Stateline Vol. 26, No. 11 • December 2017 MidwestTHE MIDWESTERN OFFICE OF THE COUNCIL OF STATE GOVERNMENTS INSIDE CSG Midwest Issue Briefs 2-3 Big deals, big incentives • Criminal Justice & Public Safety: New laws try to improve prison mental health services Competition to land new businesses, and jobs that come • Health & Human Services: More states embracing, enabling direct care model with them, have put spotlight on states’ economic policies • Midwest-Canada Relations: Farm groups raise concerns about potential end of NAFTA by Laura Tomaka ([email protected]) • Education: Loan forgiveness among strategies being used by states to attract more teachers n September, Amazon announced its built-in strengths that make them attractive Trends in GDP growth: search for a second North American to many large businesses — for example, Compound annual growth rates Around the Region 4 corporate headquarters, known as HQ2. relatively cheap land, strong workforces, Rise of school-based health centers helping I The scale and scope of the project — the 2011 2006 quality schools, plentiful water resources children in rural areas get access to care State e-commerce giant is expected to invest more to 2016 to 2016 and connected transportation systems. than $5 billion in the facility and employ up Capital Closeup 5 Illinois 3.2% 2.5% Specific government policies such as Illinois takes first steps to address concerns to 50,000 high-paid workers — captured not taxes and incentives also can make a differ- Indiana 3.6% 3.1% about sexual harassment in state government only headlines, but the attention of state and ence in site selection (see sidebar on page 7 local officials. Iowa 4.5% 3.8% for detail). As a result, state lawmakers often Question of the Month 5 A very public competition has ensued, Kansas 1.9% 2.9% get involved in trying to attract a corporate Do any states have automatic admissions and at least one Midwestern state, Illinois, headquarters such as Amazon’s or a big policies for students who meet certain criteria? Michigan 4.2% 2.2% is right in the middle of it. manufacturing company such as Foxconn’s, Profile 8 “I’m excited about our chances for [land- Minnesota 3.7% 3.1% and the incentives that legislatures create ing] HQ2,” Illinois Rep. Mike Zalewski says. Wisconsin Assembly Minority Leader Gordon Hintz Nebraska 3.3% 4.2% are not without controversy. Earlier this year, he was part of an effort Wisconsin’s economic package for North Dakota 4.9% 7.3% FirstPerson 9 to reform and reinstate a long-standing Foxconn was the largest in the state’s history, Kansas Sen. Carolyn McGinn on new economic Illinois incentives program known as EDGE, Ohio 3.5% 2.7% and led to questions about whether the opportunities for farmers, questions for legislators which is among the programs that the state South Dakota 2.7% 4.0% planned new manufacturing facility was could use in its pursuit. worth the $3 billion. A Legislative Fiscal CSG News & Events 10 Wisconsin 3.6% 2.9% “For every Amazon, there’s a lot more Bureau analysis showed that it would take at Michigan Sen. Darwin Booher becomes new chair 40- or 50-person manufacturers looking to United States 3.7% 3.0% of Great Lakes Legislative Caucus least 20 years for the state to realize a return move to Illinois or to grow their business Source: U.S. Bureau of Economic Analysis on its investment. However, a separate Capitol Clips 12 [here], and we want them to succeed,” analysis by Ernst and Young showed dif- Zalewski says. “EDGE is designed ... to help • South Dakota mulls changes in legislative pay as a building block for making his state a ferent returns when accounting for various both the big fries and the small fries.” • Illinois offering tax credits for K-12 scholarships high-tech manufacturing hub. spin-off economic activities. The role of state incentives (tax credits, • Michigan wants more done to prevent oil spill “We hope that it will actually be a “There is a projected $4.26 billion in new tax exemptions, grants, low-interest loans, • Industrial hemp bill gets OK in Wisconsin brain gain for Wisconsin,” he says. “We are purchases to the supply chain with Foxconn etc.) has gotten increased attention in the going to need the skilled workforce from moving in, with at least one-third having to Midwest during the latter part of 2017. outside of Wisconsin as well because we be spent in Wisconsin,” Neylon says. In September, around the same time simply won’t have the workforce supply to “People who are judging these deals Illinois began making its Amazon pitch, reach [Foxconn’s] full capacity.” (Funding based only on an equaling out in govern- Stateline Midwest is published 11 times a year Wisconsin was closing the deal on what for workforce development is part of the ment revenues are looking at it in the wrong by the Midwestern Office of lawmakers say is the biggest economic incentive package.) way,” he adds. “They are looking at how it The Council of State Governments. development project in that state’s history. will benefit government, and not how it will Annual subscription rate: $60. “Foxconn will bring an entirely new in- Building on economic strengths benefit the supply chain, the infrastructure To order, call 630.925.1922. dustry to Wisconsin and to North America,” The Midwest and its 11 states have some and [create] good jobs.” Rep. Adam Neylon says. “This is a dawn of a new era in manufacturing. And it’s frankly PLEASE TURN TO PAGE 6 something that is needed for our economy.” Wisconsin legislators and Gov. Scott He and other Wisconsin legislators met Walker celebrate the passage of a bill in special session in August to craft a $3 bil- CSG Midwestern Office Staff (passed during a special session this lion incentive package for Foxconn, which, summer) that provides incentives Michael H. McCabe, Director in turn, has promised to make a $10 billion Tim Anderson, Publications Manager for an electronics manufacturing Jon Davis, Assistant Editor/Policy Analyst investment in a new manufacturing facility company. Assembly Speaker Robin Cindy Calo Andrews, Assistant Director and create 13,000 jobs, with average annual Vos and other leaders have said Ilene K. Grossman, Assistant Director salaries of more than $50,000. Foxconn’s new plant will be the Lisa R. Janairo, Program Director “largest economic development Laura Kliewer, Senior Policy Analyst Liquid crystal displays (for electronic project in state history.” (photo: Gail Meyer, Office Manager devices) will be made at the Wisconsin Laura A. Tomaka, Senior Program Manager plant, and Neylon views Foxconn’s presence Office of Speaker Vos) 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. Criminal Justice & Public Safety Policies aim to better address Prevalence of mental health spending on addiction-recovery services in prisons mental health, substance abuse problems, substance abuse among and shifted the administration of those services from issues in prison populations state prison population the Department of Rehabilitation and Correction to the Ohio Department of Mental Health & Addiction innesota Rep. Marion O’Neill first became Condition % of prisoners Services. aware of the prevalence of mental health “There’s wide recognition, both for drug addiction Serious psychological distress 14.5% Mand substance abuse disorders in the state’s and for mental health issues, that we can always use prisons while serving on the Legislature’s Prison History of mental health problem 36.9% more resources on the front end, during incarceration Population Task Force in 2015. Drug dependence 41.7% and post-release,” Ohio Sen. John Eklund says. State corrections officials told the task force that Eklund notes, too, that his state’s criminal justice Drug abuse 16.8% 85 percent to 90 percent of inmates had a chemical policy should reflect the impacts that behavioral dependency, 60 percent had mental health issues, and Source: U.S. Bureau of Justice Statistics health issues and the state’s current opioid crisis are 11 percent were severely mentally ill. having: “As the nature of the population that touches “It was clear we needed to address these individu- the violation,” such as inpatient substance abuse the criminal justice system changes, then the system als’ underlying issues, not just the criminal behavior,” treatment. must change as well.” O’Neill says. The enacting legislation (HF 470) also funded a During a session in November at The CSG Justice She also learned that the majority of prison admis- two-year pilot program that will provide grants to Center’s 50-State Summit on Public Safety, experts sions — 64 percent in 2016 — were people whose agencies that supervise offenders on probation, parole discussed policies to address behavioral health parole or probation was revoked due to technical or supervised release and that help facilitate access to and substance abuse disorders in state correctional violations such as missing a meeting or failing a drug community treatment options. populations. Dr. Fred Osher, director of health systems test, as opposed to individuals who had committed Ohio lawmakers in 2015 began requiring the state and services policy at The CSG Justice Center, recom- new crimes. Department of Rehabilitation and Correction to oper- mended that states focus on: This year, O’Neill sponsored legislation that ate a community-based substance abuse treatment • improving the assessment and identification of requires parole and probation agents to consider program for inmates serving time for nonviolent, behavioral health needs in correctional systems; community-based alternatives to incarceration for low-level drug offenses.