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Stateline Midwest Stateline Vol. 26, No. 10 • November 2017 MidwestTHE MIDWESTERN OFFICE OF THE COUNCIL OF STATE GOVERNMENTS INSIDE CSG Midwest Issue Briefs 2-3 Review of a challenging year • Agriculture & Natural Resources: Michigan deepens investment in value-added agriculture • Great Lakes: New study calls on states to do more to protect Lake Erie from nutrient runoff in the region’s legislatures • Nuclear Energy: Shutdown and devalued plants can have big impact on local tax revenue Several states dealt with big fiscal problems in 2017; lawmakers • Health & Human Services: Medicaid policies used to help fight problem of opioid abuse also passed bills on road funding, opioids and health insurance Around the Region 4 by CSG Midwest staff ([email protected]) New state laws, legislation raise questions about preemption, authority of local governments n states such as Iowa, Nebraska and Partisan control of Midwest’s Indiana lawmakers raise North Dakota, much of this year’s state governments in 2017 revenue for roads, pass bills to MLC Chair’s Initiative 5 legislative work centered on adjusting State policies, new federal grants expand I and 2018 prevent abuse of opioids maternal depression screening and treatment to new budget realities — slower-than- expected revenue growth and the need to After several years of legislative work close budget shortfalls. Question of the Month 5 and consideration, Indiana lawmakers Do states have laws governing the release of For lawmakers in Illinois and Kansas, approved a plan that began raising more footage captured on police body cameras? the highest-profile issues involved money for the state’s roads and bridges changes in school funding and increases this summer. By 2024, an additional $1.2 Profile 8 in the income tax. Iowa Senate President Jack Whitver billion will be generated every year for And across the Midwest in 2017, in- the state’s transportation infrastructure. cluding in Indiana, Ohio and Wisconsin, FirstPerson 9 A 10-cent increase on motor fuels many new laws were passed with the hope South Dakota House Majority Leader Lee Qualm Divided government: Democratic took effect in July; as a result, Hoosier of stemming a public health crisis related legislature and Republican governor on resolving a conflict over water use, access motorists are paying a state tax of 28 to opioid addiction and overdoses. Divided government: Republican cents per gallon of gasoline. In future CSG News & Events 10 For this month’s cover story of legislature and Democratic governor years, Indiana’s gas tax will be indexed Indiana Sen. Ed Charbonneau to serve as chair of Stateline Midwest, we provide a state- Single-party government: Republi- to inflation, though annual increases will Midwestern Legislative Conference in 2017 by-state review of some of the big issues can control of legislature, Republican be limited to 1 cent per gallon. and new laws that arose out of this year’s governor Under HB 1002, a $15 transportation Capitol Clips 12 legislative sessions. Nonpartisan, unicameral legislature; infrastructure improvement fee will be paid • Michigan expands reach of Promise Zones Republican governor • Iowa gets new ideas on computer science In Illinois, new budget by car owners (that is on top of an existing • Ohioans OK new rights for crime victims motor-vehi- includes higher taxes; school passage of a revised school funding formula cle registra- • Minnesota secures health-insurance waiver funding overhaul also approved (SB 1947), under which almost all new state tion fee), and dollars will go to high-need schools. the drivers of By overriding the veto of Gov. Bruce Also under this law, an “adequacy electric and Rauner, Illinois legislators adopted a target” will be established for every school hybrid vehi- Stateline Midwest is published 11 times a year new budget in July that increases the district based on its demographic profile cles will pay by the Midwestern Office of state’s individual and corporate income — the greater the needs of the district’s additional The Council of State Governments. taxes. According to the Chicago Tribune, students, the higher the funding target set annual fees — $150 and $50, respectively. Annual subscription rate: $60. Illinois had gone a record-setting 736 by the state. In addition, the new formula Also during its 2017 session, the Indiana To order, call 630.925.1922. days without a budget. accounts for differences in property-rich General Assembly passed bills that aim to The budget bill and -poor districts, with the latter address the problem of opioid abuse: SB 226 raises the state’s in- expected to contribute less to the overall limits the amount of opioids a doctor can dividual income tax costs of educating students. To calculate prescribe to a new patient; HB 1438 allows rate from 3.75 per- the cost of providing a quality education, local governments to set up syringe exchange cent to 4.95 percent the state will consider 27 evidence-based programs, and HB 1540 strengthened penal- CSG Midwestern Office Staff and the corporate practices tied to student achievement. ties for robbing a pharmacy or pharmacist. Michael H. McCabe, Director rate from 5.25 per- Tim Anderson, Publications Manager Katelyn Tye serves as CSG Midwest staff liaison Ilene Grossman serves as CSG Midwest staff Jon Davis, Assistant Editor/Policy Analyst cent to 7 percent. Cindy Calo Andrews, Assistant Director Those changes are to the state of Illinois. She can be reached at liaison to the state of Indiana. She can be Ilene K. Grossman, Assistant Director estimated to bring [email protected]. reached at [email protected]. Lisa R. Janairo, Program Director Laura Kliewer, Senior Policy Analyst in an additional $5 billion in revenue to Gail Meyer, Office Manager the state. PLEASE TURN TO PAGE 6 FOR OTHER STATE LEGISLATIVE REVIEWS Laura A. Tomaka, Senior Program Manager Another development in Illinois was Kathy Treland, Administrative Coordinator and Meeting Planner Katelyn Tye, Policy Analyst CSG MIDWEST ISSUE BRIEFS Issue Briefs cover topics of interest to the various groups and policy committees of CSG Midwest, including the Midwestern Legislative Conference, Great Lakes Legislative Caucus, Midwest Interstate Passenger Rail Commission and Midwestern Radioactive Materials Transportation Committee. Agriculture & Natural Resources Michigan deepens investment in in size (and employment numbers), they still can state program for the agriculture industry, the Illinois value-added agriculture industry have a considerable economic impact because of treasurer’s office can reduce the interest rate on the value they add to locally made products. conventional loans of up to $800,000 for value-added ith its 1,800 dairy farms across the state, Research contracted by agriculture projects. Michigan produces a lot of milk (fifth the Michigan Department • Minnesota’s Agricultural Utilization Wamong U.S. states), but even with all of of Agriculture & Rural Research Institute — Created by the Legislature this economic activity, Michigan Sen. Mike Green Development showed that more than 25 years ago, the institute provides sees the potential for more. the processing of Michigan’s technical and business assistance as well as grant How much additional sales and revenue could farm products into value- funding to innovative businesses developing new be generated, for example, by adding greater value added consumer items could uses for agricultural products. to Michigan’s homegrown milk — by diversifying increase their value over This nonprofit institute is funded by the state or expanding the state’s dairy sector so that more farm-gate sales by at least Legislature (a total of $4.4 million in 2016). buttermilk powder is being made or condensed 53 percent. According to the institute’s most recent annual milk is being produced for ice cream and baked Michigan’s new budget Michigan Sen. report, it was involved in 200 different projects Mike Green goods? and its $4.7 million worth related to value-added agriculture last year. The state’s new budget reflects this vision of add- of grants expand on a pilot Between 2010 and 2016, the institute says, its ing more value to Michigan’s agriculture products. It program initiated by the clients (value-added agriculture businesses in the includes a $4.7 million grant program for mid-sized Legislature in 2016. Three projects were funded state) created or retained more than 600 jobs and food and agriculture processing facilities. under this pilot program, including help for a boosted annual gross sales of food and agricultural According to Green, many agriculture-based dairy processor to expand and produce nonfat dry products by $76 million. operations simply have not qualified for existing milk, butter and condensed milk. The success of • North Dakota’s Agricultural Products state programs designed to encourage business the pilot program led to legislative passage of this Utilization Commission — Created by the state expansion. The reason: They don’t create enough year’s $4.7 million program, Green says. legislature and funded by the agricultural fuel tax, jobs. Michigan’s new grant program aims to fill Other examples from the Midwest of state the commission annually funds up to 15 programs that gap. investments in value-added agriculture include: (totaling just under $500,000) that provide new or While some processing facilities may be small • Ag Invest in Illinois — Through this larger expanded uses for the state’s agricultural products. Brief written by Carolyn Orr, staff liaison to the Midwestern Legislative Conference Agriculture & Natural Resources Committee. She can be reached at [email protected]. The committee’s co-chairs are Iowa Sen. Kevin Kinney and Minnesota Rep. Paul Anderson; its vice chair is Illinois Rep. Norine Hammond. Great Lakes In 2017, ‘severe’ algal blooms Condition of ecosystems in the The western Lake Erie basin, Kosek-Sills notes, once again observed in Lake Erie five Great Lakes has 4 million acres of agricultural land.
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