Stateline Headlines about Revenue and Spending85899391881http://www.pewstates.org/projects/stateline/headlines/three-states-buck-tide-by-eyeing-tax-hikes-85899391881At a time when governors and legislators across the nation are swimming in surplus revenue and striving to outdo each other in fashioning politically attractive tax cuts, Alaska, West Virginia and Maryland are going against the tide by considering significant tax hikes. In the most noteworthy case, Alaska Governor Tony Knowles, a Democrat, is mulling over a plan to enact both a personal income tax and a statewide sales tax to address the state's projected $900 million Fiscal Year 2000 budget shortfall.1999-01-19T00:00:00-05:0085899391875http://www.pewstates.org/projects/stateline/headlines/new-hampshire-school-fight-may-end-states-tax-taboo-85899391875For nearly three decades, pledging to veto broad-based taxes has been a rite of passage for New Hampshire governors. No one spurning the pledge has ever won the state's highest office, and Gov. Jeanne Shaheen was no exception in winning her second term last November. But New Hampshire's status as one of two states without a general income or sales tax - Alaska is the other -- is in jeopardy despite Shaheen's promise because of a court-ordered reexamination of public school financing.1999-01-26T00:00:00-05:0085899391869http://www.pewstates.org/projects/stateline/headlines/florida-republicans-focus-on-tax-cuts-education-85899391869As Republicans take over Florida government for the first time since Reconstruction, the talk is all of tax cuts and education. Gov. Jeb Bush is giving those issues high priority in his first budget. The GOP now controls both houses of the legislature, the governor's office and the elected state cabinet - a first for any southern state. It is out to make a good impression, and ready to do something voters will remember.1999-02-02T00:00:00-05:0085899391854http://www.pewstates.org/projects/stateline/headlines/states-gripped-by-tax-cut-mania-85899391854As governors and legislators throughout the country reap the benefits of economic good times, record state budget surpluses and rosy revenue projections are encouraging a tax-cutting spree. A stateline survey indicates state governments will enact net tax reductions for an unprecedented sixth year in a row, building on a combined tax reduction in the 50 states of $7 billion in Fiscal 1999. In contrast, states had net tax reductions only twice in the previous decade, according to Stacey Mazer of the National Association of State Budget Officers.1999-02-22T00:00:00-05:0085899391851http://www.pewstates.org/projects/stateline/headlines/governors-circle-wagons-around-tobacco-billions-85899391851Tobacco, not education, was the No. 1 priority to emerge from a four-day National Governors' Association winter meeting that ended Tuesday. Specifically, 48 state chief executives vowed to block Uncle Sam from tapping into a $246 billion settlement promised to states by tobacco companies. Governors were unified in their opposition to a federal plan to take 57 percent of the settlement as reimbursement for federal Medicaid funding1999-02-24T00:00:00-05:0085899391844http://www.pewstates.org/projects/stateline/headlines/oil-crisis-forces-states-into-action-85899391844While dollar-a-gallon gas is a dream for the nation's drivers, $9-a-barrel oil is an all too real nightmare for oil producing states straining to recoup lost revenue. One of them, Alaska, is facing a $1 billion budget gap thanks to the lowest oil prices since 1977. After considering and rejecting other remedies, Gov. Tony Knowles has proposed reviving the state income tax, last collected in 1980. Meanwhile, Texas, Wyoming and Oklahoma are resorting to a mixed bag of legislative actions to protect in-state oil producers and safeguard severance tax revenues that account for a significant portion of their general fund incomes.1999-03-04T00:00:00-05:0085899391834http://www.pewstates.org/projects/stateline/headlines/study-finds-rainy-day-funds-would-dry-up-in-recession-85899391834More than three-quarters of states are unprepared for even a mild future recession and need to invest more money in their rainy day funds to provide for that eventuality, according to a new report issued by the Center On Budget and Policy Priorities. "Financial woes abroad should be a reminder that another U.S. recession is possible and even probable in the next few years," said Iris Law, co-author of the report. "Nobody is hoping for another recession, but it's only prudent to ask whether states have done enough to prepare for the next one."1999-03-15T00:00:00-05:0085899391833http://www.pewstates.org/projects/stateline/headlines/state-tax-collections-up-for-sixth-straight-year-report-says-85899391833Spurred by an 11.2% increase in income tax collections nationwide, total state tax revenue rose 6.9% during fiscal year 1998, according to a report released Monday by the Center for the Study of the States, an Albany, N.Y. think tank. Revenue collections from income, sales, and corporate taxes exceeded original budget estimates by $11 billion dollars, and were higher than expected in 45 states. According to the report, this marked the fourth year in a row that states collected more tax money than originally budgeted.1999-03-15T00:00:00-05:0085899391824http://www.pewstates.org/projects/stateline/headlines/bible-belt-states-looking-to-lotteries-despite-traditional-qualms-85899391824For as long as anyone in statehouses around the Bible Belt can remember, the region's opposition to state-sanctioned gambling has been rooted in one unshakeable stricture: gambling is a sin. Now state leaders--and ultimately voters--must make a choice between a new economic logic and an old moral certainty historically used to defeat gambling measures. stateline.org examines an issue high on the agenda in Alabama, the Carolinas and Tennessee.1999-03-25T00:00:00-05:0085899391822http://www.pewstates.org/projects/stateline/headlines/early-legislative-sessions-focus-on-taxes-education-cooperation-85899391822From cutting the food tax in Virginia to establishing a Megan's law in New Mexico to attempting to repeal the prohibition on polygamy in Utah, states with early legislative sessions addressed a passel of issues and earned generally positive marks for avoiding partisan conflict. In this special report, stateline.org looks at the work of the eight legislatures that have now adjourned.1999-03-29T00:00:00-05:0085899391817http://www.pewstates.org/projects/stateline/headlines/wyoming-adopts-health-insurance-for-kids-of-working-poor-85899391817Wyoming, the second to last state to construct a plan to provide health insurance to kids of the working poor, has finally adopted the necessary legislation, but it took two years and a contentious battle among lawmakers. On March 1, Republican Gov. Jim Geringer signed into law a bill that launches KidCare, Wyoming's version of the Children's Health Insurance Program (CHIP). Congress established the program in 1997 as part of the Balanced Budget Act, but Geringer and conservative legislators had long opposed the structure of CHIP, labeling it an "entitlement" program rather than a block grant, and a threat to "personal responsibility."1999-04-02T00:00:00-05:0085899391812http://www.pewstates.org/projects/stateline/headlines/fourth-quarter-state-revenue-figures-show-no-slowdown-85899391812State tax revenue grew 7.5 percent in the fourth quarter of 1998 over the same period last year, marking the second strongest quarter of real revenue growth since the current economic boom began in 1992, a report issued today by the Nelson A. Rockefeller Center for the Study of the States shows. The strongest quarter in that time period was the second quarter of 1998. Revenue growth was again driven by gains in personal income taxes, confounding the warnings of some economists that overall U.S. economic growth could not continue its extraordinary pace.1999-04-07T00:00:00-04:0085899391807http://www.pewstates.org/projects/stateline/headlines/state-tax-cutting-brightens-outlook-for-taxpayers-in-2000-85899391807Thirty-seven states enacted tax cuts totaling $8.1 billion in fiscal year 1999 revenue losses, while only eleven states raised taxes, according to a year end summary of 1998 tax and budget actions released Wednesday by the Center for the Study of the States. Eight of the eleven states that enacted tax hikes cut other taxes, resulting in only four states enacting net tax increases.1999-04-15T00:00:00-04:0085899391756http://www.pewstates.org/projects/stateline/headlines/taxpayers-generally-slow-to-take-advantage-of-online-filing-85899391756Nine of the 50 states let citizens file their tax returns electronically over the Internet, but cyberspace tax collecting is apparently an idea whose time has not yet come, an informal stateline.org survey found. Of the three states that already have tracking figures, Indiana and South Carolina are disappointed in the low numbers of taxpayers using new Internet tax filing. But the New Mexico Department of Taxation and Revenue expects almost ten percent of all 1998 tax returns to be filed via its two-year-old system1999-04-15T00:00:00-04:0085899391803http://www.pewstates.org/projects/stateline/headlines/gov-davis-makes-education-top-priority-for-california-85899391803California is about to embark on a new way to run public education. Gray Davis, the state's new Democratic governor, has signed four bills he proposed in January, when he called a special session of the Legislature to deal with what he calls his "first, second and third priority" - public education. Although rewritten, sometimes substantially, by the Democratically controlled Legislature, the bills are largely what Davis sought. Read more about Davis' education plan in this stateline.org exclusive report.1999-04-20T00:00:00-04:0085899391795http://www.pewstates.org/projects/stateline/headlines/kentucky-montana-move-to-protect-welfare-surplus-85899391795Many states are drafting plans to increase spending on low-income and welfare families, but Kentucky and Montana have announced their new initiatives are a direct result of recent attempts by Congress to cut the federal contribution to welfare and divert those funds to other programs. In this report, stateline.org looks at how those two states have moved to prevent any Washington budgetary raid.1999-04-29T00:00:00-04:0085899391792http://www.pewstates.org/projects/stateline/headlines/electronic-wine-and-drug-sales-causes-stir-in-states-85899391792Web-surfing wine connoisseurs and e-pharmacy shoppers should check their state laws before they order a case of California Chardonnay or a vial of Viagra with the click of their computer mouse. Currently, liquor may be sold across state lines to residents in only 16 states without restrictions, such as limits on sales volumes. Twenty-one states prohibit direct-to-consumer sales of alcohol and six make it a felony. While no state has banned outright the importation of pharmaceuticals purchased online, some states require that online pharmacy sites be licensed by a state's pharmacy board to sell in that state. But the nature of online sales makes these areas hard to regulate.1999-05-03T00:00:00-04:0085899391791http://www.pewstates.org/projects/stateline/headlines/internet-tax-panel-to-start-work-next-month-85899391791Ending a six-month dispute over the composition of a congressionally created Advisory Commission on Electronic Commerce, Senate Majority Leader Trent Lott has named an Oregon county commissioner to fill a spot voluntarily vacated by Netscape CEO James Barksdale. This will allow the panel to schedule its first discussions toward forming the nation's Internet taxation policy. For a full report, click on1999-05-04T00:00:00-04:0085899391789http://www.pewstates.org/projects/stateline/headlines/wisconsin-typical-of-state-tobacco-settlement-debate-85899391789More than 440 bills dealing with how to allocate tobacco settlement funds have been introduced in the state legislatures since the $206 billion dollar settlement between 46 states and the five major tobacco companies was reached last November. With Congress moving to bar any federal claim to share in the settlement, it looks likely that states will have complete control of the money. In many, there is sharp debate on how to spend it. For a special report on how the debate is playing out in Wisconsin - click on1999-05-06T00:00:00-04:0085899391770http://www.pewstates.org/projects/stateline/headlines/four-states-consider-income-tax-four-states-reject-it-85899391770Facing education funding woes and a variety of budget shortfalls, lawmakers in New Hampshire and three other states that do not collect income taxes considered reversing course this year--and in each case defeated or abandoned those plans for fear of retribution from the voters. To read about this politically perilous policy issue, click on1999-05-27T00:00:00-04:0085899391768http://www.pewstates.org/projects/stateline/headlines/gop-leaders-declare-welfare-reform-a-success-85899391768Republican leaders of the U.S. House of Representatives took to a podium at the Capitol Thursday to trumpet the achievements of their welfare policies, which they claim have resulted in a profound cultural shift away from a psychology of dependence to "a path to the American dream." They highlighted statistics showing improvements in economic well-being for America's most impoverished families and they claimed the data prove the wisdom of the 1996 welfare law.1999-05-28T00:00:00-04:0085899391746http://www.pewstates.org/projects/stateline/headlines/internet-tax-panel-starts-work-hits-snags-85899391746A panel created by Congress to decide how to tax Internet commerce is off to a very slow start. Although its work could have a profound impact on future state revenues, given the importance of sales taxes to most state budgets, about the only result of a two-day meeting in Williamsburg, Virginia this week was an agreement to meet again in New York City on September 14.1999-06-23T00:00:00-04:0085899391727http://www.pewstates.org/projects/stateline/headlines/tobacco-dividend-sparks-fights-lawyers-fees-challenged-85899391727For all the hoopla surrounding the $206 billion tobacco settlement that 46 states are set to share, the states are unlikely to get a penny of the money before the middle of next year. But that hasn't dampened the fight over how to spend the money.1999-07-14T00:00:00-04:0085899391718http://www.pewstates.org/projects/stateline/headlines/legislative-scorecard-three-states-still-budget-less-85899391718Lawmakers in New York, Massachusetts and Wisconsin have yet to hammer out budgets for the new fiscal year, which has already begun in all three states. New York's budget is four months late, but that's become the norm in Albany. In Massachusetts, Democrats control both houses of the legislature and they still can't reach an agreement. In Wisconsin, lawmakers have left town on summer vacation and no one knows when they'll return. For more information, click on1999-07-30T00:00:00-04:0085899391706http://www.pewstates.org/projects/stateline/headlines/governors-highlight-budget-surpluses-share-ideas-85899391706A golden era reigns for America's 50 state governors, most of whom are in St. Louis this week to share ideas and do some politicking at the 91st annual meeting of the National Governors' Association. The four-day meeting, which opened Saturday, comes at a time when state budget surpluses are at record levels.1999-08-09T00:00:00-04:0085899391704http://www.pewstates.org/projects/stateline/headlines/1999-cigarette-tax-debate-turns-more-on-crime-than-health-85899391704Anti-smoking activists advocate cigarette tax hikes as a way for states to discourage an unhealthful practice while raising needed revenues. But legislators in fourteen of the 17 states that considered increasing cigarette taxes in 1999 decided against it in part because of fears that the deterrent effect of higher taxes would be outweighed by adverse effects, including the stimulus it would give to cigarette smuggling.1999-08-12T00:00:00-04:0085899391699http://www.pewstates.org/projects/stateline/headlines/massachusetts-wisconsin-vie-for-dubious-fiscal-distinction-85899391699For all the shouting and self congratulation about the states' record budget surpluses, broad-based tax cuts and overflowing revenue streams, Massachusetts and Wisconsin are the unwilling finalists for an ignominious distinction: being last in the nation to pass a budget. In both cases, political skirmishing about how to spread surplus money around is a big reason for the fiscal tardiness.1999-08-17T00:00:00-04:0085899391686http://www.pewstates.org/projects/stateline/headlines/illinois-governor-seeks-midwest-compact-on-gambling-85899391686Gov. George Ryan of Illinois is suggesting a regional interstate compact with five neighboring states to end friction over gaming laws. The plan, yet to be shaped by Ryan, is getting a cautious reception from some of Ryan's colleagues. Their concern is over a new Illinois law which drops cruising requirements for the state's nine riverboats. Revenues from the boats have increased dramatically since the law was passed.1999-09-06T00:00:00-04:0085899391676http://www.pewstates.org/projects/stateline/headlines/e-commerce-panel-hopes-for-progress-at-new-york-meeting-85899391676Facing a deadline of next April, members of the congressionally-appointed Advisory Commission on Electronic Commerce meet Tuesday and Wednesday in New York City to continue drafting an Internet sales tax policy recommendation. And with only two other meetings scheduled after this week, the 19-member panel's task will be hampered if there is a repeat of the political sniping which marked its first meeting earlier this summer in Williamsburg, Va.1999-09-14T00:00:00-04:0085899391673http://www.pewstates.org/projects/stateline/headlines/e-commerce-advisory-panel-threads-political-minefield-85899391673The Advisory Commission on Electronic Commerce walked a tightrope between policy and process this week as members of the panel wrapped up a two-day meeting without moving significantly closer to a recommendation to Congress on Internet taxation. Its deliberations demonstrated anew that cyberspace is the newest hottest tax policy battleground.1999-09-16T00:00:00-04:0085899391662http://www.pewstates.org/projects/stateline/headlines/new-federal-rules-force-action-in-alaska-wisconsin-85899391662New federal regulations that arrive with the onset of the fiscal year, Friday, October 1, forced decisions by lawmakers in Wisconsin and Alaska this week. In Alaska, lawmakers let a deadline imposed by the U.S. Department of the Interior pass, letting the federal government assume control of fisheries. In Wisconsin, where the Assembly and Senate are still divided over a budget for the state fiscal year that began July 1, Gov. Tommy Thompson prompted lawmakers to appropriate $46 million in welfare money.1999-10-01T00:00:00-04:0085899391661http://www.pewstates.org/projects/stateline/headlines/wisconsin-budget-stalemate-goes-on-85899391661Three months ago today (Friday), the Wisconsin Legislature should have been putting the finishing touches on a two-year, $41 billion state budget. But top legislators still are at it, and for the second budget cycle in a row the budget is delayed far past the July 1 start of the new fiscal year. There's no budget crisis, because unlike the federal government when lawmakers fail to act, Wisconsin government doesn't shut down. It continues to run at previously set budget levels, as the state discovered in 1997.1999-10-01T00:00:00-04:0085899391655http://www.pewstates.org/projects/stateline/headlines/anti-car-tax-sentiment-to-be-tested-in-washington-state-85899391655Since Republican James S. Gilmore rode an anti car-tax pledge to the Virginia governor's mansion in 1998, the unpopular levy has become a political target in many states. The next big test of its continued viability as a revenue source will come on Nov. 2, when voters in the state of Washington will consider an even tougher anti car-tax initiative than the Gilmore proposal that started it all.1999-10-06T00:00:00-04:0085899391657http://www.pewstates.org/projects/stateline/headlines/new-york-senate-back-at-work-wisconsin-gets-budget-85899391657New York's state Senate returned to work after a two-month break, Wisconsin lawmakers approved a $41-billion budget three months late and squabbling between two powerful Massachusetts politicians is keeping that state without a budget well past its July 1 fiscal deadline.1999-10-08T00:00:00-04:0085899391648http://www.pewstates.org/projects/stateline/headlines/massachusetts-budget-near-delaware-sets-special-session-85899391648Massachusetts lawmakers appear poised to approve a state budget after a three and one-half month long stalemate. Senate President Thomas Birmingham and House Speaker Thomas Finneran announced last Wednesday they finally agreed on a spending plan after months of deliberations that froze millions in new spending since July 1, the start of the 2000 fiscal year. And in Delaware, lawmakers are preparing for a special session on education.1999-10-15T00:00:00-04:0085899391641http://www.pewstates.org/projects/stateline/headlines/ohio-politicians-merge-state-agencies-new-hampshire-tackles-school-funding-85899391641Lawmakers in Ohio spent the week grappling with issues ranging from state agency mergers to education vouchers, while New Hampshire legislators confronted a funding crisis after the state's highest court deemed a new method of funding public schools unconstitutional.1999-10-22T00:00:00-04:0085899391632http://www.pewstates.org/projects/stateline/headlines/western-state-reporters-say-taxes-education-top-2000-agenda-85899391632Reporters from eight Western states identified tax policy, education funding, health care reforms and apportionment of the states' tobacco settlement funds as the most pressing issues likely to be addressed by their states in the next legislative year. Over 50 journalists from Arizona, Idaho, Montana, Nevada, Oregon, Utah, Washington and Wyoming repeatedly mentioned those topics during a recent statehouse reporters' conference in Boise, Idaho.1999-10-25T00:00:00-04:0085899391631http://www.pewstates.org/projects/stateline/headlines/wisconsins-gov-thompson-vows-to-reshape-budget-tax-package-85899391631Wisconsin Gov. Tommy Thompson signed the 1999-2001 state budget today, but a power struggle over the Badger State budget is not yet over. Thompson has some firm ideas about how he wants the budget's tax cut features to work, and he's used his line-item power to get what he wants. The four-term governor has cast thousands of vetoes, and has yet to suffer an override. So he's likely to prevail in the fiscal test of wills.1999-10-27T00:00:00-04:0085899391633http://www.pewstates.org/projects/stateline/headlines/delaware-tennessee-legislatures-called-into-special-session-85899391633Education and tax reform are the topics of legislative special sessions in Delaware and Tennessee. Delaware's Democratic Gov. Thomas Carper summoned lawmakers back to work to consider his controversial plan to raise the standards and accountability required of teachers in his state, while Tennessee's Republican Gov. Don Sundquist is pushing for action on a tax reform plan. Meanwhile, Massachusetts legislators remain mired in a budget stalemate.1999-10-29T00:00:00-04:0085899391622http://www.pewstates.org/projects/stateline/headlines/tennessee-tax-fight-scrambles-states-political-battle-lines-85899391622Tennessee's legislature is meeting in special session to debate a controversial tax package that Gov. Don Sunquist says is his state's only way out of fiscal chaos. The reform plan has sparked a bitter fight that is proving anew the old saying that politics makes strange bedfellows. For Republican Sundquist is allied with the Democrats, and opposed by his fellow Republicans.1999-11-08T00:00:00-05:0085899391618http://www.pewstates.org/projects/stateline/headlines/political-divisions-widen-on-e-commerce-taxation-85899391618With less than a week remaining before a self-imposed November 15 proposal deadline, the congressionally-appointed Advisory Commission on Electronic Commerce Wednesday received two major proposals from conservative groups to make electronic commerce and Internet access completely tax-free. The two anti-tax proposals come on the heels of a recommendation adopted by state and local government groups last week to subject electronic commerce to a streamlined uniform sales tax system on electronic commerce1999-11-10T00:00:00-05:0085899391610http://www.pewstates.org/projects/stateline/headlines/presidential-candidates-largely-mum-on-internet-taxation-85899391610With the political debate over whether to tax Internet commerce heating up, one group of spotlight-seeking politicians is, for the most part, ducking the issue. The only presidential candidates who have taken a public position on this critical question, which will surely be atop the legislative agenda during the next presidents first year in office, are Arizona Sen. John McCain and publisher Steve Forbes.1999-11-18T00:00:00-05:0085899391603http://www.pewstates.org/projects/stateline/headlines/new-york-sales-tax-holidays-prove-popular-idea-85899391603With New York planning to make its temporary clothing sales tax holidays permanent on March 1, other states are considering copying the limited-time tax breaks popularized by New York, Texas and Florida. Lawmakers in Michigan and South Carolina are studying proposals to give tax holidays to consumers, while the Wisconsin legislature rejected Governor Tommy Thompsons plan to give holiday shoppers a break.1999-11-25T00:00:00-05:0085899391599http://www.pewstates.org/projects/stateline/headlines/state-tobacco-payout-may-be-smaller-than-expected-85899391599Money from the $206 billion tobacco settlement will start flowing to the states by the middle of December, but the payout over the next 25 years may ultimately be smaller than many officials anticipated. The reason: a legal Catch 22. If states accomplish their public health goal of curbing smoking, they'll get less tobacco money -- the fine print of the settlement stipulates that payments can be cut by up to 10 percent if there's a slump in cigarette sales.1999-12-01T00:00:00-05:0085899391594http://www.pewstates.org/projects/stateline/headlines/wisconsin-legislative-outlook-skirmishing-over-substance-85899391594Wisconsin was the second to last state in the Union to pass a budget this year because of partisan wrangling (Massachusetts brought up the rear), and the state's lawmakers and lobbyists say the acrimonious climate in Madison that caused the lonmg budget stalemate is likely to spill over into year 2000. Because of this, few people expect much in the way of legislative accomplishments in the next twelve months.1999-12-08T00:00:00-05:0085899391591http://www.pewstates.org/projects/stateline/headlines/debate-over-internet-tax-policy-intensifies-85899391591A congressionally-created advisory panel trying to formulate an Internet tax policy began a two-day meeting in San Franscisco Tuesday amid conflicting signals about where the public stands on the issue. Many states fear an important revenue stream will be lost if foes of any taxation of e-commerce prevail in the increasingly contentious policy debate.1999-12-14T00:00:00-05:0085899391590http://www.pewstates.org/projects/stateline/headlines/maines-pleasant-political-problem-fate-of-surplus-85899391590Maine legislators will have the happiest of political tasks when they reconvene in January -- deciding what to do with a budget surplus that may very well top $300 million. Democrats and Republicans are divided on whether to spend the money on pressing needs or rebate it to the taxpayers. And Independent Gov. Angus King has his own ideas.1999-12-15T00:00:00-05:0085899391587http://www.pewstates.org/projects/stateline/headlines/internet-panel-far-apart-on-e-sales-taxation-85899391587The congressionally-created Advisory Commission on Electronic Commerce ended two days of meetings in San Francisco Wednesday with a glimmer of agreement on keeping the Internet free of international tariffs and banning access taxes. But the panel continued to disagree sharply about collecting sales taxes on cyber-transactions.1999-12-16T00:00:00-05:0085899392250http://www.pewstates.org/projects/stateline/headlines/states-plan-further-tax-cuts-in-2000-85899392250A National Conference of State Legislatures survey shows that 12 states and the District of Columbia expect to make further tax cuts in 2000. A number of other states plan to follow suit as soon as tax-cut plans are written, indicating that the economic prosperity that most states enjoyed in the 1990s will carry over into the new millennium.2000-01-02T00:00:00-05:0085899392244http://www.pewstates.org/projects/stateline/headlines/tax-cut-fever-grips-maryland-lawmakers-85899392244Maryland's General Assembly begins a four-month session Wednesday, and the biggest issue facing the lawmakers is how to dispose of an unprecedented $1 billion budget surplus. But there are other items on the agenda as well, including gun control, land use and growth, and managed healthcare reform. For more on this, click on2000-01-10T00:00:00-05:0085899392243http://www.pewstates.org/projects/stateline/headlines/budget-squeeze-snarls-louisiana-govs-agenda-85899392243Louisiana Gov. Mike Foster started his second term Monday after he and seven other statewide elected officials and the new Legislature were sworn in at Baton Rouge ceremonies. The Republican governor has an ambitious agenda for his next four years, but a budget squeeze brought on by smaller than expected tax collections may make it hard to realize.2000-01-11T00:00:00-05:0085899392236http://www.pewstates.org/projects/stateline/headlines/internet-raises-questions-about-states-rights-85899392236The Internet is rapidly transforming how states deliver services -- a development that officials and citizens alike agree is positive. But the dawn of the new cyberworld has potentially negative ramifications for state's rights because the borderless environment it creates makes it harder to enforce state laws. In fact, one attorney general describes the Internet as "the wild wild West without a sheriff." For more on this, click on2000-01-18T00:00:00-05:0085899392234http://www.pewstates.org/projects/stateline/headlines/on-the-record-an-interview-with-tax-expert-john-petersen-85899392234With this item, Stateline.org inaugurates a new feature designed to give you a better perspective on what's happening in the state capitals: occasional question & answer sessions with top authorities on state policy issues. Senior Writer Blair S. Walker recently spoke with John E. Petersen, director of the Government Finance Group, a financial advisory and research firm based in Arlington, Va. A recent appointee to Virginia's tax commission, Petersen writes a regular finance column for "Governing" magazine and last year authored a study on the future of Michigan's state and local taxation.2000-01-19T00:00:00-05:0085899392228http://www.pewstates.org/projects/stateline/headlines/state-laws-stand-in-way-of-direct-online-car-sales-85899392228When the world's two largest automobile manufacturers --General Motors and Ford--announced Internet partnership deals with two of the biggest names on the Internet--America Online and Yahoo-- at a Detroit car expo, many analysts said it took the car companies one step closer to offering the ultimate point-and-click shopping experience: buying a car online.2000-01-26T00:00:00-05:0085899392226http://www.pewstates.org/projects/stateline/headlines/green-bay-packers-seeking-legislative-touchdown-85899392226While most football fans focus on the clash of the St. Louis Rams and the Tennessee Titans in the NFL's Super Bowl XXXIV, Wisconsin "Cheeseheads" are debating the merits of an expensive public/private plan to renovate the home field of the legendary Green Bay Packers. Gov. Tommy Thompson is an enthusiastic supporter, but many lawmakers are taking a cautious approach to the proposed Lambeau Field makeover.2000-01-28T00:00:00-05:0085899392223http://www.pewstates.org/projects/stateline/headlines/experts-debate-how-much-states-should-put-in-rainy-day-funds-85899392223Experts on state "rainy day" funds, sometimes called budget stabilization accounts, disagree over what percentage of a state's general fund expenditures should be socked away to provide an effective cushion against an economic downturn. Estimates range from 5 percent to 18 percent, with most states being a lot closer to the former percentage. The 46 states with rainy day funds salted away $18.7 billion in fiscal 1999, which was 4.3 percent of their general fund expenditures, according to the National Conference of State Legislatures.2000-02-02T00:00:00-05:0085899391907http://www.pewstates.org/projects/stateline/headlines/on-the-record-massachusetts-gov-paul-cellucci-85899391907When it comes to levying sales taxes on e-commerce, Massachusetts Gov. Paul Cellucci, Colorado Gov. Bill Owens and Virginia Gov. James Gilmore have emerged as the gubernatorial Big Three opposed to the practice. Moments after testifying before the U.S. Senate Budget Committee on Internet Taxation this week (Wednesday), Cellucci talked to Stateline.org Senior Writer Blair S. Walker about why he believes the Internet needs to remain tax-free.2000-02-03T00:00:00-05:0085899392220http://www.pewstates.org/projects/stateline/headlines/clinton-posting-mediocre-domestic-record-scholars-say-85899392220President Clinton sent his budget for the 2001 fiscal year -- the last of his presidency -- to Capitol Hill Monday (2/7), with the expectation that lawmakers will consider a host of spending increases in his favorite domestic programs: public education, health care, middle-class tax cuts and welfare. The Clinton budget, like his State of the Union speech, is expected to be short on grand designs. Many scholars say Clinton's style of incrementalism may deprive him of an enduring legacy. For a review of Clinton's domestic policy achievements, click on2000-02-04T00:00:00-05:0085899392212http://www.pewstates.org/projects/stateline/headlines/wyoming-one-of-few-states-facing-economic-hard-times-85899392212Smack in the middle of the longest economic boom in U.S. history, Wyoming is one of a handful of states saddled with a deficit, instead of a record-setting surplus.2000-02-11T00:00:00-05:0085899392202http://www.pewstates.org/projects/stateline/headlines/internet-taxation-issue-divides-policy-makers-85899392202The Internet is fast evolving into a vast electronic shopping mall where virtually anything under the sun can be had with a mouse-click and a credit card number. But the growth of this potentially limitless new economy raises complex tax issues that cut across state, legal and political boundaries.2000-02-23T00:00:00-05:0085899392184http://www.pewstates.org/projects/stateline/headlines/political-brawl-leaves-new-mexico-without-budget-85899392184Politics is often called the art of compromise, but compromise is in short supply in New Mexico politics these days. The net effect is a state buried at the bottom of nearly every quality of life list. In the latest round of a running battle between Republican Gov. Gary Johnson and Democrats who dominate the legislature, New Mexico is without a budget while Johnson threatens a government shutdown and the Democrats call him a dictator.2000-03-14T00:00:00-05:0085899392183http://www.pewstates.org/projects/stateline/headlines/more-states-cut-income-taxes-of-poor-families-85899392183A growing number of states are taking advantage of overflowing revenues to relieve the tax burden on poor families, a new study by the Center on Budget and Policy Priorities has found. In 1999, fewer than half the states that impose an income tax -- 20 out of 41 -- collected revenues from families earning less than the official poverty line. Since 1991, four states have raised their tax thresholds to exempt these families. Two more, Delaware and New Jersey, will stop taxing poor families over the next two years. Altogether in the 1990s, 19 of the 41 income-tax states significantly cut or eliminated taxes on poor families, the study by the liberal-leaning Washington think tank showed.2000-03-15T00:00:00-05:0085899392160http://www.pewstates.org/projects/stateline/headlines/initiative-695-haunts-state-government-in-washington-85899392160Election year for Washingtons part-time Legislature normally means a short session, just enough time to tweak the biennial budget, pass a few bills, and create an issue or two for the campaign. But this year would hardly qualify as normal.2000-04-03T00:00:00-04:0085899392150http://www.pewstates.org/projects/stateline/headlines/now-a-trickle-internet-tax-filings-viewed-as-wave-of-future-85899392150Among the 42 states that collect income taxes, 12 allow residents to file cost-free returns using state Web sites. That's expected to produce a tiny number of tax returns -- about 200,000 -- this year. But in a short while the trickle should grow into a tsunami, tax expert Verenda Smith predicts.2000-04-14T00:00:00-04:0085899391904http://www.pewstates.org/projects/stateline/headlines/california-first-in-revenue-spending-in-1998-85899391904The nation's most populous state, California, collected more revenue than any other state and also outspent the other 49 states in 1998, the latest year for which data is available, according to a report released Wednesday by the U.S. Commerce Department's Census Bureau. New York claimed second place with $96.1 billion in revenue and $87.3 billion in spending. Texas was third, with revenue of $57.8 billion and expenditures of $51.1 billion in 1998.2000-04-26T00:00:00-04:0085899392133http://www.pewstates.org/projects/stateline/headlines/governors-battle-over-e-taxation-85899392133The nation's governors are deeply divided over whether e-commerce should be subjected to state sales taxes, as is the case with transactions in brick-and-mortar settings. What had been a quietly simmering disagreement has erupted in a public way in recent weeks.2000-05-03T00:00:00-04:0085899392128http://www.pewstates.org/projects/stateline/headlines/specialty-license-plates-generate-revenue-controversy-85899392128With Nancy Reagan looking on at a Los Angeles bill-signing ceremony in October 1999, California Gov. Gray Davis okayed an aluminum tribute for one-time California governor and former President Ronald Reagan. Starting this year, Californians who dish out $50 up front and an additional $40 each year they renew their license plate can have Reagans picture on the rear bumper of their car. California Girl Scouts, Florida adoption activists, and descendents of Tennessees Confederate veterans had no such luck in getting license plates honoring them approved, demonstrating that something as simple as a flat piece of metal can generate strong emotions in state politics and government.2000-05-10T00:00:00-04:0085899391919http://www.pewstates.org/projects/stateline/headlines/states-increasingly-unprepared-for-recession-study-warns-85899391919Five of eight states that in early 1999 had sufficient financial reserves to weather a recession have since lost those cushions due to tax cuts, according to a Center on Budget and Policy Priorities study.2000-05-22T00:00:00-04:0085899392101http://www.pewstates.org/projects/stateline/headlines/amidst-fat-happy-neighbors-four-states-tighten-belts-85899392101The axiom about rising tides lifting all boats apparently doesnt apply to states. Because while much of the country is awash in budget surpluses, Alaska, Louisiana, Tennessee and Wyoming have struggled to surmount shortfalls.2000-06-12T00:00:00-04:0085899392085http://www.pewstates.org/projects/stateline/headlines/tobacco-money-triggers-political-row-85899392085In what some local political observers call the nastiest fight in decades, a battle over control of tobacco windfall money has consumed one Southern California county. Arguing that it is the only way to guarantee settlement funds are spent on health care, a private hospital has initiated a ballot measure to divert all payments from public to private control. Ventura County officials say the move is a brazen attempt by a financially unstable private hospital to hijack public funds to shore up its bottom line.2000-06-27T00:00:00-04:0085899392078http://www.pewstates.org/projects/stateline/headlines/mississippi-leads-in-creating-service-industry-jobs-85899392078Mississippi led the way in increasing jobs and revenue in the service sector between 1992 and 1997, a new Census Bureau report shows. Service industry jobs, in hotels, restaurants, computer rental firms, technical training schools, temp agencies and other similar enterprises, accounted for more than half of all new jobs created nationwide in the non-farm private economy during the most recent five-year period for which complete information is available.2000-07-07T00:00:00-04:0085899392076http://www.pewstates.org/projects/stateline/headlines/forest-of-ballot-initiatives-being-readied-for-november-85899392076Across the United States, ballot initiatives--proposed laws submitted to a vote of the people -- are an increasingly popular method of public policy making. In November, between 60 and 70 initiatives covering everything from video poker to gay rights are expected to appear on the ballots of the 24 states that currently allow for these measures. The initiative process was conceived as a way to give voters more say on public policy, but some analysts like Washington Post political writer David Broder say it has become a tool of big-moneyed special interests.2000-07-10T00:00:00-04:0085899392066http://www.pewstates.org/projects/stateline/headlines/states-step-up-spending-to-fight-tobacco-85899392066Ever wonder how states are spending the millions of dollars pouring into their coffers from the $206 billion tobacco settlement? According to the National Conference of State Legislatures (NCSL), a lot of the money is funding programs to discourage smoking. In a new report, NCSL says spending on these programs increased more than 400 percent in 35 state legislatures across the country. To find out what your state is doing, click on2000-07-18T00:00:00-04:0085899392030http://www.pewstates.org/projects/stateline/headlines/amid-state-surpluses-and-tax-cuts-slowdown-looming-85899392030Tax-cut advocates are having a field day in statehouses around the country, emboldened by the lengthiest economic boom in U.S. history. Revenue surpluses enabled lawmakers and budget officials to pare away $9.1 billion in taxes during 2000, the largest reduction the National Conference of State Legislatures has seen in 15 years.2000-09-01T00:00:00-04:0085899391999http://www.pewstates.org/projects/stateline/headlines/state-revenues-grow-despite-deep-tax-cuts-85899391999State tax revenues rose 5 percent from 1998 to 1999, another bit of statistical evidence of the degree to which states have benefited from the nation's economic prosperity, the Census Bureau reports. A nonprofit nonpartisan group that tracks state revenue trends, Rockefeller Institute's Fiscal Studies Program, puts the increase for state tax revenues even higher, at 5.7 percent, for 1999. The figure would have reached 7.4 percent had it not been for legislative tax cutting, says Rockefeller senior policy analyst Elizabeth Davis.2000-10-11T00:00:00-04:0085899391887http://www.pewstates.org/projects/stateline/headlines/tax-cut-plan-divides-colorado-voters-85899391887A controversial tax-cutting amendment continues to show support from a majority of Colorado voters, a recent poll shows, but support is down from the numbers shown early in the 2000 election year. That's good news to most state and local government officials opposing it, but prime sponsor Douglas Bruce, a Colorado Springs businessman and perpetual government critic, is still optimistic the plan will prevail on Nov. 7.2000-10-26T00:00:00-04:0085899391974http://www.pewstates.org/projects/stateline/headlines/voters-decide-initiatives-ranging-from-gambling-to-gun-control-85899391974Holding to a traditional pattern, voters appear to have rejected just over half the citizen initiatives put to them Nov. 7, according to the National Conference of State Legislatures. Voters in 42 states faced a total of 204 ballot measures, some written by legislators, but many -- including the most controversial -- spawned by activists and interest groups.2000-11-09T00:00:00-05:0085899391972http://www.pewstates.org/projects/stateline/headlines/slowdown-indicators-seen-in-state-economies-85899391972Indications that the nation's economic strength is diminishing are beginning to appear on the state level. In Maine, where budget officials and lawmakers have grown accustomed to surplus revenues in the $300 million to $400 million range, only $44 million extra is projected for the state's next two-year budget cycle, officials disclosed this week.2000-11-13T00:00:00-05:0085899391958http://www.pewstates.org/projects/stateline/headlines/minnesota-hosts-growth-policy-forum-85899391958Nearly 80 policy advisors from 19 states have gathered in Minnesota's capital of St. Paul for a growth and quality of life forum sponsored by the National Governors' Association (NGA) Center for Best Practices. The two-day forum, which winds up later today (Friday), gives governors and their senior advisors a chance to discuss "smart growth" policy and ways to implement effective programs.2000-12-01T00:00:00-05:0085899391946http://www.pewstates.org/projects/stateline/headlines/is-the-party-over-report-shows-state-revenue-growth-slowing-85899391946National Governors Association Executive Director Ray Scheppach has been worried about reports of economic problems starting to crop up in the states for some time. This week he found evidence that those reports are more than anecdotal.2000-12-20T00:00:00-05:0085899391928http://www.pewstates.org/projects/stateline/headlines/economic-slowdown-ohio-a-case-in-point-85899391928The party is over for state lawmakers. For several years, the booming economy made their jobs relatively easy, but now, that's changing. Ohio is a good example. For the past five years, the bustling economy brought in a bonanza of sales and income tax revenues. So much money flowed in, legislators were able to hand taxpayers $2 billion in income tax cuts and at the same time give Ohio schools billions of extra dollars. But that was then.2000-12-28T00:00:00-05:0085899392611http://www.pewstates.org/projects/stateline/headlines/state-medicaid-budgets-start-to-squeeze-85899392611During the last five years, policymakers expanded Medicaid with a flourish. Armed with hearty surpluses and federal funds to boot, states launched the State Children's Health Insurance Program (SCHIP), pharmacy assistance programs for the elderly and community-based health services for the elderly and disabled. But budget bliss is fading fast. Numerous states, from Oregon to Tennessee, New Mexico, Kentucky, Indiana and Washington State, are now complaining about Medicaid's skyrocketing price tag.2001-01-04T00:00:00-05:0085899392600http://www.pewstates.org/projects/stateline/headlines/state-lawmakers-facing-redistricting-budgeting-85899392600On top of their normal work load, lawmakers in nearly every state must redraw their Congressional and legislative districts this spring, making the upcoming statehouse sessions the busiest in recent memory. In 2001, legislatures will convene in every state, with all but six starting work this month.2001-01-09T00:00:00-05:0085899392591http://www.pewstates.org/projects/stateline/headlines/more-states-complaining-of-economic-pinch-85899392591Signs of a slowing U.S. economy are cropping up in more and more states. Among the latest to feel the pinch are Maine, Massachusetts, Indiana, Tennessee, Louisiana, Virginia and Mississippi.2001-01-18T00:00:00-05:0085899392590http://www.pewstates.org/projects/stateline/headlines/state-tobacco-payment-dip-exaggerated-experts-say-85899392590When reports surfaced last week that tobacco settlement payments for 16 states had been cut by nearly $200 million collectively, it appeared to be big news. But payments have been going up and down since the Master Settlement Agreement (MSA) between 46 states and the tobacco industry was reached in November 1998, so some experts find it difficult to get too worked up about the recently-released figures.2001-01-18T00:00:00-05:0085899392584http://www.pewstates.org/projects/stateline/headlines/alaskas-treasure-chest-becomes-debate-topic-85899392584Alaska has a pot of money that provides every eligible state resident with a yearly dividend well in excess of $1,000. This treasure chest, officially known as the Alaska Permanent Fund, was built by investing a portion of the state's oil revenues not devoted to financing state government operations. Overall oil revenues have declined in recent years, however, creating fiscal problems for the state. Alaska Gov. Tony Knowles and leading legislators want to dip into Permanent Fund earnings to solve the problem. But such a move might mean dividend payments might not grow as fast in the future as they have in the past. So Knowles and his allies are encountering resistance.2001-01-22T00:00:00-05:0085899392576http://www.pewstates.org/projects/stateline/headlines/state-budgets-battered-by-substance-abuse-study-shows-85899392576Governors and state legislators looking for ways to save money on social programs at a time when many states face projected revenue shortfalls may want to invest more in drug prevention and treatment, according to a new three-year analysis of state spending. It shows that widespread addiction to alcohol and drugs and attendant problems - death, illness, injury, property damage, unwanted pregnancy, learning disabilities, crime, fattened welfare rolls and domestic violence - cost state governments an estimated $81.3 billion in 1998.2001-01-29T00:00:00-05:0085899392288http://www.pewstates.org/projects/stateline/headlines/states-see-revenue-surge-in-fy-2000-85899392288State tax revenue grew by a record-setting 8.7 percent last year and would have grown by 9.4 percent if there had been no changes in tax rates, tax bases and acceleration of tax payments, a new study says. The revenue surge was the fastest rate of growth in the past decade and was stronger than most states originally forecast, according to the Nelson A. Rockefeller Institute Of Government's fiscal studies program in Albany, N.Y.2001-02-05T00:00:00-05:0085899392564http://www.pewstates.org/projects/stateline/headlines/ohio-joins-other-states-trying-to-capture-lost-revenue-85899392564Millions of Ohioans have long neglected to pay sales taxes on mail-order goods, and the state government has let them get away with it. But this year is different. As Ohioans hunch over state income forms with an April 15th deadline, they're noticing a new line -- one that asks how much they spent on untaxed Internet and mail catalogue purchases last year and tells them to pay the five percent state sales tax on the total. Ohio is just the latest of 16 states trying to collect what they consider "lost" tax revenue. Experts estimate that states are missing out on at least $5 billion in sales tax money every year, because out-of-state Internet retailers rarely charge sales taxes.2001-02-13T00:00:00-05:0085899392562http://www.pewstates.org/projects/stateline/headlines/states-tackle-privacy-loopholes-created-by-congress-85899392562When Congress voted two years ago to tear down Depression-era barriers that had long kept banks, investment firms, insurance companies and other elements of the financial services industry from merging , Wisconsin State Representative Marlin Schneider had just one comment: "They're nuts," he said of the federal lawmakers. Since then, a growing number of state legislators have come to the same conclusion as they've tried to address privacy loopholes in the Financial Services Modernization Act of 1999.2001-02-15T00:00:00-05:0085899392284http://www.pewstates.org/projects/stateline/headlines/state-budget-ills-hinder-new-cancer-treatment-plan-85899392284Faced with an irony in current law that entitles low-income women to be screened but not treated for breast and cervical cancer, Congress agreed last year to let states expand Medicaid to cover these women. But fiscal constraints threaten to keep many states from moving ahead on the issue.2001-02-23T00:00:00-05:0085899392554http://www.pewstates.org/projects/stateline/headlines/governors-promote-fiscal-restraint-in-writing-state-budgets-85899392554In their State of the State addresses this year, many of the nation's governors called for "fiscal restraint," reflecting that a cooling economy, smaller revenues and greater health care expenses have created an uncertain financial picture in many states.2001-02-28T00:00:00-05:0085899392543http://www.pewstates.org/projects/stateline/headlines/fewer-states-on-course-to-meet-fiscal-targets-85899392543The National Conference of State Legislatures (NCSL) last month suddenly revised a mostly optimistic report on the fiscal condition of all 50 states after it recognized that tax receipts for November and December showed fewer states were on track to meet budget expectations.2001-03-07T00:00:00-05:0085899392536http://www.pewstates.org/projects/stateline/headlines/federal-estate-tax-repeal-would-affect-states-85899392536The inheritance or estate tax -- derided by foes as the "death tax" -- could become a casualty of President George W. Bush's $1.6 trillion tax cut program. Repeal of the tax would directly affect 35 states that rely on the federal estate tax law to collect some revenue, and the other 15 would also be likely to feel the impact.2001-03-15T00:00:00-05:0085899392531http://www.pewstates.org/projects/stateline/headlines/states-see-fourth-quarter-tax-revenue-slowdown-85899392531States had a prosperous year overall in 2000 with record surpluses and tax revenue growth. But there were signs of weakening economies in many states as the year drew to a close, and a new report suggests a major slowdown in tax collections could just be the tip of the iceberg.2001-03-20T00:00:00-05:0085899392523http://www.pewstates.org/projects/stateline/headlines/states-face-budget-cuts-as-economies-slump-85899392523For nearly a decade, state legislators had an easy job deciding how to spend because they were riding a wave of unprecedented surpluses. But this year, coming up with a budget could be turbulent because many states must cut expenses. Despite a sagging economy, most states are required by constitution or statute to balance their budget.2001-03-29T00:00:00-05:0085899392522http://www.pewstates.org/projects/stateline/headlines/curbing-power-of-money-vexes-states-85899392522The U.S. Senate's political drama over campaign finance reform has been performed many times across the country, and state lawmakers have had only mixed success in trying to control the influence of big money in elections. Although state laws setting donor and spending limits or allowing public financing of some campaigns have passed many states, most of the statutes enacted since the Watergate scandal of the 1970s pay lip service to the idea of real reform, analysts say2001-03-30T00:00:00-05:0085899392519http://www.pewstates.org/projects/stateline/headlines/slowdown-means-double-headache-for-ohio-85899392519Most states are feeling a budget pinch, now that the economy is cooling off. But few states face Ohio's "double whammy." At the same time that budget specialists have realized tax revenues over the next two years may come in $800 million below projections, Ohio is under pressure from the state Supreme Court to pump a lot more state dollars into schools.2001-04-05T00:00:00-04:0085899392520http://www.pewstates.org/projects/stateline/headlines/car-tax-phaseout-splits-virginia-republicans-85899392520A veteran of a thousand political wars, Virginia Gov. James S. Gilmore III barely blinks when opponents call him single-minded, dictatorial and even hallucinatory. Gilmore expected to become a lightning rod when he was appointed chairman of the Republican National Committee in January. But he may never have guessed that his most vociferous critics would be fellow Republicans back home.2001-04-06T00:00:00-04:0085899392517http://www.pewstates.org/projects/stateline/headlines/budget-resolution-ignores-election-reform-85899392517Neither President Bush's or Congress budget blueprint includes a dime for election reform initiatives. Senators nixed an 11th hour, Democrat-backed spending plan that would have allotted $500 million for national election reform efforts, moments before a deadline to vote on the fiscal 2002 budget resolution. The House resolution also omitted any reference to election reform. Though non-binding, budget resolutions serve as the basis for the work of Capitol Hill appropriators.2001-04-09T00:00:00-04:00