Vol. 49, No. 3 The Council of State Governments March...

thecouncilofstategovernments www.csg.org �

Sharing capitol ideas.

Vol. 49, No. 3 The Council of State Governments March 2006

� statenews march�006

11federalism

Part D-lemmaImplementing Medicare prescription drug plan a costly proposition for states.byMaryBranhamDusenberry

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

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

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

easternAlanV.Sokolow,Director40BroadStreet,Suite�050NewYork,NY�0004-�3�5(��)48�–�3�0

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

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

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

15aging

Close to Home‘Green Houses’ are an alternative

to nursing facilities.byBobMoos

18 leadership

States of ProgressGovernors outline plans for the future in State of the State Addresses.byLauraColeman

On the CoverVermontGovernorand�006CSGPresidentJimDouglas

StatesofProgressCoverbySusieBush

thecouncilofstategovernments www.csg.org 3

Departments

22emergency management

Raising Public Awareness about Disaster Responses

Delivering information to the public crucial to disaster preparedness.

byEmilyBentley

4 Inside Story ReturntoStateGovernment byJackPenchoff

5 Toolbox

ObesityPrevention,SmokingBrief

6 State Sources Aroundupofrecentreportsandresources

forstateofficials

7 State Snapshots

America’sHealthRankings

9 Perspective NeverSayNever byMarkD.Birdwhistell

31 CSG Spotlight

HighlightsofactivitiesandeventsbyCSG,itsaffiliatesandotherassociations

34 Conference Calendar MeetingsandconferenceactivitiesofCSG,

itsaffiliatesandotherassociations

35 Timeline Alookbackintime

25economic development

The Transforming Manufacturing SectorNLGA Winter Meeting focuses on future of manufacturing.byJuliaHurst

26economic development

Some Companies ‘More Equal’ Than Others

Pending Supreme Court case and Congressional legislation may determine whether state incentives

programs can follow suit. byAdamBruns

4 statenews march�006

by Jack Penchoff Mark Birdwhistell has seen both sides now.BeforehereturnedtostategovernmenttwoyearsagoasKentucky’sSecretaryfortheCabinetforHealthandFamilyServices,Birdwhistellserved10yearsasahospitaladministratorandCEOforahealthplan. During his decade-long absence from stategovernmenttheMedicaidprogramchangedalot.Unfortunately, Birdwhistell writes this month,stategovernment’shandlingof theproblemhadnotchanged. While the task seems daunting, Birdwhistellwrites he is proud to be back in public serviceandbepartofthechangestakingplaceintheMedicaidprogram.Heacknowledgestheroadthatliesaheadwillberocky,buthebelievesstatescanmakethenecessarychanges. MedicareunderwentsomechangesJanuary1,andtheresultsareprovingcostlytothestates. Mary Branham Dusenberry,State Newsmanagingeditor, reports states arespendingmillionsofdollarstocoverseniorcitizensdrugprescriptionsthatweresupposedtobepaidforbyMedicare’snewPartDprescriptiondrugplan.InCali-fornia alone, $150 million has been set aside to cover the problems. States areexpecting the federal government to reimburse them. Not everyone agrees thatwillhappen. Medicaid,Medicareandhealthcarearen’ttheonlychallengesstatesarefacingthisyear. Educationisgettingalotofattentionfromthenation’sgovernors.Laura Cole-man, State News associate editor, this month reports on some of the State-of-the-StateaddressesdeliveredinJanuaryandFebruary.Governorsaredevelopinginitiativestoattractthebrightestpeoplewithbettersalaries. Highereducation isalsoapriority forgovernors,whoaredevelopingways tomakepost-secondaryeducationmoreaffordable. Other priorities are tougher punishment for sex offenders, transportation im-provements,andaddressingrisingenergycosts. Col.JeffSmithknowssomethingaboutdisasterpreparednessandanuninformedpublic. Smith is acting director of the Louisiana Office of Homeland Security and Emergency Preparedness. “Our experience verified what emergency managers haveknown foryears:Youcannotprovide toomuch informationaheadof timeaboutpossiblehazardsandwhatpeoplearegoingtoneedtodo.” TheEmergencyManagementAccreditationProgramhasissuedareportcallingforlocalandstategovernments,withfederalsupport,tofocusmoreonraisingpub-licawarenessaboutpotentialhazardsandwhatcitizenscandotobeprepared. Emily Bentley, executive director of EMAP, a CSG affiliate, writes about the report and steps state officials can take to effectively inform the public in advance ofadisaster. OtherarticlesthismonthincludeonethatexaminesapendingSupremeCourtcaseontheissueofstatetaxincentivesusedtoattractbusinessesandanarticleonanemergingalternativetonursinghomes.

—Jack Penchoff is senior editor of State News magazine.

Executive Committee

PresidentGov.JimDouglas,Vermont

ChairSenatePresidentEarlRayTomblin,WestVirginia

President-ElectGov.BradHenry,Oklahoma

Chair-ElectRepresentativeRogerRoy,Delaware

Vice ChairRepresentativeKimKoppelman,NorthDakota

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

STATE NEWS, 1549-3628, March 2006, Vol. 49, No. 3— Published monthly with combined issues in June/July and Nov./Dec. by The Council of State Governments, 2760 Research Park Drive, Lexington, KY 40511-8410. Opinions expressed in this magazine do not necessarily reflect the policies of The Council of State Governments nor the views of the editorial staff. Readers’ comments are welcome. Subscription rates— In the U.S., $55 per year. Single issues are available at $6 per copy. POSTMASTER: Send address changes to State News, Sales Department, P.O. Box 11910, Lexington, KY 40578-1910.

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

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

Sharing capitol ideas.

A Return to State Government


toolbox

A report fundedbyTheRobertWoodJohnsonFoundation,inpartnershipwiththeCentersforDiseaseControlandPreven-tion,indicatesthatnearly65percentofadultsand15percentofchildrenandadolescentsareoverweight. Thereportindicatesthewaysthroughwhichstatescommittedtoencouragingahealthierclimateforstudentsinpublicschools.Atthecloseofthe2005sessions:

n 42statesintroducedlegislationthatprovidessomelevelofnu-tritionalguidanceforschoolsand21statesenactedmeasures.

n 44statesintroducedlegislationsettingguidelinesforphysi-caleducationorphysicalactivitystandardsandmeasureswereenactedin22states.

n 25statesintroducedlegislationrequiringorsupportingnu-tritionorphysicalactivity instruction in thestate’shealtheducation curriculum and measures were enacted in 11states.

n 19statesintroducedBodyMassIndexreportinglegislationandmeasureswereenactedinthreestates.

Thereportalsorecognizesnotablelegislationthatwasintro-ducedorenactedduringthe2005session.Thisincludes:

n MeasuresinCalifornia,Illinois,Maine,TexasandWash-ingtonthatpromoteincreasedfruitandvegetableconsump-tion through farmers’ market, farm-to-school or schoolgardenprograms;

n MeasuresinNorthCarolinaandConnecticutthatincludedspecific provisions for no- and low-calorie carbonated bev-erages;and

n MeasuresinKentuckyandCaliforniathatsetforthrequire-mentsforfoodservicepersonnel.

Thereportincludesinformationonvoluntarypoliciesbycor-porations,modelstatelegislationandobesitytreatment.Toviewthereportinfulltext,visithttp://www.rwjf.org/files/research/RWJFDecReport.pdf.

States Enact Obesity Prevention Legislation

AccordingtoDr.CorinneHusten,actingdirectoroftheOf-fice on Smoking and Health at the Centers for Disease Control andPrevention,morethan45millionAmericanssmokeanditcoststheU.S.economymorethan$167billionayear,includingmorethan$75billioninmedicalexpendituresand$92billioninlostproductivity. However,arecentissuebrieffromTheCouncilofStateGov-ernmentsrevealsthatwhenstatesspendmoneyoncomprehen-sive tobaccocontrolprograms, the result isa reduction in thenumberofpeoplewhosmoke. Severalstateshaveundergonesuchprograms,includingNewYork,CaliforniaandArizona.NewYork’sprogramhasseenitspercapitacigaretteconsumptiondeclinefasterthanthenationalaverage,andthestate’scomprehensiveanti-smokingeffortsarebuilt around five major strategies that incorporate most of the CDC’s recommended policies and interventions. The five strate-giesare:

n Funding community-based organizations to help them fight tobacco use at local levels and fight tobacco promotion in neighborhoodstores,billboards,schoolsandbusinesses.

n Keeping thepriceof tobacco products highwith a $1.50excisetaxpercigarettepackanda37percenttaxonother

Smoking Brief for State Legislators


toolbox

Smoking Brief continued from page 5...

AmendmentstothefederalTitleIprogrammadeundertheNoChildLeftBehindAct(NCLB)havecreatedprob-lemsforstatesinfundingthoseschoolsmostinneedoftheadditional funding, theCenteronEducationPolicy (CEP)saysinareportreleasedinFebruary. Thepurposeof the amendments is to improve low-per-formingschools.TitleIsupportsextraeducationalservicesforlow-performingschools.NCLBrequiresstatestoreserve4percentoftheirTitleI,PartAfundstoprovideadditionalhelp to schools identified for improvement under the Act. The February CEP report found these funds are insufficient to do the job in many states because of inadequate NCLB fundinganda“holdharmless”provisioninthelawthatpre-ventsschooldistrictsfromlosingTitleIfundsasaresultofthereservationforimprovement. Tomeetthereservationwithoutviolatingtheholdharmlessprovision,statesmusttakemoneyfromschooldistrictsthatwereslatedtoreceiveincreasedTitleIallocationsbecauseoflargernumbersoflow-incomechildren.Statesthenmustgivethereservedfundstootherdistrictsthatmaynothaveasmuchpoverty. In2005–06,atleast10statescouldnotreservethefull4percentforschoolimprovementrequiredbylaw.Inanotherfive states, the 4 percent reservation used up most of the fund-ingincreasesthatschooldistrictsinthestatewereexpectingtoreceive. CEPbelievestheproblemwillbeworsein2006–07be-causeTitleIfundinghasdecreased.Theorganizationrecom-mendedCongressappropriatefundsforschoolimprovementthroughaspecialauthorizationintheTitleIlawenactedforthispurpose,andprovideadequatefundingforNCLB. To access the full report, visit http://www.ctredpol.org/ titlei/TitleISchoolImpFundJan2006.pdf

School Improvement Reservation a problem for states

Minnesotaisthehealthieststateinthecountry,accordingtoAmerica’sHealthRankings—2005Edition.It’sbeenamongthetop twostatessince1990 in the rankingscompiledbyUnitedHealthFoundation.Vermonthasbeenmovingupintherankingsthe last five years and was ranked second for 2005. New Hamp-shirewasnumber three, followedbyUtah,Hawaii andNorthDakota. Theleasthealthystateswerealllocatedinthesoutheast,withMississippirankedastheleasthealthystate,atnumber50.Loui-sianawas49th,whileTennessee,SouthCarolinaandArkansascompleted the bottom five states. United Health Foundation, funded solely by UnitedHealthGroup, has compiled America’s Health Rankings since 1990.Therankingslookatthreepublichealthcomponents—personalbehaviors,communityenvironmentandhealthpolicies—andatthe overall health outcomes. It combines individual measuresofeachofthesecomponentswiththeresultanthealthoutcomesintoonecomprehensiveviewofastate’shealth. Toseehowyourstatefaresinthereport,seePage7. Toaccessthefullreport,visithttp://www.unitedhealthfoun-dation.org/shr2005/

Rankings Reveal Healthiest States

tobaccoproductsandrestrictingtheplaceswheretobaccoproductscanbesold.

n Minimizingnonsmokers’exposuretosecond-handsmokethrough smokingbans in indoorpublic spacesandwork-places.

n Runninganaggressive,emotionallypowerfulmediacam-paigntomotivatesmokerstoquitandpreventothersfromeverstarting;and

n Helping to make it easier for smokers to quit by staffing tele-phonequit-lines,offeringcounselingandfollow-upservices,cuttingcostsfornicotinereplacementproductsandencour-aginghealthcareproviderstoscreenfortobaccouse.

To find out other tactics recommended by the CDC, or to see whatotherstatesaredoingtocombatsmoking,visithttp://www.healthystates.csg.org/NR/rdonlyres/31091518-EC7D-4295-9191-47E45801BE9D/0/SmokingBrief.pdf.

statesources


statesnapshotsAmerica’s Health Rankings

2005 RANK (1-50) STATE SCORE* 2005 RANK (1-50) STATE 45 Alabama -��.8 � Minnesota 30 Alaska -�.� � Vermont 3� Arizona -�.6 3 NewHampshire 47 Arkansas -�6.� 4 Utah �� California 6.0 5 Hawaii �7 Colorado 9.7 6 NorthDakota 7 Connecticut �5.9 7 Connecticut 33 Delaware -�.6 8 Maine 40 Florida -8.6 9 Massachusetts 43 Georgia -�0.� �0 Iowa 5 Hawaii �7.0 �� Nebraska �6 Idaho �0.4 �� RhodeIsland �8 Illinois 0.9 �3 Wisconsin 3� Indiana -�.� �4 Washington �0 Iowa �4.9 �5 NewJersey �3 Kansas 5.8 �6 Idaho 4� Kentucky -9.7 �7 Colorado 49 Louisiana -�8.4 �8 Oregon 8 Maine �5.5 �9 SouthDakota 34 Maryland -3.6 �9 Wyoming 9 Massachusetts �5.� �� Montana �9 Michigan 0.3 �� California � Minnesota ��.� �3 Kansas 50 Mississippi -�9.� �4 Virginia 35 Missouri -4.� �5 Pennsylvania �� Montana 6.6 �6 Ohio �� Nebraska ��.� �7 NewYork 37 Nevada -5.9 �8 Illinois 3 NewHampshire �8.� �9 Michigan �5 NewJersey �0.6 30 Alaska 38 NewMexico -6.� 3� Arizona �6 NewYork �.� 3� Indiana 36 NorthCarolina -5.6 33 Delaware 6 NorthDakota �6.6 34 Maryland �7 Ohio �.� 35 Missouri 44 Oklahoma -��.4 36 NorthCarolina �8 Oregon 8.3 37 Nevada �5 Pennsylvania �.9 38 NewMexico �� RhodeIsland ��.5 39 Texas 46 SouthCarolina -�5.8 40 Florida �0 SouthDakota 6.7 4� WestVirginia 48 Tennessee -�7.� 4� Kentucky 39 Texas -6.7 43 Georgia 4 Utah �7.5 44 Oklahoma � Vermont ��.3 45 Alabama �4 Virginia 5.5 46 Arkansas �4 Washington �0.7 47 SouthCarolina 4� WestVirginia -9.3 48 Tennessee �3 Wisconsin ��.0 49 Louisiana �9 Wyoming 7.0 50 Mississippi

Source:UnitedHealthFoundation*Scoresindicatethepercentageastateisaboveorbelownationalnorm.


The entire state of Delaware thanks you for attending CSG’s 2005 State Trends and Leadership Forum. We enjoyed hosting your event and showing you that we are the perfect place for small to medium-sized

meetings. We look forward to welcoming you back with family, friends and colleagues!

Call (800) 489-6664 or go toVisitWilmingtonDE.com for details!

We hope it’s the First State you plan to visit again!

In December, we gave you a little taste of Delaware.

Grand Opera House

Longwood Gardens

Brandywine River Museum

WinterthurDelaware Art Museum

Historic New Castle

Delaware Park

Philadelphia

New YorkCity

Baltimore

Washington, DC

Wilmington, DE

Don’t Miss Three Major

Andrew WyethExhibitions

March 29–July 16

GWCVB_councilad_02.14 2/17/06 11:28 AM Page 1


Never Say Never by Mark D. Birdwhistell

In�98�,IenteredpublicserviceinthehealthcareareainKentucky’sMedicaiddepartment.IsawfirsthandhowcrucialMedicaidwasforthemostvulnerablepeopleinoursociety—low-in-comewomenandchildren,individualswithdisabilitiesandthefrailelderly.Ialsosawhowthebureaucratictangleandinflexibilityoftheprogramservedneithertheprogram’sclientsnortheinterestsofthetaxpayersfootingthebill.

Presentedwithotheropportunities,Ileftstategovernmentin1994toserveasahos-pitaladministratorandhealthplanCEO.IthoughtIwouldnevertoreturntostategov-ernment.Butoneshouldneversaynever. At the request of Gov. Ernie Fletcher, Ireturned to public service in 2004. I wascuriouslysurprisedafternearly10yearsintheprivatesectortoseethesamefurniture,thesamepicturesonthewallsand,unfortu-nately,thesamecomputersystems,thesameoutdated business practices and the same fi-nancialproblemsthatIleftbehind.

I have heard it said that the definition of insanity is doing the same thing overandoverexpectingdifferentresults.Ifthisis true, thenMedicaid ismired in amad-ness that is crippling its capacity to servetheverypeopleitwasdesignedtohelpandwastinglimitedgovernmentresources. With a crippling budget shortfall inMedicaid, we couldn’t afford to go aboutbusiness as usual. Thus, Kentucky hasembarked on an ambitious moderniza-tion program that will change fundamen-tally the way that Medicaid pays for and

With a crippling budget shortfall in Medicaid, we

couldn’t afford to

go about business

as usual.

perspective

�0 statenews march�006

delivershealthcaretolow-incomeindividualsandfamilies.AtthecoreofKentucky’sMedicaidmodernizationeffortsarethreeprinciples. First,Medicaidmustbecomea21stcenturyhealth plan operated with the efficiency of a commercial health plan. Second, Medicaid must have the flexibility to offer servic-es and benefits that match the needs of the people it serves while leveraging every bit of the limited public resources available.Finally, Medicaid needs to be a catalyst not just for providing coverage,butformakingKentuckianshealthier. To achieve our first aim, we have used a three-legged stool consisting of improved technology, care management and benefit design. To begin, we built the infrastructure needed to mod-ernizeMedicaidusingnewinformationtechnologysystemsandvendorpartnerships.ThisenabledKentuckyMedicaidtomod-ernizeand improve itspharmacyadministration,careanddis-easemanagement,andclaimsprocessing.Finally,weredesignedKentucky’s Medicaid benefits, services and cost-sharing through acomprehensiveMedicaidwaivercalled KyHealth Choices. To achieve our second aim, it was necessary to obtain the flex-ibilityfromthefederalgovernmenttorestructuretheMedicaidprogram.To thatend,ourKyHealth Choices waiverhas fourtailored benefit packages. For years, analysts have complained that Medicaid’s one size fits all approach did not work for the diversepopulations it covers. KyHealth Choices has the flex-ibility to provide benefits and services aligned with each popu-lation’suniquecareneeds.Oneplanisdesignedforlow-incomechildrenincludingthoseenrolledinKentucky’sCHIPprogram;oneplanforfrailelderlyindividuals;oneplanforeligibleindi-

vidualswhoneed intermediatecaredue tomental retardationor developmental disabilities; and one plan for the remaininggeneralMedicaidpopulation.Wewillalsorequirethatlow-in-comeindividualswhohaveaccesstoemployercoverageenrollinprivatehealthinsuranceratherthanMedicaid.Inturnwewillprovidepremiumassistancetohelpthoseindividuals. Co-payments and premiums are incorporated throughoutmost of the plans, with protections for the lowest income in-dividuals,peoplewithspecialhealthcareneeds,andchildren.Preventiveserviceswillnotrequireco-pays.Thisapproachen-courageswellnessandpersonalresponsibilitywhiledecreasingdependenceonemergencyrooms. To achieve our third aim, KyHealth Choices incorporatesGet Healthy Accounts. These accounts provide incentives toMedicaidmembersforhealthybehaviors.Arrivingontimeforappointments, receivingappropriatepreventive care andotherbehaviorshelpbuildaclient’sGetHealthyAccount.Thefundscanthenbeusedtooffsethealthcarerelatedcosts,suchasco-pays,alternativetherapies,exercise,weightlossorsmokingces-sationprograms. AllKyHealth Choicesplanswillimprovecarethroughbettercoordinationofmentalhealth,mentalretardation/developmentaldisabilities,substanceabuseandgeneralhealthservices.Dis-easemanagementprogramswilloperatethroughoutthestatetoassist thosewithchronic illnessessuchaspulmonarydisease,cardiovasculardisease,pediatricobesityanddiabetes. Throughimplementingthiscomprehensivestrategy,IenvisionanewMedicaidprogramthatwillimprovethehealthstatusofKentuckianswhileensuringitssolvencyforfuturegenerations. Now, there are somewhowould argue that this approachofadjusting benefits and services and requiring client participation inpayingforhealthcarewillputlow-incomeindividualsatrisk. ButMedicaidisalreadyindanger.KentuckyfacesaMedic-aidbudgetshortfallofmorethan$425million.Withoutchanges,Kentuckywillbeforcedtocuteligibility.Therefore, thedeci-sion to provide a bottomless and wide-ranging set of benefits to just a few seems most cruel. Our redesigned Medicaid program willstretchourdollarsasfarastheywillgo. TherearesomewhoalsobelievethatwecannevermakeMed-icaid operate as efficiently or as effectively as the private sector. Medicaid is just different, they say, so we can make excuses for notachievinghigh-endresults.Butthepeopleweservearetooimportantnottomakethewisestchoicespossiblewiththere-sourceswehave. IamproudtobebackinpublicserviceandtobeapartofthehistoricchangesoccurringintheMedicaidprogram.AsIlookto the future, the tremendous growth in the older population,uncontainedhealthcarecostsandtheobesityepidemictranslateintoarockyfutureforMedicaid,ifchangesarenotmadenow. Whilechangeishard,it is theonlywaytoensurethelong-termsustainabilityofthisimportantprogram.Sotothosewhosayitcan’tbedone,Isayneversaynever.

—Mark D. Birdwhistell is secretary of Kentucky’s Cabinet for Health and Family Services. For more information on Kentucky’s 1115 Medicaid waivercalledKyHealth Choices,visithttp://chfs.ky.gov/dms/

thecouncilofstategovernments www.csg.org ��

Part D

-lemm

aImplementing Medicare prescription drug plan a costly proposition for states

by Mary Branham Dusenberry

JanuarywasacostlymonthforCalifornia.Thestatedippedintoitsreservefundandallocatedmorethanone-fourthofitforprescriptiondrugsforpoorelderlyCalifornians.Itwasanunexpectedexpense,andonethestate—likemorethan30others—hopestorecoup.

�� statenews march�006

“Wearecertainly lookingto thefederalgovernmentforre-imbursement,”saidStanRosenstein,deputydirectorofmedicalcareservicesfortheCaliforniaDepartmentofHealthServices.“Wecan’taffordtospendthiskindofmoneyandnotbereim-bursed.” Thestateisalsobalkingatpayingtheso-called“clawback,”areimbursementtothefederalgovernmentfordrugsprovidedtolow-incomeseniorsanddisabledpeople.CaliforniaStateCon-troller Steve Westly said his office will refuse to send the Medi-carepaymentdueeachmonth.Andthestate—alongwithseveralothers—isappealingdirectlytotheU.S.SupremeCourttoblockthefederalgovernmentfrombillingitforthedrugcosts.

The Part D mess Californiaspent$14millioninJanuarytocovertheprescrip-tiondrugcostsformanyseniorcitizensthatshouldhavebeencoveredbyMedicarePartD.Thestatehasallocated$150millionfromreservestocoverongoingproblemswiththefederalpro-gram.ManystatesstartedasearlyasJan.1topayformedicinethatshouldhavebeencoveredbyprescriptiondrugplans(PDPs)aspartofMedicarePartD.Butmanypoorseniors—knownasdual eligibles because they qualify for both federal MedicareandstateMedicaidcoverage—leftpharmaciesinfrustrationbe-causeofmassiveconfusion.Someweren’tlistedinthesystemor,iftheywere,weren’tmarkedasadualeligible,anoversightthatcouldcostthemhigherco-paysanddeductibles. While theCenter forMedicareServices (CMS)hasworkedfromdayonetorepairthesystem,it’sbeencostlyforthestatesupfront.Thelong-termeffectsonstatebudgets,saysScottPat-tison, executive director of the National Association of StateBudget Officers, should be minimal. “TheMedicaidbudgetisextremelyhigh(forstates),”Pattisonsaid. “From a cash flow standpoint, they usually have sufficient funds at that moment to cover those charges. The end of the fis-calyearisthemostimportant.” Pattison believes as long as states are reimbursed—whichCMSisworkingon—thingswillevenoutintheend. Butreimbursementwouldhavetocomebeforetheendofthefiscal year for states to avoid problems. Martha Roherty, direc-tor of the National Association of State Medicaid Directors(NASMD),saidthatcouldbeaproblemasstatesworktheirwaythroughthereimbursementmaze.“Theunfortunatethingisthetimingmaytakemorethanthestatescanafford,”shesaid. UndertheCMSplan,Rohertysaid,statesmustsubmitreim-bursement plans by May. Then CMS will match patient datawiththePDPtowhichthey’reassignedtodetermineeligibility.InCaliforniaalone,shesaid,thereare1milliondualeligibles.“There’snocomputersystemdesignedtodothis,”shesaidofscanning thedrugplans tomatch charges for reimbursement.Developingasystem,shesaid,willtaketime. “It’snotgoingtohappenovernight,”Rohertysaid.“Ifwe’rewaitingforPDPstopaythestate,howlongdotheyhavetore-imburse the states?Wedon’tknow.” In somestates, she said,Medicarepatientscanchoosefrommorethan50PDPs.

Somestateshavealreadyfeltthesqueezeofusingmoneyear-markedforotherprograms,orforreserves,tocoverthePartDcosts.“We’vetakenawaytheabilityofthegovernortospendonhisprioritiesbecausewe’veusedthismoneytocoverafederalprogram,”RosensteinsaidoftheCaliforniaexpenses.

A rough transition MostpeopleagreethatproblemsduringthetransitionphasetoPartDwereexpected.“Thestatesanticipatedtherewasgoingtobesomeupheaval,”Rohertysaid.StateMedicaiddirectors,shesaid,hadcalledforadditionalsafetymeasurestoinsurepa-tientswouldgetthemedicationstheyneed. “In general,” Roherty said, “the system was just not ready to accommodate thenumberofdualsmaking a transition to theMedicare system. As those individuals would show up at thepharmacy, thereweresomanyglitches thatpeoplewere leav-

thecouncilofstategovernments www.csg.org �3

ingpharmacieswithoutmedicine.”MarkMcClellan,the Bush administration’s top Medicare official, ac-knowledgedthattensofthousandsofrecipientsprob-ablydidn’tgetmedicineduetotheconfusionintheearlydaysofimplementation. The glitches in the system included everythingfromwrongeligibilityinformationtoinadequatein-

formation on the PDP to which patients were assigned. Phar-macieswereunabletogetthroughtotheinsurers,whichdidn’thaveenoughstafftohandlethecomplaintsmadebyphone.And,Rohertysaid,manyPDPswerenothonoringthetransitionplansrequiredbyCMS. Manystatesanticipatedproblemsandtookextrastepstohelpdualeligibles through the transition.Rohertysaidsomestatesgave patients “additional fills” on their December prescrip-tions. Others, like New Jersey, stepped up hotlines “to makesureconsumersandproviderscouldcontactus,”according to

SueEsterman,aspokeswomanforthestate’sDepartmentofHu-manServices. “We did not expect anything that approached this degree,”shesaid.Herstateisgladitmadethepreparationsitdid.“Idon’tthinkyou’reeverprepared for somethingassweepingas this.If we hadn’t made those preparations, the situation would beworsetenfold.” New Jersey officials turned off filters in the computer system sothateverydualeligibleclaimwouldbecoveredbyMedicaid,atleastuntilMedicarePartDstartedworkingthewayitshould.TheCMS“demonstrationprogram”toreimbursestateMedic-aidprogramswasexpectedtoendFeb.15,andtheagencydi-rectedparticipatingstatestodiscontinueprescriptionpaymentsthroughMedicaidsystemsonorbeforethatdate. Thecostsofprescriptiondrugsaren’t theonlyonesassoci-atedwiththeproblemsmanystatesfacedinJanuary.Therewereadditional administrative costs. “It’s put a major drain on the resourcesofthedepartmentandthelocalcommunityworkers,”Rosensteinsaid.Somebelievethatmanyseniorsfacedaddition-alphysicianandhospitalvisits as a resultofnotgetting theirmedications.Thosecosts,Rohertysaid,willshifttothestates.

A “broader war” The initial problemswithPartD implementation mayhavedecreased, but many people expect more problems for statesdowntheroad. JonOberlander, anassistantprofessorof socialmedicineattheUniversityofNorthCarolina-ChapelHillandauthoroftwobooksonMedicare,saysPartDis“afrontinthebroaderwaroverMedicare—thewaroverthepresentandfutureofMedicare.”

MedicarePartD The Centers for Medicare & Medicaid Services has es-tablished a state reimbursement plan that enables statestobe fully reimbursed forensuring their“dualeligibles”re-ceivedneededmedicationduringtheearly implementationofthePartDprescriptiondrugplan.Formoreinformationand downloadable materials, visit http://www.cms.hhs.gov/States/031_Repayment2States.asp#TopOfPage Foradownloadablefactsheetonthetransitionprogram,check out http://www.cms.hhs.gov/States/Downloads/StateRe imbursementFactSheet.pdf Formoreon the historyofMedicare, checkoutDr. JonOberlander’sbooksonthepoliticsoftheprogram, Fractured Consensus: Medicare and American Politics, �965–�00� (Uni-versityofChicagoPress),andreform,tentativelytitledFalse Promises: Why the Market Can’t Cure Medicare.


The Part D prescription plan is the first major change since Medicare was enacted in 1965. Several previous attempts toprovideprescriptiondrugcoverageforseniorsfailed.Theplanthat finally passed is not to the liking of either the Democrats, whoconsideritagiveawaytothedrugindustry,ortheRepub-licans, who consider it an entitlement program that costs toomuchmoney,Oberlandersaid.Statesarecaughtinthemiddle.“They’resortofinnocentbystanders,”hesaid. Part D also removes states’ abilities for disease manage-ment, according to Roherty. “The really active or innovativeways states havebeen involved in todecreasecostsandincreasewellness,statesareconcernedarenotgoingtoworkaswellbecausethey’velostthatcapacity (to monitor whether partici-pantsaretakingtheirmedicine).” In addition, she said, states—nolonger deemed purchasers of medi-cine—havelosttheabilitytonegotiateforthebestrates. Oberlander expects the states toplay a larger-than-expected role inservicingthePartDparticipants,par-ticularly the dual eligibles. “I thinkthethingisCMSandthefederalgov-ernmentaren’treallysetupinMedi-caretohaveone-on-onecounselingatthelocalandregionallevel,”hesaid.Statescanexpecttocontinue“ahugeroleinadministeringtheprogrambe-causetheydohavemoreresourcesontheground.” StaceyMazer,aseniorstaffassoci-ateforNASBOwhodealswithMed-icaidissues,alsoexpectsmoreeffectsonstatesdowntheroad.“I think it’sgoing to be tricky to figure out the impact,”shesaid,“Therearegoingtobe some unexpected things, possiblecosts,possiblychangesinexpectedcost.Youcanatleastpredictthingswillbeunpredictable.” Oberlander said states “unfortunately (are) not going to beabletohidefromthis.It’sgoingtobethere.” State officials are well aware of that. With every new month comesnewpeopleconsidereddualeligibles.InCaliforniaalone,thataddsupto10,000newpeopleintheprogrameachmonth.Andthere’snolimitonthenumberoftimespatientscanswitchdrugplans.Roherty,ofNASMD,said the federalgovernmenthasnodeadlineforswitchingplanseachmonth.That’saprob-lem,andonethestateshopetochange.“Theswitchisinstant,”RosensteinofCaliforniasaid,“butthedatatakesseveralweekstocatchup.”He,likeRoherty,believesthatcouldcreateprob-lemssimilartotheonesinJanuarybecauseofinaccurateoroldinformation. There’salsotheoppositionsomestateshavewith“clawbacks,”thosepaymentsstatesmustmaketothefederalgovernmentforthe Part D program. At least five states intend to appeal to the

U.S.SupremeCourt toblock theclawbackpayments thePartDlegislationrequiresstatestopayCMS.Oberlandercallstheclawbacks “a federal government cost-shifting.” He says thedualeligiblesare“apopulationthefedsshouldtakecareof,butthey’renot.” Thestates say theclawback formula isunfair, andwillcostsomestatesmorethantheoldfundingformula.Kentucky,forinstance, estimates it will pay $20 million more annually forprescriptiondrugs fordualeligibleswith theclawback than itwouldhavepaidunderMedicaid,accordingtoJenniferHans,a

Kentuckyassistantattorneygeneralwhoisworkingwithotherstatesona lawsuit challenging the clawbackprovision. “What that (provision) did wascome up with a formula for eachstatetopaybacktothefederalgov-ernment a certain sum of moneythat was supposed to representwhat the statewouldhavepaid forhad they continued to cover dualeligibles,”Hanssaid.“Theformulatheyusedisinherentlyunfair.Somestatesmaybeontheplusside.Manystates, includingKentucky, arego-ing to lose state money throughclawback.”Hanssaidtheplanalso“violatessome fundamental constitutionalprinciples in requiring states to payfor a federal program.” The feder-alism issue will be included in thelawsuit,butHansdeclinedtodiscussspecifics before the lawsuit was filed.

Better off Despite the past and expectedproblems,manypeopleinMedicaidcircles think Medicare Part D is a

good thing. “The majority of people who sign up for this are going to benefit from it,” said Ross Mason, public information officer for the Idaho Department of Health and Welfare. Indeed,throughoutamonthofcriticismfortheconfusioninimplementing the program, McClellan, the Medicare official, touted the fact that 1 million prescriptions were being filled eachday.RosensteinsaidCMSandthestatesareworkinghardto make the program work. “For the large majority of people, theprogramisworkingverywell,”hesaid.“It isagoodpro-gramthat,whentheseproblemsareresolved,willprovideaverymuch-neededprogramtoseniorcitizens. WhilestatesareworkingwithCMStoresolvetheproblems,Rosenstein said, “ultimately, this is aproblem the states can’tsolve.It’sgottobesolvedbythefederalgovernment.”

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

The states say the clawback formula is unfair, and will cost some states more than the old fund-ing formula. Kentucky, for instance, estimates it will pay $20 million more annually for prescription drugs for dual eligibles with the clawback than it would have paid under Medicaid

— Jennifer Hans, a Kentucky assistant attorney general


Close to Home‘Green Houses’ are an alternative to nursing facilities

by Bob Moos

The founder of the Green House Project has a plan for reinventing howthiscountrycaresforfrail,olderadults. Gonewillbethelargenursinghomesthattreatresidentslikehospi-talpatients.Instead,therewillbe“GreenHouses”for10to12elderswholivelikeafamily. Theywill sleep in theirownbedrooms,eathome-cookedmeals,pursue theirhobbiesand, if theychoose,helpwith lighthouseholdtaskssuchasfoldinglinens. Dr.Thomashascaughttheattentionofmanyinthenursinghomeindustrywhoare looking for less institutional settings for their1.6millionresidents. Those executives acknowledge that their new focus on creatinghomier environments springs from the nation’s growing frustrationwithits17,000nursingfacilities. ArecentKaiserFamilyFoundationsurveyfoundthatonly35per-cent of Americans are satisfied with the care in nursing homes—just slightlybetterthanpeople’sopinionofHMOs.AndexpertsexpecttheGreenHouses’kinder,gentlerwaystoappealtomanyfamilies.

Dr.BillThomasisona

missiontocloseevery

nursinghomeinAmerica.

“Mostnursinghomesare

sadandlonelyplaces,”the

Harvard-educatedgeri-

atriciansaid.“Ourelders

deservebetter.Theyneed

placeswheretheycan

enjoylifeandgrow.”


“Dr.Thomasisthebestthingtocomealonginnursingcareindecades,”saidSandyRansom,directoroftheTexasLongTermCareInstituteatTexasStateUniversityinSanMarcos. Mississippi Methodist Senior Services became the first group in the country tomove its nursinghome residents intoGreenHousesabouttwoyearsago.

The nonprofit group had planned to expand its nursing home in Tupelo, Miss., until chief executive Steve McAlillyheardofDr.Thomasandagreedthatmoreofthesamewasn’ttheanswer. “Ifwe’rehonest,mostofussayasilentprayerwhenwewalkintoanursinghome:‘God,savemefromthis!’”hesaid.“That’sbecausenursinghomesaren’thomes.” Thegroupdecidedtospenditsmoneyonbuilding10GreenHousesthatbearallthemarkingsofhomebutaredesignedforskillednursingcare.

Theranch-stylehousesresembleanyotherhomeonthestreet,evendowntotheirgardenpatioswithbarbecuegrills. Whenvisitorsringthedoorbell,they’regreetedbyoneofthetwoelderassistantsonduty. Theentrywayleadstoalargecommonroomwhere,onare-centvisit,eldersweresittinginfrontofthehearthandexchang-ingstoriesaboutgrandchildren. Eachelder’sroomopensontothecommonroom,sonoonehasfartowalk. “Toomanynursinghomeresidentsendupinwheelchairssim-plybecause theycan’tnavigate the longcorridors,” explainedproject director Jude Rabig. TherearenoschedulestokeepinaGreenHouse,sotheresi-dentswakeupwhentheywantandgotobedwhentheyplease.

Feeling at ease Asinmanyhomes,aGreenHouse’sopenkitchenanddiningareaareahubofactivity.

The smells of stews simmering and cookies baking waftthroughthehouseastheelderassistantspreparefavoritefamilyrecipes. “It’salwaysgoodhomecooking,”said100-year-oldMildredLee as she enjoyed her lunch of baked chicken, mashed pota-toes,collardgreensandcornbread. Familymemberswhoseldomvisitedthecold,sterilenursinghomearefrequentguestsatGreenHouses. All five generations of 85-year-old Mildred McDonald’s fam-ilywererepresentedonarecentvisit. “When they come to see me, I’m so proud to show themaround,”shesaid.“Backatthenursinghome,IfeltlikeIwasstayingatsomebodyelse’splace.Here,IknowI’mhome.” Key to each Green House’s success are the assistants whomaintainthehouseholdandtendtoeveryone’sneeds.Dr.Thom-ascallsthemtheShahbazim,ormidwivestotheelders. The assistants are certified nurses’ aides who enjoy more au-tonomythantheywouldatnursinghomes. “Iwasalwaysfollowingarigidscheduleatthenursinghome,”saidReneaReid,oneoftheShahbazim.“NowIhavetimetogettoknowmyelders.” Inanemergency,theelderassistantscancallaclinicalsup-portteamthatarriveswithinminutes. GreenHousesaredesignedtofollowexistingregulatoryre-quirementsandtocostnomoretobuildoroperatethananurs-inghomewithprivaterooms. MississippiMethodistSeniorServicesspent$9.2million tobuild10GreenHousesfor112elders,asopposedtothe$12mil-lionitwouldhavepaidforanew140-bednursinghome.

“I was always following a rigid schedule at the nursing home,” said Renea Reid, one of the Shahbazim. “Now I have time to get to know my elders.”


Residents thrive The nonprofit agency also operates its Green Houses on the samegovernmentreimbursementsandprivatechargesitgetsforitsnursinghome—anaverageof$145adayfromthestateforthe70percentofeldersonMedicaidand$155adayfromprivate-payelders. Manyoftheresidentshavethrivedintheirnewhomes,Mr.McAlillysaid. “It’sbeenamazing,”hesaid.“Peoplewhowereinwheelchairsarewalking.Peoplewhowerelosingweightareeating.Youcanseeatwinkleintheireyesagain.” An independent research project confirms his assessment. TheUniversityofMinnesotaresearcherscomparedtheeldersin theGreenHouseswith the residents in twonursinghomesover the last year. The first group fared significantly better. “Wewouldexpectsomephysicaldeclineinanynursingset-ting,butwefounditwasmuchslowerintheGreenHouses,”saidProfessorRosalieKane. Green Houses have also eliminated the high staff turnoverthattypicallyplaguesnursinghomes,shesaid.

Acceptance grows Thoseresultsaregettingnoticed.Twentygroupsfromacrossthecountry,includingoneinTexas,arecommittedtobuildingGreenHouses,Rabigsaid. BaptistMemorialsMinistries inSanAngeloplans tobeginconstructionontwoGreenHousesforAlzheimer’spatientsnext

yearandwantstoreplaceits169-bednursinghomeafterthat. “I’mimpressedwithwhatI’veseeninTupelo,”saidchiefex-ecutivePatCrump. Still,notevery long-termcareexpert is ready to followDr.Thomasandteardownneighborhoodnursinghomes. “GreenHousesmakealotofpracticalsense,buttheymaynotbetheonlyanswer,”saidHalDaub,presidentoftheAmericanHealthCareAssociation,anindustrygroup. Daub said nursing homes may be able to achieve the sameresultsbyremodelingexistingfacilitiesandcreatingsmallerliv-ingspacesforafewdozenresidents. Industry executives point to Beverly Enterprises Inc. of FortSmith, Ark., a leading for-profit operator of nursing homes that’s renovatingseveraldozenofits350facilitiestomakethemhomier. Green House Project officials remain convinced that most for-profit enterprises will someday replace their institutional-style buildingswithhomeslikeDr.Thomas’. “They’llhavenootherchoicebecauseconsumerswilldemandit,”thegeriatriciansaid. America’sover-65populationwilldoublein25years,andhepredictsagingboomerswon’tputupwiththenursinghomecon-ditionsthatearliergenerationshavetolerated. “We’reatthebeginningofarevolution,”hesaid.

—Bob Moos is a staff writer for The Dallas Morning News, where this article originally appeared.

CSG’s par tnership to promote publ ic health

healthy states

The Councilof State Governments

In par tner sh ip wi th the Center s for Disease Contro l and Prevent ion , The Counc i l o f State Governments announces i t s new Hea l thy States in i t ia t ive

to educate s tate of f i c ia l s on publ ic hea l th i s sues . Areas inc lude cancer, d iabetes , immunizat ion , school hea l th and env i ronmenta l hea l th .

Look for these new resources and ser v ices :

CSG’s par tnership to promote publ ic health

For more information, check out the Healthy States Web site at www.healthystates.csg.org.

n Quar ter ly newsletter, i ssue br iefs and other publ icat ionsn e -Week lyn Inqui r y ser vicen I ssues analys isn Comprehensive Web s i te


States of progressGovernors Outline Plans for the Future in State of the State Messages

by Laura Coleman

InJanuary�005,the“Nation’sReportCard”revealednoprogressforhighschoolstudentsin30years.TheUnitedStatesisninthintheworldinhighschoolgraduationratesamong�5-to34-year-olds.The�millionstudentswhodropoutofhighschooleachyearcostournationmorethan$�60billioninlostwages,taxesandproductivityintheirlifetimes.

During the first two months of this year, governors across the countrypledgedtogettoworkandcooperatewiththeirlegisla-turestoimproveconditionsintheirstates.Buttheirplansarenotlimited to improvements inK-12 education.Health care, pub-licsafety,andimprovinginfrastructuresalsotoppedgovernors’agendas.

K-12 Education Accordingtoa2004reportfromtheAmericanFederationofTeachers,foreverynewrealdollargainedintheprivatesector,teachers only gain about 18 cents. In 2004, the average begin-ningteacher’ssalarywas$31,704andtheaverageteacher’ssal-aryoverallwas$46,597. Governors across the country, and in particular from stateswith below average teacher salaries, vowed to provide bettercompensation,thusensuringthatthebestteachersremainintheclassroom. “Weneedtobringteacherpayinlinewithteacherresponsibil-ity,”saidArizonaGov.JanetNapolitano.“Teachingshouldn’tbethe‘lastresort’forstudentsas theyentercollegeandbegintothinkaboutfuturecareers.”

As a result of more fiscally stable states, allocations for repairing and updating infrastructures were in governors’ budgets this year. Years during the economic downturn left roads and high-ways neglected, and this year governors pledged to make long-needed repairs.


States of progress

NapolitanocalledforlegislationtoincreasethebasesalaryinArizonasothateveryteachermakesatleast$30,000ayear.Shealsocalledformoreprofessionaldevelopment. KentuckyGov.ErnieFletcherspokeaboutasimilarplan.“Iwillproposeanenhancedprofessionalcompensationplanthatpaysteachersmorewhoreceiveprofessionaldevelopmentthatisdirectlyrelatedtotheirclassroomworkandwhotakevoluntaryactions to teach subjects where there is a need or to teach at a low-performingschool,”hesaid. Attracting K-12 teachers in low-performing schools was anissueinextricablylinkedtocompensation. Hawaii Gov. Linda Lingle laid out a plan to draw teacherstoareaswheretherehasbeenashortage.Herplanistoallowretired teachers to be hired for up to 24 months without anyloss of retirement benefits, start a Master Teacher Program with bonuses for any National Board Certified Teachers who agree toteachinanunderperformingschoolforthreeyears,createanemergency certified teacher program to allow any person with a bachelor’sdegreetoteach,anduse$500,000tore-establishtheHawaiiEducatorLoanProgramforloanforgiveness. “Educationmustbeoneofourhighestpriorities,andisde-servingofmoresupport,”saidLingle.“Itisourhopeforabettertomorrow,bothforusasindividualsandasastate.Overtime,itcanwashawaythebarriersofdisadvantage.” Dr. Keon Chi, a senior fellow in CSG’s national office in Lexington, Ky., agrees that education should be a top prior-ity.“Hopefully,legislatureswillsupportgovernors’initiatives,including more money for education programs and teachers’salaries,”hesaid.“Legislatorsshoulddotheirbesttoraisecom-pensation levels forK-12 teachers inorder to improvestudentperformance.Educationisthebestinvestmentstatescanmakefor the benefit of their citizens.”

Higher Education “In 1970, half of the people in the world who held scienceandengineeringdoctorateswereAmericans,”saidU.S.Depart-mentofEducationSecretaryMargaretSpellings.Shepointed

Vermont in particular faces a demographic challenge with the prescription drug benefit: its population is the second-oldest in the country. “We need to work together to address the federal Medicare implementation challenges that are currently afflicting the entire nation.”

—Gov. Jim Douglas, Vermont, CSG’s 2006 president.


out, however, that projections show that figure will drop to 15 percentby2010. Several governors proposedplans to increase enrollment instatecollegesanduniversitiesandmakehighereducationareal-ityformoreresidents. ColoradoGov.BillOwensaddressedwhathecallsthe“Colo-radoParadox.”Coloradorankssecondinthenationincollegedegreespercapita,but lagsbehindin thepercentageofColo-radostudentswhopursuecollegeeducation. AmongOwens’ideastoaddressthisissuearelimitingtuitionincreases and allocating more state funding for financial aid. Illinois Gov. Rod Blagojevich proposed a $1,000 annual tax creditforeveryfreshmanandsophomoreattendingastatecol-legeoruniversity.ThesecreditswouldbeawardedtostudentswhokeepaBaverage. “Formanyfamilies,thisisataxcreditthatcanhelpmakethedreamofcollegeaffordableandthedreamofcollegeareality,”said Blagojevich. “Washington has its priorities all mixed up. On one hand, their policies encourage the outsourcing of jobs. Ontheother,they’retryingtocutcollegescholarships.Asana-tion,wearefallingbehind.” Steps suchas theseareexamplesofhowstategovernmentshopetocompensateforfederalcutstostudentloansubsidies.

Tougher Punishments for Sex Offenders Governorsacrossthenationmadeitclearthatsexoffendersshouldfacetougherpenaltiestoreducerecidivism. SouthDakotaGov.MikeRoundsannouncedthathewillin-troducea sexoffenderbill to increasepenalties for repeatof-fenders,requireadescriptionoftheoffender’scrimetobelistedontheregistry,specifyproceduresforregisteringincarceratedsexoffenders,andcreateanewfelonyforharboringasexof-fender.Thebillwouldalsocreateaprocesswherecertainof-fenderscanbedeterminedineligibleforparole. According to Kansas Gov. Kathleen Sebelius, protecting chil-dren from thesecriminals is commonsense.SheaskedKansas’legislatureagainthisyeartodoubleprisonsentencesforsexoffend-erswhopreyonchildren.Thensheaskedtoaddanotherpenalty. “Whenthey’veservedtheirprisontime,Iwanttorequireallrepeatsexoffenderstowearelectronictrackingdevices—fortherestoftheirlives,”saidSebelius.“Thesetrackingbraceletswillallow law enforcement officers to monitor their locations at all times.I’veputmoneyforthisinmybudgetbecause,again,it’sjust common sense.”

Health Care Nearly every governor mentioned health care during thisyear’sStateoftheStateaddresses.Governorsinseveralstatesmentionedincreasingbudgetallocationsforhealthcareasare-sponsetofederalspendingcuts.

CaliforniaGov.ArnoldSchwarzeneggeraskedforthefederalgovernmenttopermittheimportofprescriptiondrugsintotheUnitedStates. “Iaskmyself,what’sthequickestwaywecanhelpthegreatestnumberofpeoplewiththespiralinghealthcarecosts?Ibelieveinthefreemarket.Ibelieveinfreetrade,”saidSchwarzenegger.“Imean,webuyfoodfromoverseas.Webuycarsfromover-seas.Whynotprescriptiondrugs?” OklahomaGov.BradHenryalsocalled for the importationofprescriptiondrugsfromotherindustrializedcountries.“Pre-scriptiondrugsareoneofthechiefdriversofincreasedmedicalcosts,”hesaid.“WhenneedyOklahomansmustchoosebetweenfoodandmedicinewhiledrugcompaniesspendmorethan$4billiononadvertising,somethinghasgoneterriblywrong.Thestatusquoisunacceptable.”IdahoGov.DirkKempthorneannouncedthatMedicaidreformisatthetopofhisagenda.“Medicaidisamongthefastestgrow-ingpartsofthestatebudget,”saidKempthorne.“Buttocurethesystemicproblemsandreignintheescalatingcosts,wemustdomoretomodernizethesystem.Unlesswedosomething,we’llbe forcing the care of our grandparents to be in direct conflict withtheeducationoftheirgrandchildren.”Kempthorne’sreformstrategyincludesplanstoredesignMed-icaidintothreedistinctprograms:oneforlow-incomechildren,oneforindividualswithdisabilitiesorspecialhealthneeds,andonefortheelderly.Eachprogramwouldbespecializedtomeettheneedsofitspopulation. VermontGov.JimDouglasannouncedhisdirective to theAgency of Human Services to reinstate benefits to seniors who werepreviouslyenrolledinoneofVermont’sprescriptiondrugprograms.“Thismeansthatnoseniorwhoreliedonstategov-ernment formedicinewillbe turnedawayfromapharmacy,”saidDouglas.“TheywillgetthedrugstheyneedandVermontwillguaranteetheiraffordability.”

Nearly every governor mentioned health care during this year’s State of the State addresses. Governors in several states mentioned increasing budget allocations for health care as a response to federal spending cuts.

thecouncilofstategovernments www.csg.org ��

Vermontinparticularfacesademographicchallengewiththeprescription drug benefit: its population is the second-oldest in thecountry.“WeneedtoworktogethertoaddressthefederalMedicare implementation challenges that are currently afflict-ingtheentirenation,”saidDouglas,whoisCSG’s2006presi-dent.“WemustensurethatVermontseniorshaveaccesstotheprescriptiondrugstheyneedatthepricetheywerepromised.” WestVirginiaGov.JoeManchinunveileda“PreventiveCareClinic-BasedPlan”asoneofhistwopublic/privatehealthini-tiativestohelpprovideWestVirginiansaffordablehealthcare.The plan sets up sites at primary care clinics or private doc-tors’ offices and would allow subscribers access to primary care services—checkups,sickvisits,X-raysorlabtests—atthepar-ticipating clinic or doctors’ office for a monthly fee. According toManchin,theplanwouldprovidebasicpreventivecareforalowprice. Additionally,inArizonaandKentucky,proposalsareonthefloor to offer tax breaks for health insurance costs to small busi-nesses.InArizona,17percentofresidentsareuninsured,andinKentucky,13.9percentofresidentslackcoverage.

Transportation and State Infrastructures As a result of more fiscally stable states, allocations for re-pairingandupdatinginfrastructureswereingovernors’budgetsthisyear.Yearsduring theeconomicdownturn left roadsandhighwaysneglected and thisyear, governorspledged tomakelong-neededrepairs. Alaska Gov. Frank Murkowski introduced his “BottleneckBusters”transportationinitiativeinOctober2004.Theproposalincluded $97 million in state funding for congestion relief proj-ects. During his recent state of the state address, Murkowskiasked legislators this session to jumpstart the program with $30 million of state funds. Murkowski’s budget also includes

allocationstoreconstructdangeroussectionsofAlas-ka’sroads. Virginia Gov. Tim Kaine’s address included hisideas for improving thestate’s transportationsystem,especiallyinevacuationroutes.“ThehurricanesthatdevastatedtheGulfCoastlastyeartaughtusmanythingsabouttheneedforprepar-ingfortheworst,”Kainetoldlegislators.“Iwillinitiateathoroughreviewofevacuationandemergencyplans.Iwillinsistthatstateandlocalagenciesbepreparedtoaidandevacuateresidentsinanemergency,especiallyelderlyandpoorresidentsandthosewithouttheirowntransportation.” In addition, Kaine told legislators that Virginia’stransportationwoesarefar-reachingandcanbefeltinbothruralandurbanareas. “Because fiscal accountability shouldn’t depend on a singleelection,Virginianeedsaconstitutionalamend-ment to protect transportation dollars permanently,”saidKaine.OklahomaGov.BradHenryaskedlegislatorstoal-lowvoterstodecideonasimilarmeasure. Several states have enacted legislation protectingtransportation funds, which seek to prevent policy-

makersfromdippingintomoneyfromhybridfundstouseforgeneral allocations. Hybrid funds—like transportation fund-ing—are often in better shape than general funds because ofrevenuefromgastaxes.

Other Priorities GovernorsinAlaska,Idaho,Michigan,Missouri,NewYorkand Washington specifically mentioned skyrocketing energy costsandannouncedplanstohelptheirresidents. Gov.Kempthorne’sbudgetincludesmorethan$63millioninone-timeenergyassistancetohelpIdahoanswithenergycosts.Every Idaho resident who filed a 2004 tax return or the grocery taxcreditwillreceiveacheckfor$50foreachqualifyingman,womanandchild.Kempthorneaskedlawmakerstoapprovethelegislationimmediately. Proposals also have taken shape in New York, where Gov.GeorgePatakiannounceda$500fueltaxcreditforseniorciti-zens,andinMissouri,Gov.MattBluntaskedthestatelegisla-turetoapprovea$6.1millionbudgetallocationfor thestate’sUtilicareprogram. Several governors also mentioned using state funds to re-searchalternativeenergysourcesinordertoreducedependenceonforeignfuel. IncreasingstatetechnologymadetheagendainGeorgiaandRhodeIslandwiththegovernorsofthosestatesintroducingini-tiativestosupportestablishingbroadbandconnectivityintheirstates. Gov. Donald Carcieri announced that Rhode Island ispoised to become the first state in the country to be wireless bordertoborder.Hetoldlegislatorsthatinvestmentsintechnol-ogyyieldsolidrewards. “The opportunities for business, health care and educationarelimitless,”saidCarcieri.“Itrequiresapublicinvestment,butpromises to pay off in the future with new jobs.”

The Fiscal State of States As a result of an economic upturn in the 2005 fiscal year—revenuesexceededexpectationsin45statesandwereontargetin five—talk of tax cuts have entered governors’ agendas. Almosteverystateislookingatacaponpropertytaxes,andmany states have enforced a limit. Another trend, says Sujit CanagaRetna, fiscal analyst for the Council of State Govern-ments,isloweringpropertytaxesandcompensatingwithahikeinsalestaxes. However, experts warn that despite fiscal stability, states will bewaryofincreasesinprogramspendinginthenextyear. “Therevenuesituationforstateshasimprovedradically,”saidCanagaRetna.“Butwhenyoulookatitfromtheperspectiveofthedepthswewereplungedto,westillhavealongwaytogo.” CanagaRetnasaidthatstatesareexpectingaseriesofloom-ingexpenditures,suchashealthcare,retirement,andeducationincludingcourt-mandated educationcosts, so those areaswillsoakupalotofrevenue. “Soalthough revenue is improved,” saidCanagaRetna, “wearenotoutofthewoods.”

—Laura Coleman is associate editor of State News magazine.

�� statenews march�006

Raising Public Awareness about DisasterResponseby Emily Bentley

The report, published by the Emergency Management Ac-creditationProgram(EMAP),callsforincreasedlocalandstateemphasisonandfederalsupportfordeliveryofmoreeffectivepubliceducationaboutpotentialhazardsfacingtheircommuni-tiesandthestepsindividualsshouldtaketobeprepared. Ken Murphy, director of Oregon Emergency ManagementandchairmanoftheNationalEmergencyManagementAssocia-tion’s(NEMA)PreparednessCommittee,saidpubliceducationabouthazards,responseplansandpreparednessmeasuresgetsmuchlessfocusthanitshould. “You’vegot to reacheverybodyyoucan,”Murphysaid.“Itdoesn’tmatterwhatwedo,ifwedon’tprovideeducationtothepublic,itwon’twork.” NEMAPresidentBruceBaughman,directoroftheAlabamaEmergencyManagementAgency,saidthemoredisasteraware-nessandpubliceducationaccomplishedaheadoftime,thebet-tertheoutcomeduringadisaster. “Thetimeadisasterhitsisnotwhenthepublicneedstohearthis information for the first time,” Baughman said.

Protecting the safety of residents is a key function of state governments, but a new report notes that improving the delivery of information to help the public understand potential disasters and the steps they should take to protect themselves gets little focus and support, despite the current federal push for preparedness.

AccordingtotheEMAPreport,disasterpubliceducation—re-ferring to pre-disaster efforts—should be based on a compre-hensive analysis of hazards and risks facing a jurisdiction and on examination of impacted communities and populations. Astrategyusingavarietyofmeanstoengagedifferentsegmentsofthepopulationcanthenprovideresidentsinformationaboutpreparednessmeasuresandmakethemmorefamiliarwiththestepstheywillbeaskedtotakewhenadisasteroccurs. Thereport,“ComponentsofEffectiveDisasterPublicEduca-tionandInformation,”isdesignedtoassistlocalandstategov-ernmentsincommunicatingeffectivelyaboutpreparednessandwassupportedbyagrantfromtheAlfredP.SloanFoundation. Experiencedemergencymanagementprofessionalsnotethathavinganemergencyresponseplan inplace—whichallstatesandmostcountiesandlargecitieshave—isnotallthatmatters.Theplanmustbecoordinatedwiththosewhowillbeexpectedtoimplementitandthecommunitiesitpurportstoserve. “Youcanhaveallthetoysandtools.Youcanhaveanexcep-tional plan, but if the public doesn’t understand it, it’s just going tofallapart,”Murphysaid.Informationtothepublicabouthaz-ardshastobeconsistentandsustained,headded.Murphysaidtherearechallengesinprovidingeducationandinformationtobothresidentsandvisitorsbuttheoutreachhastohappenandneedstobeeffectivetomakeemergencyresponseplanswork. Inthepastyear,severalstates,includingCaliforniaandFlori-da,haverenewedeffortstoeducatethepublicregardingdisasterpreparedness.InFlorida,Gov.JebBushtalksabout“creatingacultureofpreparedness”inleadinganewstatedisasterpubliceducationcampaign. “Providing clear and consistent direction to citizensbefore,duringandfollowingadisasteriskeytoemergencyprepared-nessandaneffectiveresponse,”Bushsaid.“...Governmentcan-notbethesoleresponder.Preparedcitizensarebetterequippedtoprovideforthesafetyoftheirfamilies,reducedamagetotheirhomesandrecovermorequicklyfromadisaster.” While there are federal, state and local initiatives designedtodrawattentiontotheneedtopreparefordisasters,theyoftendonotpresentconsistentinformation.Therearenumerouspre-


Examples of Disaster Public Education Campaigns on the Web

California “bear responsibility” www.oes.ca.gov/Operational/OESHome.nsf/0/A43A30DB8F1F1CA88256FE900

79CEB6?OpenDocument

District of Columbia Emergency Preparedness Guideshttp://dcema.dc.gov/dcema/cwp/view,a,1226,Q,609437,dcemaNav,|31810|.asp

My Safe Floridawww.mysafeflorida.organd

www.floridadisaster.org

Ready New York (city)www.nyc.gov/html/oem/html/readynewyork/home.html

Ready.gov (federal)www.ready.gov

ForthefullreportonComponentsofEffectiveDisasterPublicEducationandInformationanddisasterpubliceducationandinformationresourcelist,visitEMAP’sWebsiteatwww.emaponline.org.

Raising Public Awareness about DisasterResponse

parednesslistsontheInternetandtelevision.Mostincludesomeofthesamecomponents—afamilyplan,evacuationplanandanemergencykit—buttheymaybecalledsomethingdifferentandhavedifferentcomponents.Isitpossibledifferentmessagesruntheriskofconfusingthepublic?Thereportborrowsfromthelessonsofprivatesectorbrandingtohelpstatesandcommuni-tiesbuildastrategytocommunicatemoreclearlyaboutdisasterpreparedness.

Need and Opportunity Theneedtoinformthepublic inadvanceabout threatsandhazardsisnotnew.Standardsforemergencymanagement,forexample,includerequirementsforpubliceducationandpublicinformation.TheimpactsofhurricanesKatrinaandRitainthefallof2005,however,mayhavegiventheaverage24-hournewschannel viewer a glimpse of the challenges local and state offi-

cialsandemergencymanagersdealwithregularly.Howdoyoucommunicate the preparedness message to reach more of thepopulation?Willpeopleknowwheretogo?Howdoyouassistwithplansforthousandsofpeoplewhoarewithouttransporta-tionorinhealthcarefacilitiesoraredisabled? Data from a Washington Post/Kaiser Family Foundation/HarvardUniversity“SurveyofHurricaneKatrinaEvacuees”fromSeptember2005highlightstheneedforbetterpubliceducationandoutreach pre-disaster. Survey respondents were 680 adults who wereevacuatedfromtheGulfCoasttoHoustontostayinshelters.

n 73 percent said they heard that an evacuation order hadbeengivenbeforeKatrinahit.

n 66percentofthosewhoheardanevacuationmessage/ordersaiditgaveclearinformationabouthowtoevacuate,yet61percentdidnotevacuatebeforethestormhit.

n 64percentofthosewhodidnotevacuatebeforethestormsaidtheydidnotthinkthestormanditsaftermathwouldbeasbadasitwas.

n 42percentofthosewhodidnotevacuatebeforethestormsaidtheydidnotbecausetheywaitedtoolong.

n 55percentofthosewhodidnotevacuatebeforethestormsaidtheydidnothaveacarorawaytoleave.

n 22percentofthosewhodidnotevacuatebeforethestormsaidtheywerephysicallyunable to leave;about thesamenumbersaidtheyhadtocareforsomeonewhowasphysi-callyunabletoevacuate.

n 37percentofthosewhodidnotevacuatebeforethestormsaid they just didn’t want to leave.

Thenumbersindicateworkisneededtogetpeopletothinkaboutdisasteraheadoftimeandtopreparethemfordecisionsthatwillbeneeded,thetimeframesthatwillbeinvolved,andoptionsthatwillandwillnotbeavailable.EllisM.StanleySr.,generalmanagerof theLosAngelesEmergencyPreparednessDepartment and chairman of the EMAP Commission, saidguidancefordevelopinganddeliveringeffectivedisasterpubliceducation is sorelyneeded.Henotedanopportunitypost-Ka-trinatofocuseffortsontheseissues. Col. Jeff Smith, acting director of the Louisiana Office of Homeland Security and Emergency Preparedness, said whileLouisiana officials and residents will be dealing with the conse-quencesofKatrinaforyearstocome,thewindowmayalreadybe closing for building awareness in areas of the country notdirectlyimpacted. “Our experience verified what emergency managers have known for years: You cannot provide too much informationaheadoftimeaboutpossiblehazardsandwhatpeoplearegoing


toneedtodo,”Smithsaid.“Evennow,forexample,weplantogetouteducationalmaterialsaboutthespecialhazardsoflivingintemporaryhousing.” Smith noted that elected officials need to emphasize the im-portanceofresidentsbecomingknowledgeableaboutpotentialhazardsintheirstateorcommunityandthepreparednessstepstheyneedtotake.

What It Takes After hurricanes Katrina and Rita, the U.S. Department ofHomeland Security added citizen preparedness to its list ofnationalpriorities.EMAP’sDisasterPublicEducationandIn-formation Working Group noted that while there is significant guidanceavailableaboutcrisiscommunicationsduringadisas-ter,thereislittleabouteffectivemethodstoinformthepublicinadvanceofadisaster. In crafting a clear and consistent message based on identified hazards,stateandlocalgovernmentsshouldenlistabroadrangeofstakeholdersinvettinganddeliveringthemessage,thework-inggroupsaid.Forexample,sincelackofaccesstoInternetandotherpopularelectronicdistributionmethodscanbeabarrierto reaching portions of the population, other means, such as

communityandfaith-basedorganizations,canbevaluableout-reachvehicles. Partofthereport’sguidanceincludestheneedtoidentifyspe-cial needs populations and target outreach strategies to reachthem. The term “special needs populations” is defined broadly inthiscontexttoincludethemedicallyfragile,disabled,elderly,non-Englishspeakers,visionorhearingimpaired,economicallydisadvantaged,cognitivelyimpaired,andpersonsdependingonothersforcareandtransportation,aswellasindividualsusingspecialmedicalequipmentsuchasrespirators. In addition, the message must be consistent, sustained andsupportedatalllevelsofgovernment.Asthereportnotes:“Fed-eral and state governments must support local capabilities toprovideeffectivepubliceducationandinformationthroughcon-tinuityofauthority,emphasis,message,andlanguage,aslocalandstatepubliceducationandinformationhaveadirectimpactonsuccessfuloutcomesinadisaster.”

—Emily Bentley is the executive director of the Emergency Management Accreditation Program (EMAP). EMAP, a CSG affiliate, is the voluntary accreditation process for state, ter-ritorial, tribal, county and municipal government programs responsible for disaster prevention, mitigation, preparedness, response and recovery.

After hurricanes Katrina and Rita, the U.S. Department of Homeland Security added citizen preparedness to its list of national priorities.

Photos courtesy of FEMA


The Transforming Manufacturing Sector by Julia Hurst

Experts in the auto, coal and steel industries concurredthe manufacturing sector is undergoing significant transfor-mation.FredWebber,presidentoftheAllianceofAutomobileManufacturers,StephenMiller,presidentoftheCenterforEn-ergyandEconomicDevelopment,andDr.TimothyConsidineofPennsylvaniaStateUniversitydescribed transformations invariousstages. Considinesaidin2004thesteelindustryemergedfromyearsoflossesandissituatedforincreasesincapacityforthenext20years. He described companies that increased efficiency and productivitywhiledecreasingcosts.“Thecurrentproductivitygrowth in steel is about6 to7percent, comparedwith about3to4percentintherestofthemanufacturingindustry,”saidConsidine. Considinesaidsteelindustryemploymentis3to4timeslowerfollowingthechanges,whichhecalleda“re-industrialization,”doingasmuchormorewithfeweremployees. Webber said automobile companies are restructuring to in-crease operational efficiency, but added: “We are not watching thedemiseoftheAmericanautomobileindustry,wearewatch-ingatransformation.” Michigan has lost some 100,000 auto manufacturing jobs in thepastfewyears,saidWebber,butnotedthatinthesamepe-riod Indiana and the Sunbelt gained auto manufacturing jobs. Webbernotedotherchangestransformingtheautomobilein-dustry.“Whenmanufacturingcars,safetyisnowacompetitiveissue,vehiclesare99percentcleaner today inemissions than30yearsagoandfuelconsumptionstandardsareanimportantissue,”hesaid. Energyandenvironmentalissuesareoperationalconstantsinthemanufacturingsector,accordingtothethreeexperts. Considinesaidsteelcompaniesnowuselessenergybecausenearly60percentofallU.S.producedsteelisrecycled.Headd-edthatchangesinU.S.energypolicy—forexample,ifapipelineisbuiltfromtheAlaskaNationalWildlifeRefuge—wouldaffecttheindustrybecausethepipelinewouldbemadeofsteel. Webber said industry, government and consumers need topartner tochangetheenergy infrastructure.Everypublicfuelstation,forexample,shouldofferhydrogen,ethanol,naturalgasandpetroleum.Hesaidthedemandforenergyalternativecars

Industry experts addressing the National Lieutenant Governors Association Winter Meeting had optimis-tic forecasts for the nation’s manufacturing sector. They cautioned, however, that manufacturing’s future is vulnerable to non-market “interventions.”

willbehamperedaslongasdriversperceivethatthefuelisnotconvenientlyaccessible.HeaddedthatthenumberofstationsofferingethanolisgreatestinareaslikeNorthDakota,astateproducingethanol. Clearly, affordable energy sources are integral to operatingmanufacturingplantsandtothesuccessofmanyothereconom-icsectorsinthestates.Millersaidcoalplanttechnology,likemedical technology, is evolving at a rate ofmakinggreat ad-vancementabouteveryonetothreeyears.Hesaidhisorganiza-tion’spositionisthatstateswillneedbothcleancoaltechnologyplants and integrated gasification plants. He said Pennsylvania isofferingastatesubsidyforconversionofanoldplanttothenewer technology. TheStar-Telegram inFortWorthreportedJanuary12,2006, thatTexascommunitieswerecompeting tobe the site of the first near-zero-emissions coal power plant, a $1 billion project headed by the U.S. Department of Energy and aconsortiumofeightcompaniesfromtheUnitedStates,ChinaandAustralia. Even with innovation, efficiency and advancement projected in each of these manufacturing sectors, said Considine, themanufacturing sector and its jobs are vulnerable to non-market factors. Hesaidthesefactorsincludehealthcareandpensioncosts,thecostofcapital,embeddedcostsandforeigncurrencymanipulation. Likewise, state and federal public policydeci-sionsimpactthesector.

—Julia Hurst is executive director of the National Lieutenant Governors Association.

Resources: TheAllianceofAutomobileManufacturers:www.autoalliance.org CenterforEnergyandEconomicDevelopment:www.ceednet.org AmericanIronandSteelInstitute:www.steel.org

(left to right) Dr. Timothy Considine, Alaska Lt. Gov. Loren Leman, Alliance President Fred Webber, North Dakota Lt. Gov. Jack Dalrymple, CEED Presi-dent Stephen Miller


Some Companies ‘More Equal’ Than Othersby Adam Bruns

PendingSupremeCourtcaseandCongressionallegislationmaydeterminewhetherstateincentivesprogramscanfollowsuit.

Ineconomicdevelopmentcircles,thetakingspower(eminentdomain)mayhavetakenovertheheadlinesin2005,butincen-tives were still hot as a firecracker. Upcoming decisions and debate by the judicial and legislative branches will heat things up more—and perhaps provide clarity for both states andcorporations. Court decisions will continue to figure prominently in leg-islativedecisions.Somehavepointedtopropertyrightsasthemost significant subject of cases before the Supreme Court. Thatincludesthecourt’sdecisiontoconsidertheCuno v. Daim-lerChrysler case.AU.S.SixthCircuitpanelin2004foundthatcertain tax incentives for DaimlerChrysler expansions in To-ledo,Ohio,wereunconstitutionalandrefusedtohearanappealin early 2005. On Sept. 27, 2005, the case officially made its wayontotheSupremeCourt’sdocket. A national measure seeking to affirm states’ rights to offer theirowntaxincentivesforeconomicdevelopmentwasexpect-ed tobeheardbyaSenate committee last fall.But it isnowexpected to stay in committee until after the Supreme Courtmakes a decision, despite chief sponsor Sen. George Voinov-ich’sSeptember2005pleastothecontrary:

The clash over cash to corporate projects is headed to the country’s highest court, and is also the subject of a bill in Congress. What emerges may go a long way toward solving state and corporate uncertainty about incentive programs. Details of a case in North Carolina may offer some guidance in what lies ahead.


“IbelievethattheCongressmustpassTheEconomicDevel-opmentActof2005 thisyear regardlessofhow theSupremeCourtdecidesthe Cunocase,”hesaid.ThemeasureisbackedbyeverysenatorintheSixthCircuit,severalgovernors,theNa-tionalLeagueofCities,theNationalAssociationofManufactur-ers,theFederationofTaxAdministratorsandtheInternationalBrotherhood of Teamsters. A House version, also referred tocommittee,has50sponsors. “State governments and businesses shouldn’t have to liti-gate cases all the way to the Supreme Court in order to find outwhetherornotataxincentiveisconstitutional,”Voinovichsaid.“TheEconomicDevelopmentActisalong-termlegislativesolutionthatwouldonceandforallclarifytheconstitutionalityofstatetaxincentives…IcanassureyouthatChinaandIndiaaren’tgoingtostopusingtaxincentives.”

As Lawsuit Simmers, Dell Gets to Work The$279millionDellisslatedtoreceivefromstateandlocalentities to build a new assembly plant in Winston-Salem waschallenged inWakeCountySuperiorCourt in the summerof2005byformerNorthCarolinaSupremeCourtJusticeRobertOrr, now executive director and senior counsel for the NorthCarolinaInstituteforConstitutionalLaw. Orr and the seven property-owning plaintiffs from five coun-ties are not just challenging that package. They want the state to stopusing incentiveson thegrounds thatpayingcorporationstolocateinthestateisunconstitutional.ThedefendantsincludeJamesT.FainIII,secretaryofthestate’sDepartmentofCom-merce,localeconomicdevelopersandDell. AtissueisspeciallegislationpassedNov.4,2004,toawardDell$242millioninstateincentives.ThecomplaintechoestheSixthCircuit’sCunodecision: “TheDell legislationdiscriminates in favorof in-stateeco-nomicactivityandagainstinterstatecommercetherebyviolat-ingtheCommerceClauseoftheUnitedStatesConstitutionandotherwiseviolatestheU.S.ConstitutionandvariousprovisionsoftheNorthCarolinaConstitution,”thelawsuitclaims.Inotherwords,inducingcompaniestolocateinNorthCarolinaviathespecific tax breaks and other incentives is no more legal than it wasinOhio.Oddlyenough,theamountsarenearlyequal. Inaddition,theplaintiffsclaim,the$37milliontobedoledout by Winston-Salem and Forsyth County violates the stateconstitution. OnepolicyunderthemicroscopeistheWilliamS.LeeQual-ityJobsandBusinessExpansionAct(BillLeeAct),whichal-lows forbothgranting subsidies anddesignationof economicdistressrankingstocountiesforaidpurposes. AtissueisthenotionthatForsythCounty,whichfor10yearshasbeenamongthelowest-distresscountiesinstaterankings,has,forthepurposesoftheDellcreditprogram,beengiventheequivalentofahigh-distressranking.Thelawsuitsaysallowingsuchshiftingis“arbitraryandirrational.” ThecomplaintalsonotesthatboththenewlawandtheBillLeeActviolate theEqualProtectionClauseof theU.S.Con-stitution by not allowing the plaintiffs similar access to suchbenefits; the state Constitution’s Separation of Powers Clause by allowing the secretary of commerce and executive branchpowerover taxing authority;ExclusiveEmolumentsProvisionby giving Dell “a special tax benefit merely for operating its ownprivatebusiness”;PublicPurposeClauseandUniformityofTaxationClause.Thesuitcallsthemanufacturingcredit“im-permissibly vague and ambiguous” because of the latitude itgivesindeterminingeligibility. ThelawsuitcausedenoughconsternationtochangetheDellcontract: While the incentives offered by Winston-Salem andForsythCountywillstillbethesamedollaramount,thecom-putermakerwillnowpayfortheland. Thenegotiationdetailshave sparkedconversationabout in-centives’ worthiness and confidentiality. Open records debates aretakingplaceotherstates,includingGeorgia,whereinNo-vember 2005 a Ford Motor Co. lawyer told a judge releasing documents might seriously jeopardize negotiations with the stateoverkeepingopenitsHapevilleplant. InNorthCarolina,CommerceSecretaryJimFaindidthebulkofnegotiationontheDelldeal,withGov.MikeEasleymeeting


with Dell officials in July 2004. The state legislature, in a spe-cial session inNovember2004, approved$242million in taxbreaksandotherincentives.ManyinNorthCarolinawantedtheprocesstobemoreopen,butotherswereconcernedthatcouldblow thedeal at a timewhen the state—and the Triad regionespecially—could use a big-jobs project in the wake of textile, tobaccoandotherindustrycutbacks. Wheretotreadthethinlinebetweentransparencyandeco-nomic development effectiveness is the subject of separate pro-posedlegislationtochangeNorthCarolina’sopengovernmentstatutes. Dell’sKipThompson,vicepresident,worldwidefacilityman-agementandcorporaterealestate,toldSite Selectionthereleaseof details on incentives “depends on the community. Clearlythere is a need for information to flow that does not compromise companiesbeingabletodotheirbusiness.Thereisaneedforthe public sector to have information available as well. Whatthatpointiswouldbe,intheabstract,ahardlinetodraw.”

Let’s Get Specific Orr told Site Selection that Kelo v. New London, the recentSupremeCourtrulingoneminentdomain’slegalityinservinga“publicpurpose,”giveshissidemomentum.Itcomesnotsomuchfromalegalperspectiveasfromapublicpolicyperspective. “The immediate negative reaction to the Kelo decision …plays into the public policy argument we’re trying to make,”said Orr. With incentives, he said, the sense of violation isevengreater. “With eminent domain, you take somebody’s property andgiveittoaprivatedeveloper—atleastintakingphysicalprop-erty, you’re entitled to just compensation for that taking,” he ex-plained.“Intheincentivesgame,thegovernmentusesthepowerof taxation to take themoneyyou’ve earned and turn aroundandgiveittoaprivatecorporation.Arguably,thetaxpayergetslittleifanyinreturn.InDell’scase,themoneyultimatelyhelpsbenefit Dell’s bottom line. I think when the public and politi-ciansstartrecognizingthatwhatishappeningintheincentivesgameisevenmoreegregiousthanwhathappenedinKelo,we’llseeagreater interest in tryingtomakechanges in the incent-ivespractice.” Easley signed an extension of North Carolina’s Lee Act

through2007.Itwassettoexpireattheendof2005.Inanodtocritics,thelegislationcreatedanoversightcommitteethatwillreportitsrecommendationstothe2006legislature.Theexten-sion also freed several notable projects from the bounds of un-certainty: Among the projects taking advantage of JDIG in 2005 wereSmithsAerospaceComponents,whichmadea$44millioninvestmentinWestJefferson;andLenovo,whichismakingan$84 million investment in an R&D center in Morrisville. Ac-cordingtothestate,since2003,JDIGhasbroughtmorethan$2billion in investment and 10,000 jobs to North Carolina. ThelawsuitandacopyofadraftagreementbetweenDellandvariouslocalandstateeconomicdevelopmententitiesareavail-ableontheNCICLWebsite.

Take It to the Feds Other statesdon’thave to followNorthCarolina’sexample,whichwouldputtheTarheelStateatadisadvantageshouldtheplaintiffsprevail.Adecisioninthecaseisexpectedtotakeaboutayear—whichshouldbelongenoughforCongressionalaction,theSupremeCourtdecisionorbothtoprovidesomedirectiontoeverystate. InintroducingtheEconomicDevelopmentActof2005,Voi-novichnotedthathehadenactedthemachineryandequipmenttaxincentiveasgovernorofOhio.(Almostsimultaneouslywiththeact’sintroduction,currentOhioGov.BobTaftsignedacom-prehensive taxreformpackage thateliminated thatprovision.)VoinovichnotedtheCunodecisionhascastapalloverdealsinall50states. “As a former governor who had to compete against Japan,Canada, China and Europe for new business projects, I know just how important a role tax incentives canplay in attractingnewbusinesses,”hesaid.Henoted thehigh rankings innewplantsandexpansionsforOhioinSite Selectionbetween1993and1997,earnedinpartbythestate’sexpandedincentivesprograms. WhileaCunooverridewouldhelpmanufacturers,saidVoi-novich,theultimatereasontorevisitthedecisionisthatit“setsabadprecedentthat,ifnotchecked,couldupsetourcarefullybalancedfederalsystem.OneofthemostingeniousaspectsoftheU.S.Constitutionisthatitleavesagreatdealofpowerwiththestates...Mylegislationwillguaranteethatthestatesremainourenginesofinnovation.”

This has nothing to do with

losing jobs overseas—what

we’re concerned about is

the practice of (states)

outbidding each other to

move companies.

—FormerNorthCarolinaSupremeCourtJusticeRobertOrr


Gaming the System May Be the Real SystemTomany,theincentivesgameisaneconomicreality.ButOrrandhisalliesthinkrealitybitesandequatetheincentivesgametoanaddiction.HecallstheVoinovicheffort“misguided,”es-peciallyinitsattemptstolinktheneedforincentivestokeepingjobs in the U.S. “This has nothing to do with losing jobs overseas—what we’re concernedaboutisthepracticeof(states)outbiddingeachothertomovecompanies,”Orrsaid.“Whatwehavenowiseconomicbalkanization.NorthCarolinaislookingoutforNorthCarolina,VirginiaislookingoutforVirginia,OhioforOhio.Companiesrecognizethisandareabletoexploitit.” Orrbelievesthereshouldbeafederalpolicyonincentives. “Ifyou’regoing tohavea tradepolicy that addressescon-cerns with jobs being lost overseas, then the Congress needs to bedoingthat,nottheindividualstates,”hesaid.“Iftheissueis‘Whatdowedotokeepthetextileandfurnitureindustries?’thesolutionneedstobeatanationallevel.That’swhywehavein-ternationaltradetreatiesandtheWTO.Andletitapplyequallyamongthe50states.” Inotherwords,asisbeingplayedoutontheWTOstagewiththeU.S.vs.EuropeoverAirbusandBoeing, let thecountriesbattleitout.—Adam Bruns is the managing editor of Site Selection magazine.

“”

As a former governor who

had to compete against Japan,

Canada, China and Europe

for new business projects, I

know just how important a

role tax incentives can play

in attracting new businesses.

— Ohio Gov. Bob Taft

thecouncilofstategovernments www.csg.org 3�

csgspotlight

All-Hazards Planning

Citizens need to be prepared for three to five days of indepen-dent survival in the home in case of an emergency. Individu-alsshouldmaintainwaterandfood,batteries,alightandradio,blankets and first aid necessities. That’sonemessage11speakersleftwiththeNationalLieu-tenantGovernorsAssociationatitsrecentwintermeetingfocus-ingon“all-hazards”mitigationandpreparedness.Thefederalgovernmentwillsoonspearheadextensivepublicrelationscam-paigns encouraging individuals to exercise personal respon-sibility in emergency preparedness. The emergency may be aterroristattack,weathertragedyorpandemicdisease. The lieutenant governors and state officials were encouraged to practice preparedness plans, develop effective communica-tions, and pre-publicize established distribution points. Thedeterminedstateand localdistributionpointsmaybeutilizedtohandoutice,water,food,blankets,medications,vaccinesorinfantsuppliesinanyhazard. TheCenterforHomelandDefenseandSecuritysaidasthesec-ond highest ranking official in each state and territory, lieutenant governorsshouldplayakeyroleinstateall-hazardsplans. Dr.JohnAgwunobi,theU.S.AssistantSecretaryforHealth,spoke specifically about pandemic flu planning. It takes nine months todevelopanewvaccine,butAgwunobinotedpublicand private sectors are working to reduce that to six months.As a result, no vaccine will be available in the first wave of any pandemic. Hesaidthesharedgoaloffed-eral, state and localgovernmentswill be to slow the spread of ill-ness.Agwunobinotedthatinanyhazard, state officials should pre-pare and plan for 40 percent ab-sentee rates among governmentworkersandresponders.Henotednooneisimmuneandmanygov-ernorswillfallillashappenedinthe 1918 pandemic, again empha-sizing the important role of lieu-tenant governors, who are first in lineofgubernatorialsuccession. Agwunobialsosaidsomegath-eringplaces,likeschools,church-es and community centers, willclosetoslowthespread.Henotedstate officials should plan to work withmediatobroadcasttele-edu-cation classes in event of schoolclosures.

“Preparednessisacontinuumthatneverends,”hesaid. NLGAmembersalsopassedpolicyresolutionsaboutdecreas-ingthecostoftextbooks,punishmentofsexoffenders,distribu-tionofmedicalsuppliesinternationally,innovationinservicestotheaged,andincreasingawarenessofbonemarrowdonation.

(left to right) Lt. Governors Jim Risch of Idaho and Jack Dal-rymple of North Dakota

(left to right) Lt. Governors Brian Dubie of Vermont, Sally Pederson of Iowa, Loren Leman of Alaska, Barbara Lawton of Wisconsin, Jane Norton of Colorado and Aitofele Sunia of American Samoa.

3� statenews march�006

csgspotlightLegislative Leaders Attend Ag forum

Agriculturallegislativeleadersfromaroundthecountryat-tendedthefourthannualLegislativeAgriculturalChairsSum-mitinPhoenix,Ariz.,Jan.20–22.Thisannualget-togetherofagleadersfocusesexclusivelyonagricultureandruralissues.Legislative leadership of agriculture and rural committeesfrom43states,fourCanadianProvincesandPuertoRicoat-tendedthefourthannualLegislativeAgriculturalChairsSum-mit. The meeting is a collaborative project of The Council of State Governments, theNational ConferenceofState Legis-laturesandtheRuralPolicyResearchInstitute.Themeeting,whichhashistoricallybeensettocoincidewiththebeginningoflegislativesessionsaroundthecountry,providesanoppor-tunityformemberstobuildrelationshipsandsharesolutions.

The weekend agenda included workshops, plenary androundtablediscussionsontopicssuchasInternetaccess,live-stockproduction,aregionalresponsetoeconomicdevelopmentand financing of rural development projects and foreign trade. LawmakersalsodiscussedtheroleofAmericanagricultureinfinding solutions to today’s energy challenges while returning economicvitalitytoruralcommunities.LegislatorsvisitedtheCentral Arizona Water project where they heard about the so-lutionsArizonahasfoundto thegrowingchallengeofwatersuppliesandcontinueddrought. Thesummitclosedwithanin-depthdiscussionofthecontextofthe2007FarmBillandtheroleofstatesinitsdevelopment.

WEST Publishes “2005 Year in Review”

CSG-WEST has just published a look back at its core programs and projects from 2005. The “2005 Year in Review” sums up activitiesoftheWesternregionofCSGwith22pagesofshortphotostories.ThenewpublicationoffersaquickandcolorfultourofCSG-WEST that includes leadership,policymeetings,

continuing education and special projects of interest to Western state legislators and other elected officials in the West. To receive a complimentary copy of the Council of StateGovernments-WEST “2005 Year in Review,” call (916)553-4423orclickontheYearinReviewlinkatwww.csgwest.org


csgspotlight

Application Deadline Nears for Midwestern Leadership Institute

Applications for the 2006 Bowhay Institute for LegislativeLeadership Development (BILLD) are due March 31. BILLDistheonlyleadershiptrainingprogramdesignedexclusivelyfornewstatelegislatorsintheMidwest.Regionallawmakersintheirfirst four years of legislative service are encouraged to apply. Eachyear,BILLDawardsfellowshipsto36legislatorsintheMidwesternstatesandprovincestohelpthemdeveloptheskillstheyneed tobeeffective leadersandpolicymakers. The12thannualBowhayInstitutewillbeheldJuly7–11inMadison,Wis.The intensive five-day program is conducted by the Midwestern Legislative Conference of The Council of State GovernmentsandTheRobertM.LaFolletteSchoolofPublicAffairsatthe

UniversityofWisconsin. The annual fellowships are awarded on a competitive, non-partisanbasisbytheBILLDSteeringCommittee,abipartisangroup of legislators from each state in the region. The com-mitteeevaluatesapplicantsbasedontheirleadershippotential,includingproblem-solvingskills,theirdedicationtopublicser-viceandtheircommitmenttoimprovingthelegislativeprocess.Eachfellowshipcoversthecostoftuition,lodgingandmeals.Anominaltravelstipendisalsoofferedtoeachparticipant. Forapplicationmaterials,ormoreinformation,pleasecontactLauraA.Tomakaat(630)925-1922orvisitCSGMidwest’sWebsiteatwww.csgmidwest.org.

NAST and CSPN Make Saving For College Easier

Recently, President Bush signed into law the Deficit Reduc-tionActof2005,whichgaveparentswhochoosetoinvestinaprepaid tuition plan an equal opportunity to receive financial aid whenitistimetoenrolltheirchildrenincollege. Parents have two options when it comes to saving for col-lege.Collegesavingsplans,oftencalled529plansinreferenceto IRS Code 529, are investment accounts in which the profits gotowardspayingforachild’scollegetuition.Prepaidtuitionplansallowparentstopayfortheirchild’seducationattoday’spricesbeforetheyareactuallyenrollmentage.Thetuitioncostis locked inandparents arenot responsible for increases thatoccurbetweennowandthen. Currentlywhencalculatingstudentaid,collegesconsidersav-ingsplansanassetoftheaccountownerandonlycountapproxi-mately6percentoftheassetsintothecalculationtodeterminethe student’s financial aid package. In comparison, prepaid plans are treated as a “resource” of the student, which reduces theoverall need for financial aid by the total dollar amount of the account.Thenewlysignedlegislationwillallowbothtypesofplanstobetreatedasparentalassetswhenitcomestocalculat-ing a student’s eligibility for financial aid assistance. ThislegislationwasbasedonaproposaldevelopedbytheNa-tionalAssociationofStateTreasurers(NAST)andtheCollegeSavingsPlansNetwork(CSPN).WhenthelegislationbecomeseffectiveJuly1,2006both typesofSection529planswillbeconsidered parental assets in the determination of federal finan-cialaid. “ThePresidentandCongresshaveclearlyshowntheirsupportto thenearly twomillionhard-working familieswhoare sav-ingfortheirchildren’scollegeeducationinprepaidplansacrossthenation,”saidRandallEdwards,NASTPresidentandOregonStateTreasurer. NASTandtheCSPNhavebeenworkingforthepastdecadetoimprovethetreatmentoftheprepaidtuitionplans.“Ourmem-

bershavebeentalkingtoCongressandtheAdministrationforalongtimeabouttheneedtotreatbothplansthesame.Wearedelightedthatthisproblemwascorrected,”saidEdwards. All50statesandtheDistrictofColumbiahaveaSection529qualified tuition program in operation. More than 8.2 million chil-drenacrossthecountryhavebeenenrolledinaplan,represent-ing more than $82 billion dedicated for their future college costs. Themissionoftheplansistoincreaseaccesstohighereducationbyofferingfamiliesasimple,safe,affordableanddedicatedwaytosaveforcollegetuitionandothercollegeexpenses.Forinfor-mationaboutNASTgotowww.nast.org.ForinformationaboutSection529collegesavingsplansorCSPNgotowww.colleg-esaving.org.

President George W. Bush was joined by legislators Wednes-day, Feb. 8, 2006, at the signing ceremony for S. 1932, The Deficit Reduction Act of 2005, in the East Room of the White House. Photo courtesy: Eric Draper, The White House.


This calendar lists meetings as designated by CSG’sAnnualMeeting Committee. For details of a meeting, call the numberlisted.“CSG/”denotesaffiliateorganizationsofCSG.Visitwww.csg.orgforupdatesandmoreextensivelistings.

Othermeetingshavevaluetostateofficials.Purchaseameet-inglistingbycalling(800)800-�9�0orbye-mailingsales@csg.org.Announceyourmeetingstothousandsinthestategovernmentmarketthroughanadvertisement,aWeblistingorabanneradinIntheNews,CSG’sweeklyelectronicnewsletter.Getyour freesubscriptiontoIntheNewsatwww.csg.org.

March 2006Mar.5–8 CSG/National Association of State Treasurers—Legislative Con-

ference—Washington,D.C.—WillardInter-ContinentalHotel.Con-tactAdnéeHamiltonat(859)�44-8�[email protected].

Mar.�8–�9 CSG/American Probation and Parole Association—Officer Safe-ty: Safety Strategies for Mental Health and Social Workers—St.Louis,MO.ContactKrisChappellat(859)�44-8�[email protected].

Mar.3�&Apr.�CSG WEST—Executive Committee Meeting—San Francisco,CA.ContactCherylDuvauchelleat(9�6)553-44�[email protected].

Mar.3�–Apr.� CSG/Eastern Regional Conference—Annual Meeting Commit-tee/ Executive Committee Meeting—Philadelphia,PA—MarriottPhila-delphiaDowntown.ContactPamelaStanley at (��)48�-�3�[email protected].

April 2006April9–�� CSG/National Association of State Treasurers—Southern State

Treasurers Conference—Savannah, Georgia—Hilton SavannahDeSoto Hotel. ContactAdnée Hamilton at (859) �44-8�74 [email protected].

April�0–�� CSG—Summit of the States on Interstate Cooperation—Cin-cinnati, OH—Westin Hotel. Contact John Mountjoy at (859)�44-8�[email protected].

April�0–�� CSG/American Parole and Probation Association—Supervising the Sexual Offender—Dallas,TX.ContactKrisChappellat(859)�44-8�[email protected].

April��–�3 CSG/Southern Legislative Academy—LSA Directors’ Spring Meeting—Atlanta, GA—The Ritz-Carlton Buckhead. ContactKennethFern,DeputyDirector,SouthernLegislativeConference.(404)633-�866.

April��–�5 CSG/National Association of State Telecommunications Dir-ectors—Eastern Region Seminar—Newport, RI—MarriottNew-port Hotel. Contact Pam Johnson at (859) �44-8�84 [email protected].

April�4–�6 CSG/State International Development Organization—Washing-tonForumandTraining—Washington,D.C.—TheChurchillHotel.ContactEllenGoldenat(�0�)6�[email protected].

May 2006May7–9 CSG 2006 Spring National Committee and Task Force Meet-

ings—WhiteSulphurSprings,WV.ContactWandaHinesat(859)�44-8�[email protected].

May�6–�7 CSG/American Parole and Probation Association—Evidence-Based Practices in Corrections—Fairfield, CA. Contact KrisChappellat(859)�44-8�[email protected].

May3�–June� CSG—Summit on Interstate Cooperation—Cincinnati, OH—WestinHotel,downtown.ContactJohnMountjoy,(859)�44-8�56.

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

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

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

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

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

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

July 2006July8–�3 CSG—Henry Toll Fellowship Program—Lexington, KY.Contact

GladysParksat(859)�44-80�[email protected](859)�44-8�[email protected].

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

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

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

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

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

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

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

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

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

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

November 2006Nov.30–Dec.3CSG—2006 Annual Trends and Leadership Forum—Phoenix,AZ.

ContactWandaHinesat(859)�44-8�[email protected].


40 Years Ago—March 1966Weather Modification Laws More Uniform TheNationalScienceFoundationmadepublicastudyshow-ingthat22stateshadlawsdealingwithsomeaspectofweathermodification. The study, “Weather Modification: Law, Controls, Operations,”wasbasedonacomprehensivequestionnairean-sweredby49ofthe50statesaswellasbyexperimentersandfederalagencies. Thelawswereenactedduringthe1950stoservetwogeneralpurposes:toprotectthepublicfromincompetentorunscrupu-lous “rainmakers,” and to help gather data on the emerging field of weather modification. TheNSFreportconcludedthattherewasaneedforcontrolledexperimentation and sought uniformity in legislation, stating:“Sinceweatheris‘transient’andcannotbeboundedbypoliticalbordersandsinceexperimentationoverbroadareas isormaybecomenecessary,theutilityofuniformlegalruleswithrespecttolicenses,liability,ownership,useandcontroloftheelementsandthelikeseemsbeyondquestion.

Update: The 109th Congress in 2005 established the Weather Modifi-cation Advisory and Research Board in the Department of Con-gress to promote and fund research and development, studies, and investigations with respect to improved forecast and deci-sion-making technologies for weather modification purposes; and assessments and evaluations of the efficacy of weather modification, both purposeful (like cloud-seeding) and inad-vertent (like downwind effects and anthropogenic effects).

25 Years Ago—March 1981Motor Fuels Taxes Increased Decliningmotorfuel taxrevenuescontinued tocauseprob-lems for statehighway fundsacross thecountry.After ayearwhen31statesconsideredbillstoraisemotorfueltaxes,ahand-ful tried again in 1981 to increase the per-gallon tax rate or move toavariableorindexedtax. North Carolina was one of those states. The state’s 75,000milesofroadsmadeupthelargeststate-maintainedroadsysteminthecountry.Ablueribbonstudycommissionrecommendedraising themotor fuels tax from9.25cents to11.25centspergallonand/orintroducinganadditionalsalestaxonthewhole-sale price of gasoline. The state’s Advisory Budget Commis-sionwarnedthatunlessappropriateactionsweretaken,thestate

couldlose$340millioninhighwayconstructionfunds,andputthe jobs of 2,000 to 3,000 state Department of Transportation employees in jeopardy.

Update: North Carolina’s tax rate on motor fuels has steadily risen to the current rate of 29.9 cents per gallon for the state’s road fund. The state did charge a percentage of the wholesale retail price during three years, 1987, 1989 and 1992. North Carolina maintains 78,615 miles of roads.

10 Years Ago—March 1996Medicaid Reform is Ongoing Thenation’sgovernorscraftedacomprehensiveplanforMed-icaid reform, promising reduced costs and greater flexibility. The bipartisan proposal—which combined cost efficiency and guaranteed continuing coverage for the needy—involved sixleadgovernorsinthenegotiations. Itwould:guaranteecoverageforupto133percentofpovertyforpregnantwomenandchildrenuptoage6;continuemostofthe then-current mandatory benefits; and propose a maximum federalallocationtostates,whichwouldputupamatchingper-centage. Thegovernorswerelaudedforworkinginabipartisanmanneranddevelopingaproposalthatwouldmeetthegoalsatthetime.

Update: In early February Congress sent President Bush a Medicaid reform proposal that lets states make patients pay more for pre-scription drugs and hospital visits; makes it harder for seniors to give away their money and then ask the government to pay their nursing home bills; and squeezes drug companies to give states better deals on medicines. Governors across the country mounted an aggressive campaign last year to rein in the costs of Medicaid. The bill passed by Congress addressed most of their concerns.

Althoughthefederalgovernmenttendstogetmoreattention,state officials are often on the front lines of cutting-edge trends and issues. On the other hand, sometimes in the communityof state governments, the more things change, the more theystay the same. In print since 1958, State News (formerlyState Government News)haschronicledmanyofthechanges…andcontinuities. Here’swhatwereportedonandwhat’shappenedsince.


2006Spring Meeting

Greenbrier Resort

The Council of State Governments

White Sulphur Springs, WVMay 7–10, 2006

Vol. 49, No. 3 The Council of State Governments March...

Documents

Transcript of Vol. 49, No. 3 The Council of State Governments March...