March 27, 2013
National/Politics
U.S. state, local tax revenues continue to rise in fourth quarter: Census
Tue, Mar 26 2013 By Lisa Lambert (Reuters)
Tax revenues of U.S. state and local governments grew for the 13th quarter in a row at the end of 2012, rising 2.7 percent from the fourth quarter of 2011, according to Census data released on Tuesday. Tax revenue totaled $399.7 billion, compared with $389.1 billion in the fourth quarter of 2011. For states alone, the increase was sharper. Their total tax revenue grew 4.9 percent to $193.9 billion in the final quarter of 2012. The fourth-quarter growth, however, could indicate that revenue will drop or only increase mildly in the first quarter of 2013. ..... State and local individual income tax revenue shot up 9.4 percent in the fourth quarter from the final quarter of 2011 to $75.7 billion, according to the Census.
The AFL-CIO wants foreign workers paid more than native-born ones. Why?
By Suzy Khimm, Washington Post: March 26, 2013
The big fight inside the immigration reform talks right now is, at first glance, a little strange. The AFL-CIO wants temporary foreign workers to be paid significantly more than their average native-born counterparts. The Chamber of Commerce wants to be able to pay them less. Why? …. ...At the heart of the issue is a seemingly simple calculation: Mandating that foreign workers get higher wages means fewer foreign workers will get hired. But if wages for foreign workers are prohibitively high, it could lead employers to decide against hiring anyone new because of the costs or it could prompt businesses to hire unauthorized immigrants instead.
Banks, Shareholders to Square Off After Battle Over Proxy Resolutions
March 27, 2013, Dow Jones Newswires
The biggest U.S. banks will square off with shareholders this spring on everything from chairman independence to executive share ownership despite the banks' efforts to keep those debates out of their annual meetings. .... Still, Lazard's proxy contains one shareholder proposal from the pension plan of the American Federation of State, County and Municipal Employees calling for an independent chairman. Currently, Kenneth Jacobs holds both the chairman and chief executive roles, and Lazard said the proxy that the board supported Mr. Jacobs retaining both roles.
Is stage set for JPMorgan board, shareholders to battle over Dimon?
By Andrew Tangel, Los Angeles Times, 8:17 AM PDT, March 26, 2013
Does Jamie Dimon have too much power? JPMorgan Chase & Co.'s board apparently doesn’t think so. Last week, its directors decided to keep Dimon as both the bank's chairman and chief executive, even after a Senate panel's scathing report about $6 billion in trading losses incurred by the so-called “London Whale.” .... New York City Comptroller John Liu, whose office oversees the city's pension funds, and Connecticut Treasurer Denise Nappier, who manages that state's pension funds, have joined the campaign supporting this year's measure, which was proposed by the AFSCME Employees Pension Plan.
Progressives must focus outside D.C.
By: Jim Dean, Politico, March 27, 2013
.... The only way progressives can overcome this clear Republican advantage is by applying the same shoe leather we’ve used for years to win national races and take these state legislatures back. That’s why Democracy for America is launching its Purple to Blue project, a national, multi-year effort to win state House and Senate chambers across the country by making so-called “purple” state legislative seats decisively Democratic. ... Unfortunately, as we’ve seen since 2010, empowered by a wave of ultra conservative governors, Republicans have used their majorities in state legislatures across the country to play the role of mad scientists rather than gentle tweakers. ..... In Wisconsin and Ohio, they manifested themselves as attacks on working families and the right to organize.
Post analysis of Dow 30 firms shows declining tax burden as a share of profits
By Jia Lynn Yang, Washignton Post: March 26
..... A Washington Post analysis of data from S&P Capital IQ, a research firm, found that in the late 1960s and early 1970s, companies listed on the current Dow 30 routinely cited U.S. federal tax expenses that were 25 to 50 percent of their worldwide profits. Now, most are reporting less than half that share. The reason is not simply a few loopholes tucked deep in the tax code. It’s far bigger: the slow but steady transformation of the American multinational after years of globalization. Companies now have an unprecedented ability to move their capital around the world, and the corporate tax code has not kept up with the changes.
Editorial - Sales Tax Fairness
New York Times, March 26, 2013
At long last, Congress may finally be ready to pass a bill allowing states to require online retailers to collect sales taxes. Under federal law, which largely predates the Internet, online retailers are required to collect sales tax only if they have a physical presence in the customer’s state. That lets many online retailers off the hook for sales-tax collection, giving them an unfair advantage over bricks-and-mortar stores and depriving states of an estimated $11 billion in annual sales-tax revenue.
Obama Signs Off On Fed Pay Freeze
By Kellie Lunney, GovExec, March 26, 2013
President Obama on Tuesday signed into law legislation that extends the federal pay freeze through the rest of 2013 and keeps the government running until the end of the fiscal year. Congress last week agreed on a continuing resolution to fund federal agencies through Sept. 30. Lawmakers extended the current freeze on federal civilian workers’ pay and their own salaries for a third consecutive year as part of the deal to avoid a government shutdown. The previous CR expires on Wednesday.
HUD to close agency during furlough days
By Lisa Rein, Washington Post: March 27, 2013
As word of sequestration-induced furloughs courses through federal agencies, the Department of Housing and Urban Development is taking an unusual approach to the seven unpaid days it is requiring most full-time employees to take. It’s planning to shut down the agency on those days. The reason apparently has to do with unwanted paperwork. Top HUD officials assessed the logistical complications that would be involved for personnel managers in trying to organize days off for thousands of employees, not to mention their vacation and sick days.
Lawmaker wants to re-privatize airport screenings
Laura Litvan and Jeff Plungis, BLOOMBERG NEWS Wednesday March 27, 2013
Rep. John Mica, R-Fla., one of the Transportation Security Administration’s most-persistent critics, said he’ll propose legislation to return all U.S. airport screening to private companies. It would be Mica’s biggest step toward dismantling the U.S. agency formed to take over aviation security after the Sept. 11 attack in 2001. Mica, who leads the only House committee with unlimited scope and subpoena power, said he’ll announce hearings into TSA operations starting next month.
Warning Over Doctor-Run Groups
By JOHN CARREYROU, Wall Street Journal, March 26, 2013, 5:26 p.m. ET
A federal agency issued a special fraud alert about physician-owned distributorships—commercial entities run by doctors that have proliferated in the fields of orthopedic and spine surgery—calling them "inherently suspect" and warning they "pose dangers to patient safety." The alert, from the Department of Health and Human Services' Office of Inspector General, comes as the Justice Department is pushing ahead with an investigation of physician-owned distributorships, or PODs, according to people familiar with the matter. The probe is centered on California and Utah, two of the states where PODs have become widespread, these people say. .... The strongly worded alert is likely to cause hospitals to reassess whether to continue doing business with PODs.
Study: Health overhaul to raise claims cost 32%
3:57p.m. EDT March 26, 2013 (AP)
Medical claims costs — the biggest driver of health insurance premiums — will jump an average 32% for Americans' individual policies under the Affordable Care Act health care law, according to a study out Tuesday by the nation's leading group of financial risk analysts. While some states will see medical claims costs per person decline, the report prepared by the Society of Actuaries concluded that the overwhelming majority will see double-digit increases in their individual health insurance markets, where people purchase coverage directly from insurers.
21 graphs that show America’s health-care prices are ludicrous
Ezra Klein on March 26, 2013 at 12:40 pm, Washington Post
Every year, the International Federation of Health Plans — a global insurance trade association that includes more than 100 insurers in 25 countries — releases survey data showing the prices that insurers are actually paying for different drugs, devices, and medical services in different countries. And every year, the data is shocking. ..... This is the fundamental fact of American health care: We pay much, much more than other countries do for the exact same things. For a detailed explanation of why, see this article
. But this post isn’t about the why. It’s about the prices, and the graphs.
Analysis finds Medicaid expansion will benefit veterans
By Elise Viebeck, The Hill, 03/26/13 11:18 AM ET
Veterans stand to benefit substantially from President Obama's healthcare law, particularly in states that choose to expand their Medicaid programs, a new analysis found. Researchers with the Urban Institute reported that as many as 40 percent of uninsured U.S. veterans would be eligible for healthcare under the law's insurance exchanges or its expanded Medicaid program.
White House warns cutting Medicare will shift costs
10:46p.m. EDT March 26, 2013 USA Today
If Congress addresses the nation's budget deficit by cutting Medicare, that will simply shift health care costs to the private sector and not address the underlying issues, Obama administration officials said Tuesday at a White House briefing.
State/Local
CA: Creditors blast Stockton in court as they fight to avert bankruptcy filing
By Peter Hecht, sacbee.com, Tuesday, Mar. 26, 2013 - 7:57 am
Wall Street creditors Monday sought to block the largest municipal bankruptcy in U.S. history, arguing in federal court that the city of Stockton improperly claimed insolvency while refusing to cut its massive pension obligations. .... Creditors that insured Stockton's pension bonds and issued bonds for downtown redevelopment projects, including a sports arena, charged that the city should have negotiated concessions in employee pension obligations to the California Public Employees' Retirement System to meet other payments.
CA: Editorial - California court fees proposal shortchanges justice
Sacramento Bee, Mar. 25, 2013
California's courts could use some more money. But squeezing the public and the press with fees that could limit access is the wrong way to go about it. Unfortunately, Gov. Jerry Brown included a $10 search fee for court files in his budget blueprint after it was requested by the state Judicial Council. Californians have had generally free access to criminal and civil court filings for decades. Under this proposal, the courts could charge the search fee for clerks to retrieve files sought by members of the public, businesses and reporters.
Indiana court upholds broadest school voucher program
By ASSOCIATED PRESS | 3/26/13 11:09 AM
The Indiana Supreme Court on Tuesday upheld the law creating the nation's broadest school voucher program, clearing the way for a possible expansion. In a 5-0 vote, the justices rejected claims that the law primarily benefited religious institutions that run private schools and accepted arguments that it gave families choice and allowed parents to determine where the money went. The Indiana case has received national attention because the program has wide eligibility.
Kansas proposal for $1.5B in pension bonds advances
AP, 3/26 12:56 pm
Kansas House members have given first-round approval to a bill authorizing $1.5 billion in bonds to boost the financial health of the state pension system for teachers and government workers. The bill advanced Tuesday on a voice vote. House members expected to take final action on the bill by Wednesday, when passage would send it to the Senate. The bill follows two years of legislation overhauling the Kansas Public Employees Retirement System to eliminate a projected $9.3 billion gap between anticipated revenues and benefits promised to public employees through 2033.
MD: Balt. Co. employee dies after emergency at former golf course
By Alison Knezevich, The Baltimore Sun, 8:11 p.m. EDT, March 26, 2013
A Baltimore County worker employed with the Property Management Division died after emergency personnel responded to a former golf course in Kingsville where he was working Monday, but officials released few details about the death. ... Norman Anderson, the president of AFSCME Local 921, whose members include workers in the division, said Tuesday that he had heard of the employee's death, but had not received official information from the county.
MD: Silver Spring Transit Center’s inspectors ran poor concrete tests, report says
By Bill Turque, Washington Post: March 26
The firm hired by Montgomery County to perform field inspections on the Silver Spring Transit Center improperly tested the strength of concrete, apparently failed to measure its thickness and didn’t raise sufficient concerns when the concrete started to crack, according to independent engineers and county officials. .... The apparent lack of rigorous inspection has sparked discussion about the county’s practice of outsourcing the critical task to independent contractors.
MI: Detroit emergency manager poised to make deep cuts, amid protests
By Mike Tobin March 26, 2013 FoxNews.com
.... Municipal employees in Detroit don't need a crystal ball to see into their futures. They are on the chopping blocks, and their unions know it. Edward McNeil with AFSCME said he has proposed everything from streamlining the budget to collecting old property taxes to avoid getting to this point. Now, he and his union are bringing a lawsuit intended to lock up Orr's job-slashing power. "This whole thing was a sham for the state to come in and take over assets of the city of Detroit ... and to break the unions," said McNeil.
MI: Northville reaches deal with DPW employees to keep wages frozen until 2014
Observer & Eccentric, Mar 26, 2013
.... At a special meeting on Monday, the Northville City Council approved by a 5-0 vote the contract extension between the City of Northville and AFSCME Council 25 and its Local 2720, until Dec. 31, 2016. This expiration will line up with the city’s annual health insurance contract renewal.
MI: Right to work penalty language in state government budget would cost East Lansing more than $450K, city officials say
By Angela Wittrock | mlive.com, March 26, 2013 at 10:13 PM Print
Local governments renewing contracts with labor unions would face a steep cut in state funding under legislation passed by a state House of Representatives subcommittee Tuesday. House Bill 4220, the state government budget, passed by a 4-2 vote.
MN: Poverty Doesn’t Create Jobs
By Eliot Seide, executive director of AFSCME Council 5, 26 March 2013, Workday Minnesota
.... If Minnesota’s minimum wage had kept pace with inflation, it would now be $10.58 an hour. Nearly 500,000 jobs in Minnesota pay less than that. ..... To lift everyone, a good public education and a good union job are the real tickets to shared prosperity.
New York City Paying Less With Highest Health Cost: Muni Credit
By Romy Varghese - Mar 26, 2013 8:01 PM, Bloomberg
At $10,108 per person, New Yorkers bear the highest unfunded burden for retired public workers’ health benefits among the 15 biggest U.S. municipalities. Investors have responded by driving the city’s relative borrowing cost almost one-third below the five-year average. Cities often cover these expenses, unlike pensions, on a pay-as-you-go basis. The top 15, comprising almost 9 percent of the nation’s population, have a combined $115 billion in retiree liabilities, and an average burden of about $2,300 per capita, data compiled by Bloomberg show. The benefits cover promises such as life insurance and health-care premiums.
NY: CSEA sues to block sale of Maplewood Manor to private company
Saratogian: Wednesday, March 27, 2013
The union that represents most employees of county-owned nursing home Maplewood Manor is suing the county in an attempt to block the sale of the nursing home to a private company. In January, the county transferred Maplewood Manor into the hands of a local development corporation in order to sell the home to a private-sector operator. The Civil Service Employees Association, one of the largest public-sector unions in the state, filed the case in state Supreme Court March 20 and it has been assigned to Judge Robert Chauvin.
NY: Fredonia, CSEA agree on contract
March 27, 2013, By SAMANTHA MCDONNELL - OBSERVER S
..... The village and CSEA Fredonia Unit 6313 of Local 807 have reached an agreement. ... The contract includes a $.40 hourly increase for workers effective for this year and next year. Workers will also be responsible for 8 percent of their health insurance for 2013. That amount will increase to 10 percent in 2014. Keefe said the contract has worked out in favor for both parties.
New York State Sees Climate Change as Risk to Bondholders
By Freeman Klopott & Esmé E. Deprez - Mar 26, 2013 4:29 PM ET, Bloomberg
New York is listing climate change as a risk for bondholders after Hurricane Sandy caused more than $40 billion in damage in the state and Governor Andrew Cuomo said better preparations are needed. The state may be the first U.S. state to inform investors of the danger posed by rising sea levels, flooding and erosion tied to climate change, said Rich Azzopardi, a Cuomo spokesman.
Puerto Rico Creates Tax Shelters in Appeal to the Rich
BY LYNNLEY BROWNING AND JULIE CRESWELL, New York Times, MARCH 25, 2013, 8:09 PM
Known for its white-sand beaches and killer rums, Puerto Rico hopes to stake a new claim: tax haven for the wealthy. Since the beginning of the year, the island has gone on a campaign to promote tax incentives that took effect last year, marketing its beautiful beaches, private schools and bargain costs in an effort to lure well-heeled hedge fund managers and business executives to its shores. So far, Puerto Rico’s pitch has attracted a handful of under-the-radar millionaires. Several American executives of mostly smaller financial firms say they have already relocated to the island, and Puerto Rican officials say another 40 persons, mostly from the United States, have applied.
Puerto Rico Has Biggest Loss Since 2008 as Pension Changes Loom
By Michelle Kaske - Mar 25, 2013 3:07 PM ET, Bloomberg
Municipal debt sold in Puerto Rico fell 1.44 percent on March 22, the biggest one-day loss in almost five years as the commonwealth deals with deficits. A Standard & Poor’s index of debt sold by Puerto Rico and its issuers, widely held because it is tax-exempt in all U.S. states, lost 1.44 percent, the most since Sept. 18, 2008, said J.R. Rieger, vice president of fixed-income indexes at S&P. A measure of the broader $3.7 trillion municipal-bond market, the S&P National AMT-Free Municipal Bond Index, lost 0.07 percent the same day.
TX: Bill would ban OT in calculating pension benefits
Chronicle, Tuesday, March 26, 2013
Mayor Annise Parker said her top priority during the current legislative session was to get Austin to grant her “meet and confer” with the city’s fire pension board, a way to force negotiations — and possible cuts — to pension benefits that would save the city money. ... Murphy’s bill, which would take effect for public employees who retire on or after Sept. 1, would require disclosure of conflicts of interest, set revolving-door policies, prohibit annual gifts of more than $1,000 from potential contractors, add civil penalties for theft or breach of fiduciary duty to a pension board, and require pensions boards to adopt guidelines for hiring investment managers.
VA: McDonnell signs bill requiring voters to present photo ID
Wednesday, March 27, 2013 BY MARKUS SCHMIDT AND OLYMPIA MEOLA Richmond Times-Dispatch
Gov. Bob McDonnell has signed several proposals that will change voting laws in Virginia, including a measure requiring voters to present a photo ID at the polls. ... Because of Virginia’s history of racial discrimination, the U.S. Department of Justice will have to approve the photo ID measure before it could become law in July 2014.
Wisconsin Gov. Scott Walker Pushing More Bonding
by: YVETTE SHIELDS, Bond Buyer, Tuesday, March 26, 2013
As Wisconsin tees up for its next general obligation sale next month, Gov. Scott Walker is facing pushback from his fellow Republicans who control the Legislature over increased borrowing proposed in his operating and capital budgets. Walker unveiled a $1.4 billion two-year capital budget late last week that relies on $1.1 billion of borrowing. The additional debt is in on top of $1 billion of new borrowing floated in Walker’s $68 billion two-year operating budget unveiled last month. ..... Walker in 2011 pushed through a bill that increased employee pension payments and health care premiums and cut spending and local government aid to close a $3.6 billion deficit and improve the structural health of the state’s balance sheet. It included controversial provisions stripping many public employee unions of most of their collective bargaining rights.
WI: Milwaukee County taxpayers may be stuck with $8 million bill from transit snafu
By Gitte Laasby of the Journal Sentinel March 25, 2013
Taxpayers are likely stuck paying more than $8 million too much over the next three years for paratransit services under two emergency contract extensions. As the Journal Sentinel reported last week, Milwaukee Transport Services signed the contracts in October on behalf of the Milwaukee County Transit System after bad planning, legal challenges over a botched signature and a tight timeline made it impossible to accept a "best value" bid that was $8.4 million cheaper than the emergency extensions. Angry about the lost savings, county officials are exploring whether they can get out of the contracts. But while the potential savings are obvious, ways to get them are not.
