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The State and Local Tap: Battle between Democratic leadership in Rhode Island leaves budget situation in flux

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July 14, 2017Issue No. 73

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Week in review
On tap next week

THE WEEK IN REVIEW

Here's what happened in state and local politics last week. To see what happened in federal politics, click here.

State Politics: The Week in Review

Ballot Measures Update

2017:

2018:


Saturday, July 8

As budget standoff enters second week, legislative leadership in Rhode Island write dueling op-eds

  • As Rhode Island entered its second week of the new fiscal year without a budget, the speaker of the house and the senate president—both Democrats—published dueling op-eds, criticizing each other for the current standoff. The budget debate in Rhode Island has centered on motor vehicle taxes. Leading up to the June 30 fiscal deadline, House Speaker Nick Mattiello (D) had advocated for a six-year-phase repeal of motor vehicle taxes in Rhode Island. The House approved the repeal in a budget plan on June 23 in a 64-11 vote. When the Senate took up the budget on June 30, it voted 30-5 in favor of an amendment that would suspend the car-tax repeal if state revenues prove lower than projected or if the economy declines. Mattiello protested the amendment, calling it a last-minute change and dismissed the House for summer recess before a vote could take place. Senate President Dominick Ruggerio (D) has stated that Mattiello was aware of concerns voiced in the Senate about the financial sustainability of repealing the motor vehicle tax. Mattiello has since said he has no plans to call the House back from recess.
  • In Mattiello’s op-ed, he stated that Ruggerio had backed out of a deal and that the Senate amendment was neither needed nor appropriate. He said:
    • “It is unfortunate that Senate President Dominick Ruggerio and his leadership team reneged on a commitment to pass the state budget as negotiated, and did so at the eleventh hour, without warning. These last-minute shenanigans only increase public distrust and threaten our ability to serve citizens responsibly. … The Senate’s budget amendment would stop the car-tax phaseout if a very specific series of events occurred. This limit does not apply to any other budget measure, nor is it appropriate in this case. Future legislatures will consider the full array of state spending and revenues when facing any downturn. I do not favor language that, at the outset, would subordinate car-tax relief to other priorities.”
  • In Ruggerio’s op-ed, he stated that House proposal for the motor vehicle tax repeal did not do enough to protect the state’s rainy day fund, and he called on Mattiello to call the House back into session. He said”
    • “The budget adopted by the House of Representatives did not protect the state’s rainy day fund from Speaker Nicholas Mattiello’s car tax phaseout in the event of a future recession or cuts to federal aid. … No one, not even the speaker, wants to see this phaseout succeed more than I. … We encourage the speaker to reconvene the House to take up these matters. In the meantime, the Senate will thoroughly review all legislation that comes before us and pass that which we deem is in the best interest of all Rhode Islanders.”
  • In 2004, Rhode Island enacted a law allowing the state to continue operating at the previous year’s spending levels when a budget is not passed by the June 30 deadline.
  • Gov. Gina Raimondo (D) has criticized the standoff, saying, “I'm going to do everything I can, the best I can, to run the government and make sure people get what they deserve in terms of government services. In the meantime, I'm asking the House and Senate if they can get together and put their differences aside.” In Rhode Island, the governor has the power to call the Legislature into a special session. In 2017, the legislature was in session from January 3 through June 30.
  • The budget standoff has left several other pieces of legislation in limbo, including a proposal granting paid sick leave for private sector employees, a proposal backed by Raimondo for tuition-free community college, and a proposal to limit access to firearms for individuals with histories of domestic abuse. Groups such as the National Rifle Association campaigned against the latter measure.
  • About motor vehicle taxes in Rhode Island: an annual motor vehicle excise tax in Rhode Island fluctuates among municipalities in the state. It is highest in Providence—Rhode Island’s biggest city—where residents pay $60 for every $1000 that the vehicle is worth. Revenue generated from motor vehicle taxes provides roughly $220 million per year for Rhode Island municipalities. That money accounts for as much as 14 percent of a town’s revenue, on the high end, and as low as 2.9 percent on the low end. Earlier in the year, Raimondo proposed an alternative to the full repeal supported by Mattiello. She advocated for a 30 percent cut to the tax.
  • Rhode Island is one of six Democratic state government trifectas. Mattiello became House Speaker in 2014. Ruggerio became Senate President earlier this year. Both chambers are holding elections in 2018. Raimondo is up for re-election in 2018.
  • See also: State budget conflicts, 2017

Monday, July 10

Second year in a row, PA state budget becomes law without governor’s signature or a revenue package

  • For the second year in a row, Pennsylvania's state budget has become law without the governor's signature and without a plan for how to pay for it. On June 30, the Republican-controlled Pennsylvania General Assembly sent Gov. Tom Wolf (D) a $32 billion spending plan for the fiscal year that began on July 1. On July 10, Wolf announced that he would allow the budget to become law without his signature, but so far he and legislative leadership have not yet settled on a revenue plan. In a statement, Wolf said, "In the coming days, it is my hope that the General Assembly will come together to pass a responsible solution to balance our books."
  • In Pennsylvania, the governor has 10 days to sign or veto legislation after receiving it or it automatically becomes law. Wolf did not sign the 2016-2017 state budget, either, which also went into effect without a revenue plan in place.
  • The state is facing a $2 billion budget gap, and lawmakers have looked to close it by increasing revenue. Major proposals for revenue packages have included borrowing money, expanding gambling and liquor sales in the state, and tax increases. Senate and House Republicans have voiced support for temporary measures to borrow against state accounts, while Republicans in the House have also advocated for delaying a vote on legislation that provides funding various universities in the state. Wolf has advocated for tax increases on the natural gas industry and the expansion of sales taxes to include some previously exempt businesses and business practices.
  • The Pennsylvania constitution states that spending “shall not exceed the actual and estimated revenues and surplus available.”
  • On July 6, 2017, the credit-rating agency S&P Global Ratings announced that it had placed Pennsylvania on what it called a "negative credit watch." The agency stated, "Pennsylvania has repeatedly had protracted budget negotiations that failed to result in structural alignment." A decreased credit rating would increase borrowing costs for the state.
  • Pennsylvania is one 19 states operating under divided government.
  • See also: State budget conflicts, 2017

Federal trial on constitutionality of TX congressional and state legislative district maps begins

  • A federal trial addressing the constitutionality of Texas' congressional and state legislative district maps began, with Judges Orlando Garcia (a Bill Clinton appointee), Xavier Rodriguez (a George W. Bush appointee), and Jerry Smith (a Ronald Reagan appointee) presiding. Texas' district maps have been the subject of litigation since their adoption in the summer of 2011. In November 2011, the United States District Court for the Western District of Texas ordered that interim maps, drawn by the court, apply to the 2012 midterm elections. In January 2012, the Supreme Court of the United States struck down this order, finding that the lower court had exceeded its authority. In February 2012, the district court issued new interim maps, which were used in the 2012 elections. In June 2013, the state legislature approved new district maps, which have been in force since their adoption. In March and April of 2017, the district court ruled that the original 2011 maps for congressional and state house districts had been drawn with intent to dilute the voting strength of racial minority groups, a violation of federal law. This ruling did not apply to the 2013 maps. The maps' opponents allege that the 2013 maps, like the original maps, represent an unconstitutional racial gerrymander. State officials deny this, maintaining that the remedial maps are substantially the same as those issued by the court in 2012. The trial was expected to continue through Friday. It is unclear when a ruling will be issued.
  • Texas is one of 25 Republican state government trifectas.

Illinois Governor Bruce Rauner (R) hires new senior staff

  • On Monday, Illinois Governor Bruce Rauner (R) announced what was to be the first in a series of staff reassignments following a legislative override of Rauner’s veto of a proposed state budget last week, ending a two-year standoff between Rauner and Democratic leaders in the state Legislature.
  • The veto override, which was made possible by a group of Republican state legislators who joined with the Democratic majority, made permanent a tax increase which had been opposed by Rauner and did not include concessions which Rauner was seeking during budget negotiations, which had included limits to future property tax increases and the enactment of legislative term limits. The Governor called the July 6 deal “a two-by-four smacked across the foreheads of the people of Illinois.”
  • On Monday, Rauner announced the replacement of Chief of Staff Richard Goldberg with Illinois Policy Institute President Kristina Rasmussen. Goldberg had himself been named Chief of Staff on June 10, 2016, following a showdown with the legislature over the budget. At the time, Goldberg’s appointment was criticized by Democratic members of the legislature, with Rep. Jack Franks (D) saying, “If the governor’s intent is to create chaos and continued strife, this is the right choice...Mr. Goldberg has been more of a partisan than someone seeking consensus.”
  • Throughout the week, Rauner announced additional staffing changes, including the replacement of Deputy Chief of Staff Brad Hahn with Illinois Policy Institute Vice President Michael Lucci and spokeswoman Catherine Kelly with Franklin Center Communications Director Laurel Patrick, who had previously served in the press office of Wisconsin Governor Scott Walker (R).
  • The Illinois Policy Institute describes itself as “an independent organization generating public policy solutions aimed at promoting personal freedom and prosperity in Illinois.” The Institute was critical of the July 6 budget deal, contending that “tax hikes on struggling Illinoisans as the state is bordering on a recession, a lack of structural spending reforms, no true pension reform, $100 million in pork spending, and the continued threat of a junk credit rating are among the ways the new Illinois budget fails taxpayers.” The Governor’s new chief of staff, Kristina Rasmussen, was also opposed to the Legislature’s passage of the bill, and had argued against a proposed deal between the Governor and the Legislature in June which would also have left the tax increase in place, saying that “by backing a tax hike budget plan, the governor risks alienating his supporters."

Nearly two-thirds of North Carolina’s state legislative districts may have to be redrawn because of a redistricting case

  • Lawyers representing North Carolina’s Republican legislative leaders in a redistricting case filed a brief on July 6, 2017, in response to a court order for input on the ruling made by the U.S. Supreme Court last month. The lawyers in the brief argued that special elections in North Carolina should not occur in 2017 because lawmakers might have to redraw 116 of the 170 state legislative districts, the $20 million cost of holding the elections, and that the elections would violate the North Carolina Constitution. Lawyers for the plaintiffs who sued over the maps have urged the court to reorder special elections in 2017.
  • On June 5, 2017, the U.S. Supreme Court issued a unanimous per curiam ruling affirming the 2016 decision of the Middle District Court in North Carolina v. Covington, which had earlier determined that 28 state legislative districts in North Carolina had been subject to an illegal racial gerrymander. However, the district court was directed to reconsider its order for special elections in 2017.
  • In reaction to the U.S. Supreme Court decision, Gov. Roy Cooper (D) called a special session of the legislature to begin on June 8, 2017, to redraw the state’s legislative district maps. The General Assembly of North Carolina voted on June 8, 2017, to cancel the special session. At the beginning of the session, House Rules Chairman Rep. David Lewis (R) filed a constitutional point of order, saying that Cooper did not have the constitutional authority to call the session because there was not an “extraordinary occasion" to call a special session, as required by the state constitution.
  • North Carolina is one of 19 states operating under divided government. With one vacancy, Republicans control the state Senate by a 34-14 majority. Republicans hold the state House by a 74-46 majority. Governor Roy Cooper (D) was elected in 2016 to a four-year term.

Rep. Travis Allen announced lawsuit over summary for gas tax repeal initiative

  • Rep. Travis Allen (R-72) criticized the ballot and petition language formulated for his initiative seeking the repeal of a 2017 gas tax increase by the California attorney general's office. Allen announced that he would file a lawsuit over the language, arguing that the text would mislead voters. Rep. Allen said his campaign "will wait to win in court and then we will be gathering signatures up and down the state." He added, "We’re going to challenge it in Superior Court. Gov. Brown’s attorney general has issued a misleading title and summary." Xavier Becerra (D) is the current California attorney general. The petition summary developed by Becerra’s office can be read here.
    • The initiative was designed to repeal sections of Senate Bill 1, which was approved by the legislature and signed by the governor in April 2017. The bill increased gas taxes, diesel taxes, and vehicle registration fees, with revenue earmarked for transportation infrastructure.
    • Usually signature petition efforts to repeal legislation are achieved through veto referendums. Rep. Allen had to file the repeal as an initiated state statute, rather than a veto referendum, because a referendum cannot be filed against tax levies according to California law. Veto referendums in California put the law targeted for repeal on hold until the election, whereas initiatives do not have that effect.
    • The vote on Senate Bill 1 in the state Senate led to a recall attempt against Sen. Josh Newman (D-29). He was elected to represent District 29 in 2016, when he defeated the Republican incumbent, Ling-Ling Chang, by 2,498 votes. The recall attempt was launched on April 19, 2017. Supporters of the recall effort need to collect 63,593 signatures to move the recall forward. Supporters have 160 days from the April 19 filing date to collect the necessary signatures.

Tuesday, July 11

Democrats pick up their third and fourth legislative seats of the year in Oklahoma special elections

  • Following special elections in Oklahoma, Democrats have now flipped four seats in state legislative special elections in 2017. Republicans have picked up one seat. In special elections between 2011 and 2016, one party (either Republicans or Democrats) saw an average net gain of three seats across the country each year. The number of net seats won and lost by Democrats and Republicans in state legislative special elections in 2017 has, so far, been similar to prior years.
  • Tuesday’s special elections in Oklahoma were for state Senate District 44 and House District 75. SD 44, located in the southwestern Oklahoma City suburbs, became vacant in March after Ralph Shortey (R) resigned from the seat amid charges of engaging in child prostitution. Shortey picked up the seat for Republicans in 2010 and won re-election in 2014 with 51.7 percent of the vote. According to Daily Kos, Donald Trump (R) won SD 44 in the 2016 presidential election 56-37 percent. Mitt Romney (R) won it in 2012 with 61 percent of the vote. In the special election, Michael Brooks (D) defeated Joe Griffin (R) with 54.5 percent of the vote: 1,975 to 1,644.
  • In HD 75, southeast of Tulsa, Karen Gaddis (D) earned 52.3 percent of the vote to win the seat over Tressa Nunley (R): 1,072 to 977. Dan Kirby (R) resigned from the HD 75 seat in March after facing expulsion from the state House due to accusations of inappropriate conduct with legislative assistants. Kirby won re-election to the seat in 2016 with 59.6 percent of the vote. Trump won HD 75 in 2016 58-36 percent. Romney won it in 2012 64-36 percent. Gaddis ran against Kirby in 2016. She received 5,178 votes (40 percent) to Kirby’s 7,626.
  • Neither of these races had a significant impact on the partisan composition of the Oklahoma Senate or House. Republicans now hold a 40-7 majority in the Senate, with one vacancy. There are two remaining vacancies in the House, where Republicans now have a 72-27 majority. Oklahoma has been a Republican state government trifecta since 2011.

Conflict over repeal of Initiative 22 spurs a campaign for an initiated constitutional amendment in South Dakota

  • Represent South Dakota (RSD), a group associated with Represent.Us, started a campaign in support of an initiative targeting the 2018 ballot designed to revise campaign finance and lobbying laws, create a State Government Accountability Board, and enact laws to prevent the state Legislature from amending or repealing ballot initiatives without voter approval. RSD’s initiative was proposed in response to the South Dakota State Legislature repealing Initiated Measure 22, which voters passed 52%-48% in November 2016. Measure 22 would have revised campaign finance and lobbying laws, established an ethics commission, and created a publicly-funded campaign finance program. Represent.Us provided over $1 million to the campaign supporting Initiative 22. The proposed 2018 initiative is a constitutional amendment. Measure 22 was a state statute. As a constitutional amendment, the 2018 initiative could not be repealed or changed without voter approval. The proposed initiative would also add this voter approval requirement for all future initiated statutes, meaning the legislature would not be allowed to repeal or amend any initiatives without voter approval. Supporters have until November 6, 2017, to collect 27,741 valid signatures for the initiative. The measure would appear on the ballot for the election on November 6, 2018.
    • Currently, South Dakota is one of 12 states with no restrictions on how soon or with what majority the legislature can amend or repeal initiated state statutes.
    • As of 2017, California is the only state to require voter approval for legislative actions to amend or repeal an initiative.
    • The other eight states with a process for initiated state statutes restrict the ability of legislators to repeal or amend initiated state statutes in one or both of the following ways: (1) by requiring that the legislature approve such changes with a supermajority or (2) mandating a minimum amount of time—ranging between two and seven years—before an initiative can be changed or repealed by the legislature.
    • A 2018 initiative to enact a similar voter approval requirement for changes to initiated state statutes was also filed for circulation in Missouri.

Colorado Governor issues order aligning the state with Paris Climate Agreement goals

  • Colorado Gov. John Hickenlooper (D) signed an executive order joining 12 states and Puerto Rico (collectively known as the U.S. Climate Alliance) in adhering to the Paris Climate Agreement's goal of reducing carbon dioxide and other greenhouse gases. Hickenlooper issued the order despite saying in June 2017 that Colorado might join the Climate Alliance as long as the state General Assembly agreed. Announcing the executive order, Hickenlooper said the state would "maintain a strong oil and gas industry and reduce emissions to help keep those fuels globally competitive while at the same time cleaning our air and cleaning our water." Opponents of the order, such as Mike Copp, president and CEO of Colorado Concern (a group of private sector CEOs and others), said the order "seems to indicate a significant reversal in the administration’s approach to achieving a balanced energy policy."
  • Of the 13 states in the Climate Alliance, 11 have Democratic governors and two have Republican governors. As of July 12, 2017, the 12 states in the U.S. Climate Alliance (excluding Colorado) were California (Democratic governor), New York (Democratic governor), Washington (Democratic governor), Hawaii (Democratic governor), Connecticut (Democratic governor), Rhode Island (Democratic governor), Massachusetts (Republican governor), Vermont (Republican governor), Oregon (Democratic governor), Virginia (Democratic governor), Minnesota (Democratic governor), and Delaware (Democratic governor).
  • Under the Paris Climate Agreement, countries agreed to non-legally binding carbon dioxide emissions targets and a long-term goal of preventing an increase in average global temperatures to below 2 degrees Celsius (3.7 degrees Fahrenheit) above pre-industrial levels by the year 2100.
  • See also: Reaction to U.S. withdrawal from the Paris Climate Agreement, 2017

Wisconsin lawmakers feel impact of new Illinois tax increases

  • New tax increases in Illinois will trim $51 million from the state budget in Wisconsin over the next two years. Wisconsin and Illinois have a reciprocity agreement to account for lost revenue from residents that cross the state line to go to work but do not pay income taxes in the state where their job is located. Because more residents of Wisconsin work and owe income taxes in Illinois, Wisconsin’s government makes payments to Illinois to make up the difference. As a result, those workers are able to file just one state income tax return. On July 6, Illinois passed its first budget since 2014. The budget included an increase in the state income tax from 3.75 to 4.95 percent. This means that the amount Wisconsin owes Illinois through the reciprocity agreement will increase by $21 million over the next two years. Changes in the amount of tax credits that the Wisconsinites who work in Illinois can claim will contribute to another $30 million in lost revenue.
  • News of how the Illinois budget situation will impact Wisconsin comes as lawmakers in the state continue work on their own budget after failing to pass one by the start of the state’s new fiscal year on July 1. The missed deadline is not out of the ordinary in Wisconsin. Since 1997, the state has passed only three budgets by July 1. In Wisconsin, spending levels from the previous two-year budget stay in effect until a new budget passes, allowing state agencies to continue operating and sparing citizens from most effects of a government shutdown. If the budget were to continue to be ironed out months down the road, some projects could be delayed and local school districts would be in the position of setting budgets without knowing how much state funding will be available.
  • Republicans in the state Senate and state Assembly disagree on how to fund road projects, how to increase funding for K-12 schools, and how to cut taxes. Assembly Speaker Robin Vos (R) said on Wisconsin Public Radio, “If you're not willing to raise the revenues, it's not conservative to borrow and spend, which is unfortunately what it seems like our Senate colleagues are talking about.”
  • Wisconsin is one of 25 Republican state government trifectas. Republicans control the state Senate with a 20-13 majority and the state Assembly with a 64-35 majority. Governor Scott Walker (R) was re-elected to a four-year term in 2014.

Pennsylvania amendment to increase tax exemption for homes certified for 2017 ballot

  • The state Senate gave final approval to a constitutional amendment concerning tax exemptions for homesteads that will now appear before Pennsylvania voters on November 7, 2017. The amendment would allow local taxing authorities―counties, municipalities, and school districts―to exempt up to 100 percent of the assessed value of each homestead—any house used as a primary residence of the owner—from property taxes. Currently, local authorities are allowed to exempt up to 50 percent of the assessed value of a homestead.
    • An amendment that would provide a homestead property tax exemption will be on the ballot in Florida in November 2018.
    • From 1996 through 2016, the Pennsylvania General Assembly referred 15 constitutional amendments to the ballot. Voters approved all 15 of the referred amendments. Eight of 15 amendments were referred to the ballot during even-numbered election years.
    • The average number of amendments appearing on the ballot during an odd-numbered election year was between zero and one.
    • Two amendments appeared on the ballot in 2016. Before 2016, the last time an amendment appeared on the ballot was in 2008. The last time an amendment appeared on an odd-year ballot was in 2003.

Wednesday, July 12

Tax incentive legislation creates rift among conservatives in Michigan

  • Legislation providing tax incentives for businesses in Michigan drew support from Democratic and Republican lawmakers and opposition from House Republican leadership and conservative groups around the state. A package of three bills propose to offer a variety of tax-based incentives to businesses that relocate or expand operations in Michigan. The incentives vary based on the number of jobs a company brings to the state and the wages it pays its employees.
  • The Michigan House passed the bills 71-35, with 40 Republicans and 31 Democrats voting in favor of the bills. Republicans have a 63-45 majority in the chamber. The Senate passed the bills in March 32-5, with five Republican senators voting against them. Republicans have a 27-11 majority in the Senate. Gov. Rick Snyder (R) has voiced support for the legislation, saying, “We are now enacting forward-thinking policies that make us more competitive for new jobs and industries in a fiscally responsible fashion.”
  • Supporters of the bills—including Democrats and Republicans in both chambers and business groups in the state—say they are key to luring businesses to Michigan and creating new jobs. Opponents—such as House Speaker Tom Leonard (R) and conservative groups like Americans for Prosperity Michigan and the Michigan Freedom Fund—argue that the legislation allows the government to pick winners and losers and amounts to, what a spokesperson from Americans for Prosperity Michigan called, sweetheart tax deals.
  • Both chambers of the Legislature and the governor’s office are up for election next year. Snyder is term-limited. Michigan is one of 25 Republican state government trifectas.

North Dakota Supreme Court justice appointed

  • Gov. Doug Burgum (R) announced the appointment of Judge Jon Jay Jensen to the North Dakota Supreme Court. Jensen will succeed Justice Carol Ronning Kapsner, who is set to retire. Jensen’s appointment takes effect on August 1, 2017. Jensen currently serves as Judge No. 3 for the Northeast Central Judicial District of North Dakota. He was appointed to that court in 2013 by former Gov. Jack Dalrymple (R) and then re-elected for a six-year term in 2016. Jensen is Burgum’s first appointee to the state’s highest court.
  • The five justices of the North Dakota Supreme Court are elected in nonpartisan elections for terms of 10 years. In the case of a midterm vacancy, the governor may appoint a new justice to serve for two years. After the two-year period, the appointed justice must stand for election to serve the remainder of the original 10-year term.

Illinois budget deal aftermath: state avoids junk credit rating from S&P, but state aid to schools is still in question

  • S&P Global Ratings announced that Illinois has been removed from a credit watch list after passing a state budget on July 6. This means that the state’s credit rating is no longer in immediate danger of being downgraded to junk status by S&P. Moody’s Investor Services, another credit rating agency, has not yet said whether Illinois’ credit rating will be downgraded. On July 5, the day before the budget was passed, Moody’s warned that it might downgrade Illinois bonds to junk status regardless of whether the budget became law. It cited Illinois’ unfunded pension liabilities as a long-term fiscal weakness that was not addressed in the budget deal.
  • On July 6, the Democratic-controlled Illinois House of Representatives overrode Gov. Bruce Rauner’s (R) vetoes of the provisions in the budget deal, resulting in the passage of the first state budget since 2014. The budget deal contained $36 billion in spending and increases in the personal income and corporate tax rates. The budget passed the state House on July 2. On July 4, it passed the state Senate and was subsequently vetoed by Rauner. The Senate voted to override Rauner’s vetoes later that day and the House did so on July 6. Without a state budget, Illinois faced a partial shutdown of government services including transportation projects and the state lottery.
  • Despite the inclusion of $8.2 billion in state aid for schools in the budget, much of the aid may not be delivered unless a new formula determining how money is allocated to schools is passed. The budget contained a provision tying $6.76 billion of the aid to the passage of an evidence-based funding formula, which is not currently in place in Illinois. An evidence-based formula allocates money based on elements such an income and considers a district’s demographics and enrollment numbers. In May, the legislature passed SB 1, a bill which included an evidence-based formula. Rauner has indicated that he will veto SB 1, saying that it benefits Chicago at the expense of other school districts. Senate President John Cullerton (D) is currently holding the bill and has not sent it to Rauner’s desk for a potential veto.
  • See more here: State budget conflicts, 2017

Maryland State Treasurer halts payment of two acting secretaries

  • Maryland State Treasurer Nancy Kopp announced on Wednesday that her office was halting payment to Acting Secretary of Health Dennis Schrader and Acting Secretary of Planning Wendi Peters following a legal opinion by Attorney General Brian Frosh (D) that paying the two would be illegal. The opinion was based on a clause that was inserted into the state's fiscal year 2018 budget shortly before its passage prohibiting the payment of acting secretaries who had not been confirmed by the Maryland State Senate.
  • The debate over the two members of Governor Larry Hogan's (R) cabinet stretches back to March, when the Maryland State Senate's Executive Nominations Committee voted against recommending the nomination of Peters, causing Hogan to withdraw her nomination but allow her to continue to serve in an acting capacity. In April, Hogan withdrew Schrader's nomination just before the end of the scheduled legislative session, then renominated both Peters and Schrader, allowing them to continue to serve in an acting capacity until the next legislative session. Legislators responded by inserting a provision into the state's 2018 budget prohibiting the payment of salaries to any acting secretaries who had not received confirmation.
  • With the beginning of the 2018 fiscal year on July 1, the Maryland Comptroller's office, which is responsible for payment of state employees, asked Frosh whether to continue to pay the salaries of the two officers, noting that it was planning on paying their salaries in the absence of a successful legal challenge. On July 7, Frosh issued an opinion that the provision inserted by the Legislature into the budget bill was valid, and that it would be illegal for Schrader and Peters to continue to receive salaries. It was on the basis of that opinion that Kopp intervened on Wednesday, ordering the Comptroller to cease further payment to the two and to decrease the size of their final paychecks to ensure that they were not being paid for work performed after June 30.
  • The standoff has raised legal questions in Maryland over whether it is legal under the state constitution for the governor to withdraw and immediately re-nominate appointees to lengthen the period of time they can serve without confirmation and for the Legislature to expressly forbid the payment of unconfirmed nominees in a budget bill, a practice which has been in use under both Democratic and Republican governors since 2004.
  • This is not the first example of clashes between Hogan and the majority-Democratic state Legislature. In February, the Legislature passed a resolution expanding the powers of Attorney General Brian Frosh by allowing him to sue the federal government without first obtaining permission from the governor - a power which was used in June when Frosh, alongside District of Columbia Attorney General Karl Racine, sued President Trump over alleged violations of the emoluments clause. Less than two weeks later, an attempt by the Governor to repeal a bill requiring the ranking and prioritization of state transportation projects ground to a halt.
  • Maryland is one of 17 states where the governor, attorney general, and secretary of state are not all from the same party, meaning it is under divided triplex control. In 13 of those states, the governor and attorney general are of different parties. Maryland is one of nine states that have a Democratic attorney general and a Republican governor, and one of five where both houses of the legislature are also under a Democratic majority.

Thursday, July 13

With a looming marijuana shortage in Nevada, state Tax Commission aims to increase flow to retailers

  • The state Tax Commission unanimously passed a resolution to increase wholesale distribution of marijuana by allowing medical marijuana facilities to attain distribution licenses if alcohol wholesalers were not providing enough product to retailers. The legal sale of marijuana in Nevada began on July 1, 2017—almost nine months after voters passed Question 2 to legalize recreational marijuana and six months before the originally set start date of January 1, 2018. By July 7, the Department of Taxation reported that sales were exceeding expectations, stores were running low on stock, and that a shortage would "bring this nascent market to a grinding halt.” In response, Gov. Brian Sandoval (R) issued a statement of emergency for marijuana regulations. Question 2 was designed to allow alcohol wholesalers to transport marijuana from cultivators to recreational retailers for the first 18 months of sales.
  • The state Tax Commission initially attempted to include medical marijuana facilities in the transportation of recreational marijuana. On June 20, 2017, Judge James Wilson of the First Judicial District Court—ruling in a lawsuit filed by members of Independent Alcohol Distributors of Nevada—stopped the commission’s regulation from going into effect, saying that Question 2 gave alcohol distributors the exclusive right to distribute marijuana to retailers for 18 months. Deonne Contine, the Department of Taxation's executive director, said that seven alcohol wholesalers had applied for marijuana distribution licenses as of July 13, 2017. The department issued licenses to two of them. There are around 70 alcohol wholesalers in Nevada. The Department of Taxation identified the lack of distributors as part of the reason for the shortage. The regulation passed on Thursday was similar to the one proposed before legal sales commenced and that was stopped by Judge Wilson. It authorized the Department of Taxation to award distribution licenses to medical marijuana facilities if the department concluded that relying on alcohol wholesalers alone would result in a marijuana shortage.
    • Four states passed initiatives to legalize recreational marijuana in 2016: California, Maine, Massachusetts, and Nevada. Arizona voters also decided a marijuana legalization initiative, but they defeated it. Legislators in Maine and Massachusetts—two of 12 states with no restrictions on how soon or with what majority the legislature can amend or repeal initiative statutes—passed legislation to delay retail sale of marijuana until February 2018 and July 2018, respectively. The Maine initiative originally set retail sales to begin in September 2017; and the Massachusetts initiative was designed to allow retail sales beginning on January 1, 2018.
    • California’s initiative was designed to allow retail sales of recreational marijuana starting on January 1, 2018. California law does not allow the legislature to amend or repeal citizen initiatives.

Friday, July 14

Filing deadline reached in Louisiana treasurer special election

  • Friday was the filing deadline for candidates seeking to run in this year's special election for Louisiana State Treasurer. Six candidates have filed to appear on the October 14 ballot - one Democrat, four Republicans, and one Libertarian.
  • The election was triggered by the resignation of former Treasurer John Neely Kennedy, who was elected to the U.S. Senate in December 2016. Due to a delay in the processing of Kennedy's resignation paperwork, the election was unable to be held during the March special election season. Kennedy had held the position of Treasurer since 2000.
  • Democrat Derrick Edwards and Libertarian Joseph D. Little are joined by Republicans Neil Riser, John Schroder, Mike Lawrence, and Angele Davis. A fifth Republican candidate, Julie Stokes, dropped out of the race last week following a breast cancer diagnosis. Under the Louisiana election system, all six declared candidates will compete in a joint primary on October 14. If one candidate receives more than 50 percent of the vote, they will become the new treasurer. Otherwise, a runoff election will be held on November 18 between the top two candidates.

Special Elections

As of this week, 33 state legislative seats have been filled through special elections in 2017 and another 34 special elections have been scheduled in 20 states. Elections have been held for 14 Democratic seats and 19 Republican seats. Democrats have flipped four seats as a result of special state legislative elections in 2017. Republicans have flipped up one seat. In special elections between 2011 and 2016, one party (either Republicans or Democrats) saw an average net gain of three seats across the country each year. The number of net seats won and lost by Democrats and Republicans in state legislative special elections in 2017 has, so far, been similar to prior years. Due to redistricting, additional state legislative special elections may be held in North Carolina in 2017. The special elections have been called in response to a federal court order that ruled 28 state legislative districts unconstitutional because of racial gerrymandering. The U.S. Supreme Court, however, issued an order on January 10, 2017, halting the 2017 special elections in North Carolina. The change would move elections under new maps to the regularly scheduled 2018 elections. The court is expected to decide whether to take up an appeal of this order.

  • An average of 89 seats were filled through special elections in each of the past three odd years ( 2011: 94, 2013: 84, 2015: 88).
  • An average of 44 seats were filled through special elections in each of the past four even years ( 2010: 26, 2012: 45, 2014: 40, 2016: 65).

Upcoming special elections include:

July 18, 2017

July 25, 2017

Local Politics: The Week in Review

Elections Update

Saturday, July 8

Minneapolis mayor finishes third in endorsement vote at D-F-L party convention

  • The Minneapolis Democrat-Farmer-Labor party concluded its convention but did not officially endorse a candidate in the city’s mayoral race. For the party to issue a formal endorsement, a candidate must receive 60 percent of the votes of the delegates in attendance. Minnesota State Representative Raymond Dehn won the support of just over 32 percent of the delegates, Minneapolis City Council member Jacob Frey was second with just under 28 percent, and incumbent Mayor Betsy Hodges placed third with the support of 24 percent of delegates. Seven D-F-L candidates were seeking the party’s endorsement. Minneapolis will hold general elections for mayor and all 13 seats on its city council on November 7, 2017. The filing deadline for candidates who wish to run in this election is August 15, 2017. Minneapolis is the largest city in Minnesota and the 46th-largest city in the U.S. by population.

Monday, July 10

Seattle City Council approves income tax, but proposal faces potential lawsuit

  • The Seattle City Council unanimously approved an income tax ordinance that places a 2.25 percent income tax on all single residents with annual incomes over $250,000 and married residents with annual incomes over $500,000. The city estimates that the tax will generate about $125 million in net revenue. Supporters claim that an income tax is also necessary because the city’s current funding mechanism, which relies primarily on sales and property taxes, creates income inequality among city residents. The new ordinance is likely to attract a legal challenge before it takes effect in 2018 because of a 1984 state law that prohibits income taxes by cities or counties. Opponents argue that the city shouldn’t spend money on lawsuits to defend a tax which is not needed, and they also contend that the lack of an income tax in Seattle gives the city a competitive advantage to recruit businesses and jobs. Seattle will hold primary elections for mayor, city attorney, and two at-large seats on the city council on August 1, 2017. Seattle is the largest city in Washington and the 21st-largest city in the U.S. by population.
    • Ballotpedia reached out to the candidates for mayor, city council, and city attorney for comment on the income tax issue, which can be read here.

Los Angeles school board members to receive 174 percent raise

  • Members of the Los Angeles Unified School District (LAUSD) Board of Education who do not have any additional employment will receive a 174 percent raise, increasing their yearly salaries from $45,637 to $125,000. Those who receive payment from other employment will see their board salaries slightly less than double, increasing from $26,437 a year to $50,000 a year. The new salaries—the first raise given to board members in 10 years—were approved by the LAUSD Board of Education Compensation Review Committee on July 10, 2017, and will take effect in September 2017. Compensation for board of education members was required to be reviewed every five years under the Los Angeles City Charter. The LAUSD was the second-largest school district in the U.S. by enrollment, serving 646,683 students during the 2014-2015 school year—approximately 10 percent of all public school students in California.
    • A nonpartisan general election was held for two of the seven seats on the LAUSD school board on May 16, 2017. A third seat, in District 2, was decided in a primary election held on March 7, 2017. During the election cycle, candidates raised a total of roughly $1.9 million in the LAUSD primary and general races. This was nearly $800 million more than what was raised during the district’s elections in 2015. In District 4, board president Steve Zimmer was defeated by challenger Nick Melvoin, while Kelly Fitzpatrick-Gonez defeated Imelda Padill in the race for the open District 6 seat. Zimmer and Padilla were endorsed by United Teachers Los Angeles (UTLA) and U.S. Sen. Bernie Sanders (I), while Melvoin and Fitzpatrick-Gonez were endorsed by the California Charter Schools Association. Prior to the primary election, the teachers union sent out mailers that Melvoin said portrayed him as a supporter of President Donald Trump (R) and Secretary of Education Betsy DeVos. Melvoin fought against that portrayal in his general election campaign. He said he worked on Hillary Clinton's presidential campaign and was a lifelong Democrat. For more information about issues in the LAUSD Board of Education race in 2017, please click here.

Columbus mayor and council support firing of police officer videotaped kicking suspect

  • Both Columbus Mayor Andrew Ginther and the Columbus City Council stated their support for a decision by the city’s public safety director to fire a police officer for using what was described as unreasonable force. The police officer was videotaped kicking the head of a handcuffed suspect who was lying on the ground during an arrest in April. Mayor Ginther issued a statement saying the decision “was not a choice between supporting the police or supporting the community. It was about supporting fairness and due process.” The city council and the Columbus chapter of the NAACP also released statements concurring with the outcome of the case. The president of the union representing the officer stated that the use of force in this case was justified and that the video was taken out of context. He also stated they would appeal the decision to fire the officer. Columbus will hold general elections for three of seven at-large seats on the city council on November 7, 2017. Columbus is the largest city in Ohio and the 15th-largest city in the U.S. by population.

Local ballot measure elections in California; Chino voters reject a development measure

  • Local voters in two of California’s 58 counties decided four different local ballot measures. Three measures were proposed parcel taxes for special districts; two were approved, and one was defeated. The fourth— Chino Measure H—was designed to authorize the rezoning of nearly 30 acres to allow a density of six residential units per acre instead of the one home per acre that was allowed prior to the election, thereby increasing the total number of homes allowed from 30 to 180. Measure H was defeated. The proposed development plan that would have been allowed by this zoning change was designed to incorporate 87 homes on 4,500 square foot lots, 73 condo homes on 2,800 square foot lots, 12 homes on 7,000 square foot lots, and eight homes on quarter-acre lots. The project developer, D.R. Horton, was made responsible for paying the estimated $200,000 cost of the special election.

Tuesday, July 11

Fort Wayne City Council approves tax increase

  • The Fort Wayne City Council approved a measure by a 6-3 vote to increase the county income tax from 1.35 percent to a new rate of 1.48 percent. The increase, which was slightly less than that originally proposed by Mayor Tom Henry (D), is expected to generate over $8 million in additional revenue for the city. One-third of the additional revenue is legally required to pay for improvements to sidewalks and alleyways, while the rest will be used to fund future development projects along Fort Wayne’s riverfront. Opponents of the plan attempted to insert provisions to cause the tax increase to expire after a certain amount of time, but these efforts were unsuccessful. Councilman Jason Arp, who opposed the tax, contended that not enough consideration was given to other means of funding besides raising the income tax. Four of the city council’s seven Republicans and two Democrats voted in favor of the tax increase. Fort Wayne next holds elections for mayor and all nine members of the city council in 2019. Fort Wayne is the second-largest city in Indiana and the 76th-largest city in the U.S. by population.

Arkansas school board seats attract few candidates

  • The filing deadline passed to run in nonpartisan general elections on September 19, 2017, for a total of nine school board seats across seven of the largest school districts in Arkansas. Four of these districts are in the Northwest Arkansas metro area: Bentonville School District, Fayetteville Public Schools, Rogers School District, and Springdale Public Schools. According to the U.S. Census Bureau, this was the fastest growing area in the state and the 22nd-fastest growing metro area in the nation between 2015 and 2016. Across all seven districts holding elections in the state, just two school board seats feature more than one candidate, although a candidate list in one district is not yet available. These seven school districts served a total of 97,622 students during the 2014-2015 school year, which is approximately 20 percent of all public school students in the state.

California healthcare district board member recalled on second attempt

  • An effort to recall Dr. Parmod Kumar from the board of the Tulare Local HealthCare District in California was approved. Kumar was the director of the board, having served since 1994, and had survived a recall effort against him in 2013. Just over 80 percent of the nearly 900 voters who cast ballots in the election supported the recall. Senovia Gutierrez received almost 75 percent of the vote in a concurrent election to succeed Kumar on the board. The district had issued $85 million in bonds in 2007 to pay for improvements and additions to the Tulare Regional Medical Center. However, work on the hospital has not been completed, and voters rejected a ballot measure in 2016 to issue an additional $55 million in bonds to finance the completion. The recall of Kumar was initiated in September 2016 by a citizens’ group upset over the delays to the project and who alleged financial mismanagement by the board. Kumar argued that he was committed to the completion of the hospital additions, and he contended that recall supporters had issues with him personally. Tulare County is located in central California, southeast of Fresno.

Democrats hold seat St. Louis Board of Aldermen seat in special election

  • Heather Navarro (D) won a special election to become the next Ward 28 representative on the St. Louis Board of Aldermen. Navarro received almost 69 percent of the vote against three opponents to fill a vacancy resulting from Mayor Lyda Krewson’s (D) election to the city’s top job in April. Navarro’s victory means that all 29 current members of the St. Louis Board of Aldermen are Democrats. St. Louis is the second-largest city in Missouri and the 58th-largest city in the U.S. by population.

Wednesday, July 12

Denver mayor identifies his choice of city projects to be funded by $937 million bond issue

  • Denver Mayor Michael Hancock released a list of over 460 city projects he argued should receive funding from a proposed $937 million general obligation bond issue that will go before voters on November 7, 2017. The process to determine what projects will receive the proceeds from the bond has been ongoing since late last year, and the city council will make a final determination by mid-August. Issuance of the bond is not expected to require a tax increase, since rising property valuations in Denver are expected to fund repayment of the bonds over a 10-year period. Under the mayor’s proposal, over half the funds would be spent on transportation-related projects, with the remainder going toward city infrastructure, parks and recreation areas, and cultural facilities. Denver next holds elections for mayor and all 13 members of the city council in 2019. Denver is the largest city in Colorado and the 22nd-largest city in the U.S. by population.

Honolulu bans plastic bags

  • The Honolulu City Council unanimously passed a measure that will ultimately ban retailers’ use of plastic bags in the city, which Mayor Kirk Caldwell is expected to sign. The ban will be implemented in two phases, with businesses being forced to charge customers 15 cents per bag, starting next year. Retailers will then be prohibited from using plastic bags altogether in 2020. Opponents of the ban wanted to preserve the ability for businesses to offer plastic bags for a fee, while some environmental groups wanted the prohibition on plastic bags to go into effect earlier. The measure does not apply to plastic bags used for take-out food and at farmers’ markets. Honolulu is the largest city in Hawaii and the 54th-largest city in the U.S. by population.

Thursday, July 13

Filing deadline passes for mayor, all 51 NYC city council seats, and borough presidents

  • In New York, the filing deadline passed to run in general elections for municipal office in its two largest cities and their counties. Partisan primary elections will be held on September 12, 2017, and the general elections are scheduled for November 7, 2017.
    • In New York City, the filing deadline passed to run in general elections for mayor, public advocate, comptroller, and all 51 seats on the city council. New York City is the largest city in the U.S. by population.
      • Mayor Bill de Blasio (D) faces five challengers for the Democratic Party nomination, according to a candidate list from the city board of elections. His campaign benefits from other elected Democrats declining to challenge him, a 6-to-1 registration advantage for Democrats in the city, and a sizable campaign finance advantage. Republican candidate Nicole Malliotakis secured the support of the Conservative Party, which will enable her to appear on multiple lines on the November ballot if she wins the Republican primary. There are four candidates in total vying for the Republican nomination. Learn more about the dynamics of the mayoral race by clicking here.
      • Seven members of the city council, including District 8 Councilwoman and Speaker Melissa Mark-Viverito (D), are ineligible to run for re-election in 2017 due to term limits. Six candidates filed for the Democratic nomination for Mark-Viverito’s District 8 seat. District 21 Councilwoman Julissa Ferreras-Copeland (D), who was expected to be a front-runner to replace Mark-Viverito in the speaker's chair, opted not to run for re-election. Two open questions about the race to succeed Mark-Viverito as speaker include who Democratic county leaders will back and how much influence the mayor will have.
      • In Bronx County, also known as the Borough of Bronx, the filing deadline passed to run in the general election for borough president. Incumbent Ruben Diaz Jr. (D) is running for a third term. The borough president is responsible for making budget recommendations to the mayor of New York, proposing legislation in the New York City Council, appointing borough representatives to commissions and boards, and holding public hearings on borough issues. Diaz faces two challengers for the Democratic nomination. Bronx County was home to 1,428,357 residents in 2015, according to the U.S. Census Bureau.
      • The filing deadline passed to run in the general election for borough president and district attorney in Kings County—also known as the Borough of Brooklyn. Incumbent Eric Adams (D) is seeking a second term in office and faces two challengers. Kings County was home to 2,595,259 residents in 2015, according to the U.S. Census Bureau.
      • The filing deadline passed to run in the general election for borough president in New York County—also known as the Borough of Manhattan. Incumbent Gale Brewer (D) was the only Democrat to file for the race and will face a Republican and a Reform Party opponent. New York County was home to 1,629,507 residents in 2015, according to the U.S. Census Bureau.
      • In Queens County—also known as the Borough of Queens—the filing deadline passed to run in the general election for borough president. Incumbent Melinda Katz (D) is seeking a second term and faces one Democratic challenger in the primary. Queens County was home to 2,301,139 residents in 2015, according to the U.S. Census Bureau.
      • The filing deadline to run in the general election for Staten Island Borough President passed in Richmond County. Incumbent James Oddo (R) is running for a second term and will face two opponents in the general election. Richmond County was home to 472,481 in 2015, according to the U.S. Census Bureau.
    • The filing deadline passed to run in the general election for mayor and two city judgeships in Buffalo. Mayor Byron Brown (D) announced his intention to run for a fourth term, and he faces at least four challengers, including city comptroller Mark Schroeder (D) and Erie County Legislator Betty Jean Grant (D). Buffalo is the second-largest city in the state and the 73rd-largest city in the U.S. by population.
      • In Erie County, which contains Buffalo, the filing deadline passed to run in the general election for all 11 county legislative seats, county clerk, sheriff, and comptroller. The county was home to 921,584 residents in 2015, according to the U.S. Census Bureau.

Filing closes for school board seats in two upstate New York school districts

  • The filing deadline passed to run in nonpartisan elections for six school board seats in two of New York’s largest school districts by enrollment, both located in upstate New York. The Rochester City School District and the Syracuse City School District will each hold general elections for three seats each on November 7, 2017. If enough candidates file to run, a primary election may be held on September 12, 2017. These two school districts served a total of 51,124 students during the 2014-2015 school year—approximately 1.9 percent of all public school students in the state.

Friday, July 14

Eighteen candidates file to replace Mitch Landrieu as New Orleans mayor

  • The filing deadline passed to run in nonpartisan primary elections for mayor and all seven city council seats in New Orleans. Eighteen candidates filed to succeed Mitch Landrieu, who is term-limited and cannot run for re-election. There are at least two open-seat races for city council, as District A councilwoman Susan Guidry in ineligible to run for re-election due to term limits, and District B councilwoman LaToya Cantrell is running for mayor. Primary elections will be held on October 14, 2017, and if no candidate receives 50 percent of the primary vote, general elections will be held on November 18, 2017. New Orleans is the largest city in Louisiana and the 51st-largest city in the U.S. by population.
    • The filing deadline also passed to run in nonpartisan primary elections for assessor, civil court clerk, coroner, criminal court clerk, and sheriff in Orleans Parish. These elections will also be held on October 14, 2017, and if no candidate receives 50 percent of the primary vote, general elections will be held on November 18, 2017.

Toledo mayor seeks election to first full term

  • The filing deadline passed to run in nonpartisan primary elections for mayor, city council, and the clerk of court in Toledo, Ohio. Incumbent Mayor Paula Hicks-Hudson is running for her first full term in that office after she won a special election in 2015 to complete the term of the late D. Michael Collins. The primary election will be held on September 12, 2017, and the top two finishers in each race will appear on the general election ballot on November 7, 2017. Since there are six at-large city council positions, a primary election will only be held if more than 12 candidates qualify to run. Toledo is the fourth-largest city in Ohio and the 67th-largest city in the U.S. by population.
    • The filing deadline also passed to run for four seats on the Toledo Municipal Court in the general election on November 7, 2017.

Filing deadline passes for special elections in two Louisiana school boards

  • The filing deadline passed to run in nonpartisan primary elections for one school board seat in each of two of Louisiana’s largest school districts by enrollment. These special elections, in the East Baton Rouge Parish School System and the Tangipahoa Parish School System, were called for seats that are currently being held by appointed board members filling vacancies caused by resignations. These elections, which will be held concurrently with statewide and municipal elections, are on October 14, 2017, and if no candidate receives greater than 50 percent of the vote, the top two candidates will run in general elections on November 18, 2017. These two school districts served a total of 61,787 students during the 2014-2015 school year—approximately 8.7 percent of all public school students in the state.

Filing deadline passes for local courts in Louisiana

  • The filing deadline passed to run in nonpartisan primary elections for six district judge positions and several local court judgeships in Louisiana. These elections, which will be held concurrently with statewide and municipal elections, are on October 14, 2017, and if no candidate receives greater than 50 percent of the vote, the top two candidates will run in general elections on November 18, 2017.
WHAT'S ON TAP NEXT WEEK

Here's what is happening in state and local politics this week. To see what happened in federal politics, click here.

State Politics: What's On Tap Next Week

Monday, July 17

Massachusetts Governor Charlie Baker faces deadline to sign the 2018 budget

  • Gov. Charlie Baker (R) has until July 17, 2017, to review a state budget submitted to him by the legislature last week and issue any line-item vetoes. If left unsigned, the budget will immediately become law. On July 7, 2017, the Massachusetts state Legislature approved a $40.2 billion state budget plan. The House voted 140-9 in favor of the budget, while the Senate backed it 36-2. The budget closes a $733 million budget gap from the 2017 fiscal year. The plan projects tax revenues to grow at 1.4 percent, a decrease from a previous estimate of 3.9 percent. The budget cuts about $400 million from the budget proposals that were passed by the House and Senate months ago. The budget increases spending on education and local aid but cuts and reduces funding in multiple areas. It reduces funding that helps cities and towns pay for special education costs and eliminates $104 million for a reserve fund to cover spending in local sheriff offices and the state public defender agency.
  • Democrats hold veto-proof majorities in both chambers of the legislature. Two-thirds of the members present in each chamber—107 seats in the House and 27 seats in the Senate—are required to override a veto. With two vacancies, Democrats hold a 32-6 majority in the Senate. Democrats have a 124-35 majority with one vacancy in the state House.
  • Massachusetts’ 2018 fiscal year began on July 1, 2017, without a state budget. Gov. Baker signed a $5.2 billion stopgap budget in late June 2017 to keep the government operating at the start of the 2018 fiscal year.
  • Massachusetts is one of 19 states operating under divided government. Democrats control both chambers of the Massachusetts General Court, while Republicans control the governor’s office.
  • Read more here: State budget conflicts, 2017

Tuesday, July 18

Special legislative session in Texas to decide the fate of bathroom bill and property tax legislation

  • Legislators in Texas will return to the capital for a 30-day special session. Gov. Greg Abbott (R) called the special session after the legislature failed to pass sunset legislation that would prevent the shutdown of five government agencies, including the Texas Medical Board. Abbot’s special session proclamation and supplemental call allowed for a more broad range of matters to be taken up during the special session. Among the 20 items on Abbott’s special session agenda is legislation related to bathroom usage, changes to property taxes, school finance, and mail-in ballot fraud.
  • Abbott has expressed support for bathroom legislation—HB 2899—authored by Representative Ron Simmons (R). The bill, which aims to limit bathroom use to the sex of the individual at birth, did not make it past a House committee during the regular session. Abbott said about the issue, “at a minimum, we need a law that protects the privacy of our children in our public schools.” Lieutenant Gov. Dan Patrick (R) also voiced support for the legislation, saying, “I think the handwriting is on the bathroom wall: Stay out of the ladies’ room if you’re a man.” House Speaker Joe Straus (R) called the issue “manufactured and unnecessary,” and expressed concerns about economic fallout for such a bill.
  • During the regular session, the Senate passed SB 2, which would require local governments to get voter approval if a proposed tax rate was expected to increase tax revenue by more than 5 percent of what was collected in the previous year. The current threshold for approval by voters is set at 8 percent. SB 2 did not make it out of the House Ways and Means Committee. Members of the two chambers disagree on when and how property tax increases could be challenged by voters.
  • Only the governor of Texas has the authority to call a special session of the Legislature, and the governor also sets the time and agenda of the session. Special sessions are limited to 30 days, though the governor can call as many sessions as he or she wants. Estimates of the costs of special sessions in Texas have ranged from $700,000 to more than $800,000. The Texas Legislature meets every two years. Its next regular session is scheduled for 2019.
  • A group of 12 Republican representatives known as the Texas Freedom Caucus played a role in the legislature’s failure to renew the Texas Medical Board during the regular session. On May 11, the caucus used procedural tactics in the House rules (blocking legislation not expected to generate debate from being fast tracked) to prevent votes on more than 100 pieces of legislation, including bills renewing the medical board and other state agencies. The caucus released a statement in support of a special session and the agenda items established for the special session.
  • Texas is one 25 Republican state government trifectas. All 150 seats in the Texas House are up for election next year along with 15 seats in the Senate. The governorship and lieutenant governorship are also up for election and are elected on separate tickets. Gov. Greg Abbott (R) was first elected in 2014 and has stated his intentions to run for re-election. Lt. Gov. Dan Patrick was also first elected in 2014 and will run for re-election in 2018. He was rumoured as a possible primary challenger to Abbott in 2018 but endorsed Abbott’s bid for re-election earlier this year, saying, “We have a strong working relationship and he is my conservative ally.” The governor of Texas is not subject to term limits.

Special primary election to fill seat of former Democratic Senate President in Rhode Island

Special elections to fill Republican and Democratic House seats in New Hampshire

Connecticut House of Representatives expected to vote on two-year budget deal

  • July 18 is when Joe Aresimowicz (D), the speaker of the Connecticut House of Representatives, expects his chamber to vote on a two-year budget deal, although he indicated that the vote could be pushed back until later in the month. Connecticut has been without a budget since the 2018 fiscal year began on July 1. Government services are being funded at a reduced level via an executive order signed by Gov. Dan Malloy (D).
  • A budget failed to pass due to disagreements between House and Senate Democrats as well as disagreements between the two parties, which are represented in almost equal numbers in the legislature. Points of disagreement include tax increases, labor relations with the state employees union, and the $5.1 billion budget deficit the state faces over the next two years. Democrats control the state House by a 79-72 margin and have effective control of the evenly divided state Senate because Lieutenant Gov. Nancy Wyman (D) can cast tie-breaking votes. Connecticut is one of six Democratic trifectas. The regular legislative session adjourned on June 7, meaning any additional meetings of the General Assembly will occur in a special session.
  • Both the Democratic and Republican caucuses in the state House have released budget plans. On June 29, House Democrats released a plan that would increase the statewide sales tax. On July 11, House Republicans released a proposal that did not raise taxes, focusing instead on changes in the compensation of state employees. If an agreement emerges, it may contain elements from both proposals. According to The Hartford Courant, even though the Democrats are in the majority, their members are divided between a faction seeking to prevent tax increases and a faction seeking to prevent cuts to social programs. State Rep. Vincent Candelora (R) said, “I think everybody in this building realizes a budget cannot pass without Republican support.
  • Malloy pushed for lawmakers to call a special session before June 30 and pass a 90-day temporary budget. Aresimowicz resisted the idea, saying that he and the House Democrats wanted to first see “the parameters or the foundation to what could be a two-year biennium budget that moves the state of Connecticut forward,” before agreeing to a temporary budget. Leaders in the Connecticut State Senate, including President Pro Tempore Martin Looney (D), were supportive of a 90-day temporary budget. A temporary budget could fund state government services at a higher level than Malloy’s executive order while lawmakers work toward a two-year deal.
  • Read more here: State budget conflicts, 2017
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Local Politics: What's On Tap Next Week

Saturday, July 15

Runoff election to replace fourth city council incumbent in El Paso

  • A special runoff election will be held to elect the District 8 representative of the El Paso City Council. This election is necessary to fill the vacancy caused by the resignation of councilwoman Cortney Niland, who announced on April 4, 2017, that she would leave the council. Niland, who was elected to her second term in 2015, was one of five city officials alleged to have violated Texas' Open Meetings Act by attending closed door meetings about proposed locations for a city arena. Just one of those officials, District 1 Councilman Peter Svarzbein, will remain in office following Niland's departure. Mayor Oscar Leeser opted not to run for re-election this year, and District 2 Councilman Jim Tolbert and District 7 Councilwoman Lily Limon were defeated in their 2017 bids for re-election. The runoff features Robert Cormell and Cecilia Lizarraga, who were the top two vote-getters among five candidates in the special election held on June 10, 2017. Both candidates have said they would not block the city’s plan to construct the arena downtown. El Paso is the sixth-largest city in Texas and the 19th-largest city in the U.S. by population.

School board filing deadline will pass in two South Carolina school districts

  • The filing deadline will pass to run in nonpartisan general elections for 10 school board seats in two of South Carolina’s largest school districts by enrollment. Spartanburg County School District 6 and Spartanburg School District 2 are holding elections for five school board seats each on November 7, 2017. These two school districts served a total of 21,245 students during the 2014-2015 school year—approximately 2.9 percent of all public school students in the state.

Tuesday, July 18

Broomfield council member faces recall after dispute over oil and gas projects

  • A mail-in recall election of Broomfield City Councilman Greg Stokes will conclude. Three residents initiated the recall effort in February 2017 over allegations that Stokes did not disclose investments in oil and gas projects awaiting approval by the city council. The petition also cited his support for a memorandum of understanding with Extraction Oil & Gas despite concerns from residents about the health impacts of new energy projects. Stokes countered that he holds no financial interest in the company and supports reducing well counts and moving wells away from residential areas. Jason Anderson and Brian Devine are running to replace Stokes if he is recalled. Stokes was first elected in 2009 and is unable to seek re-election in November 2017 due to term limits. Broomfield is located in north-central Colorado and is considered part of the Denver metropolitan area.

Friday, July 21

Raleigh, NC, filing deadline will pass, incumbent mayor McFarlane seeking fourth term

  • The filing deadline will pass to run in nonpartisan elections for mayor and all seven seats on the city council in Raleigh, North Carolina. These elections will be held on October 10, 2017, and for those races where no candidate receives greater than 50 percent of the vote, runoff elections will be held on November 7, 2017. Mayor Nancy McFarlane is seeking her fourth two-year term. McFarlane has received greater than 60 percent of the vote in each of her three previous elections for mayor. Raleigh is the second-largest city in North Carolina and the 43rd-largest city in the U.S. by population.

Filing deadline passes in Durham, NC, where eight-term mayor Bill Bell is retiring

  • The filing deadline will pass to run in nonpartisan elections for mayor and three of six seats on the city council in Durham, North Carolina. If more than two candidates file for a race, primary elections will be held on October 10, 2017, with the top two vote-getters advancing to general elections on November 7, 2017. Mayor Bill Bell is not seeking re-election to what would have been his ninth two-year term, meaning the city will have its first new mayor since 2001. Bell was re-elected in 2015 with more than 86 percent of the vote. Durham is the fourth-largest city in North Carolina and the 82nd-largest city in the U.S. by population.

Greensboro, NC, filing deadline will pass, it’s the first election with four-year terms

  • The filing deadline will pass to run in nonpartisan elections for mayor and all eight seats on the city council in Greensboro, North Carolina. If more than two candidates file for a race, primary elections will be held on October 10, 2017, with the top two vote-getters advancing to general elections on November 7, 2017. In 2015, voters in the city approved a referendum establishing four-year terms for the mayor and city council. Previously, these officials served two-year terms. The change takes effect with this year’s elections. Greensboro is the third-largest city in North Carolina and the 68th-largest city in the U.S. by population.

New Hampshire school board filing deadlines will pass

  • The filing deadline will pass to run in nonpartisan general elections for 18 school board seats in two of New Hampshire’s largest school districts by enrollment. This includes 14 of the 15 seats on the Manchester School District board and four of nine seats on the Nashua School District board. The general elections will be held on November 7, 2017. These two school districts served a total of 26,353 students during the 2014-2015 school year—approximately 13.9 percent of all public school students in the state.

School board filing will close in second-largest school district in North Carolina

  • The filing deadline will close to run in nonpartisan general elections for 16 school board seats in four of North Carolina’s largest school districts by enrollment. This includes the second-largest school district in the state, the Charlotte-Mecklenburg School district, where six of the nine seats on the board are up for election on November 7, 2017. These four school districts served a total of 186,324 students during the 2014-2015 school year—approximately 12.3 percent of all public school students in the state.


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