesses while requir-ing Main Street retailers tocollect taxes, thus puttingthem at a competitivedisadvantage.

“We cannot accept thisproposal as it places theprofits of some over thegood of the whole people,”Patton said. “Seriouslyjeopardizing the stabilityof state revenue struc-tures, furthering the di-vide between haves andhave nots, and cripplingMain Street retailers ispoor public policy thatshould be rejected.”

A divided commission

Gilmore, ACEC chairman, said thereport, nearly a year in the making,“will guide public-policy debate onInternet taxation for at least the nextdecade.” Many of the proposals, how-ever, fell two votes short of the two-thirds majority mandated by Congress.The majority votes were included in

the report, but not as for-mal recommendations.

The majority reportcalled for eliminating the3 percent federal excisetax on telecommunica-tions services, whichwould represent an im-mediate tax cut of $5 bil-lion. Removing the tax,Gilmore said, would low-er the price of Internetaccess and help close thedigital divide.

The majority view alsocalled for extending thecurrent moratorium on“multiple and discrimi-natory” taxation of elec-tronic commerce for an

additional five years through 2006. Italso would make permanent the mora-torium on Internet access taxes, whichexpires in 2001.

The report said state and local govern-ments should draft a uniform sales-and-

use tax act by Oct. 21, 2004, to simplifysales and use taxes.

To help close the digital divide, thecommission recommended that Con-gress clarify state authority to spendTANF funds to provide needy familiesaccess to computers and the Internet.It also recommended providing tax in-centives and federal matching funds tostates to encourage public-private part-nerships to increase access.

Gilmore, addressing the 2000 Glo-

Tax barriers?While some contend that the ex-

istence of more than 7,000 taxingauthorities nationwide imposestoo great a burden on Internet re-tailers, others maintain softwaresolutions could overcome poten-tial collection problems. Accordingto press reports, about two dozenstates are working with variouscompanies such as IBM Corp.,Taxware International, Inc., andEsalestax.com to devise technol-ogy to identify taxes due for onlinesales, collect the tax and distrib-ute it to the states where it is owed.What is needed is software thattracks different rates of sales taxesand adjusts for local rules. In thiscase, a technology fix might easeacceptance of a political solution.

CorporateIncome

7%

All OtherTaxes15%

Motor VehicleOperations

10%

Sales & Gross

Receipts59%

IndividualIncome

9%

State Sales & Gross Receipts: 1955-1997

1955

Source: Bureau of the Census, U.S. Dept. of Commerce

CorporateIncome

7%

All OtherTaxes7%

Motor VehicleOperations

5%

Sales & Gross

Receipts48%

IndividualIncome

33%

1997

State and local groups rallied in D.C.


bal Internet Summit held at GeorgeMason University, Fairfax, Va., onMarch 13, said, “As chairman of thecongressional Advisory Commissionon Electronic Commerce, I have pro-posed that sales taxes on electronic

Commission membersVirginia Gov. James Gilmore, chairman; Michael Armstrong of AT&T;

Grover Norquist of Americans for Tax Reform; Richard Parsons of TimeWarner Inc.; Bob Pittman of America Online; David Pottruck of CharlesSchwab Corp.; John Sidgmore of MCI WorldCom and UUNET; Stan Sokulof the Association for Interactive Media; Ted Waitt of Gateway Inc.; DeanAndal of the California Board of Equalization; Virginia Delegate Paul Har-ris, Commissioner Delna Jones of Washington County, Ore.; Dallas MayorRon Kirk; Utah Gov. Mike Leavitt; Washington Gov. Gary Locke; Gene Lebrunof the Commissioners on Uniform State Laws; Joe Guttentag of the Depart-ment of Treasury; Andy Pincus of the Department of Commerce, and BobNovick of the Office of U.S. Trade Representative.

low success rate in collecting the taxeson consumer purchases made over theInternet. Sales and use tax revenuesaccount for nearly one-fourth of allstate and local government revenues.

As more consumers buy online, the

pay use taxes on catalogue and Internetpurchases.

A plan for uniformity

Commission member Utah Gov.Mike Leavitt, testifying before the U.S.Senate Commerce Committee, urgedCongress to let states set their own taxpolicies.

Leavitt said eight commissionerssupported a plan to let states and lo-calities undertake a plan to simplifystate sales-and-use taxes in exchangefor the clear right to collect the taxes.

They recommended that Congressenact legislation to allow states to de-velop an Interstate Sales and Use TaxCompact by Dec. 31, 2003 to ensure alevel playing field and reduce the taxand administrative burden on businessand consumers.

Other officials support simplifyingtaxes. “State leaders in every branchof government remain committed tostreamlining and simplifying thestates’ tax-code systems, while retain-ing essential, critical public services,and treating retailers — and the people— fairly,” said Ryder of Illinois.

Most officials want a level playingfield. Michigan Gov. John Engler urgedCongress not to ban sales-and-use taxeson Internet commerce. Engler said aban “would be an unprecedented in-trusion on the rights of states to settheir own tax policy.”

In February testimony to the SenateBudget Committee, Engler said ex-empting Internet sales “is, in essence

U.S. Sen. George Voinovich, R-Ohio, joins state and local leaders in calling forfairness in Internet taxation.

commerce not be imposed on remotetransactions between businesses andconsumers. States should abolish usetaxes, which are difficult to enforce.The 3 percent federal telecommunica-tions excise tax should be abolished,and no government should be able totax access to the Internet.”

Massachusetts Gov. Paul Cellucciand Colorado Gov. Bill Owens areamong the governors who have sup-ported Gilmore’s anti-tax stance.Cellucci, who calls his state the “dotcommonwealth,” said a sales tax on topof a handling and shipping chargewould hurt e-commerce.

In contrast, 42 governors sent lettersto Congress opposing the tax morato-rium after the ACEC report came out.

Gilmore’s no-tax plan was wel-comed by U.S. House Speaker DennisHastert, R-Ill.

Tax-free cyberspace?

Under current practice, the 45 statesthat impose sales and use taxes have a

fear is that these revenues will fall instates such as Kentucky and Tennes-see, where revenues are tight. Under a1992 U.S. Supreme Court case, stateand local governments cannot requireremote sellers, whether Internet firmsor mail-order sales, to collect and remitsales taxes unless the firm has a sub-stantial physical presence in the state.If a remote seller does not collect thesales tax, then the consumer is sup-posed to voluntarily pay the use tax.Few consumers, however, report and


CSG resourcesCSG’s Washington, D.C., office has information on the commission’s report

and a link to the commission’s Web site (www.ecommercecoalition.org) onthe CSG Web site, www.csg.org. For more information, contact KristinCormier in the D.C. office, (202) 624-5460. The CSG IntergovernmentalCommittee discussed the issue at the Spring Task Force and CommitteeMeeting in Napa Valley, Calif., April 29.

Electronic Commerce: Revenue Implications for States, C200-9900, is avail-able for $20 from CSG’s Sales Department, e-mail, [email protected], or call(800) 800-1910.

Federal proposalsThe 1998 Internet Tax Freedom

Act expires October 2001. The cur-rent act stops new taxes on Internetaccess and does not cover sales-and-use taxes. Bills before Congress in-clude:

• S. 1611 and H.R. 3252, in-troduced by Sen. John McCain, R-Ariz., and Rep. John Kasich, R-Ohio, to expand and make perma-nent the current tax moratorium;

• S. 2028 and H.R. 3709, intro-duced by Sen. Ron Wyden, D-Ore.,and Rep. Christopher Cox, R-Calif.,to make the tax moratorium perma-nent. The House passed an amend-ed H.R. 3709 on May 10 extendingthe moratorium by five years.

• S. 2255, introduced by Sen.John McCain, R-Arizona, to extendthe tax moratorium by five years.

a double standard: good for clicks, badfor bricks.”

United in opposition

In a March 30 statement, Leavitt ofUtah, Washington Gov. Gary Locke,Dallas Mayor Ron Kirk and DelnaJones, a county commissioner fromOregon, said the report would imme-diately reduce state and local tax reve-nues by more than $20 billion a yearand would “force either reductions ineducation, transportation and public-safety programs, or offsetting revenueincreases on every other taxpayer.”

By giving certain companies tax ex-emptions not enjoyed by others, theproposal “could force thousands ofsmall retailers in every small townacross America into bankruptcy,” thestate and local commissioners said. TheACEC did not include even one retaileror small-business representative.

Public-interest group leaders joinedCSG leaders at the April press confer-ence. They included representatives ofthe National Governors’ Association, the

National League of Cities, U.S. Confer-ence of Mayors, National Associationof Counties, National Conference ofState Legislatures and InternationalCity/County Management Associa-tion. Moreover, executives of majorretail stores, including Target Stores,Radio Shack, J.C. Penney, Circuit Cityand Sam’s Clubs, said they oppose cre-ating a tax-free marketplace for someInternet sellers.

U.S. Sens. George Voinovich, R-Ohio; Bob Graham, D-Fla., and ByronDorgan, D-N.D., joined the state andlocal leaders. Voinovich, a former gov-ernor and mayor, said, “State and lo-

cal governments aren’t interested intaxing but in coming up with a systemthat is fair.”

Ryder of Illinois cited Voinovich’sappearance at the D.C. press confer-ence while presenting Voinovich withCSG’s Guardian of Federalism Awardat the organization’s spring meetingApril 29 in Napa, Calif. Ryder said,“Sen. Voinovich led the charge againstcongressional actions that would limitstate and local sovereignty and clearlydescribed how Internet taxation wouldimpact state and local governmentsand the citizens they represent.”

Internet access charges

Taxes on information/software downloaded from the Internet

(Alaska, Delaware, Montana, New Hampshire and Oregon do not have a state sales tax)

States with charges on Internet access & downloading software

Source: Vertex, Sept., 1999


nfortunately for low-incomeseniors, Medicare does notcover the cost of pharmaceuticals

and many of the low-income elderly donot qualify for Medicaid. As a result,they find it difficult to purchase medi-cations.

To fill the gap, 16 states have phar-maceutical assistance programs gener-ally featuring an annual income limitand a minimum-age qualification. NewJersey, the first to help low-income se-niors with its pharmacy assistance pro-gram in 1972, assisted 206,000 peoplein 1999.

Since 1985 Illinois has had a programdesigned to help low-income seniorsand people with disabilities purchasedrugs commonly prescribed to treatchronic conditions. Coverage has in-

While some states

consider price controls

on prescription drugs,

at least 16 states have

established programs

to help the elderly in

need. One of these is

Illinois’

pharmaceutical

assistance program.

BY ALLISON HIRSCH FORE

cluded diabetes, heart conditions, highblood pressure and kidney disease.Known as the “Circuit Breaker Pro-gram,” this pharmaceutical assistanceplan, offered through the Illinois De-partment of Revenue, benefited morethan 53,555 people in 1999. This Aprilthe Legislature expanded the programto benefit an estimated additional178,000 households.

Illinois Sen. Dave Syverson, chair ofthe Public Health and Welfare Com-mittee, said the Legislature recognizedthe need to help senior citizens buymedications to control their conditions.

“We all know how difficult it is forour seniors to make ends meet,” Syver-son said. “We are always trying tomake their quality of life better.”

continued on page 30

_______________Allison Hirsch Fore is the legislative aide to

Rep. Ron Wait, and an Illinois licensedsocial worker.

Illinois assists low-income senior residents with the cost of prescription drugs forchronic conditions.

healthhealth

Rx fordrug

costs


n our nation more than 44,000 po-litical jurisdictions adopt, interpretand enforce five major sets of con-

struction codes and more than 2,000technical standards governing the sit-ing, design and construction of build-ings. As a result, duplication and slowprocessing plagues almost every stepof construction regulation from zon-ing and land use to inspections to is-suing a certificate of occupancy. Thiscan lead to confusion on the part ofbuilders, code officials and consumers.It also can lead to unnecessary costs andto a breakdown in both building safetyand the affordability of construction.

Streamlining the Nation’s BuildingRegulatory Process is a project initiatedby the National Conference of Stateson Building Codes and Standards, Inc.and supported by 55 national partners,including The Council of State Govern-ments. The project assembles packagesof streamlined model regulatory pro-grams in use at all levels of governmentacross the nation, and assists state andlocal governments in adopting the pro-grams. By implementing these provenmodels, local governments can reduceregulatory barriers and unnecessarycosts, and can shorten constructiontimes.

Experts from different areas of thebuilding-regulatory industry reviewand refine the model programs. Theydevelop practical, experience-basedimplementation strategies to aid juris-dictions in adopting and using themodels and in reaching consensus andimproving communication. So far, theproject offers 54 approved model pro-grams covering areas such as zoningand land use, environmental review,permitting and plan review, and pro-cess automation.

Several of the 54 models simplifyregulation at the state level. One of thebiggest concerns of streamlining is thedegree of home rule in a given state

States and localities

can help residents and

businesses save time

and money by

streamlining

construction

regulations.

BY BRANDON STIDHAM

and striking a balance with a localjurisdiction’s right to govern itself.

The following are examples of statesthat have succeeded in striking aproper balance.

Maryland developed a statewidebuilding code that requires localities toadopt a model code, but also permitsthem to amend the code for uniqueconditions. To track local-level codechanges, the state developed a comput-erized database of local amendmentsfor public reference. The effort ensuresthat builders and contractors workingin multiple jurisdictions can use a com-mon base code and can easily referencelocal amendments through the onlinedatabase.

Texas lacks a statewide buildingcode but has implemented a statewideaccessibility code for people with dis-abilities. Having a uniform set of regu-lations saves time and money for ev-eryone by producing a written guide-line that ensures compliance on firstsubmission.

New Jersey grants a broad array ofregulatory power to local jurisdictions.To ease the strain of different munici-pal regulations for streets, parking,water supply, sanitary sewers andstorm-water management improve-ments in connection with residentialdevelopment, New Jersey establishedstatewide regulations in these areas.The result is that homeowners save anaverage of $2,000 per dwelling.

New Jersey also has implemented astatewide prescriptive RehabilitationSubcode to encourage rehabilitation ofexisting buildings, as well as to bringuniformity among local jurisdictions.State officials report that cost savingsin construction requirements varyfrom 4 percent to 40 percent depend-ing upon the scope and type of work.

Maryland this year passed a law cre-ating a “Smart Code” based on the

continued on page 30

_______________Brandon Stidham is regulatory affairsspecialist for the National Conference ofStates on Building Codes and Standards, Inc.

regulatoryregulatory

Buildingfasterforless


New Jersey model. New Jersey’ssubcode model also has been imple-mented in Wilmington, Del., and isbeing considered for adoption by Dela-ware, New York, Connecticut andRhode Island. The New Jersey pro-gram won an Innovations Award fromCSG in 1999.

Virginia and Utah each reduced thecost of providing technical training toinspectors and code-enforcement per-sonnel by establishing statewide instruc-tional programs for code-enforcementpersonnel. These programs pool re-sources and eliminate duplicate train-ing efforts.

Many forward-thinking jurisdictionshave started the streamlining processand have experienced tangible cost

ResourcesFor more information, contact:

Brandon Stidham or Carolyn Fitch,National Conference of States onBuilding Codes and Standards,Inc., 505 Huntmar Park Drive,Suite 210, Herndon, Va. 20170,(703) 437-0100, e-mail: [email protected] or [email protected].

How it works

The circuit breaker is available to Illi-nois residents 65 or older with a house-hold income of less than $16,000 a yearand residents 16 and older who havea total physical or mental disability.

Cost depends on income. The annualfee is $40 and the monthly deductibleis $15 for residents with incomes ofless than $8,050. For incomes up to$16,000, the annual fee is $80 andmonthly deductible is $25. Once thestate pays $800 in a fiscal year on be-half of a participant, the participantcontinues to pay the deductible plus20 percent of drug costs.

Most pharmacies accept circuit-breaker cards, charging the state a dis-pensing fee of $3.60 per prescription.Participants who prefer a brand-namedrug when a generic substitute is avail-able pay the price difference. The Leg-islature appropriates funds for the pro-gram from the General Revenue Fund.The department’s cost of administer-ing the program in 1998 was $454,900,which included salaries and benefitsfor seven employees but not salaries

and benefits for support personnel inother offices.

Program to expand

The General Assembly this sessionvoted to expand the program by in-creasing the income limits and cover-ing medicines for more conditions.

Illinois Rep. Dave Winters said theLegislature acted because of the finan-cial difficulties seniors face. “Every dayI receive a couple of calls from seniorswho are overwhelmed with the cost ofhealth care and are struggling to tryand afford their medication,” Winterssaid. “As a legislative body, we are al-ways open to ways of helping peopleon fixed incomes make ends meet.”

One of those is 82-year-old MilliePriem of Belvidere, Ill., who acquiredher card 10 years ago. “I don’t knowwhat I would do if I didn’t have a circuit-breaker card,” said Priem, who has ahistory of congestive heart failure.

In April, the Illinois General Assem-bly sent to the governor a measure toexpand the program effective Jan. 1,2001. Individuals with incomes up to$21,218 and two-person senior house-holds with incomes up to $28,500 will

now qualify for the circuit breaker andthe conditions covered will includeParkinson’s Disease, glaucoma, Alzhei-mer’s, and smoking and lung problems.

The state has improved the programover the years. With an increasingnumber of low-income elderly quali-fying for the circuit breaker, the statemade two major changes to curtail pro-gram costs in January 1995. A pre-ferred list of drugs was developed tocontrol costs and a drug-utilizationreview service was implemented toallow pharmacists to monitor for pre-scriptions not cost effective.

The state also has responded to com-plaints made by applicants. In responseto complaints not enough medicationsare covered, the General Assemblyadded more medications this legislativesession. The department made changesin the automated telephone system toaccommodate participants with rotary-dial telephones and limited partici-pants’ calls to three per week to freeup busy lines and allow greater accessto the system.

For more information on Illinois’program, call the department at (800)624-2459 or visit its Web site atwww.revenue.state.il.us.

RX for drug costscontinued from page 28

savings. But where does regulatorystreamlining start? The first step forgovernment officials, builders, contrac-tors and consumers is to identify theproblems and inefficiencies that bogdown regulatory processes. The firststep is to write down specific examplesof how and where the regulatory pro-cess causes delays and where there isroom for improvement.

The second step is to view the 54streamlined models and implementa-tion plans online at www.ncsbcs.orgor call (800) 362-2633 to requestprinted copies. Review these modelsand compare them to the list of regula-tory inefficiencies to identify ones thatcould help your jurisdiction.

The final step is to assemble a broad-based group to refine and customizethe models for your jurisdiction, aswell as advocate adoption of models.

Bringing involved people to the tableto discuss a regulatory problem, oreven getting them to agree that thereis a problem, is often the biggest chal-lenge in streamlining. Project staff, rep-resentatives from the project’s 55 na-tional partners and designers of modelprograms are available to conductstreamlining and consensus-buildingconferences in your jurisdiction.

Building faster for lesscontinued from page 29


Colorado, home of a mile-highcity, will begin a new relation-ship with Nepal, also known

for its mountains, as both benefit froma grant awarded by The Council ofState Governments’ State Environ-mental Initiative.

Five other states and Asian partnersalso will receive matching grants. Theinitiative encourages internationalpartnerships in environmental andeconomic development between U.S.states and Asian/Pacific nations andterritories.

The winning projects were selectedfrom among 21 proposals. The StateEnvironmental Initiative AdvisoryCommittee reviewed proposals inWashington, D.C., April 6-8. The com-mittee consists of state legislators, rep-resentatives of the private sector aswell as representatives of the WorldBank and the U.S. Environmental Pro-tection Agency. While making its de-cisions, the committee strongly consid-ers the comments and opinions of theU.S. Asia Environmental Partnership.

The SEI receives its core fundingfrom the United States Agency for In-ternational Development through theUnited States-Asia EnvironmentalPartnership and is managed by CSG’sCenter for Leadership, Innovation andPolicy. The program provides fundingon a competitive basis to state-led ini-tiatives in support of international,public-private partnerships aimed at

bringing about a “clean revolution ” inAsia. The SEI awarded its first grantsin 1995.

The six projects selected this year are:• The Colorado-Nepal Environmen-

tal Exchange addresses urban policyand management and focuses onstrengthening Nepal’s capacity to un-dertake its environmental protectionmandate. Innovative policy approacheswill increase the commitment ofNepalese community leaders and busi-ness toward sustainable urban devel-opment. The exchange allows for in-troducing U.S. products and servicesand building long-term Colorado-Nepal public-private partnership/busi-ness relationships. This initiative is ledby the Colorado Office of EconomicDevelopment and International Trade.

• The Kentucky-India ConflictResolution Partnership on India’sdams employs environmental media-tion techniques in a specific dispute inIndia related to the construction ofdams. This pilot project refines con-sensus-building methods, educates andequips the project’s Indian partners towork on similar conflicts and developsa model approach for such types of dis-putes, which can be used in other ar-eas in India and the rest of Asia. Theproject provides a unique opportunityfor a transfer and sale of U.S. environ-mental technology and services.

The University of Kentucky is theKentucky-India project’s leadingpartner.

• The Louisiana-Taiwan Clean En-ergy Technology for Taiwan projectintroduces advanced clean-energytechnology. The project prepares theregion for the effects of reducing green-house gases. The project provides U.S.firms an advantage in selling clean-coaltechnologies in Taiwan. It also allowsU.S. experts to participate in formationof Taiwan’s program of clean-energytechnology. Louisiana’s Taipei office

Six states reach out to AsiaMAGDALENA N. MOOK

leads this initiative.• The Maryland-Thailand Building

Capacity of Thai Federal/Local AirQuality Agency project is led by theMaryland Department of Environ-ment. It increases capacity of the ThaiPollution Control Department to pro-tect and manage the environment andto improve air quality. It strengthenscommunication and networking amongThai federal, provincial and municipalair-quality protection staff. The projectallows Maryland to introduce its envi-ronmental technologies, products andsolutions in Thailand.

• The New Mexico-India Bi-StatePartnership for Catalyzing PollutionPrevention and Energy EfficiencyTechnologies in India is a partnershipof New Mexico and Idaho. It involvesgovernment agencies, land-grant uni-versities, private companies, nationalresearch laboratories and NativeAmerican institutions. The project’slead agency is the Waste ManagementEducation and Research Consortium.The project allows technology trans-fer in pollution prevention, hazardous-waste management, remediation ofmining wastes, reduction of green-house-gas emissions and energy effi-ciency. This goal will be accomplishedmainly through fostering direct busi-ness-to-business contacts.

• The North Carolina-Taiwan De-velopment of an Environmental Cen-ter for Livestock Waste Managementwill advance swine production/wastemanagement by conducting research,demonstrations, evaluations and tech-nical training. This project providesthe basis for adapting existing tech-nologies or development of new equip-ment, which will provide U.S. tradeopportunities. North Carolina StateUniversity leads the project.

The awards were announced dur-ing the CSG Spring Meeting in NapaValley, Calif., April 27-30.

_______________Magdalena N. Mook is a policy analyst for

CSG’s Center for Leadership, Innovationand Policy. CLIP develops state problem-

solving initiatives with intergovernmental,philanthropic and corporate partners. For

more information, contact Karen Marshall atCSG, (859) 244-8234, [email protected]

or Magdalena Mook at CSG, (859) 244-8199, [email protected], or visit the SEI’sWeb site at www.sei-asia.org or CLIP at

www.csg.org.

news from csg's center for leadership, innovation & policynews from csg's center for leadership, innovation & policy


SG Chair Illinois Rep. Tom Ryderpresided over the CSG Executive

Committee meeting where U.S. Sen.George Voinovichof Ohio spoke of

CSG’s unstoppable presence on Capi-tol Hill regarding Internet sales taxation.Voinovich’s words were echoed by CSGPresident Kentucky Gov. Paul Patton,who said e-commerce may be the de-fining federalism issue of our time. (Seepage 24 for more).

At the CSG Spring National Commit-tee and Task Force Meetings in Napa,Calif., Voinovich received the CSGGuardian of Federalism award.

The launch of www.GovStoreUSA.com,CSG’s new benefit for members, metwith resounding approval from CSGleaders. State officials who sign on tothis site can shop, at no-risk for dis-counted information technology items.Any CSG member, including all ap-pointed and elected officials of stategovernment, may sign on and receivea password to shop for anything fromone laptop to a whole series of items.

Technology issues were addressedseveral times in Napa. California Secre-tary of State Bill Jones highlighted themany public services that his state ismaking available online. Most agreedthat online is the wave of the future instate services.

Representatives from Michigan re-minded attendees about CSG’s 2000Annual Meeting and State LeadershipForum in Dearborn, Mich., Dec 7-10.Those who attend the annual meetingwill be treated to Motown Music Night,an exclusive Rockettes Christmas per-formance at the Fox Theatre and a“Taste of Michigan” cuisine while tour-ing the world-famous Henry Ford Mu-seum. The 2000 meeting topics willfocus on technology issues rangingfrom e-commerce and Internet salestaxation to how states may prepare forthe work-force needs of the new knowl-edge-based economy. Other forum top-ics will include the environment, pub-lic safety and corrections, health care,the role of states internationally fortrade and commerce, and federalismissues.

CSG leaders meet in Napa, Calif.

leadership

C

(From left) CSG President Kentucky Gov. Paul Patton, CSG Chair Illinois Rep. Tom Ryder, CSGPresident-Elect Idaho Gov. Dirk Kempthorne and CSG Vice President Maryland Gov. ParrisGlendening preside over the Executive Committee meeting.

(From left) Missouri Rep. Robert Clayton,Oklahoma Sen. Gilmer Capps and Teresa Dyerof Ticketmaster attend.

CSG Chair Illinois Rep. Tom Ryder (left)congratulates CSG Executive Director DanSprague for Sprague’s 20 years of service to CSG.

Massachusetts Rep. Dan Bosley (left) andNebraska Sen. Pam Brown attend the E-Government Advisory Board meeting.

(From left) Abe Frank, vice president, StateGovernment Relations, Citigroup, Robyn Rowen,National Association of Independent Insurers,and Virginia Sen. President Pro Tem JohnChichester, CSG vice chair, attend a CSGAssociates meeting.

New York Sen. Efrain Gonzalez Jr. (left) andCalifornia Sen. Richard Polanco attend ameeting of the National Hispanic Caucus ofState Legislators.

Ohio Rep. Vernon Sykes (left) listens.


California Secretary of State Bill Jones (left)and California Sen. Elaine White Alquistattend the Executive Committee meeting.

(From left) Penny Davis, Alabama Law Institute, Nebraska Sen. PamRedfeld and Joyce Honaker, Kentucky Legislative Research Commission,attend the Suggested State Legislation Committee meeting.

Leading the Suggested State Legislation Committee meeting are (from left)Committee Vice Chair Virgil Puskarich, executive director of the Local GovernmentCommission, Co-Chair Utah Rep. Ray Short and Co-Chair Ohio Sen. Bob Cupp.

(From left) Idaho Gov. Dirk Kempthorne, Maryland Gov. Parris Glendening and U.S. Sen. GeorgeVoinovich, R-Ohio, discuss Internet taxation.

(From left) South Dakota Chief Justice RobertMiller and Delaware Chief Justice NormanVeasey attend the Executive Committee meeting.

(From left) Mississippi Treasurer MarshallBennett, Minnesota Sen. John Hottinger andMassachusetts Rep. Dan Bosley attend theExecutive Committee meeting.

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Voinovich accepts awardS. Sen. George Voinovich, R-Ohio, accepted the Guardian of

Federalism Award at The Council ofState Governments’ Spring National

Committee andTask Force Meet-

ings in Napa, Calif.Illinois Rep. Tom Ryder, CSG chair, in

presenting the award said the senatorhad built a solid reputation as a guard-ian of federalism and a fighter for stateand local authority.

Voinovich has served as governor andlieutenant governor of Ohio, state rep-resentative, county commissioner andmayor of Cleveland.

In the Senate, Voinovich serves onfour committees and presides over twosubcommittees. He has cosponsoredmany pieces of CSG-supported feder-

leadership

olorado became the first state to enact the Interstate Compact for AdultOffender Supervision. Gov. Bill Owens signed the bill into law April 10. As of

mid-May, 15 states have introduced the legislation, which seeks to restructure andraise the level of oversight on the transfer of parolees andprobationers between states. Idaho, Kentucky and Vermont

also have enacted the compact. For more information on the Interstate Compactfor Adult Offender Supervision, contact John J. Mountjoy at (859) 244-8256 or visitthe CSG Web site at www.statesnews.org/clip/policy/isc.htm.

Modernizing supervision

national

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he State Trends Group of the CSGCenter for Leadership, Innovation

and Policy announces the formation ofthe State TrendsAdvisory Board.

The board will meet quarterly to iden-tify emerging issues as potential articletopics for State Trends, CSG’s award-winning quarterly publication. The boardincludes public officials and private-sector representatives who act as “trendspotters” within their regions of thecountry and their areas of expertise.

The State Trends Advisory Board metApril 28 during the CSG Spring NationalCommittee and Task Force Meetings inNapa, Calif. Dow AgroSciences, The Dun& Bradstreet Corporation and 3M spon-sored the board’s luncheon.

Board members for 2000-2001 arelisted below. CSG appreciates their con-tribution to State Trends.

• Tom Covington, North CarolinaProgress Board

• Dan Garry, 3M• Oscar B. Jackson Jr., Oklahoma

Office of Personnel Management• Elisabeth Kersten, California

Senate Office of Research• Sen. Carol A. Kontos, Maine• Alden Schacher, The Dun &

Bradstreet Corporation• Sen. Dale W. Schultz, Wisconsin• Jeff Smoller, Wisconsin Department

of Natural Resources• Bryan Stuart, Dow AgroSciences

State Trends formsadvisory board

clip

TU.

U.S. Sen. George Voinovich (second from left) receives a 2000 CSG Guardian of Federalism Awardfrom CSG Chair Illinois Rep. Tom Ryder, while Tennessee Sen. Douglas Henry (left) and NebraskaSpeaker Doug Kristensen look on.

alism legislation in the Senate. Theseinclude the Federalism AccountabilityAct to prevent pre-emption of state andlocal authority by Congress and the ad-ministration without express intent; theFederal Financial Assistance Manage-ment Improvement Act to streamlinethe federal grant process for states; theRegulatory Improvement Act to consultwith states and local governments onnew rules, and the Truth in RegulatingAct to improve development of agencyregulations.

Voinovich also introduced and passedlegislation to prevent the federal gov-ernment from taking any portion of thestate share of tobacco settlement funds.More recently, he came out againstCongress limiting state and local sov-ereignty over Internet taxation.

(From left) Jean Cantrell and Alden Schacherof The Dun & Bradstreet Corp., and BryanStuart of Dow AgroSciences meet as part of theState Trends Advisory Board.


he National Association of State Treasurers launched a weekly e-newsletterin March, featuring financial and state treasurer news from around the nation.

NAST News covers issues that affect the operations of the chief fiscal officers of thestates, including the tobacco settlement, new state collegesavings programs and unclaimed property, as well as federal

initiatives like electronic financial transactions to proposed rules and regulations.“Electronic communication has skyrocketed through advanced compute tech-

nology and the advent of the Internet,” said Nebraska Treasurer David Heineman,president of NAST. “The ‘dot com’ phenomenon has infiltrated nearly every com-mercial enterprise. Electronic government is coming, and in many states already ishere. It is on our doorstep and state treasurers are active leaders in our states’conversions to the newest medium.”

NAST News provides news summaries of media outlets from around the nationand provides links to articles so they may be read by treasurer members.

robation, Parole and CommunitySupervision Officers’ Week is July

23-29. Adult and juvenile probation,parole and community corrections offi-

cers’ have lingeredin the shadows of

anonymity far too long, according to theAmerican Probation and Parole Asso-ciation. APPA is honoring these unsungheroes through a presidential messageand proclamations from 48 states.

The week has been set aside to honorand recognize line officers who super-vise offenders who work and live incommunities. According to the Bureauof Justice Statistics, there were 4.1 mil-lion men and women on probation andparole as of Dec. 31, 1999.

Celebrate community corrections

P Tens of thousands of officers work toensure public safety. They are an essen-tial part of the criminal and juvenile jus-tice system and safeguard the publicfrom criminal activity. Officers work inpartnership with community agenciesand groups and provide services, sup-port and protection for victims.

In keeping with a balanced approach,these officers provide a range of sanc-tions and services. Insuring humane,effective and individualized sentencesfor offenders, and support and protec-tion for victims enhances public safety.

Visit APPA’s Web site at www.appa-net.org and click on the name of yourstate to view its proclamation.

appa

he Council of State Governments is partnering with GovStoreUSA.com to bringgovernment officials exclusive prices on information technology products.

As a benefit of CSG membership, state officials can visit the Web site ofGovStoreUSA.com and register for a password. GovStoreUSA.com will telephone

and verify your eligibility as a government official. Then, youcan start shopping. An official may purchase one item or a

series of products. The transactions are instantaneous, delivery is overnight, andthe selection is from more than 100,000 computer, communication and officeproducts. Since these product prices are offered only to those in state and localgovernment, buyers receive incredible savings regardless of the quantity purchased.

What’s more, state officials can share this Internet store with local governmentcolleagues. Pass the word to city and county managers, city councilpersons, andmayors and let them know they may also use GovStoreUSA.com. To begin shop-ping, link from the CSG Web site www.csg.org or visit www.govstoreusa.com.

Get government exclusive I.T. prices

statesnews

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NAST News launched by state treasurers

nast

T

When asked, "Should there be a moratorium on the death penalty while its fairness is examined?" most people responding to CSG's online poll said yes. Of those who voted, 59% voted yes, 41% voted no.

The June question:Should patients be allowed to sue HMOs?

To vote yes or no, visit CSG's Web site at www.csg.org. The poll will be open June 1-15. Check the August issue for results and the next question.

njoy an exclusive Rockettes’Christmas performance and

Michigan cuisine at the Fox Theatre aspart of the 2000 CSG Annual Meeting

and State Leader-ship Forum, Dec.

7-10. At the Dearborn, Mich., meeting,The Council of State Governments willpresent information on “New CenturyStates: Driving the Knowledge Economy.”

Issue sessions will focus on e-com-merce and its potential impact on staterevenues and services, as well as tech-nology applications in health, publicsafety, the environment and more.Michigan, CSG’s host state, will treatattendees to the Henry Ford Museumand other landmarks and attractions.Automobiles transformed the 20th cen-tury, but technology is driving the 21stcentury. Make your reservations todayby calling CSG at (859) 244-8103 or e-mailing whines@ csg.org.

Join CSG inDearborn inDecember

leadership

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bout 400 businesspeople from the Midwest and around the world attendeda Midwestern Governors’ Conference networking reception aimed at help-

ing regional exporters boost international trade opportunities.The event was held March 13 at McCormick Place in Chicago as

part of the five-day National ManufacturingWeek show.

One of the MGC’s ongoing goals has been to promote and en-hance international trade among Midwestern businesses. In 1997,governors formed the International Trade Working Group, whichis composed of top state trade officials in the region.

In cooperation with the MGC’s staff, the International TradeWorking Group planned the reception and invited internationalbusinesses and Midwestern exporters. The group’s activities areoverseen by the Midwestern Economic Development Coopera-tion Council, a board composed of state economic developmentofficials appointed by Midwestern governors.

The Economic Development Council is co-chaired by Kansas Lt.Gov. Gary Sherrer and Indiana Lt. Gov. Joe Kernan, both of whomserve as directors of their states’ economic development agen-cies.

For more information, call Jacqueline Kocinski or Ilene Grossmanat (630) 810-0210.

Midwest promotes exports

A

the midwest

SG-WEST is seeking private-sector support for its first West-

ern Legislative Academy to be held Aug.1-4, in ColoradoSprings, Colo. The

academy will help newer state legisla-tors in the West become more effectivemembers of their legislative bodies.

In a heavily term-limited region, yearsof collective lawmaking experience arewalking out the door at the end of eachsession. CSG-WEST believes that a region-al professional development programfor state legislators will strengthen law-making skills and help build support forthe institution of the legislature. Acad-emy participants will learn from theircolleagues in other states, from experi-enced legislative leaders and renownedexperts in professional development.

While participants will pay their owntravel costs, CSG-WEST is seeking sup-port to help pay for training, housing,meals and on-site ground transporta-tion. Thanks to the support of the ElPomar Foundation, a center for non-profit organizations, the academy willconvene its program with the compli-mentary use and amenities of the foun-dation’s conference center, The PenroseHouse.

CSG-WEST urges the private sector tojoin this new effort to build excellenceand effectiveness in Western state legis-latures. To find out about opportunitiesto contribute to the Western LegislativeAcademy, to observe the program andto participate in the evening socialevents, call Cheryl Duvauchelle at CSG-WEST at (415) 974-6422 or e-mail herat [email protected].

Support sought foreffective legislators

the west

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delegation of Rhode Island stateofficials and community leaders

sought ways to improve justice for mi-norities in a visit to Washington, D.C.,

Feb. 28-29. Mem-bers of the state-

wide task force are examining racialdisparities in the criminal justice system.In Rhode Island, about 55 percent ofall pretrial defendants incarcerated areAfrican-American or Latino, althoughthey represent only 14 percent of thestate’s population.

The task force has made pretrial de-tention its focus, and the members havedeveloped a pretrial services pilot pro-gram. In Washington, D.C., the task forcemet with U.S. Justice Department offi-cials to discuss financial and technicalassistance for the project and toured thePretrial Services Program for the Dis-trict of Columbia, which is considereda national model.

Rhode Island Rep. Maxine Shavers,who chairs the bipartisan, interbranchtask force, led the delegation. She also

Seeking a justice model

the east

A is vice-chair of the Rhode Island Blackand Minority Caucus of State Legisla-tors. The task force includes the gov-ernor’s designees, the attorney general,the public defender and leaders in thejudiciary and the com-munity. Also on thetask force is Sen. M.Teresa Paiva-Weed,chair of the Senate Ju-diciary Committee,and a member of CSG/ERC’s Criminal JusticeBoard of Directors.

CSG/ERC staff help-ed Shavers convenethe task force and co-ordinate each of itsmeetings. The projectis part of the CSG/ERC’s Criminal JusticeBoard of Directors’ re-gional effort to evalu-ate reasons for racialdisparities in criminaljustice systems.

Kansas Lt. Gov.Gary Sherrer

Carlos Barbera,Indiana tradedirector

Rhode Island Rep.Maxine B. Shavers

Rhode Island Sen.M. Teresa Paiva-Weed


This calendar lists the annualmeeting dates of associations servingstate officials. For more informationon a particular meeting, call thenumber listed.

“CSG/” denotes organizations af-filiated with CSG.

Direct new entries or correctionsby the first of the month to:

Amy LindonThe Conference CalendarCSGP.O. Box 11910Lexington, KY [email protected] CSG’s Web site, www.csg.org

or www.StatesNews.org, to see up-dated information and links to otherorganizations and host cities.

JUNE 2000June 8-10 — Thursday-SaturdayCSG/University of Kentucky Sum-mit of the States on Conflict Man-agement and Dispute Resolution— Lexington, KY — Marriott’s Grif-fin Gate Resort (Harberson, Lexing-ton) (859) 244-8228, [email protected] 11-13 — Sunday-TuesdayInterstate Oil and Gas CompactCommission Midyear Meeting —Lexington, KY — Radisson PlazaHotel (Keller, Oklahoma City) (405)525-3556, [email protected] 17-21 — Saturday-WednesdayCSG/National Association of StateTreasurers (NAST) Western StateTreasurers Conference — Juneau,AK — Westmark Barnof Hotel(Hamilton, Lexington) (859) 244-8174June 24-28 — Saturday-WednesdayCSG/National Association ofState Facilities Administrators(NASFA) Annual Conferenceand Trade Show — Burlington,VT — Radisson Hotel (Stone, Lex-ington) (859) 244-8181, [email protected]

JULY 2000July 7-11 — Friday-TuesdayCSG/Bowhay Institute for Leg-islative Leadership (BILLD) —Madison, WI — Fluno Center(Tomaka, Lombard) (630) 810-0210July 7-11 — Friday-TuesdayCSG/National Association of StateTelecommunications Directors(NASTD) Western Region Meet-ing — Whitefish, MT — GrouseMountain Lodge (Britton, Lexing-ton) (859) 244-8187, [email protected] 8-11 — Saturday-TuesdayNational Governors Association(NGA) Annual Conference —State College, PA — Hotel to be an-nounced (Dotchin, DC) (202) 624-5300

July 15 — SaturdayCSG/Agricultural Policy TaskForce Meeting — Chicago, IL —Hotel Inter-Continental Chicago(Lackey, Lexington) (859) 244-8163, [email protected] 16-20 — Sunday-ThursdayNational Conference of State Leg-islatures (NCSL) Annual Meet-ing — Chicago, IL — Sheraton Chi-cago (Ross, Denver) (303) 830-2200,[email protected] 19-23 — Wednesday-SundayCSG/National Conference of Lieu-tenant Governors (NCLG) AnnualMeeting — Dorado, PR — DoradoHyatt (Manning, Lexington) (859)244-8171, [email protected] 22-27 — Saturday-ThursdayCSG/Parliamentary Conference ofthe Americas Second GeneralAssembly — Rio Grande, PR —Westin Rio Mar Beach Hotel(O’Malley, DC) (202) 624-5460July 23-26 — Sunday-WednesdayCSG/American Probation andParole Association (APPA) 25th

Annual Training Institute —Phoenix, AZ — Downtown Hyatt(Swinford, Lexington) (859) 244-8194July 25-30 — Tuesday-SundayAmerican Legislative ExchangeCouncil (ALEC) Annual Meeting— San Diego, CA — San Diego Mar-riott Hotel & Marina (Dougherty,DC) (202) 466-3800, [email protected] 29-August 2 —Saturday-WednesdayCSG/National Association of StatePersonnel Executives (NASPE)Annual Meeting — Princeton, NJ— Marriott at Forrestal Village(Leslie Scott, Lexington) (859) 244-8182, [email protected] 30-August 3 —Sunday-ThursdayConference of Chief Justices/Conference of State Court Ad-ministrators (CCJ/COSCA) An-nual Meeting — Rapid City, SD —By invitation only — (Rockwell,Williamsburg) (757) 259-1841

AUGUST 2000August 1-4 — Tuesday-FridayCSG-WEST/Western LegislativeAcademy — Colorado Springs, CO— Doubletree Hotel (Duvauchelle,San Francisco) (415) 974-6422August 4-5 — Friday-SaturdayCSG-WEST/Executive CommitteeMeeting — Colorado Springs, CO— Doubletree Hotel (Duvauchelle,San Francisco) (415) 974-6422August 3-5 — Thursday-SaturdayCSG/National Association of StateTreasurers (NAST) College Sav-ings Plan Network & State DebtManagement 10th Annual Confer-ence — Chicago, IL — Westin Hotel

(Hamilton, Lexington) (859) 244-8174August 4-7 — Friday-MondayCSG/Eastern Regional Conference(ERC) Annual Meeting — Provi-dence, RI — Westin ProvidenceHotel (Stanley, New York) (212)912-0128August 5-9 — Saturday-WednesdayCSG/Southern Legislative Con-ference (SLC) Annual Meeting— Biloxi, MS — Hotel to be an-nounced (Cousineau, Atlanta) (404)266-1271August 6-9 — Sunday-WednesdayCSG/Midwestern LegislativeConference (MLC) 55th AnnualMeeting — Minneapolis, MN —Marriott Hotel (McCabe, Lombard)(630) 810-0210August 6-9 — Sunday-WednesdayCSG/National Association of StateTreasurers (NAST) 25th AnnualConference — Chicago, IL —Westin Hotel (Hamilton, Lexing-ton) (859) 244-8174August 7-10 — Monday-ThursdayU.S. Department of Housing andUrban Development Best Prac-tices and Technical AssistanceSymposium — Washington, DC —Washington Hilton and Towers(Jackson, DC) (202) 708-0940,www.hud.gov/bestpracticesAugust 19-25 — Saturday-FridayCSG/National Emergency Man-agement Association (NEMA)2000 Annual Conference — PalmBeach, FL — The Breakers (Hens-ley, Lexington) (859) 244-8162,[email protected] 26-31 — Saturday-ThursdayCSG/National Association of StateTelecommunications Directors(NASTD) 23rd Annual Conference— Boston, MA — Seaport Hotel andWorld Trade Center (Britton, Lex-ington) (859) 244-8187, [email protected]

SEPTEMBER 2000September 1-3 — Friday-SundayCSG/National Association of StateElection Directors (NASED) —San Francisco, CA — Hotel to beannounced (Scott, DC) (202) 624-5460September 14-16 —Thursday-SaturdayCSG/Council on Licensure, En-forcement and Regulation(CLEAR) Annual Conference —Miami, FL — Wyndham HotelBiscayne Bay (Turner, Lexington)(859) 269-1802September 23-26 —Saturday-TuesdayCSG/National Association of StateTreasurers (NAST) NortheastState Treasurers Conference —Charleston, WV — Embassy Suites(Hamilton, Lexington) (859) 244-8174

September 24-26 — Sunday-TuesdaySouthern Governors’ Associa-tion (SGA) Annual Meeting —Little Rock, AR — Excelsior Hotel(Purdy, DC) (202) 624-5897, [email protected] 30-October 5 —Saturday-ThursdayCSG Henry Toll Fellowship Pro-gram — Lexington, KY — HiltonSuites (Powell, Lexington) (859)244-8249, [email protected] 12-14 —Thursday-SaturdayCSG-WEST Legislative ServiceAgency/Research Directors (LSA/RD) Meeting — San Francisco, CA— Sir Francis Drake Hotel (Duvau-chelle, San Francisco) (415) 974-6422

NOVEMBER 2000November 1-3 — Wednesday-FridayCSG/Northeast Recycling Council(NERC) Fall Meeting — North-east NJ — Hotel to be announced(Bartlett, Brattleboro) (802) 254-3636, [email protected] 15-18 —Wednesday-SaturdayCSG-WEST Annual Meeting —San Diego, CA — Hyatt Islandia(Duvauchelle, San Francisco) (415)974-6422

DECEMBER 2000December 3-5 — Sunday-TuesdayInterstate Oil and Gas CompactCommission Annual Meeting —San Antonio, TX — Omni San An-tonio (Keller, Oklahoma City) (404)525-3556 ext. 113, [email protected] 7-10 — Thursday-SundayCSG 2000 Annual Meeting andState Leadership Forum — Dear-born, MI — Dearborn Hyatt Re-gency (Hines, Lexington) (859) 244-8103, [email protected] 7-9 — Thursday-SaturdayConference of State Court Ad-ministrators (COSCA) MidyearMeeting — Phoenix, AZ — By in-vitation only (Rockwell, Williams-burg) (757) 259-1841

JANUARY 2001January 21-21 — Sunday-ThursdayConference of Chief Justices (CCJ)Midyear Meeting — Baltimore,MD — By invitation only (Rock-well, Williamsburg) (757) 259-1841

SEPTEMBER 2001September 20-24 —Thursday-MondayCSG 2001 Annual Meeting andState Leadership Forum — An-chorage, AK — Hotel to be an-nounced (Hines, Lexington) (859)244-8103, [email protected]


Keon S. Chi is a senior fellow in CSG’s Center for Leadership, Innovation and Policy.Keon S. Chi is a senior fellow in CSG’s Center for Leadership, Innovation and Policy.

Forces shaping statesBY KEON S. CHI

tate leaders and others at the start of the millenniumare asking, “What are the major forces that are likelyto shape the future of state government?” While thisis a loaded and difficult question, trends in the past

two decades point to five such forces: federalism, public-private interactions, technology, public participation andstate leaders.

Federalism. Federalism is a formidableforce in shaping the role and responsibilityof state governments. The states’ publicpolicy depends upon the changing natureof federal-state-local relations.

To shape federalism, state leaders needto continue their campaigns for federal ac-tions designed to strengthen the standingof the states in the federal system, such asthe Federalism Accountability Act and theFederalism Act of 1999.

It also is important to continue the workof the federalism summits held in 1995 and1997 by representatives of CSG and othermajor state leadership organizations. Thesemeetings were designed to improve the part-nership equilibrium of federal and state governments. Theprinciples adopted by the summits included calling onCongress to justify its constitutional authority to act onbills, as well as to limit and clarify federal pre-emption ofstate laws and federal regulations on states, streamlineblock-grant funding and simplify financial reporting re-quirements.

Public-private interactions. Relations with the privatesector will have a considerable impact on the future ofthe states, especially in administration and management.

Public-private interactions at the state level during thepast 20 years have grown in three areas: government-restructuring and cost-control studies, planning and man-agement, and alternative service delivery. Many task forceson state government reorganization have included private-sector representatives to identify cost-reduction measurespatterned after private-sector practices. Most states alsohave established public-private partnership projects aimedat strategic planning and benchmarking, economic devel-opment and management improvement. Privatizationremains the most prominent and controversial area forpublic-private alliances. The extent of government ser-vices that are contracted to private vendors is likely toshape future state operations.

S Technology. Technology already is shaping state gov-ernment operations. State governments need informationtechnology to operate effectively. Electronic democracyand electronic government are creating new dimensionsin government and raising new questions and problems.The technology applications most widely available to state

agencies in recent years have included cel-lular phones, e-mail, the Internet, pagingand voice mail. States have launched majorinitiatives in automation, emergency man-agement, fleet management, procurementreform and telecommunications. Manystates now use computers in their legisla-tive chambers and courts. Technology is aformidable force in all branches of stategovernment.

Public participation. The future ofstates depends on how the public partici-pates in the workings of state government.

In light of relatively lower levels of publicconfidence and trust in state policy-makers,the public could either shun participationor seek to shape policy through statewide

campaigns for voter initiatives where allowed. Recentcampaigns have targeted taxation, education, lobbying andcampaign finance, and legislative term limits.

The public also could help shape state legislative pro-cesses by directly accessing activity in legislative chambersthrough Internet and other technology applications, by-passing traditional media coverage. The extent of publicparticipation can be a determining factor in improvingstate government management.

State leaders. Finally, elected and appointed state lead-ers have the authority and resources to shape the futureof the states in many, if not all, policy and program areas.They are and should be the key movers and shakers ofstate government. While the national government has animpact on states, state leaders have a considerable amountof flexibility and discretion under the U.S. Constitution.They have a vast amount of reserved powers to exercise,ranging from the power to streamline government struc-tures to reforming educational systems. Leadership andmanagement styles can make a difference in the way thestates are run. State leaders and managers need to initiateor replicate innovations on a continuing basis to meet thechallenges of the future.

The future of statesis a work inprogress.

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