MAY 2020 | VOLUME 29, NO. 4 THE COUNCIL OF STATE GOVERNMENTS | MIDWESTERN OFFICE COVID-19: A look at the many policy challenges ahead for states, provinces net loss in U.S. farm income of $20.1 billion A in 2020. Hundreds of thousands of enrollees being added to many Midwestern states’ Medicaid programs in the weeks and months ahead. The emergence of some local jails and state prisons as hot spots for COVID-19 cases. provinces “reawaken”? months — from a projected These and many other Each of the six policy budget surplus of $1.5 billion impacts of the pandemic on committees of The Council for the current biennium to a the people of this region, of State Governments’ shortfall of $2.4 billion. and on the public policies of Midwestern Legislative Nationwide, the its states and provinces, are Conference has been Congressional Budget Office the focus of this edition of examining COVID-19’s impact estimated in April that U.S. Stateline Midwest. and potential legislative gross domestic product Inside, we look at the early responses. Some of the would decline by 12 percent and future effects of COVID-19 committee’s findings are in the second quarter of on the economy, state health included in this month’s 2020. That is the equivalent budgets, agriculture, criminal edition. (These committees are to an annual rate of decline bipartisan groups of legislators justice, education and cross- of 40 percent. from 11 states and four border trade. “We’ve had times revenue For example, how can provinces from this region.) did not meet expectations states help local school In April, a mix of state- and [we] faced low leaders navigate a new and province-specific commodity prices,” Iowa school year in which more reports — on estimated remediations are needed budget shortfalls and trends Speaker of the House Pat to address losses in student in revenue collections — Grassley said in a recent learning, and in which underscored the immensity interview with CSG Midwest a continued reliance on of the policy challenge ahead (see page 8). distance learning is likely? (see table on this page). In “Those things you can work How and when will vital Minnesota, for example, there through. But as our governor cross-border trade between was a $4 billion downward says, there is really not a the Midwest’s states and shift in a matter of a few manual for something like this.” Inside this issue CSG Midwest Issue Briefs 2-4 CSG Midwest Issue Briefs 5-7 FirstPerson Article 9 • Economic Development: Region’s legislatures working on • Education: New school year poses a number of tough • Minnesota Senate Deputy plans to reopen economy safely, seeking to balance powers questions, including when to reopen and how to address Majority Leader Michelle Benson of executive branch expected losses in student learning on some of the lasting lessons for legislatures in the early response • Health & Human Services: States bracing for huge spike • Midwest-Canada Relations: Legislators on both sides of to the COVID-19 pandemic in Medicaid enrollment, costs the border explore how to reawaken cross-border trade, and strengthen it • Agriculture & Natural CSG Midwest News 10 Resources: New policies aim to help struggling farmers Legislative Profile 8 • The Council of State Governments advocates for ‘robust, survive drop in commodity flexible’ COVID-19 aid from federal government • Iowa Speaker of the House Pat prices Grassley discusses his views on • Criminal Justice & Public leadership, legislative oversight BILLD Page 11 Policy: As some prisons and during the COVID-19 pandemic, • A look at current legislators, and graduates of the Bowhay jails have become COVID-19 and some of the big challenges Institute for Legislative Leadership Development, who hot spots, state and local facing state governments in the have backgrounds as doctors, nurses and other medical governments respond with months and years ahead professionals new policies and rules • Guest column by Michigan Sen. John Bizon, M.D.: BILLD graduate offers message of hope amid COVID-19 pandemic COVID-19 POLICY IMPACTS & RESPONSES economic development Though overshadowed by governors, legislators have role in plans for economic reopening, recovery by Laura Tomaka ([email protected]) by the Senate; Gov. DeWine has said that he would veto it. ince early April, Rep. Dave Greenspan and 23 Republicans control the legislative and executive changes in weekly initial unemployment other members of a specially formed Ohio House branches in Ohio. Power is divided in Michigan, and claims filings in United states: task force have been meeting, sharing ideas, and S the Republican-led Legislature filed a lawsuit in early MArch 14-May 2* getting the perspective of business owners across May to end Democratic Gov. Gretchen Whitmer’s orders various sectors and geographic areas. that closed most non-essential businesses and required 8 million One question above all else is guiding his work on the 6.9 million residents to stay at home. Legislators argue that the initial claims task force: What can we do to help businesses reopen, governor overstepped her legal authority. 7 million and remain open, safely? Sen. Horn is among those concerned about the 6 million “We’re not looking at the same things that the role of the Legislature in managing the response to governor is looking at as far as public health protocols,” the COVID-19 crisis. “There is no co-equal branch of 5 million Greenspan says. “Our attention government in Michigan right now,” he says. 4 million is on what we can do either As chair of the Michigan Senate’s Economic and Small directly through legislation or Business Development Committee, Horn will be one of 3 million 3.2 million by facilitating, through other the Legislature’s key leaders in crafting policies related to initial claims bodies, actions that allow 2 million the economic reopening. [businesses] to open.” 300,000 initial The first issue to deal with, he says, is health and 1 million That Economic Recovery Task claims safety. “What safety protocols and protective equipment LOSS IN NET Force in Ohio is an example of are needed, including distancing?” he asks. “Different 0 FARM INCOME the important work being done protocols can be applied to different work arrangements by the Midwest’s legislatures, May 2 April 4 and designed for each industry, including the numbers April 11 April 18 April 25 March 14 March 21 March even during a time when the 28 March LOSS IN ALL of workers involved and their contact with customers.” Ohio Rep. powers of governors have been CROP RECEIPTS Dave Greenspan “The goal is to make the workplace as safe as home,” * An initial claim occurs when an individual applies for strengthened due to the public unemployment benets for the rst time. health emergencies caused by he adds. “You follow the rules, stay sheltered, go to work in a safe workplace, go back home again and get the Source: U.S. Department of Labor the COVID-19 pandemic. LOSS IN ALL economy rolling.” “Every state of emergency ends and executive orders LIVESTOCK Helping businesses create these safe work eventually cease to exist,” Michigan Sen. Ken Horn says. RECEIPTS environments is another policy consideration for states. Cumulative Initial weekly claims for “And the legislature will take its rightful place again as a unemployment (for the period March 15 to co-equal branch.” “How do businesses make the investment of getting May 2) as a % of total state employment their people back to work DEVELOPING IDEAS FOR REOPENING PLANS in February 2020 and making the appropriate Between February and April, the nation’s changes in the workplace unemployment rate rose from 3.5 percent to 14.7 to be safe?” he says. “Do we percent, a number not seen since the Great Depression. give them tax credits, grants, Numbers like these are driving legislative task forces loans? How do we get them such as Ohio’s to develop a plan for recovery. Each started again?” member of the task force, for example, was asked to Horn also stresses the submit a set of recommendations; they will then be need for a regional approach compiled into a summary document. Greenspan’s ideas within a state, noting that Michigan Sen. Ken Horn for state action include: “some counties are not as • having a dashboard or metrics to allow businesses to affected [by COVID-19], so partially reopen and then move to subsequent phases; maybe they can open up a • having protocols and regulatory measures in place to little sooner and a little faster.” Cumulative initial weekly claims were less than ensure safety; and At the same time, variations in different states’ 10.0% of total employment in February 2020 • emphasizing the importance of opening schools, reopening plans can create a problem as well. Cumulative initial weekly claims were between day care centers and summer camps to allow workers to “If other states are getting back to work and Michigan 10.0% and 13.9% of total employment in return to work. is not, then we’re behind the eight ball,” he says. “We February 2020 Greenspan also worries about the costs to businesses need to watch our borders carefully and work state-to- Cumulative initial weekly claims were between of making unemployment payments, which, in some state — with our governors and their executive orders, 14.0% and 17.9% of total employment in February 2020 cases, exceed earnings. “That’s obviously a concern as but backed up by the legislature — to open up the same employers try to get their employees back to work,” he industries at the same time.” Cumulative initial weekly claims were between says. 18.0% and 21.9% of total employment in February 2020 Ohio Gov.