Stateline

Vol. 27, No. 1 • January 2018

MidwestTHE MIDWESTERN OFFICE OF THE COUNCIL OF STATE GOVERNMENTS

INSIDE CSG Midwest Issue Briefs 2-3 Redistricting, reconsidered • Criminal Justice & Public Safety: Michigan law adds transparency to police-officer hiring Key U.S. Supreme Court case, pending ballot initiatives • Agriculture & Natural Resources: Iowa adds legal protections for county fairs could reshape process used by states to draw political lines • Economic Development: Lawmakers debate, scrutinize value of tax incentives by Tim Anderson ([email protected]) • Health & Human Services: CSG report examines policies to combat rise in diabetes redrawing of the nation’s political to be an unprecedented energy around Who draws the maps? maps is still three years away, redistricting reform,” says Michael Li, senior Around the Region 4 Overview of redistricting but 2018 might someday be re- counsel for the Brennan Center for Justice’s Recent data highlight population, education A in the Midwest membered as a year that changed how Democracy Program. According to Li, that and economic trends in Midwest redistricting itself is done. momentum is coming from people, on both Capital Closeup 5 If so, some states in the Midwest will be sides of the aisle, “who feel like the system North Dakota is latest state where legal a big part of that story. is broken” and that redistricting is “one area questions have arisen over veto authority In Ohio and Michigan, voters may where they can make democracy work better.” have the chance in the coming months to Indeed, citizen-driven ballot initiatives Question of the Month 5 decide the fate of their states’ respective have led to change in some states. But Li adds Do any states in the Midwest provide tax credits * * for historic preservation? redistricting processes. The U.S. Supreme that two factors could make legislators more Court, meanwhile, has taken on a case that likely to enact measures of their own: one, centers on the current Wisconsin Assembly Profile 8 constituents’ growing discontent about the Legislature draws state legislative, Illinois Senate Minority Leader Bill Brady map and that raises questions about the process; and two, uncertainty in many states U.S. congressional districts* constitutionality, and future, of partisan over which party will control the legislature Legislature draws state gerrymandering around the country. FirstPerson 9 and governor’s office in 2021. legislative districts (single U.S. Nebraska Sen. Matt Williams on the need for more Legislatures themselves, too, continue In Ohio, a mix of bipartisan work inside congressional district) rural housing — and how to address it to consider making changes of their own. the state Capitol and pressure from outside 7-member political commission In Indiana, even before the start of the CSG News & Events 10 groups already has led to modifications in draws state legislative districts; state’s new legislative session, SB 159 had how the state’s legislative lines are drawn. A legislature draws U.S. Midwestern Office of The Council of State been filed by two members of the majority reform of congressional redistricting could congressional districts Governments begins visits to region’s capitols Republican Party. It would create an inde- be next in the Buckeye State. Nonpartisan Legislative Services Capitol Clips 12 pendent, nine-member commission to draw Agency draws state legislative, state legislative and U.S. congressional dis- U.S. Congressional districts; • Wisconsin eliminates state property tax Two separate processes in Ohio tricts; require that public hearings be held legislature votes on maps • Michigan looks to shore up retirement systems in every congressional district; establish a When Ohio’s political maps last were (without amendments) • Livestock housing focus of multistate lawsuit set of “redistricting standards”; and have the redrawn, the General Assembly drew the * In Illinois and Indiana, backup commissions are used in • Opioid laws seek to curb “doctor shopping” legislature vote on the commission’s maps, congressional lines while a five-member the event that the legislature cannot agree on a map or if Apportionment Board produced the state’s it is vetoed by the governor; state legislators appoint without amendment, in special session. and/or serve as members of these commissions The early filing of this bill continued legislative districts. At the time, that board Source: Brennan Center for Justice a trend from 2017, when redistricting was made up of three statewide elected officials (the governor, secretary of state Stateline Midwest is published 11 times a year bills or constitutional amendments were by the Midwestern Office of introduced in most of this region’s state and state auditor) and two state legislators. agreement on a final map for the General The Council of State Governments. capitols. Among the ideas: Come 2021, membership on this redis- Assembly. tricting panel will be expanded to seven “Either you have total bipartisan sup- Annual subscription rate: $60. • creating separate redistricting com- (now with four legislative representatives, port, or if the majority party decides to To order, call 630.925.1922. missions (appointed by legislative leaders two of whom will be Republicans and two move on, it’s going to have a lot more in some proposals, completely independent Democrats); new rules are in place, too, to constraints on what it can do,” Ohio Sen. of the legislature in other plans); encourage this board to reach a bipartisan Vernon Sykes says. • moving some or all of the redistricting responsibilities from the legislature to PLEASE TURN TO PAGE 6 another state entity (the bipartisan State CSG Midwestern Office Staff Board of Elections in Illinois, for example, With only a few exceptions, state Michael H. McCabe, Director or the nonpartisan Legislative Reference legislatures in the Midwest control Publications Manager the redistricting process ­— drawing Tim Anderson, Bureau in Wisconsin); or Jon Davis, Assistant Editor/Policy Analyst the lines and approving them. • keeping redistricting in the hands of Cindy Calo Andrews, Assistant Director That would change under bills and Ilene K. Grossman, Assistant Director the legislature, but creating clearer rules for ballot initiatives proposed this year. Lisa R. Janairo, Program Director how the maps must be drawn (the intent of Another idea is to create a more- Laura Kliewer, Senior Policy Analyst 2017 legislation in Minnesota). Gail Meyer, Office Manager robust set of districting principles or Laura A. Tomaka, Senior Program Manager “Ever since 2016, there really seems standards for legislatures to follow. Kathy Treland, Administrative Coordinator and Meeting Planner Katelyn Tye-Skowronski, 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. Criminal Justice & Public Safety

when an officer resigns. And before hiring an officer In Michigan, when officers resign # of full-time state and local law previously employed in law enforcement, these agen- because of misconduct, police enforcement personnel per 100,000 departments across state will know cies must obtain the individual’s service record. residents (2008, latest year available) SB 223 gives agencies immunity from civil liability tarting this year, Michigan law enforcement related to the disclosure of information, and officers agencies must keep track of the reason for, 206 have the opportunity to review and dispute the and the circumstances surrounding, a law contents of their separation-of-service records. S 185 enforcement officer’s resignation. Last year, the Wisconsin Department of Justice The result of state legislation passed in 2017 (SB 203 244 began requiring state and local law enforcement 190 223), this new requirement aims to prevent officers agencies to report when officers resign amid an 195 who resign due to accusations of misconduct from 211 internal investigation, quit in lieu of termination, or 225 being hired by another department unknowingly. 321 206 are fired for cause. “Many times, police departments don’t want to In Iowa, law enforcement agencies must notify 266 risk a lawsuit by giving out a bad report on a former the state’s police certification board when officers employee; other times, there’s a deal cut between the resign and note if a “substantial likelihood” exists Source: U.S. Bureau of Justice Statistics, “Census of State and Local Law officer and the police chief or sheriff,” says Sen. Rick Enforcement Agencies” that the reason for the resignation would result in Jones, the sponsor of SB 223, who is a former sheriff the revocation or suspension of an officer’s license. with 31 years of experience in law enforcement. Under legislation introduced but not passed in Such a deal, he adds, would allow an officer to was allowed to resign rather than be terminated. This Minnesota last year (HF 2561), law enforcement resign in lieu of termination, which allows him or her officer was subsequently hired by another county, only agencies would have been required to report annually to remain certified and to have a clean employment re- to be accused of using excessive force on two separate the name and license number of any peace officer who cord when pursuing another job in law enforcement. occasions in that jurisdiction. resigned in lieu of termination as the result of miscon- What caught Jones’ attention was a case involving “When I saw this local case, I asked myself, ‘How duct. The Minnesota Board of Peace Officer Standards a sheriff’s deputy that made local headlines in 2016. can we allow this to constantly go on?’” Jones says. and Training would have then created a database with While working for Eaton County, the deputy had been Under the new Michigan statute, law enforcement these disciplinary reports, including a summary of the caught using excessive force during a traffic stop, but agencies must create a separation-of-service record circumstances surrounding the resignation.

Brief written by Katelyn Tye-Skowronski, CSG Midwest staff liaison to the Midwestern Legislative Conference Criminal Justice and Public Safety Committee. She can be reached at [email protected]. The committee’s co-chairs are Illinois Sen. Mattie Hunter and Ohio Rep. Nathan Manning; its vice chair is Nebraska Sen. Laura Ebke.

Agriculture & Natural Resources

Under new Iowa law, county Now a new state law, the measure explicitly states fairs. According to The National Agricultural Law fairs get legal protections related that no fair authority in Iowa (state, local or regional) Center, Indiana, Kansas, Minnesota, Nebraska, North to animal-to-human diseases is liable for injuries or deaths “caused by a domesti- Dakota, Ohio, South Dakota and Wisconsin are among cated animal pathogen transmitted at a domesticated the states with agritourism statutes of some kind. ast year, 2.3 million people attended Iowa’s animal premises located on its fairgrounds.” These laws typically include language on im- 105 volunteer-driven, youth-oriented county However, those liability protections only apply munity and the “inherent risks” of agritourism Land regional fairs. That means a lot of people if the fair meets a new statutory obligation to post activity. But in the Midwest, only Ohio’s statute in close contact with farm animals — and, as a result, a warning sign “at a conspicuous place” where the explicitly includes as one of those risks “the possibil- the chance for outbreaks of zoonotic disease. animals are being kept. The sign must note the fair’s ity of contracting illness … from physical contact “I see fair officials doing due diligence to reduce lack of liability for pathogen transmissions and also with animals, animal feed, waste or contaminated the risk of visitors getting sick,” notes Iowa Sen. Dan urge visitors to protect against disease by washing surfaces.” Zumbach, who, like many farmers, has been a 4-H their hands. Every state also has a recreational use statute, leader and is active on his county board. “Iowa’s recreational use which provides legal protections to property owners But even if the proper precautions are taken statute protected the county, who open their lands for recreational activities. (for example, proper handling of animal waste, volunteers and exhibitors Whether these laws extend immunity to county posting signs and promoting hand washing among from the obvious [animal] bite fairs, and specifically to cases involving disease participants), outbreaks can and do happen, as or kick,” Zumbach says, “but outbreaks, may depend on the statute’s wording as evidenced by occurrences in the Midwest. According we felt that new legislation was well as judicial interpretations. to the International Association of Fairs and Expos, needed for liability protection In Wisconsin, in a case involving a 2-year-old county fairs in Minnesota, North Dakota, Ohio and from zoonotic diseases.” girl’s E. coli infection and injuries suffered from it, Wisconsin have had known cases of E. coli O157:H7 Iowa Sen. He suggests that lawmak- the owners and operators of the county fair where outbreaks since 2000. Dan Zumbach ers in other states examine the infection occurred were granted recreational One concern of Zumbach’s has been the legal their existing statutes related immunity. liability of county fairs when these incidences occur. to animal pathogens and the liability of county fairs. However, courts in Indiana and Nebraska have His response: Last year’s introduction of SF 362, which In some states, existing laws on agricultural tour- said their states’ recreational use laws do not apply received near-unanimous approval in the Legislature. ism might already extend legal protections to county to fairs.

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.

2 STATELINE MIDWEST JANUARY 2018 Economic Development

(comprised of five legislators from each chamber, Iowa legislators debate need Number of incentive programs and required by statute to review each program at for tax incentive programs, o ered by Midwestern states least once every five years) that reviews the state’s and their effectiveness incentive programs, he says the committee meets n August, Apple Inc. announced that the company 61 once or twice a year “to do a cursory review of how would locate its new data center in Waukee, Iowa. 30 the credit works.” IThe technology giant will receive more than $200 21 50 “There is very little analysis or measuring our million in state and local tax incentives to build the 29 return on investment,” says Bolkcom, who co- $1.3 billion facility on a 2,000-acre site in the Des 41 chaired the committee from 2012 to 2016. “Many of 27 4545 Moines suburb. 21 29 our tax credits are complicated. We need a standing The announcement has helped fuel the debate committee that meets regularly during the legislative over the use of tax incentives to lure businesses. 44 session to thoroughly review this spending, just like Earlier in the year, gaining a better understanding we do for all other state appropriations.” of the return on the states’ investment in tax and Programs can include (but are not limited to) tax credits, exemptions or Rep. Zach Nunn, who also serves on the Tax other incentives, loan guarantees, grants or bond programs. financial incentive programs became an issue during Expenditure Committee, says Iowa should continue the legislative session as lawmakers struggled to ad- Source: Council for Community and Economic Research exploring tax incentives and reforms “that stimulate dress revenue shortfalls and balance the state budget. the economic growth while preserving key invest- In its last complete Tax Expenditure Study, activity, has led some states, including Iowa, to ments in the state’s public sector.” released in 2014, the Iowa Department of Revenue review their business incentive programs. Bolkcom, however, is reluctant to rely on tax found 373 tax credits, exemptions, deductions and According to a Pew Charitable Trusts’ May 2017 incentives to attract businesses to the state. exclusions in effect for individuals and businesses in report on the evaluation practices of state business “The Apple award of $200 million in state tax Iowa, resulting in more than $12 billion in foregone incentives, more than half of states have made credits is an example of tax credits on autopilot,” he revenue for the state. progress in collecting better information allowing says. “[Apple] was coming to Iowa … the tax credits The report also shows about $346 million in for assessments of economic development incen- were icing on the cake.” tax credits to companies and individuals, about 43 tives. Of those, researchers pointed to 10 that “excel” Nunn points to steps lawmakers have taken in areas percent of which are incentives to companies doing in rigorous program measurements — including such as education, workforce training and property tax business in the state. Indiana, Iowa, Minnesota and Nebraska — because and workers’ compensation reform. And he agrees “Iowa’s spending on economic development of their plans to regularly evaluate tax incentives. that the debate on incentives to attract businesses, tax incentives is the fastest-growing part of state Researchers also indicated that more-frequent in ways that protect the state’s finances and result spending,” Sen. Joe Bolkcom says. “This spending legislative hearings on evaluations could help in economic growth, will continue. is not sustainable.” lawmakers better use the information to inform the “Is it fewer incentives and credits and instead an The desire to assess the impact of incentives, and decision-making process. overall lower tax rate? Or are the targeted incentives the growing demand to hold businesses accountable Bolkcom agrees. A member of the Iowa and credits the best plan going forward?” Nunn says. for delivering on promises of increased economic Legislature’s 10-member Tax Expenditure Committee “That’s all on the agenda going into 2018.”

Brief written by Laura Tomaka, staff liaison to the Midwestern Legislative Conference Economic Development Committee. She can be reached at [email protected]. The committee’s co-chairs are Michigan Sen. Ken Horn and Illinois Rep. Elgie Sims; its vice chair is South Dakota Sen. Kevin Killer. Health & Human Services

Participants get coaching on how to make healthy life- % of adults with diagnosed diabetes New CSG report focuses on style changes to prevent or delay the onset of diabetes. in Midwestern states (2015) efforts to combat diabetes As its efficacy was shown — the National Institute new report from The Council of State of Diabetes and Digestive and Kidney Diseases says Governments, “Diabetes in the United States: the program can reduce risk for diabetes by up to 58 AExamining Growth Trends, State Funding percent — some states, including Minnesota, began Sources and Economic Impact,” spotlights state-by- offering their employees coverage for participating. state spending and states’ efforts to fight diabetes. Minnesota and Montana allow Medicaid reimburse- The report, issued last month, is sobering reading: ment for state-licensed Diabetes Prevention Program The number of diagnosed adult cases (Types 1 and 2) providers. California will, too, starting in July. skyrocketed from 5.5 million in 1980 to 25.8 million Moreover, the CSG report says 14 states, including in 2015; spending on diabetes diagnosis and treatment Illinois and North Dakota, have created their own was $101 billion in 2013, and “has grown 36 times faster “Diabetes Action Plans,” requiring state officials to than spending on heart disease, the number one cause report on the health and financial impacts of diabetes. Between 5% and 6.9% of death in the United States.” (A 2012 study by the Four others, including Kansas and Ohio, have passed American Diabetes Association, cited in the CSG study, legislation requiring that action plans be developed. Between 7% and 8.9% put the indirect costs of diabetes at $68.6 billion, includ- Minnesota also lowered its diabetes-related hospi- Between 9% and 10.9% ing absenteeism and lost production, unemployment talization rate, from 175.1 per 10,000 adults (for Type 1 due to chronic disability, and premature mortality.) and Type 2) in 2008 to 135.9 per 10,000 adults in 2014. Source: U.S. Centers for Disease Control and Prevention But the report also notes the success of the National The state’s Department of Health attributes the Diabetes Prevention Program. Authorized by Congress drop to various reform efforts, including a greater diabetes care and outcomes; and a “Statewide Health in 2010 and led by the U.S. Centers for Disease Control use of health care homes that focus on improving Improvement Partnership,” which works to create and Prevention, the program is administered locally by team care and disease management in primary care; a healthier communities and reduce diabetes risk factors health departments or organizations like the YMCA. statewide quality improvement system that measures such as obesity and smoking.

Brief written by Jon Davis, staff liaison to the Midwestern Legislative Conference Health & Human Services Committee. He can be reached at [email protected]. The committee’s co-chairs are Illinois Rep. Robyn Gabel and Kansas Rep. Susan Concannon; its vice chair is Nebraska Sen. Sue Crawford.

STATELINE MIDWEST JANUARY 2018 3 AROUND THE REGION

Estimated changes in population End-of-year checkup: Data released in since last U.S. census: 2010-2017 late 2017 show population, education +12.3% +5.1% +6.8% +1.9% and economic trends in Midwest +0.8% +3.2% +5.1% +1.1% Region’s most populous state, ment rate under 5 percent, according to the last -0.2% +2.8% Illinois, continues to lose residents set of data released in 2017 by the U.S. Bureau of Labor Statistics. North Dakota, Nebraska and Iowa +2.1% Though the population in most Midwestern states is have among the lowest jobless rates in the nation.

growing, only North Dakota and South Dakota have A look at longer-term trends, too, shows how Above U.S. increase of 5.5% outpaced national increases since the last U.S. census. much the employment picture has changed since Between 2010 and 2017, the number of people 2010, particularly in the Great Lakes region. At Below U.S. increase of 5.5% living in North Dakota has risen by 12.3 percent, the the beginning of this decade, Illinois, Indiana, Source: U.S. Census Bureau second-highest jump among the 50 states (behind Michigan and Ohio all had rates near or above 10 only Texas). Nearly all of this growth, though, percent. High school graduation rates for occurred during the first part of the decade; North Another economic indicator, however, shows 2015-16 school year Dakota’s population actually fell slightly between how a recent drop in farm earnings is affecting 2016 and 2017, U.S. Census Bureau data show. These states that rely heavily on agricultural activ- fluctuations are likely the result of changes in the ity. According to the U.S. Bureau of Economic 87.5% state’s oil industry. Analysis, the Midwest is home to four of the five 82.2% South Dakota’s population trends have been U.S. states with the lowest growth in personal 83.9% 88.2% steadier, with annual upticks of about 1 percent income between the second and third quarters 79.7% over most of the last seven years. In contrast, Illinois of 2017: South Dakota (50th), Nebraska (48th), 91.3% 89.3% 83.5% is one of only three U.S. states that has lost residents Kansas (47th) and Iowa (46th). 85.5% 86.8% during this decade. Its population has declined over each of the last four years. ‘Cautious’ budgets the result of slow 85.7% Between 2016 and 2017, populations increased growth, rising spending obligations

in nine of the 11 Midwestern states, though only Above U.S. average of 84.1% gains in Minnesota (0.9 percent) and South Dakota A 50-state review of budgets enacted for fiscal (0.9 percent) outpaced the nation’s (0.7 percent). year 2018 shows “substantial caution” among Below U.S. average of 84.1% Domestic migration is a major contributor to the policymakers, a reflection of “two consecutive Source: National Center for Education Statistics nation’s population shifts; factors ranging from the years of sluggish revenue growth coupled with mounting spending demands.” weather to economic opportunity impact the move- Unemployment rate in November According to the National Association of State ment of people from one U.S. state or region to another. 2017 (% point change in rate Budget Officers’ “The Fiscal Survey of States,” compared to November 2010) Rise in graduation rates continues; spending in state general funds will rise by 2.3 percent — the lowest rate of increase since the achievement gaps persist Great Recession. The median growth rate is even 2.6% (-1.0) In late December, data from the National Center lower, 1.7 percent. 3.1% (-4.0) for Education Statistics showed that U.S. high Compared to these national figures for FY 2018, 3.5% 3.2% school graduation rates had reached an all-time most states in the Midwest (with the exception of (-1.4) (-5.0) 4.6% (-6.8) Indiana and Ohio) are expecting a higher rate of 2.9% high, 84.1 percent for the 2015-16 school year. 2.7% (-2.9) According to Education Week, this marks the spending growth. Illinois had been coming off two (-1.8) 4.8% 4.9% 3.7% (-4.8) fifth straight year of record highs, though the years of significant declines in state expenditures, (-4.7) (-5.9) exact cause is not known — ideas include more the NASBO data show, but in 2017, the legislature 3.5% (-3.4) accountability and data-driven policymaking, raised the corporate and individual income tax. This a greater emphasis on early intervention, and a will allow for a year-over-year increase in spending. Above U.S. unemployment rate of 4.1% decrease in the use of high school exit exams. NASBO’s report also highlights information Most Midwestern states eclipse this U.S. for fiscal years 2016 and 2017, a period in which Below U.S. unemployment rate of 4.1% year-over-year spending from state general funds average, with Iowa ranking at the top of all states Source: U.S. Bureau of Labor Statistics for graduation rates (91.3 percent). The new fed- fell in Illinois (both years), Nebraska (FY 2017), eral data, however, also show continuing gaps in North Dakota (double-digit declines in both years) Estimated total balances as a % of achievement among different groups of students. and Indiana (FY 2016). total expenditures, FY 2018* Along with slow revenue growth, legislators have • In Minnesota and Wisconsin, graduation been constrained by rising costs in “less discretion- rates among black students were 65.1 percent and ary areas” such as pensions and health care. 64.2 percent, respectively. (Only Nevada and New “States approved small net increases in most Mexico had lower rates.) program areas for fiscal 2018,” the NASBO study • Minnesota’s graduation rate among Hispanic found, “sending most additional general fund students was 65.3 percent, lowest in the nation. dollars to K-12 education.” • Among economically disadvantaged students, Budget makers also have made a concerted effort Michigan and South Dakota had among the nation’s to replenish their rainy day funds and other reserves lowest graduation rates — 67.1 percent and 67.0 per- since the Great Recession. In FY 2018, five Midwestern cent, respectively. (Only Nevada and New Mexico had states — Indiana, Iowa, Michigan, Nebraska and lower rates.) Just over 50 percent of American Indian South Dakota — were expected to have higher total students in South Dakota graduate from high school. * Total balances include ending balances, both reserved and unreserved, year-end balances (when measured as a percentage of and the amounts in state budget stabilization/rainy day funds. total spending) than the U.S. median of 8.0 percent. Less than 1.0% Greater than 1.0%, Unemployment rates falling, but less than 5.0% region hurt by drop in farm earnings Article written by Tim Anderson, CSG Midwest publications Greater than 5.0%, Greater than 10.0% manager. He can be reached at [email protected]. less than 10.0% Every state in the Midwest now has an unemploy- Source: National Association of State Budget O cers, “The Fiscal Survey of States”

4 STATELINE MIDWEST JANUARY 2018 CAPITAL CLOSEUP

North Dakota lawsuit puts spotlight on gubernatorial line-item veto

by Jon Davis ([email protected])

orth Dakota legislators sued Gov. Doug tion. But he said the governor can’t veto conditions contrast, this gubernatorial power extends to all Burgum in December, alleging he over- or restrictions on an appropriation without vetoing bills in Illinois, while Wisconsin’s governor has one Nstepped his line-item veto authority by the appropriation itself. of the nation’s broadest line-item veto powers: the deleting words or phrases in ways that changed By that reasoning, Stenehjem said the gover- so-called “partial veto” (considered to be broader legislative intent. The state’s Supreme Court agreed nor’s vetoes of some sections of the North Dakota than a regular line-item veto). to hear the case, and gave the governor’s office University System’s appropriations bill were “not Created by a constitutional amendment until Jan. 16 to file a response. effective.” referendum in 1930, the “partial veto” gives the “This is all about setting a precedent and divi- He also said Burgum was not authorized governor power to approve appropriation bills “in sion of powers,” state House Majority to veto some language in the State whole or in part.” Leader Al Carlson says. Capital Closeup Water Commission’s and Department The state’s nonpartisan Legislative Reference “He cannot pass laws. If we al- of University and School Lands’ Bureau says this power was stretched over time low him to change legislation and appropriations. to include vetoes of individual digits and letters, change intent, then we’ll have a future In the 1979 case State ex. rel. Link the ability to edit the text to change its meaning, problem.” v. Olson, a state court ruled that the reducing appropriations amounts by crossing out The lawsuit asks the court to governor cannot use the line-item one figure and writing in another, and altering the determine the legal effect of the partial veto to strike conditions of an ap- direction of an appropriations. vetoes, including the current status of propriation without also vetoing the But within the last 28 years, Wisconsin voters each affected bill. At issue are the vetoes issued appropriation itself, nor can the governor use it have twice trimmed the partial veto. less than a week after the Legislature’s April 27 to strike individual words or letters. In 1990, they approved a constitutional amend- adjournment. “In several sections, [Gov. Burgum] took ment (60.5 percent to 39.5 percent) forbidding the The nonpartisan Legislative Council, which out language and changed the meaning of the creation of new words by vetoing individual letters. is the Legislature’s research arm, said Burgum legislation, but didn’t change the money,” Carlson And in 2008, they approved an amendment altered legislation on spending bills at least four says. “Basically, he changed the meaning of the (70.6 percent to 29.4 percent) barring the creation times, including deleting a three-word phrase legislation; there’s a big difference between ‘shall’ of a new sentence by combining parts of two or forbidding a university from cutting “any portion and ‘shall not.’ ” more sentences, thus eliminating the so-called of” a nursing program. According to The Council of State Governments’ “Frankenstein Veto.” In an opinion dated June 19, 2017, North “The Book of the States,” most states in the Dakota Attorney General Wayne Stenehjem said Midwest give governors line-item veto power over Capital Closeup is an ongoing series of articles focusing on the governor can veto parts of an appropriations appropriations bills only. institutional issues in state governments and legislatures. bill that are related to vetoed appropriations, as Indiana is one of five U.S. states where the Previous articles are available at csgmidwest.org. long as the bill can still stand as workable legisla- governor has no line-item veto authority at all. In QUESTION OF THE MONTH all at once, and repeals the 10 percent rehabilitation credit for non-historic buildings. The House’s original QUESTION: Do any Midwestern states have historic-preservation tax version had cut the HTC (a Joint Committee on Taxa- credits? tion analysis said eliminating the federal credit would save $1 billion annually by 2021), but it was restored in the final compromise bill. According to the National Trust for Historic Preserva- Midwest states with historic tax credits tion, 35 states currently offer tax credits for historic Efforts to roll back historic tax credits have also been preservation (HTCs). Fifteen states, including Michi- made in some Midwestern states. Nebraska’s state gan and South Dakota in the Midwest, offer no tax tax credit (LB 191), passed by lawmakers in 2014, credits, while Illinois allows their use in a limited came under fire last year amidst budget problems and number of cities. complaints about the complexity of the application process. Several bills were introduced to either end or 0% Although the credits vary from state to state, accord- suspend the Nebraska Job Creation and Mainstreet ing to the National Trust, most programs include the Revitalization Act, but business and preservation following basic elements: Criteria establishing what ** groups were successful in defeating them. buildings qualify for the credit; standards to ensure that the rehabilitation preserves the building’s historic Michigan’s HTC ended in 2011, when the state and architectural character; a minimum threshold eliminated all of its tax credits. Indiana eliminated its required to be invested in the rehabilitation; a mecha- ** Note: Illinois allows historic tax credits to be used in a limited number of Commercial Rehabilitation Tax Credit in 2015, a small nism for administering the program; and a method for cities. credit with a program cap of $400,000. The state still calculating the value of the credit awarded, reflected offers a tax credit program for homeowners. State has a historic tax credit as a percentage of the amount expended on that portion of the rehabilitation work that is approved State does not have a historic tax credit In 2017 in Wisconsin, Gov. Scott Walker used his as a certified rehabilitation. line-item veto authority to cut back the per-project Source: National Trust for Historic Preservation tax credit cap for income-producing properties to Preservationists, commercial developers and builders, boosts use of the federal credit on average between $500,000. For three years previously, the state had no and others who depend on the credits to fund recon- $15 million and $35 million in certified expenditures, per-project limit on the program, but the Legislature struction and revitalization of historic downtowns according to a report by the state of Washington. The had set a $5 million cap in the 2017-18 budget. and rural buildings argue the credits more than pay National Trust notes that Missouri’s tax credit doubled back their costs by generating jobs and tax revenues. the use of the federal rehabilitation incentive. Article written by Laura Kliewer ([email protected]), CSG Midwest senior policy analyst. Question of the Month According to the National Trust, another benefit of The tax code overhaul approved by Congress and highlights an inquiry sent to the CSG Midwest Information state HTCs is that they increase the use of federal signed by President Trump last month kept the credit Help Line: [email protected] or 630.925.1922. historic tax credits. An active state tax credit program but requires it to be taken over five years instead of

STATELINE MIDWEST JANUARY 2018 5 COVER STORY

CONTINUED FROM PAGE 1 States’ legislators, voters mull changes to redistricting rules and process

This change is the result of Ohioans’ overwhelm- ballot. The Fair Districts = Fair Elections Coalition ing approval in 2015 (71.5 percent to 28.5 percent) S S has been gathering signatures and, if not satisfied with of Issue 1, a constitutional amendment referred to the legislature’s redistricting reforms, likely will move voters by the General Assembly. Sykes served as a forward with a ballot initiative of its own. co-sponsor of the proposed amendment and helped Under the coalition’s proposal, the Ohio lead the campaign to get it passed. 1 Apportionment Board would draw both state and For a General Assembly map to be in place for the 8 federal lines. In addition, many of the same rules in full 10 years until the next census, it must be approved 1 8 the 2015 constitutional amendment — which encour- by at least two minority-party members on the Ohio 14 ages a bipartisan drawing of the General Assembly Apportionment Board. 4 districts — would apply to how Ohio’s congressional 3 16 Without such bipartisan backing, a new map will 18 9 lines are produced. be drawn after only four years. Citizen-led ballot initiatives have been an 4 Language also was included in the constitutional important catalyst for redistricting changes, Li says, amendment to ensure “representational fairness,” and along with Ohio, Michigan is another state where Sykes notes — for example, no district can be drawn 1 N voters are likely to weigh in this year. The proposal “primarily to favor or disfavor a political party,” and in Michigan would create an independent, citizens the proportion of all legislative districts favoring one Source: Election Data Services redistricting commission — similar to the model party over another “shall correspond closely to the adopted in California. statewide preferences of the voters of Ohio.” would be replaced after four years, unless the General Getting a “yes” vote on these proposals, though, This year, the question is whether Ohio will change Assembly voted (with a simple majority that included is far from a sure bet. In 2016, South Dakota voters its redistricting process for U.S. congressional districts one-fifth support from minority-party members) to rejected a proposal to create a bipartisan, independent retain the newly drawn congressional lines for the as well. redistricting commission. And in Ohio, prior to the Under a plan introduced in January, the General full 10 years. successful ballot initiative three years ago, voters had Assembly would continue to have the responsibility According to The (Cleveland) Plain Dealer, this rejected previous redistricting changes. of drawing congressional lines and approving them. plan was introduced by Republican members of a “The main reason it passed in 2015 was that we However, any new map would require a three-fifths vote bipartisan redistricting working group but opposed didn’t include congressional districts,” Sykes says, “so in the House and Senate as well as the support of at least by Democratic members, including Sykes. we didn’t have any organized opposition against it.” one-third of minority-party members in each chamber. It’s possible that proposed changes to redistricting Minus such approval, the process of drawing and in Ohio proceed this year in a way similar to 2015: the Keeping the process in legislators’ hands approving U.S. congressional maps would be turned General Assembly approves a constitutional amend- over to the Apportionment Board. A map receiving ment and passes it on to voters for their approval. any of the redistricting reform proposals bipartisan support by members of the board would But there also is a chance that groups outside the around the nation have centered on the idea be in place for 10 years. A map lacking such support legislature get a redistricting plan on the November Mthat legislatures should neither draw the maps Overview of redistricting developments in the Midwest: Proposed reforms, court cases and more

Attempts in Illinois to have an independent redistricting commission draw state legislative districts have been derailed by wording in the state Constitution and judicial interpretations of it. Enough signatures had been gathered for this constitutional amendment to appear on the November 2016 ballot. But in Illinois, only amendments dealing with the legislative article of the Constitution can bypass the General Assembly and be directly decided by voters. The redistricting proposal did not meet this standard, the Illinois Supreme Court ruled.

A bill to change Indiana’s redistricting process was filed prior to the start of the 2018 session. Under SB 159, a nine-member commission (four appointed by legislative leadership, five by a nominating committee made up of representatives from the state’s public universities) would draw state legislative and U.S. congressional districts. It would hold public hearings in each of Indiana’s congres- sional districts and follow a set of “redistricting standards.” Lawmakers would then meet in special session and vote (without amendment) on whether to approve the commission’s proposed map.

Iowa relies on its nonpartisan Legislative Services Agency to draw state legislative and congressional districts. The LSA must disregard incumbents’ addresses, the political affiliations of voters, previous election results and certain other demographic information. Its plan must then be approved or rejected, without modification, by lawmakers. If the Legislature fails to approve two plans, it may amend the third map as it would any other bill. Iowa’s redistricting law dates back to 1980, and lawmakers have thus far always approved one of the LSA’s redistricting plans.

During the last round of redistricting, the Kansas Legislature was never able to reach agreement on new political maps — an impasse caused by a “bitter ideological feud” among different factions of the Republican Party, according to the three-member panel of federal judges that ultimately drew the state’s legislative and congressional districts. Handing over this task to the judiciary was unusual in Kansas, but not without precedent. It had occurred 30 years earlier, though only for the state’s congressional districts.

In December, the Detroit Free Press reports, proponents of a redistricting overhaul in Michigan reached an important milestone — the submittal of more than 425,000 petition signatures (much more than required under law) to get a constitutional amendment on the fall ballot. The proposal would create an independent commission of four Democrats, four Republicans and five independents (none of them politicians) to draw and approve state and congressional district lines. Two Democrats, two Republicans and two independents on the commission would have to approve the final plan.

Proposals to establish independent redistricting commissions have been introduced in Minnesota, but in 2017, lawmakers considered two bills stating that the Legislature “may not delegate its duty to draw [legislative and congressional] districts to any commission, council, panel or other entity.” HF 314 and SF 86 also included and prioritized a set of “districting principles” for the Legislature to follow — for example, drawing districts that are contiguous and compact, don’t dilute the voting strength of minorities, and don’t purposefully protect or defeat incumbents.

Nebraska Gov. Pete Ricketts vetoed a bill in 2016 (LB 580) to create an independent citizens’ advisory commission on redistricting. Under the proposal, three different groups of state legislators representing three different regions of the state would have appointed individuals to this nine-member body, which could not have more than five members from the same political party or include public officials or candidates for office. The commission would have created redistricting plans for the state and then submitted them for approval by the Unicameral Legislature.

North Dakota is one of the seven states (South Dakota is among the others) with a single congressional district. Drawing the lines of state legislative districts is left to the Legislative Assembly, which has some constitutional flexibility in setting the total number of senators (between 40 and 54) and representatives (between 80 and 108). Since 1990, legislators have reduced the number of Senate districts (each includes two House districts) from 53 to 47. Most constitutions in the Midwest either establish the exact size of legislatures or set size limits (with the latter, most states are already at the size limit).

A new process for drawing state legislative districts will be used during Ohio’s next round of redistricting. A seven-member commission made up of the governor, state auditor, secretary of state, and four members appointed by the majority and minority leaders in the General Assembly will draw the map. Two minority-party members on this commission must approve the map for it to be effective for the full 10 years; without such bipartisan support, a new map must be drawn in four years. Voters approved this change in 2015, the result of a legislatively referred constitutional amendment.

South Dakota voters in 2016 rejected a proposed constitutional amendment (57 percent to 43 percent) to have legislative districts drawn by an independent, nine-member commission chosen by the State Board of Elections. The commission would have been composed of three Republicans, three Democrats, and three unaffiliated with a party. No commission member could have held office three years before or after being selected. The proposal also would have banned the consideration of political party identification and incumbency during the redistricting process.

Gill v. Whitford is the “most important [redistricting] case in decades,” according to the Brennan Center for Justice. Plaintiffs say the currentW isconsin Assembly map represents “extreme partisan gerrymandering” and have asked the courts to rule it unconstitutional; a federal district court did so in 2016. The state of Wisconsin has argued that the map favors Republicans because of high concentrations of Democrats in certain areas. A decision in this case has national implications because it could determine whether other states’ maps can be challenged on partisan-gerrymandering grounds.

6 STATELINE MIDWEST JANUARY 2018 FEATURE STORY

nor approve them. Put this responsibility in the hands of a bipartisan citizens commission, the argument Current partisan makeup of Midwest’s legislatures, governors’ offices (as of Jan. 1) goes, so that the political lines aren’t manipulated to Partisan Partisan Party in control of State House Senate help incumbents or a particular party. breakdown breakdown governor’s office Minnesota Rep. Sarah Anderson rejects this idea. Illinois Democrat 67-51 Democrat 37-22 Republican “There is no such thing as a nonpartisan commis- sion,” she says, pointing to California’s recent reforms Indiana Republican 70-30 Republican 40-9 (1 vacant) Republican and the investigative reporting done by ProPublica on Iowa Republican 58-41 (1 vacant) Republican 29-20 (1 independent) Republican the process — namely, the behind-the-scenes maneu- vering done by the Democratic Party to influence the Kansas Republican 85-40 Republican 31-9 Republican work of that state’s Citizens Redistricting Commission. Michigan Republican 63-47 Republican 27-11 Republican Under a bill introduced last year by Anderson Minnesota Republican 76-57 (1 vacant) Republican 34-32 (1 vacant) Democrat (HF 314/SF 86), the Minnesota Legislature would be barred from delegating its redistricting duties to “any Nebraska Nonpartisan, unicameral legislature Republican commission, council, panel or other entity.” North Dakota Republican 81-13 Republican 38-9 Republican “You don’t like the map, you can vote out the Ohio Republican 64-33 (2 vacant) Republican 24-9 Republican [legislators] who made it or who approved it,” she says. “Voters can’t do that if the map is drawn and South Dakota Republican 60-10 Republican 29-6 Republican approved by an unelected commission.” Wisconsin Republican 62-35 (2 vacant) Republican 18-13 (2 vacant) Republican In advance of the next round of redistricting in Minnesota, though, Anderson would like a prioritized list of “redistricting principles” in statute to guide the LSA’s plan, with up-or-down votes and no modifica- Assembly map drawn by state legislators in Wisconsin Legislature — for example, keeping districts compact, tions. If Iowa lawmakers reject two plans, they may — states may get new limits on drawing maps that not diluting the voting strength of racial and ethnic amend a third LSA map as they would any other bill. favor one party over the other. minorities, preserving “communities of interest,” and But since this process began being used, the Legislature “It’s a huge case, probably the biggest democ- preventing the drawing of districts to favor or defeat has always approved one of the agency’s plans. racy case in a long time,” Li says. “Up until now, the an incumbent. “The hybrid model may be something that gets to Supreme Court has not put partisan gerrymandering “It would allow for a more stable, more reasonable the concern about what happens if unelected people out of bounds in the way it has racial gerrymandering.” approach,” says Anderson, who served as chair of the mess up,” Li says. “For example, they split up a com- Wisconsin has argued that its map favors House Redistricting Commission the last time the munity that really should be kept together.” Republicans because of high concentrations of lines were drawn. Democrats in certain areas. But even if the lines were Somewhere between keeping the redistricting All eyes on Wisconsin court case gerrymandered to favor a political party, it’s unclear process with legislatures and handing the task over to Minnesota’s list of redistricting principles does not whether the Supreme Court will say such a plan is independent commissions is what Li calls a “hybrid mention parties, and Anderson says it would be difficult unconstitutional. model.” to address partisan gerrymandering in a state with such Li warns, though, that without state-based The state of Iowa has long served as an example an independent streak — communities favoring one reforms or court interventions, map makers will have of this approach. There, the nonpartisan Legislative party in one election and another party in the next one even more tools at their disposal to manipulate how Services Agency draws the state’s legislative and (and the state as a whole even voting in an independent lines are drawn. congressional districts. The LSA must disregard like Jesse Ventura as governor). “A lot of that is due to the increasing robustness of incumbents’ addresses, the political affiliations of In contrast, “representational fairness” is one of the data that is coming available,” he says. “It’s the same voters, previous election results and certain other the goals of Ohio’s recent redistricting changes. sort of thing that marketers and political campaigns demographic information. Depending on how the U.S. Supreme Court rules have used for several years now, and you’re able to The Legislature still must ultimately approve the this year in Gill v. Whitford — a challenge to the apply that in the redistricting context.”

The U.S. Supreme Court and the states: Here are some cases to watch during the 2018 term n addition to Gill v. Whitford — the Wisconsin redistricting case that Sports gambling and states could have major ramifications on how political lines are drawn across Ithe country — the U.S. Supreme Court is hearing several other cases of Should states be allowed to sanction sports gambling within their own interest to state governments. The State borders? With few exceptions, a 1992 federal statute, the Professional and and Local Legal Center tracks these cases Amateur Sports Protection Act, says “no.” But and, in some instances, files amicus briefs the constitutionality of this law is now being based on recommendations made by The challenged. In recent years, the state of New Council of State Governments as well as the Jersey amended its Constitution and then other “Big Seven” national organizations removed restrictions on sports gambling. representing state and local elected and These actions were challenged by the National appointed officials. Here are some of the is- Collegiate Athletic Association and other sues and cases to watch this term, according to professional sports leagues as a violation of Lisa Soronen, the center’s executive director. the 1992 federal law. New Jersey Gov. Chris Christie, though, says the Professional and Collection of sales taxes Amateur Sports Protection Act violates the Tenth Amendment. In early January, the U.S. Supreme Court decided to hear South Dakota v. Wayfair, Inc., a case that could give states the State discrimination laws and the First Amendment ability to require out-of-state retailers to collect sales taxes. Securing this taxing authority — which states lack because of a 1992 U.S. Supreme Court ruling, Quill In Colorado, a cake artist says enforcement of a state public-accommodations v. North Dakota — is critical to maintaining state revenue bases and helping brick- law violates his First Amendment rights to free speech and free exercise of and-mortar businesses amid the rise of online retail sales, many lawmakers say. religion. The artist declined to make a wedding cake for a same-sex couple In 2016, the South Dakota Legislature enacted a measure requiring most retailers — a decision that the Colorado Civil Rights Commission said violated a state without a physical presence in the state to remit the sales tax. This law was in clear law banning discrimination on the basis of sexual orientation in places of violation of Quill’s physical-presence requirement, but it is being used as a way to public accommodation. The U.S. Supreme Court heard oral arguments in ask the court to reconsider the 1992 decision. the case in early December.

STATELINE MIDWEST JANUARY 2018 7 STATELINE PROFILE Illinois Senate Minority Leader Bill Brady Lifelong resident of central Illinois, and its 25-year legislator, cherishes opportunities to help solve problems little and big

by Katelyn Tye-Skowronski ([email protected])

ill Brady’s career in public service was forged in his hometown of Bloomington, Illinois, where Bio-sketch of Sen. Brady Bhe has been a lifelong resident. After graduating from Bloomington’s Illinois  Appointed to an open Senate seat in Wesleyan University, Brady and his wife, Nancy, 2002, elected minority leader in June 2017 decided to put down even deeper roots in the town,  helping to run his family’s home construction com- Previously a member of the Illinois House of pany and establishing their own real estate agency. Representatives (first elected in 1993) As a businessman and entrepreneur, Brady  Founder of several home construction and became involved in various community organiza- sales companies in central Illinois tions, including the McLean County Chamber of Commerce and the boards of different local charities.  Lives in Bloomington with his wife, Nancy; they Eventually, he took an interest in Republican politics, have three children and three grandchildren and when Brady was in his mid-twenties, he became the county’s campaign manager for former U.S. Rep. Edward Madigan. From there, his path to the Illinois General “It’s kind of interesting. You run for the big- Assembly took form. “When I was 30 or 31, some people convinced picture items, like you’re going to cut taxes, me to run for the Illinois House. I won the primary election by a whopping eight votes against a 14-year balance the budget and create jobs, but the most Republican incumbent,” says Brady, who was sworn into office in 1993 and served in the House until rewarding things I’ve done are helping people 2000, when then-U.S. House Speaker Dennis Hastert in my district cut through red tape and get the encouraged him to run for Congress — a race that was unsuccessful. government services they need.” Brady’s absence from Illinois politics was brief, however. In 2001, his state senator and political mentor, former Illinois Sen. John Maitland, suffered proudest legislative accomplishments? portunity to interact with my caucus members at a a stroke and chose to leave office early. Brady was It’s kind of interesting, you run for the more intimate level. appointed to the open seat and has been the district’s A: big-picture items — like you’re going to Working with Gov. [Bruce] Rauner and [House senator ever since. cut taxes, balance the budget, and create jobs — but Minority] Leader [Jim] Durkin at the level I’m work- In the General Assembly, Brady found it the most rewarding things that I’ve done are helping ing has been very rewarding, as well. rewarding to pick up on work he had started in the people in my district cut through red tape and get Bloomington community as a private citizen. Before the government services they need. Looking ahead, what are your caucus’ priorities joining the legislature, he was part of a coalition When I was first elected to the legislature, I was Q: for the upcoming legislative session? of local business leaders that advocated in the late made chairman of the House pension committee. At I would say balancing the budget and 1980s for a community college to be built in central that point in time, there had been a ruling that [the A: rolling back the Democrats’ income Illinois. At the time, it was the only region of the state] could no longer use pension money to pay tax increase [which was passed in 2017]. The state that didn’t have one. The coalition’s efforts for retiree health insurance. I worked through the Democrat-passed [FY 18] budget was still, unfor- were successful, and in 1990, Heartland Community committee to create a retirement health insurance tunately, $1.5 billion out of balance in our opinion. College was established. program for teachers. Later on in my career, I helped We’d also like to tackle pension reform — to Years later, while serving in the Illinois House, to pass legislation (PA 90-41) that allowed financial do what we can under the current constitution to Brady fought for the funding that allowed the col- institutions in Illinois to sell insurance products to protect people’s pensions, but also rein in pension lege to move out of the rental facilities it had been consumers. spending. occupying, and establish its own permanent campus. I would love to see legislative term limits. I Brady has remained an active member of the What prompted your decision to become minor- think that would be a big win for the voters, not Bloomington business community while represent- Q: ity leader and what have you most enjoyed to mention fair [electoral] maps. ing the people of his district. He and his family still about the role, so far? Another priority is job growth, which would operate a home construction company and several Having run statewide [for governor in 2006, come through business reforms and a reduction real estate agencies, in addition to property manage- A: 2010 and 2014], I got to know the state of the state tax burden. ment and building restoration businesses. pretty well. I was asked by [former Senate minority His family also owns two Jimmy John’s sandwich leader] Christine Radogno to serve on her leadership Because of legislative turnover, the Illinois shops in Florida. team and was serving as her deputy leader when Q: General Assembly will be seeing a lot of new In a recent interview with CSG Midwest, Brady she decided to resign [in June 2017]. I felt I had a members after the 2018 elections. What advice will reflected on his work in the General Assembly, his very good relationship with almost every member you give to newly elected legislators? experiences as caucus leader, and on legislative of our caucus and understood the state and their My advice is to get to know your district priorities for 2018. districts very well. A: well and stay in touch with people in the Here are excerpts from the interview. I was honored to win the election for leader and district. Also, to work diligently and methodi- I’ve especially enjoyed the process of negotiating and cally with colleagues on both sides of the aisle to In addition to providing funding for Heartland bringing the process of negotiations to a successful accomplish what you need for your district. And Q: Community College, what are some of your conclusion. Being leader has also provided the op- don’t have thin skin.

8 STATELINE MIDWEST JANUARY 2018 FIRST PERSON A FORUM FOR LEGISLATORS AND CONSTITUTIONAL OFFICERS More housing critical to rural growth Under 2017 law, Nebraska is now offering grants to help communities build quality, affordable homes and rental units

by Nebraska Sen. Matt Williams ([email protected])

n the Nebraska Legislature, a significant amount of time is spent talking about growing our state, This measure is Imoving our state forward, and providing a better future for the next generation. designed to help Oftentimes that discussion revolves around our 0 tax structure, economic incentives, and access to communities fill job 0 quality education and health care. We are fortunate openings by expanding 0 to have a nationally recognized, favorable business environment; low unemployment; a strong work the availability of 20 ethic; and a quality of life that many employers 10 and employees want. housing options that 0 R But there is one factor often overlooked in our potential employees effort to attract employers and employees: access 2000 201

to quality, affordable housing. desire. Source: The Harvard Joint Center for Housing Studies (using U.S. Census Bureau data) Ask any economic development professional about the barriers to attracting good jobs and employees, and I guarantee that the lack of qual- Building with some state assistance the funding in a timely manner, funds are returned to the department for further investment in ity and affordable housing is one of the greatest In 2017, I introduced LB 518, the Rural Workforce workforce housing until July 2022, when all unused barriers facing rural America. In fact, in many Housing Investment Act. Signed into law in May, funds held by the department will be returned to communities across Nebraska, we have jobs avail- this measure is designed to help communities the Affordable Housing Trust Fund. able that go unfilled due to this shortage. fill job openings by expanding the availability of Of course, oversight is important in a program The problem is particularly acute in rural areas housing options that potential employees desire. like this, so the new law requires reports from where the cost of housing is considerably higher. A re- Specifically, the bill creates a grant program to grantees and the department so that we can moni- port from the Nebraska Investment Finance Authority, stimulate housing development in rural Nebraska. tor the program’s progress and success. for example, showed that the cost of new construction Under LB 518, which received unanimous LB 518 had the backing of the Nebraska for single-family homes was highest in the Panhandle approval in our Unicameral Legislature, a non- Economic Developers Association, State Chamber region of my state (one of the most rural parts of profit development organization can apply to the of Commerce, Nebraska Bankers Association, Nebraska) — $248,000 in the Panhandle vs. $198,000 Nebraska Department of Economic Development Nebraska Realtors Association, League of in the Lincoln and Omaha metropolitan areas. for funds to develop workforce housing through Municipalities, and the Nebraska Housing We simply don’t have nearly the same number of new construction, the rehabilitation of existing Developers Association — evidence that the need housing developers in rural areas, which can’t reach homes, or the building of rental units. for affordable rural housing was not a secret and the economies of scale that we see achieved with The type of activities that could receive as- was widely supported throughout the state. housing development in populated areas. sistance through the Rural Workforce Housing We saw this as a good use of excess state fund Fund include loan guarantees, purchase and rental dollars, which would have been sitting unused Percentage of state’s homeowners, guarantees, and credit enhancements to reduce the and, therefore, not serving the people of Nebraska. renters spending 35% or more of cost of workforce housing. To ensure that com- A grant program such as the one set up by LB their incomes on housing costs munities have skin in the game, a dollar-for-dollar 518 can make a difference by creating much-needed match on all state grant funds is required. workforce housing in rural areas, so that open jobs 1 2 State Owner Renter To provide dollars for this grant program, the can be filled and people can afford their housing. Illinois 23.8% 40.9% new state law transfers unallocated monies from This will clearly help Nebraska grow. Likewise, an existing state fund for affordable housing. other rural areas across the Midwest and United States Indiana 16.1% 39.5% This Affordable Housing Trust Fund was estab- would benefit from an increased emphasis on improv- Iowa 14.6% 35.8% lished in 1996 in response to concerns about the effect ing the supply of quality, affordable housing. of poor-quality housing on economic development. It Kansas 16.1% 35.6% Nebraska Sen. Matt Williams was first elected to the is funded by taking a portion of a fee on certain real Michigan 20.0% 43.1% Unicameral Legislature in 2014. He is a 2015 graduate of the estate transactions; since the fund’s creation, it has CSG Midwest’s Bowhay Institute for Legislative Leadership Minnesota 17.6% 38.2% supported 524 grants totaling more than $120 million Development (BILLD). Nebraska 15.7% 34.7% across Nebraska for low-income housing. LB 518 specifies that the Department of North Dakota 11.9% 31.1% Economic Development will award grants to areas Submissions welcome Ohio 18.2% 39.0% with demonstrated housing and employment This page is designed to be a forum for legislators and needs. The department looks for a commitment South Dakota 16.1% 31.8% constitutional officers. The opinions expressed on this page from the nonprofit development organization to Wisconsin 19.7% 38.0% grow a community’s housing stock, and to ensure do not reflect those of The Council of State Governments or 1 Only includes homes with a mortgage; costs include mortgages, the state’s investment is in good hands, program the Midwestern Legislative Conference. Responses to any various insurances, real estate taxes, utilities and select other fees/ administrators will review criteria such as the FirstPerson article are welcome, as are pieces written on expenses. experienced leadership of the nonprofit applicant. other topics. For more information, contact Tim Anderson 2 Cost is gross rent. Source: U.S. Census Bureau, American Fact Finder (2012-2016) LB 518 encourages grantees to use the funding at 630.925.1922 or [email protected]. or lose it within 24 months. If a grantee fails to use

STATELINE MIDWEST JANUARY 2018 9 CSG MIDWEST NEWS & EVENTS

With sessions underway, CSG begins MLC leadership yearly visits to Midwest’s capitols team in place for coming year ver the first few months of this year, staff members also organize the office’s annual visits from the Midwestern Office of The Council to state capitols. SG’s Midwestern Legislative Conference Oof State Governments will travel to the • Illinois and Minnesota — Katelyn Tye, will be led in 2018 by a bipartisan, four- region’s legislatures during their 2018 sessions. [email protected] Cmember team of state legislators. These annual state visits began in January with • Indiana and Iowa — Ilene Grossman, All four officers were formally installed when trips to the Nebraska, South Dakota and Indiana [email protected] the MLC Executive Committee met in December capitols. They give CSG Midwest staff the chance • Kansas — Laura Kliewer, [email protected] in conjunction with The Council of State to learn about the interests and needs of state • Michigan and Nebraska — Tim Anderson, Governments’ National Conference. They are: legislators, who, in turn, learn about CSG’s various [email protected] • Sen. Ed Charbonneau, MLC chair meetings, products and services. • North Dakota and Ohio — Laura Tomaka, and a member of the Indiana General Every legislator in this 11-state region is [email protected] Assembly since 2007; a member of CSG’s nonpartisan Midwestern • South Dakota — Cindy Andrews, • Rep. Elgie Sims, MLC first vice chair Legislative Conference. The MLC has several [email protected] and a member of the Illinois General interstate policy committees, holds an Annual • Wisconsin — Jon Davis, [email protected] Assembly since 2013; Meeting (this year’s event will be held July 15-18 • Sen. Ken Horn, MLC second vice Formed in 1933, CSG serves all three branches in Winnipeg, Manitoba), and runs the highly re- chair and a member of the Michigan of state government and has a unique region-based garded Bowhay Institute for Legislative Leadership Legislature since 2007; and structure. It offers a diverse mix of programs and Development. • Sen. Janet Petersen, MLC immediate For every state in this region, CSG Midwest services — some national and international in scope, vice chair and a member of the Iowa has a staff member dedicated as the point person others tailored for specific regions, states and even Legislature since 2001. for providing assistance (research or otherwise) individual legislators. For more information, contact to legislators and legislative staff. These staff CSG Midwest at 630.925.1922 or [email protected]. The MLC is a nonpartisan association of all legislators from 11 Midwestern states; four Canadian provinces and their legislators Overview of CSG’s products and services participate via an affiliation with the MLC. The officer team is chosen every year by legislators who attend the MLC’s Annual In-Person Meetings: The Midwestern Legislative Conference Annual Meeting will be held July Meeting — the premier event for the Midwest’s 15-18 in Winnipeg, Manitoba. The only event designed by and for the region’s legislators, it features state and provincial legislators to learn from a mix of renowned speakers, policy sessions and professional development workshops. TheCSG one another as well as top policy experts National Conference will be held Dec. 6-8 in the Northern Kentucky/Greater Cincinnati Area. and well-known speakers. In 2018, the MLC Annual Meeting will be July 15-18 in Professional Development: CSG has two leadership institutes for legislators. The Bowhay Winnipeg, Manitoba. Institute for Legislative Leadership Development, or BILLD, is the premier program for Midwestern state lawmakers in their first four years of service. It will be heldAug. 11-15 at the University of Minnesota. CSG’s national Henry Toll Fellowship Program will be held Aug. 24-29 in Lexington, Ky. It is open to state officials in all three branches of state government. BILLD and Toll Fellows are chosen via a competitive application process.

Research Assistance: The CSG Midwest website (csgmidwest.org) includes policy research done for states in this region, while CSG’s Knowledge Center (knowledgecenter.csg.org) houses a comprehensive collection of state-by-state data and information, including CSG’s “The Book of the States” — considered the “encyclopedia” of state government. Individualized research assistance is available by contacting CSG Midwest staff (see contact information above).

In-State Training: Through the MLC’s Under the Dome initiative, CSG Midwest regularly holds policy academies and professional development workshops for legislators in their state capitals. The program is customized for each state with input from leadership.

Policy Leadership: CSG advances public policy through groups such as the nationally recognized Justice Center, which conducts evidence-based research and works with states to increase public safety and strengthen communities, and the National Center for Interstate Compacts, which facilitates formal collaborations among states to address a wide range of issues. At a December meeting of the Midwestern Legislative Conference Executive Committee, CSG Midwest provides staff support to theGreat Lakes Legislative Caucus, the Midwestern Sen. Ed Charbonneau (left) was installed as 2018 Radioactive Materials Transportation Project, the Midwest Interstate Passenger Rail MLC chair, and Iowa Sen. Janet Petersen (right) Commission, and the Midwestern Legislative Service Agency/Research Directors Group. was honored for her leadership role over the past year. As MLC chair in 2017, Sen. Petersen Informative Publications: CSG regularly produces two publications: Stateline Midwest, oversaw a successful MLC Annual Meeting in which examines policy trends in this region; and Capitol Ideas, which covers current her home state’s capital of Des Moines while issues in state government around the country. raising awareness throughout the year about strategies to ensure healthy birth outcomes — the subject of her MLC chair’s initiative. (photo: Wisconsin Rep. Joan Ballweg, 2016 MLC chair)

The Council of State Governments was founded in 1933 as a national, nonpartisan organization to assist and advance state government. The headquarters office, in Lexington, Ky., is responsible for a variety of national programs and services, including research, reference publications, innovations transfer, suggested state legislation and interstate consulting services. The Midwestern Office supports several groups of state officials, including the Midwestern Legislative Conference, an association of all legislators in 11 states: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin. The Canadian provinces of Alberta, Manitoba, Ontario and Saskatchewan are MLC affiliate members.

10 STATELINE MIDWEST JANUARY 2018 State, provincial legislators travel to Toronto for two-day meeting on energy

Nuclear power and grid security among topics discussed by MLC subcommittee

binational group of lawmakers from the Midwestern Legislative Conference continued CALENDAR A their study of cross-border energy issues during a two-day meeting in December in Toronto. UPCOMING MIDWESTERN LEGISLATIVE Saskatchewan MLA Dan D’Autremont is lead- CONFERENCE AND THE COUNCIL OF STATE ing the work of the MLC’s Midwest-Canada Energy GOVERNMENTS EVENTS Subcommittee (its members are part of the larger MLC Midwest-Canada Relations Committee). Ontario MPP Bob Delaney hosted the legislators NATIONAL TRANSPORTATION during their stay in Toronto, which included a visit STAKEHOLDERS FORUM June 4-7, 2018 to a nuclear power plant at the Darlington Energy A tour guide (far left) discusses operations of the Omaha, Nebraska Complex. Approximately half of the province’s nuclear power plant at the Darlington Energy Complex electricity generation comes from nuclear energy. in Ontario with Saskatchewan MLA Dan D’Autremont, Contact: Lisa Janairo ([email protected]) (Ontario is the first North American government Illinois Rep. André Thapedi, Minnesota Sen. David 630.925.1922 to have completely eliminated coal-fired electricity Senjem and North Dakota Rep. David Monson. csgmidwest.org generation.) The Darlington facility meets 20 percent of Ontario’s power demand; it is operated meeting: Illinois Rep. André Thapedi, Iowa Rep. Rob 73RD ANNUAL MEETING OF by the publicly owned Ontario Power Generation. Taylor, Michigan Sen. Ken Horn, Minnesota Sen. David THE MIDWESTERN LEGISLATIVE On the second day, the committee met in the Senjem, North Dakota Sen. David Monson, Ohio Rep. CONFERENCE Ontario Legislative Assembly Building and, with the Robert Cupp and Saskatchewan MLA Hugh Nerlien. July 15-18, 2018 help of Canadian and U.S. experts, explored ways to This MLC subcommittee is exploring how to Winnipeg, Manitoba address electric grid security, reliability, resilience and develop a more integrated energy relationship emergency preparedness. Legislators also discussed between the United States and Canada and to Contact: Gail Meyer ([email protected]) the cross-border interconnectedness of the grid. upgrade the region’s transmission infrastructure. 630.925.1922 Along with D’Autremont and Delaney, seven other The government of Canada provided funding to csgmidwest.org state and provincial legislators took part in the two-day help support the meeting. 24TH ANNUAL BOWHAY INSTITUTE FOR LEGISLATIVE LEADERSHIP DEVELOPMENT (BILLD) August 10-14, 2018 CSG Midwest partners with Germany on legislative Minneapolis, Minnesota

trip to study nation’s energy transformation Contact: Laura Tomaka ([email protected]) 630.925.1922 csgmidwest.org or the third straight year, thanks to an ongoing partnership between CSG Midwest Fand Germany’s Federal Foreign Office, a CSG HENRY TOLL delegation of legislators from this region had the FELLOWSHIP PROGRAM chance to learn how that country is transitioning August 24-29, 2018 Lexington, Kentucky to a low-carbon economy. The bipartisan group included Illinois Reps. Contact: Kelley Arnold ([email protected]) Norine Hammond, Anna Moeller and Carol 859.244.8000 Sente, Kansas Rep. Mark Schreiber and Wisconsin csg.org Rep. Amanda Stuck. Three Canadian provincial legislators took part in the December study trip as GREAT LAKES LEGISLATIVE well: Manitoba MLAs Steven Fletcher and Andrew A delegation of state and provincial legislators stands CAUCUS MEETING Smith and Saskatchewan MLA Dan D’Autremont. outside the the German federal parliament building. This group traveled to Germany in December to September 20-22, 2018 Germany’s energy transformation, known as Erie, Pennsylvania study energy policy as part of a trip organized by CSG the Energiewende, has three goals: phase out the Midwest. use of nuclear energy by 2022; reduce greenhouse Contact: Lisa Janairo ([email protected]) gas emissions by between 80 percent and 90 920.458.5910 greatlakeslegislators.org percent by 2050; and ensure that 80 percent of the is home to the Vauban district, which legislators electricity consumed in the country comes from toured to see how various renewable technologies renewables by 2050. and solar-powered homes have been used to create NATIONAL CSG CONFERENCE Legislators learned about the costs of this a “model sustainable district” that is based on December 6-8, 2018 transition, the challenge of reducing the country’s certain ecological standards and economic and Northern Kentucky/Greater Cincinnati political cooperative models. reliance on coal, and the structural changes taking Contact: Kelley Arnold ([email protected]) Lawmakers also visited Freiburg’s Green place in the economy as a result of the changes. 859.244.8000 While in Berlin, the group talked with several Industry Park, an old industrial area that is now csg.org key leaders in the German government and indus- home to companies using sustainable, energy- try. It also visited the country’s federal parliament efficient technologies, and learned about the (the Bundestag) and met with one of its members. work being done on hydrogen fuel and fuel cell The delegation traveled to Freiburg, in south- technology at the largest solar energy research west Germany, to focus on the use of renewables institute in Europe — the Fraunhofer Institute for and, especially, solar energy research. That town Solar Energy Systems.

STATELINE MIDWEST JANUARY 2018 11 CAPITOL According to theFederation of Tax Adminis and overall forest health. tion, pestcontrol, landacquisition, recreation lars to pay for programs related to fire preven The state willinstead usegeneral-fund dol million, the loss instate revenue ofapproximately $90 for theaverage homeowner andanannual This changewill result insavings ofabout$27 used to protect publicandprivate forestlands tax that state had been property decades-old Wisconsin tax the property with state’s of portion Wisconsin doesaway goes to thestate general fund. on businessesaswell— andcabins asresorts tax—establishedin2001andlevied property Tax goesto K-12 schools. Minnesota’s statewide ill. Money from State the Michigan Education state institutionsfor thedisabledandmentally ating projects publicuniversities aswell as In Kansas, tax funds build a statewide property percent) and state in2016), taxcollections exceptions are taxatno statewide all). property The lone in mostotherMidwestern states (somehave collections. Itmakes uplessthan1percent for 1.0percent of Wisconsin’s total state tax trators, taxaccounted in2016,theproperty NONPROFIT ORGANIZATION

U.S. POSTAGE PAID lawmakers have eliminated a Wisconsin State Journal CAROL STREAM, IL Minnesota Kansas PERMIT NO. 1859

Stateline (8.2 percent of total (3.4percent). Michigan reports. (7.4

Midwest CLIPS . - - - January 2018 - The Council of State Governments is oneoffour U.S. states that hasrecently According to The Pew Charitable Trusts, Ohio and counties showing distress. signsoffiscal cators” study, attention whichcalls to cities has begunissuinga “Financial Health Indi Elsewhere intheMidwest, the corrective plans. action of Department Treasury) mustapprove these BoardStability (housedwithintheMichigan to the system. A newly created Municipal government’s general-fund revenue isgoing funded andmore than12percent ofthelocal the retirement system islessthan60percent taken —for example, in ifaccrued liability criteria for when “corrective action” mustbe the newlaw, legislators alsoestablished retirement systems are beingfunded. With well asregularly onhow well report their auditsas independentto actuarial conduct The state’s governments local willberequired tiree healthcare systems. about unfundedliabilitiesinpensionandre late 2017.SB686aimsto address concerns ments underlegislation signedinto law in long-term govern healthofitslocal fiscal Michigan retirement systems new rulesfor local Michigan establishes Midwestern Office a website. then publishingtheresults oron inareport this kind of study andbegun conducting 701 E. 22nd Street, Suite 110

Lombard, IL 60148-5095 will be keeping a closer eye on the Phone: 630.925.1922 Fax: 630.925.1930 Email: [email protected] csgmidwest.org

CHANGE SERVICE REQUESTED Ohio auditor

- - - regulations on theirconsumers andfarmers. ofCalifornia’sing theimpact andMassachusetts’ plaintiff states includeeconomic analysesdetail kota and Wisconsin. filings, IntheDecember the includes Indiana, ing challengedagain,by agroup ofstates that However, thoseCalifornia regulations are be against asimilarCalifornia law. states hadnostandingintheircomplaint ruled thata federal agroup appealscourt of U.S. Constitution’s Commerce Clause. In 2016, orsafety” quality on product andviolate the setts regulations have no “discernible impact the lawsuit. They argue that theMassachu are amongthe12states joiningIndianain Nebraska via aballotreferendum. established by Massachusettsvoters in2016 standards.mal-confinement These rules were outside thestate) that don’t ani meetcertain of egg, porkandveal from farms(insideor the Massachusettslaw, whichbansthesale is leadingthemulti-state complaint against the U.S. Supreme inDecember. Court Two separate lawsuits were with fileddirectly calves andpigsinagricultural operations. California that regulate thehousingofhens, to endlaws inMassachusettsandlegal effort statesSix intheMidwest ofanew are part livestock-housing rules to end Court Supreme MidwestSix states ask , North Dakota North Iowa , Nebraska, North Da , Nebraska, North and Wisconsin Indiana - - - - -

prevent opioid abuse, prescription drug monitoring programs and to to makeSeeking greater useoftheirstates’ prevent opioidabuse ‘doctor shopping,’ New laws seekto end program’s database, before heor she is pre must be checked,history via the state-run Under Illinois’ SB 772, apatient’s prescription signed into law inDecember. ments for prescribers. These measures were lawmakers have established new require quirements onprescribers ordispensers. Wisconsin Illinois, This mandate onlyappliesto prescribers in Training and Technical Assistance Center. the Prescription Monitoring Drug Program tient’s inthedatabase, history according to prescribers and dispensers to check a pa kota monitoring program. Every Midwestern state hasaprescription to obtain prescriptions from multipledoctors. checksisto maketory itharder for individuals goalofthesemanda (SB 166and167).One II,III,IVor Schedule V controlled substances run database electronic before prescribing have to review apatient’s inthestate- history potential for abuse.” providers Michigan will eral classification for drugs that have a “high IInarcotics.scribed Schedule This isthefed require, circumstances, undercertain Indiana . Other states. Other have nosuchre , Michigan, , Michigan, Illinois Ohio and Minnesota and North Da North Michigan and ------