Stateline Headlines

Clock ticking on full Medicaid expansion funds

Finding just the right tax rate

How to regulate, and how not to

Lessons from Prohibition

Though enrolling more poor students, 2-year colleges get less of federal pie

Farm bill beats back foes

AAA: Sequestration to put the squeeze on holiday travel

States bank on online sales tax

Lax state rules provide cover for sponsors of attack ads

D.C.-area offices feel a pinch

Report: Delaware Has Lowest Business Taxes; Alaska Highest

New report says businesses pay lower taxes in Delaware, Oregon and Utah; higher taxes in Alaska and North Dakota. But what your company pays may depend on the business you’re in.

Mileage fee now: Opposing view

Gas tax alternative drive takes wrong turn: Our view

4 public-college presidents pass $1-million mark in pay

Rust-Belt reaches for immigrant tide

Obama, Texas and jobs

Cabinet secretary solicits large donations to publicize health care law

States aren’t finding tax reform easy either

Republican governors, Congress split on online tax bill

Mortgage Deduction Rates Vary Widely Among States

The mortgage interest deduction is a tax break that benefits middle-class Americans all over the country—or does it?

Delay in Implementing Sequester Forces Deeper Unemployment Cuts

Unemployment benefits were already on the chopping block thanks to sequestration. But in three-dozen states, the pain for the long-term unemployed is even greater because states have been slow to enact the across-the-board federal cuts.

Federal Road Fund Could Go Broke by 2015

With federal transportation money drying up, will the burden fall to the states?

Infographic: Spending on Public Health Drops

Our public health systems are meant to be at the forefront of prevention, but state and federal investments are shrinking.

NFL Plays Offense to Get Public Money for Stadiums

Why are so many teams asking taxpayers to build new pro football stadiums this year?

State Revenues Reach Record High After Recession’s Decline

The Great Recession hurt state tax collections, but many have rebounded and total revenues reached record highs last fiscal year.

Obama Budget Calls for More Competitive Grants

The White House budget, released Wednesday, envisions making states compete with one another for a host of federal grant programs, similar to the Race to the Top education program.

States’ Free Online Tax Filing Services Often Overlooked

Some 20 states allow taxpayers to file income tax online for free. Is your state one of them?

States Rack Up Victories in Bids to Collect Online Sales Taxes

After more than a decade of trying, state officials think they may get to collect billions of dollars of taxes on online sales soon. Find out why.

Sequester Will Force Universities to Scale Back Scientific Research

The sequester is already limiting the amount of money universities can offer to graduate students.

Which States Tax Your Travel the Most?

Your vacation dollar won’t go as far in some destinations because of state and local travel taxes.

U.S. Senate Passes Test Vote on Online Sales Tax

A symbolic, nonbinding vote was taken Friday on a proposal that would allow states to collect sales tax for purchases made online.

Congress May Reverse Some of Sequester’s Cuts to WIC

An effort to keep the federal government open could also deliver relief to pregnant women, mothers and young children in need of food.

Congress Debates Highway Safety Funding Cuts

Budget battles on Capitol Hill could cost states federal money to fight distracted driving and to roll out graduated licenses for teen drivers.

The 5 States Most Vulnerable to Sequestration’s Education Cuts

Automatic federal budget cuts will slash more than $1 billion in K-12 education dollars this year, paring everything from Title I money for low-income students to school improvement initiatives.

Automatic Defense Cuts Will Deal Blow to States

A Stateline analysis shows automatic defense spending reductions will hit defense contractors hard. This sector comprises as much as 8 percent of some state economies.

States in Recovery: Revenues

For nearly half the states, recovery is tenuous, with revenues still below peak levels before the recession.

Governors Fear Loss of Bond Tax Exemption

A panel of top tax policy analysts has warned the nation’s governors they face an ongoing risk of increased borrowing costs if President Obama and Congress curb or eliminate the tax exemption on municipal bonds to bring down the federal budget deficit.

States with Heavy Military Presence Hurt Hardest

The White House published a 50-state list of potential impacts from the automatic budget cuts known as sequestration. States that rely heavily on military spending would be hurt worst.

Backlash for Red-Light Cameras Hasn’t Slowed Spread

Throughout the country, state legislatures are considering how broadly to use traffic cameras, but the number of communities using them keeps growing.

Where Is Manufacturing Making a Comeback?

After years of losing jobs to lower-cost, overseas operations, several Rust Belt states are seeing a resurgence of manufacturing, led surprisingly by Michigan. In the last three years, Michigan gained nearly 70,000 manufacturing jobs, the most of any other state, according to the latest government figures. Indiana

Gas Tax Loses Favor as Governors Look for New Transportation Money

In the search for more transportation money, governors and state lawmakers are largely avoiding one of the most obvious and straightforward funding sources: state gasoline taxes.

Fracking for State Dollars

The boom in oil and gas production has some states taking another look at the kinds of taxes they levy.

States’ Fragile Recovery at Risk

State budgets are finally climbing out of the fiscal hole they’ve been in for the last four years. But Washington isn’t making it any easier for them.

Surpluses Await Some States in 2013 Sessions

The surpluses that state lawmakers will find waiting for them this year may not go very far.

Uncertainty from Washington Continues for States

States trying to craft their budgets for the upcoming year will have to wait until March for more details from Washington.

Election Year Brings Big Changes in State Policy

From battles in the legislatures to battles at the polls, Stateline reporters traveled all over the country in 2012 reporting on news from the states.

Congress Likely to Postpone Online Sales Tax Collection

A bipartisan group of state elected officials has pushed hard for federal legislation that would allow states to require the collection of sales taxes on internet purchases. For now, though, that effort hasn’t overcome congressional gridlock.

As Federal Immigration Overhaul Looms, California Schools Slash Adult English Classes

Requiring immigrants to learn English would likely be a key component of any federal immigration overhaul. But widespread cuts to English programs in California show that even that requirement may not be easy to roll out.

Fiscal Cliff Jitters Could Boost Early State Tax Revenue

When filmmaker George Lucas sold his company and the Star Wars franchise to Walt Disney Co. this fall, he saved hundreds of millions of dollars in state and federal taxes by not waiting until next year when higher tax rates are anticipated. He’s hardly alone.

Medicaid Trumps `Fiscal Cliff’ as Top State Budget Concern

Medicaid is still the biggest budget worry for the coming year, according to a new survey of state legislative directors to be released soon. Nowhere is the problem larger than in Texas, which faces a $4.3 billion Medicaid deficit.

Tax Breaks for Sale: Transferable Tax Credits Explained

States offer billions of dollars of tax incentives that businesses can sell to other businesses. Here’s why they do it and how it works.

Costly Prison Phone Calls Frustrate Families

Most state prisons impose a surcharge on calls made by inmates. Many of the inmates’ families have trouble paying it.

Jobless Benefits At Risk in Fiscal Cliff Debate

Amid the fervor over the fiscal cliff in Washington, there’s one federal program also facing a Dec. 31, 2012 deadline that if allowed to pass could cost unemployed Americans thousands of dollars and deprive states of crucial federal funding that’s helped them weather the worst of the Great Recession.

More States Dig into Libor Scandal

As lawsuits and inquiries mount, more states are looking into the rate-rigging scandal.

Cyber Monday Sparks Calls for Online Sales Tax

A coalition of small business leaders is hoping this will be the last Cyber Monday of the era without online sales taxes. It is pressing Congress to pass legislation requiring most online retailers to collect and remit sales taxes.

Budget Cuts, Revenue Swings Await States In ‘Fiscal Cliff’ Drama

State budgets and economies would be hit particularly hard by the automatic tax increases and spending cuts caused by the looming “fiscal cliff,” if it’s not averted, according to a new report by the Pew Center on the States’ Fiscal Federalism Initiative, which explored how the fiscal cliff would affect states in a number of ways.

Historic Gay Marriage, Marijuana Measures Win Approval

After years of rejecting same-sex marriage at the ballot box, three states endorse it.

Infographic: Ballot Measures Gave Voters Say on Divisive Issues

Voters in 38 states will decide 174 statewide ballot measures on Election Day. Are any on your ballot?

Obama's and Romney’s Tax Plans: What Do They Mean for States?

Overlooked during the presidential campaigns is how Obama and Romney’s tax proposals could affect states. Here’s a look.

States Struggle With Unemployment Funds Still in the Red

More than $26 billion in lingering debt and billions in mounting interest have forced a number of states to scale back unemployment benefits, raise taxes, tap general funds and even turn to the private bond market.

Survey: As State Budgets Improve, So Does Trust in Government

A Gallup survey estimates that 65 percent of Americans have expressed a “great deal” or “fair amount” of trust in their state governments, a level not seen since the days before the financial crisis.

Sequestration: How a Spending Stalemate Would Affect the States

There is still time for Congress to avoid the “fiscal cliff” that would force billions of dollars in spending cuts and tax increases at the start of next year. But whatever happens, the states run the risk of being big losers.

Heat Wave, Budget Cuts Strain Utility Safety Net

Budget cuts and a blistering hot spell wave left states short on cash this summer while tackling high energy demand. Now many worry about having enough heat when winter comes.

With VP Pick, Romney Endorses Fed-State Overhaul on Food Stamps, Medicaid

By choosing Paul Ryan as his running mate, Mitt Romney has endorsed large changes in federal-state relations, particularly in dealings with food assistance and health care.

A Likely Reprieve for Food Stamp Program

The food stamp program has been facing the threat of deep reductions that would cut off benefits for millions in states all over the country. But a stalemate in Congress may stave off the pain.

Are States’ Unemployment Insurance Loans Dragging Down Economies?

Most states are still paying off those unemployment benefits that went out to millions of those without work during the recession, but it’s the way some are doing it that raises concern.

Tennessee’s Haslam To Relay Governors’ Wish For Online Sales Tax

A congressional committee will hear testimony Tuesday (July 24) on a bill that could send billions of dollars to the states each year. Tennessee Governor Bill Haslam and Wayne Harper, a Utah state representative, are among those scheduled to appear before the House Judiciary Committee to comment on the “Marketplace

States Consider Politically Fraught Welfare Waivers

States consider their options — and the politics — of the federal welfare waivers proposal.

Report: Without Major Overhauls, State Budget Crises Will Linger

A lack of government transparency and a focus on federal budget woes have masked state budget crisis, leaving them largely unaddressed, according to a report released Wednesday. Without major change, the report warns, soaring costs of Medicaid and shrinking tax collections will only worsen the problem.

Health Care Ruling, Elections Dominate Governors’ Meeting

The typical low-key summer gathering of the nation’s governors was anything but subdued this year. The U.S. Supreme Court’s recent decision leaving it up to the states whether to expand their Medicaid programs topped headlines coming from the National Governors Association meeting in Virginia.

Iowa Governor Blasts Pentagon Air Guard Cuts

Just days before he and other governors are scheduled to meet with Pentagon brass, Iowa Governor Terry Branstad attacked the Defense Department Thursday (July 12) for failing to work with governors on plans to drastically cut the size of the Air National Guard.

Infographic: S&P State Credit Ratings, 2001–2012

Private, independent credit rating agencies evaluate states’ financial health. States with the lowest grades typically have trouble keeping their spending in line with their tax revenues.

Food Stamp Fight on Capitol Hill

Congress is considering dramatic changes in the way states administer their food stamp programs.

Public-Sector Issues Erupt in Presidential Campaign

President Obama and GOP presidential hopeful Mitt Romney both found themselves over the weekend explaining comments they made involving the public sector.

For Many State Budgets, a Year of Relief

With their fiscal circumstances improving this year, many states had the luxury of debating tax cuts and spending increases for the first time since the recession began. Still, the progress is uneven and more challenges loom. Part one of a weeklong series.

Unemployment Tax Cheats on States' Radar

States are beginning to crack down on employers who avoid paying their full share of unemployment taxes through bogus schemes that often leave other employers making up the difference.

Budget Woes, Elections Top Lawmakers Priorities

State lawmakers from across the country are making their way back to their respective capitals for the 2004 legislative session. Two topics reign supreme for most of them: crafting budgets and their own reelections.

Clark Pledges to Aid States, Boost Homeland Security

Retired Gen. Wesley Clark would send $40 billion back to state and local governments and seek $40 billion more for homeland security if he were elected president of the United States, he said in an interview with Stateline.org.

Mixed Prospects for States in Election-Year Congress

Election-year politics and a tight congressional schedule might bring both good and bad news for states. Theres a good chance Washington will fork over more federal dollars for highways. But on the downside, Congress could cost states billions of dollars in taxes, sources on and off Capitol Hill tell Stateline.org.

Governor Races Likely to Turn on Budget Issues

In the 11 governors' races in 2004, voters won't have a Hollywood movie star to provide political sizzle. But they may get a chance to vote for a former baseball All Star, a top White House aide or the husband of a former governor. Six seats held by Democrats and five by the GOP are up for grabs; three states have no incumbent on the ballot, and four races are in key presidential swing states. Stateline.org has compiled a rundown of the races, issues and major candidates.

Let the Meager Times Roll; Half of States Face Shortfalls

State budgets are off the critical list, but dont put away the respirators just yet. The fiscal health of many states is still weak and in some cases anemic.

Governors to Press Their Issues with Federal Officials

This year's National Governors Association meeting in Washington, D.C., will have extra star power with the premier appearance of California Gov. Arnold Schwarzenegger (R). But the real focus will be on the tried-and-true issues of more federal money and less federal intrusion.

Governors Press Bush for More Highway Dollars, Jobs

State governors went to the White House to register concerns about jobs and highway dollars but failed to win offers for any new funds or programs. President Bush promised to set aside election-year politics and work with members of the National Governors Association. But one of his Cabinet members struck less than a conciliatory tone by calling the nations largest teachers union a terrorist organization.

Smokers Help to Balance State Budgets

Smoking may be bad for your health, but it's good for state revenues. Vilified for its health effects, tobacco becomes a popular choice to milk for extra dollars to close state budget gaps.

States and Public Colleges Consider New Relationships

The combined wallop of recession-driven budget cuts to higher education, swelling enrollment and escalating tuition fees has prompted state policymakers and educators to begin eyeing changes in states traditional support for higher education. At least five states are considering proposals to begin weaning public universities from state control.

States Stuck with Federal $29 Billion Tab, NCSL Says

The federal government is stiffing states $29 billion this year for an array of programs that Washington dictates but doesnt adequately fund, the National Conference of State Legislatures says in a report released today. Of that total, $9.6 billion comes from the federal No Child Left Behind education law.

Billions at Stake in Internet Tax Debate

Most people yawn and get that cloudy, glazed-eye look when discussing the Internet and taxes. State lawmakers, on the other hand, see a vibrant shade of green--as in money--when discussing ways to convert Internet commerce into sorely needed tax dollars for state coffers.

Job Creation Vexes States in a Weak Economy

State government--not private industry--was the biggest creator of new jobs in the country last month, a development that could explain why states are putting so much energy into keeping and growing new businesses within their borders. With jobs of utmost concern this election year, states are trying an array of strategies: from banning outsourcing of state-contract jobs to incubating high-tech startup companies.

Election-Reform Funds About to Be Sent to States

States are on the verge of receiving $2.3 billion in long-awaited federal money to help them revamp their election systems in the wake of the 2000 presidential race, which was marred by unprecedented ballot problems. But voters shouldn't expect reforms to be totally in place when they go to the polls in November. Many states won't be able to enact changes in time, and some states still aren't sure what to do about their voting equipment.

Soaring Gas Prices Unlikely to Affect Gas Taxes

Record-high gas prices may send you scrounging for loose change under the car seat, but so far only Florida is considering lowering its fuel tax to try to ease the pain. Other states have no immediate plans to follow suit unlike four years ago when at least two states temporarily removed gas taxes.

States Target Deceased to Recoup Nursing Home Costs

States are leaving no stone unturned in their search for ways to save money in health care not even gravestones. Georgia and Michigan are the last of the 50 states to consider estate recovery plans, in which the state seizes assets from the estates of dead patients who lived in nursing homes on the states tab.

High-Tech Humiliation Helps States Nab Tax Cheats

As Americans across the country rush to meet this weeks April 15 federal tax deadline, some states are trying a different approach to make sure taxpayers pay up: public humiliation on the World Wide Web. More than a dozen states publish on the Internet the names of businesses and individuals who havent paid their state taxes. Georgias program flushed out eight state lawmakers who were behind on their taxes and netted $300,000 in just six weeks.

Report: States Spend Less; More Cuts in the Offing

State spending declined this year to the lowest level in nearly 15 years, according to a new report from the Center on Budget and Policy Priorities.

Latest State Revenue-Raising Wrinkle: Taxing Services

What do getting a tattoo, having the dog groomed and docking a boat have in common? Depending on which state you live in, the bills for all these services may have an added state tax. At least 17 states are considering tax increases as lawmakers try to come up with budgets for fiscal 2005, which begins July 1 in all but four states. Hiking the tobacco tax is, by far, states most common revenue raising proposal, but the idea of taxing services is on the table in a handful of states.

State Budget Picture Shows Modest Improvement

Is the glass half-full or half-empty for state budgets? Thirty-two states expect to end fiscal 2004 with a modest surplus, but 33 states project budget gaps for fiscal 2005. The new data released April 28 from the National Conference of State Legislatures comes as many states are struggling to craft final budgets before a July 1 deadline and as state lawmakers converge in Washington, D.C., to attend the NCSL spring meeting.

States Wage Offensive to Keep Military Bases Open

With a year to go before the Pentagon launches a new round of military base closings, states are competing to keep their hometown installations off the target list. States are engaged in a serious offensive to preserve bases that can mean thousands of jobs and billions of dollars to local economies. Illinois has hired expensive Washington lobbyists. Texas, among others, is spiffing up around bases. Florida has decreed its strategy to keep 21 military bases open a state secret.

Tax Foe Renews Attack on National Governors Association

As many states enter the final budget planning stages for fiscal 2005, a conservative anti-tax group is once again prodding governors to take what it calls a cost-saving measure: drop out of the National Governors Association.

Money Mattering More in Judicial Elections

Big-money politics, expensive television advertising and special interest pressure are creeping into state judicial elections. A new report documents record amounts of money flowing into campaigns for justices for some states' highest courts, raising questions about whether judgeships are becoming too political. In the 38 states to elect their high court judges, reforms are slow in coming.

Medicaid Trumps Education in State Budgets

After three years of the worst fiscal situation in the last 60 years, states are now witnessing relatively robust revenue growth. While the Midwest is still lagging, the Rockefeller Institute of Government recently reported that state revenues were up 8.4 percent for the first three months of calendar year 2004. There are clearly differences of opinion regarding the sustainability of the current recovery, but there is cautious optimism that it will continue through 2005.

GAO Critical of Last Year's $10 Billion Bailout for States

Congress may want to think twice about signaling to states that Uncle Sam will rescue them each time a recession hits, the General Accounting Office, a congressional watchdog organization, suggested in a new report. Routine bailouts hardly give states an incentive to sock money away for tough times, the GAO said, amid other criticisms of last year's $10 billion federal bailout of states.