DCF issued guidelines
that include having the medical staff perform a clinical evaluation of children
under age six who present with traumatic injuries. This involves having a child
disrobe and put on a gown so the staff can do a complete exam. The next step is
to check the child's medical records to see if there were previous injuries or
referrals to DCF.
November 22, 2012
CT Health Care Facilities To Look For Child Abuse And Neglect
The Hartford Courant recently reported
that the Department of Children and Families and the state's hospitals and
clinics have teamed up to help the medical community recognize and identify
child abuse or neglect when a child presents with unexplained injuries. The
hope is that by doing so, interventions can occur to prevent additional abuse
or even death.
November 21, 2012
Banks Face Billions in Money Laundering Fines
The
Washington
Post recently reported that London-based bank HSBC set aside $1.5 billion
to cover potential fines, settlements, and other expenses related to a money
laundering probe by the Department of Justice (DOJ) and banking regulators. HSBC
is facing both civil and criminal charges.
Historically, banking regulators primarily handled money-laundering investigations, but DOJ has recently launched several of its own criminal cases under the Bank Secrecy Act (BSA). The BSA requires financial institutions and their employees to combat money laundering. Michael Dawson, managing director of Promontory Financial Group, noted "the involvement of the Department of Justice in sanctions and enforcement actions is much greater now than it was five years ago, and the size of the fines has increased by a factor of 10 or more."
According to the article, in 2010 DOJ fined Wachovia $110 million for violating the BSA by failing to stop millions in Colombian and Mexican drug money from being laundered through its bank accounts.
The U.S. Treasury's Office of Foreign Assets Control (OFAC) has also increased money laundering fines. In 2011, OFAC fined 21 companies a total of $91 million. Through October 2012, OFAC fined 11 companies a total of $623 million.
Some speculate that the agencies' increased money laundering focus is due to congressional criticism that they were previously slow to act. Others posit that resources were reallocated to deal with the financial crisis for the past few years.
Historically, banking regulators primarily handled money-laundering investigations, but DOJ has recently launched several of its own criminal cases under the Bank Secrecy Act (BSA). The BSA requires financial institutions and their employees to combat money laundering. Michael Dawson, managing director of Promontory Financial Group, noted "the involvement of the Department of Justice in sanctions and enforcement actions is much greater now than it was five years ago, and the size of the fines has increased by a factor of 10 or more."
According to the article, in 2010 DOJ fined Wachovia $110 million for violating the BSA by failing to stop millions in Colombian and Mexican drug money from being laundered through its bank accounts.
The U.S. Treasury's Office of Foreign Assets Control (OFAC) has also increased money laundering fines. In 2011, OFAC fined 21 companies a total of $91 million. Through October 2012, OFAC fined 11 companies a total of $623 million.
Some speculate that the agencies' increased money laundering focus is due to congressional criticism that they were previously slow to act. Others posit that resources were reallocated to deal with the financial crisis for the past few years.
Hot Report: California's Self-Driving Vehicle Law
OLR Report 2012-R-0456
provides a summary of California 's
Self-Driving Vehicle law. The law, which takes effect on January 1, 2013,
allows self-driving ("autonomous") vehicles to operate on state
roads. The California legislature found that these vehicles “offer significant
potential safety, mobility and commercial benefits for individuals and
businesses,” and approved the measure to encourage their testing and operation
on California roads.
California is the third state (after Nevada and Florida) to allow the operation of autonomous vehicles. For more information, read the full report
California is the third state (after Nevada and Florida) to allow the operation of autonomous vehicles. For more information, read the full report
Federal Tax Filing and Payment Relief for Sandy's Victims
The IRS has
announced
that it is waiving various tax filing and payment deadlines and penalties for
Connecticut taxpayers who live or have businesses in the Connecticut locations
covered by the president's federal disaster declaration for Hurricane
Sandy. The declaration covers Fairfield,
Middlesex, New Haven, and New London counties and the Mashantucket and Mohegan
tribal nations. The relief also covers
taxpayers who do not live in the disaster areas but whose tax records needed are
located there; relief workers affiliated with recognized organizations; and
anyone visiting the disaster area who was killed or injured because of it.
The relief
gives affected taxpayers until February 1, 2013 to file and make payments,
including estimated payments due between October 27 and February 1. The deadline extensions apply to individual,
corporate, partnership, S corporation, and trust income tax returns and to
estate, gift, and generation-skipping transfer tax returns. The IRS is also waiving penalties for failing
to deposit employment and excise tax payments due on or after October 27 and
before November 26, as long as the payments are made by November 26. Normal fees for copies of filed tax returns
for affected taxpayers will also be waived.
Affected
taxpayers can claim disaster-related losses on 2011 or 2012 federal income tax
returns. Claiming losses on an original or amended return for 2011 brings a
faster refund but, depending on other income factors, claiming the loss on a
2012 return may generate greater tax savings, the IRS advises.
November 20, 2012
Changes in Arrests from 1990 to 2010
Using data
the FBI collects from police departments nationwide, a new report analyzes
arrest trends for different types of crimes.
The report finds that between 1990 and 2010 the:
- number of murder arrests fell by half and both
adult and juvenile arrest rates (the number of arrests per 100,000 people)
fell to their lowest levels since at least 1990,
- forcible rape arrest rate fell 59%,
- aggravated assault arrest rate fell 31%, and
- simple assault arrest rate remained largely
unchanged even though the female arrest rate rose 75% and the male arrest
rate fell 12%.
The report
notes a number of limitations to the FBI's data. In addition, the number of arrests is not the
same as the number of crimes committed and arrest trends cannot be assumed to
match crime trends.
Read the
full report, "Arrest in the United States, 1990-2010."
Federal Holiday Campaign Helps Prevent Financial Exploitation of Seniors
The federal
Elder
Locator program recently announced
a holiday campaign to encourage seniors and their families to use the holiday
season to learn about the warning signs of, and resources to prevent, the financial
exploitation of seniors.
The program
notes that such financial exploitation is often committed by a family member or
other trusted person. Signs of financial exploitation include, among other
things, (1) financial activity that is inconsistent with a senior's past
financial history, (2) confusion about recent financial arrangements, (3)
unauthorized changes to key documents, and (4) a senior who feels threatened by
a caregiver or other person who is trying to control their finances. The
program offers a guidebook
with strategies to help seniors and their families avoid such behavior.
The Elder
Locator program connects seniors with local services and resources. It is
funded by the federal Administration on Aging and administered by the National
Association of Area Agencies on Aging.
November 19, 2012
Hot Report: Criminal Record Checks and Child Support Delinquency
OLR Report 2012-R-0480 explains (1)
why Connecticut law enforcement officials do not have the authority to arrest
and bring to court delinquent child support obligors, (2) for policy options to
address this issue, and (3) if surrounding states give law enforcement officials
such authority.
When a person fails to appear in court for a child support matter, the court often issues a capias warrant to compel the person to appear in court. The law does not explicitly prohibit law enforcement officers from serving a capias but it appears that a capias is considered civil process and law enforcement officers are only authorized to serve criminal process, such as criminal arrest warrants. Child support enforcement officials believe that it is the law enforcement community's interpretation of the law that they cannot serve capias warrants and in practice they do not do so.
The legislature could consider a number of options to address this situation. It could explicitly authorize law enforcement officers to serve a capias or allow them to detain someone until another authorized official arrives. To do so, officers would need capias information in their criminal database. It could also hire and authorize more officials to serve capias warrants. Each of these options has limitations, including budget constraints.
We contacted officials in Maine, Massachusetts, New Hampshire, New York, Pennsylvania, Rhode Island, and Vermont. Rhode Island appears to be the only state of those we contacted that gives law enforcement officials the authority to arrest and bring to court child support obligors who have failed to appear in court in response to a witness subpoena. In that state, the court issues a “writ of body attachment,” which immediately gets transmitted into the Rhode Island warrant system. Law enforcement has access to this information when responding to potential criminal offenses and officers will arrest these individuals on the basis of the writs.
According to officials from Maine, Massachusetts, New Hampshire, and New York, law enforcement officers do not currently have the power to arrest someone on the basis of a capias arrest warrant. However, the Massachusetts Department of Revenue Services Child Support Enforcement Division has proposed legislation to authorize the child support agency and family courts to identify appropriate capias warrants for entry into the criminal database. Law enforcement officers would then know that the family court has ordered apprehension of the delinquent parent. It is unclear if officers would have the authority to arrest delinquent parents.
For more information, read the full report.
When a person fails to appear in court for a child support matter, the court often issues a capias warrant to compel the person to appear in court. The law does not explicitly prohibit law enforcement officers from serving a capias but it appears that a capias is considered civil process and law enforcement officers are only authorized to serve criminal process, such as criminal arrest warrants. Child support enforcement officials believe that it is the law enforcement community's interpretation of the law that they cannot serve capias warrants and in practice they do not do so.
The legislature could consider a number of options to address this situation. It could explicitly authorize law enforcement officers to serve a capias or allow them to detain someone until another authorized official arrives. To do so, officers would need capias information in their criminal database. It could also hire and authorize more officials to serve capias warrants. Each of these options has limitations, including budget constraints.
We contacted officials in Maine, Massachusetts, New Hampshire, New York, Pennsylvania, Rhode Island, and Vermont. Rhode Island appears to be the only state of those we contacted that gives law enforcement officials the authority to arrest and bring to court child support obligors who have failed to appear in court in response to a witness subpoena. In that state, the court issues a “writ of body attachment,” which immediately gets transmitted into the Rhode Island warrant system. Law enforcement has access to this information when responding to potential criminal offenses and officers will arrest these individuals on the basis of the writs.
According to officials from Maine, Massachusetts, New Hampshire, and New York, law enforcement officers do not currently have the power to arrest someone on the basis of a capias arrest warrant. However, the Massachusetts Department of Revenue Services Child Support Enforcement Division has proposed legislation to authorize the child support agency and family courts to identify appropriate capias warrants for entry into the criminal database. Law enforcement officers would then know that the family court has ordered apprehension of the delinquent parent. It is unclear if officers would have the authority to arrest delinquent parents.
For more information, read the full report.
Disaster Unemployment Assistance for Hurricane Sandy
The state's
Department of Labor (DOL) recently announced that residents of New Haven,
Fairfield, Middlesex, and New London counties who are unemployed as a direct
result of damages caused by Hurricane Sandy can apply for Disaster Unemployment
Assistance. Administered by DOL, the program is part of the federal disaster
assistance process that began when President Obama declared a major disaster in
the state on October 30th.
Interested applicants have until February 4, 2013 to apply.
Individuals,
including the self-employed, may qualify if the disaster (1) kept them form
reaching their job because they could not travel through an affected area; (2)
prevented them from starting new employment; (3) caused the death of the head
of the household, making them the major support for the household; or (4)
caused a work preventing injury.
Interested applicants have until February 4, 2013 to apply.
November 16, 2012
New state Veterans Website Launched
The
state has just launched a website (veterans.ct.gov)
that will give veterans one-stop access to services and benefits that the state
and federal government provide to veterans.
In a press release announcing the website on November 9, Governor Malloy
said: “since becoming Governor, one of my greatest honors has been to interact
with servicemen and women both when they leave for active duty and when they
return. . . .With two wars winding down, we have a responsibility to make sure
that state government is in a position to honor their service. Creating a
one-stop resource for veterans to access benefits and services is a small but
important step in that effort.”
Seat Belt Use Lower for Police Officers
A 2011
National Highway Traffic Safety Administration publication estimated
nationwide seat belt use at 84%. It explained that since 1994, seat belt use
has steadily increased while the percentage of unrestrained passenger vehicle
occupant fatalities has decreased. But not all segments of the population have
the same seat belt use percentage. The Washington
Post, citing federal data, recently reported
that seat belt use among police officers is only about 50%. This is despite
most states' laws requiring them to do so.
The Post cites several reasons why officers go unbelted, including an officer’s (1) desire to get out of the vehicle quickly; (2) concern that the belt will interfere with their gun, belt, or driving; and (3) concern that it will limit their ability to dodge a bullet. Citing aPrince George County assistant police chief, the
article reports that the way to increase officer seat belt use is to change
department culture and the way officers think about seat belts. This includes
educating officers and instituting new policies and procedures.
The Post cites several reasons why officers go unbelted, including an officer’s (1) desire to get out of the vehicle quickly; (2) concern that the belt will interfere with their gun, belt, or driving; and (3) concern that it will limit their ability to dodge a bullet. Citing a
To combat
this problem, the St. Louis
police department requires strict enforcement of its seat belt requirement. And
in Fairfax County , Virginia ,
and Prince George County , Maryland , police parking lots have signs at
their exits to remind officers to buckle up. The punishment for a police
officer not wearing a seat belt in Prince
George County
is a written reprimand but, according to the article, the department intends to
hold district commanders responsible for ensuring their officers use seat belts.
November 15, 2012
The Affordable Care Act and Ex-Cons: Increasing Access to Care May Reduce Crime and Racial Disparities
A recent
report by the Sentencing Project examines
opportunities the federal Affordable Care Act (ACA) presents to reduce the number
of people with mental illnesses or drug addictions who cycle in and out of the
criminal justice system. (About half of the
prison population has a mental health diagnosis; 65% meet diagnostic criteria
for alcohol or other drug abuse or addictions.)
Because these conditions are associated with criminal behavior, the report
suggests that barriers to community care indirectly affect crime and recidivism
rates. And it notes that racial
disparities in the criminal justice system have been tied to disparities in access
to community-based health care.
In 2010, one-third
to three-quarters of men booked into jails in 10 major cities had limited
access to community health care, in part because they were uninsured. Explanations include: (1) difficulties finding and holding down jobs
(thus limiting access to employer-sponsored health insurance) and (2) restrictive
Medicaid eligibility rules.
The ACA
creates new options that may reduce these barriers. It requires states to have health insurance
exchanges up and running by 2014.
Exchanges will act as regulated marketplaces offering policies to low-
to-moderate income people without insurance.
Participants will qualify for tax credits on a sliding scale to offset costs.
The act
also allows states to offer Medicaid to everyone under age 65 with income below
138% of the federal poverty level. It
requires health benefits for the new group to include prevention, early
intervention, and mental health and substance abuse treatment services.
The report
recommends that states planning and implementing ACA changes consider the
benefits of (1) including outreach to disadvantaged groups involved in, or at
risk for involvement in, the criminal justice system; (2) coordinating care
between community- and corrections-based providers; and (3) capitalizing on
mental and substance abuse treatment services to divert people from the
criminal justice to the health care system.
Hot Report: OLR Backgrounder: Compensation Commission Recommendations, 2002-2011
OLR Report 2012-R-0489
summarizes the recommendations for judicial compensation made by the Commission
on Compensation of Elected State Officers and Judges from 2002 through
2011.
Prior to the creation of the Commission on Judicial Compensation by PA 12-93, the Commission on Compensation of Elected State Officers and Judges was charged with recommending to the General Assembly legislative proposals for salary, expenses, pension, workers' compensation, and any other benefits to be paid to the state's judges (except probate judges), constitutional officers, and members of the General Assembly (CGS § 2-9a(b)). The law required the commission to submit recommendations during every odd-numbered year, but also gave it discretion to make recommendations during even-numbered years.
Over the ten years preceding the enactment of PA 12-93, the commission recommended a specific increase in judicial salaries once, when it recommended a 6% increase in 2004. The legislature subsequently enacted legislation increasing judicial salaries by 5.5% in 2005, 2006, and 2007. In years when the commission made recommendations from 2007 through 2011, it recommended that judicial salaries be automatically increased at the same rate as increases received by state managers, however the legislature took no action on these recommendations.
For more infomation, including a table that summarizes the recommendations from 2002 through 2011, read the full report.
Prior to the creation of the Commission on Judicial Compensation by PA 12-93, the Commission on Compensation of Elected State Officers and Judges was charged with recommending to the General Assembly legislative proposals for salary, expenses, pension, workers' compensation, and any other benefits to be paid to the state's judges (except probate judges), constitutional officers, and members of the General Assembly (CGS § 2-9a(b)). The law required the commission to submit recommendations during every odd-numbered year, but also gave it discretion to make recommendations during even-numbered years.
Over the ten years preceding the enactment of PA 12-93, the commission recommended a specific increase in judicial salaries once, when it recommended a 6% increase in 2004. The legislature subsequently enacted legislation increasing judicial salaries by 5.5% in 2005, 2006, and 2007. In years when the commission made recommendations from 2007 through 2011, it recommended that judicial salaries be automatically increased at the same rate as increases received by state managers, however the legislature took no action on these recommendations.
For more infomation, including a table that summarizes the recommendations from 2002 through 2011, read the full report.
Casino Games Coming to Rhode Island
Rhode
Island has long resisted efforts to authorize casino games, but voters recently approved them at one of two slot parlors where they were on the ballot.
Casino games at Twin Rivers could be started as early as next summer.
Voters
earlier this month voted in favor of casino games at Twin River Slots in
Lincoln, R.I., but not at Newport's Grand Slots. The ballot questions allowing
casino games needed to pass both statewide and within the host community.
Both ballot
questions passed statewide. Locally, the
Twin River ballot question passed easily, while the Newport Grand's ballot
question was narrowly defeated.
Casino games at Twin Rivers could be started as early as next summer.
November 14, 2012
Access to Justice Commission Makes Recommendations
The
Judicial Branch's Access to Justice Commission recently released its first annual report, with several recommendations on how the court system can better help
the public access judicial resources.
For example, the commission recommends that the judicial branch:
- consider supporting an extension of the court fee
increases which are currently set to sunset in 2015;
- continue to work with bar groups on proposals for
limited scope representation;
- develop a guide for staff to assist them when
working with people representing themselves; and
- create additional resources and tools for these self-represented
parties, including self-help videos posted online.
More
information about the commission, and the full list of recommendations, is
available in the annual report.
Insurance Coverage After Sandy
The October 31 edition of the Hartford Courant (www.courant.com) had two insurance-related stories on the aftermath of Sandy. One notes that Sandy did not have hurricane-force winds in Connecticut. As a result, homeowners filing insurance claims will not have to face much more expensive deductibles.
In many coastal state, insurers are allowed to charge higher deductibles during a hurricane compared with some other natural disaster. The "hurricane deductible" is typically 1% to 5% of a home's value, compared to a standard deductible of $500 or $1,000. A law passed by the General Assembly last year after Tropical Storm Irene allows insurers to only require their customers to pay higher “hurricane deductibles” if the National Weather Service declares a hurricane and there are recorded sustained winds 74 miles per hour or more, anywhere in the state. Connecticut had gusts stronger than that, but not sustained winds.
The article recommends that people who have problems with their insurers contact the Connecticut Insurance Department's consumer affairs unit at 800-203-3447 www.ct.gov/cid
The second article describes the types of losses covered by flood insurance, such as the building itself, electrical, heating, and cooling systems, and debris removal; as well as losses that are not covered, such as property outside of the building, vehicles, and temporary housing expenses. The information is taken from a Federal Emergency Management Administration website, FloodSmart.gov.
In many coastal state, insurers are allowed to charge higher deductibles during a hurricane compared with some other natural disaster. The "hurricane deductible" is typically 1% to 5% of a home's value, compared to a standard deductible of $500 or $1,000. A law passed by the General Assembly last year after Tropical Storm Irene allows insurers to only require their customers to pay higher “hurricane deductibles” if the National Weather Service declares a hurricane and there are recorded sustained winds 74 miles per hour or more, anywhere in the state. Connecticut had gusts stronger than that, but not sustained winds.
The article recommends that people who have problems with their insurers contact the Connecticut Insurance Department's consumer affairs unit at 800-203-3447 www.ct.gov/cid
The second article describes the types of losses covered by flood insurance, such as the building itself, electrical, heating, and cooling systems, and debris removal; as well as losses that are not covered, such as property outside of the building, vehicles, and temporary housing expenses. The information is taken from a Federal Emergency Management Administration website, FloodSmart.gov.
November 13, 2012
What Temple Grandin Could Teach Us about Housing Problems
Temple
Grandin is the story
of an animal scientist with autism who revolutionized the cattle industry
because she saw things about cattle that more experienced cattlemen
missed. Are policy analysts similarly
missing the real nature of the housing problem? Are they, in President
Kennedy’s words, holding fast to the “clichés of our forebears” and subjecting
“all facts to a prefabricated set of interpretations”?
A November
2011 Planning article suggests that
policy analysts have yet to perceive some radical shifts in the type of housing
people, especially those in their 20s, prefer. According to the authors, 78
million members of Generation Y are delaying marriage and child-bearing, prefer
cities over suburbs, and want “a richer array of choices in employment,
transportation (namely, strong transit and biking infrastructure), arts and
entertainment, and a ‘café culture’ similar to what’s found in many European
cities.”
Okay, if
this is what the people prefer, why the holdup? “Zoning ordinances make it
virtually impossible to build new inexpensive housing," the article says. "The
chief culprit is codes that require one or two parking stalls per dwelling
unit.” These codes reflect the myth that “the U.S. is composed mostly of
traditional nuclear families with two parents and two- and-a-half children
each. Despite the unmistakable demographic trend towards more one- and
two-person households, many decision makers seem to be rooted in a faded
picture of the country.”
"Rooming
House Redux," Mark Hinshaw, FAICP and Brianna Holan ACIP, Planning, November 2011 (available in the Legislative Library)
Hot Report: Taxes on Soft Drinks and Candy
OLR Report 2012-R-0490 details which states impose a tax on soft drinks or candy. (It updates the
information in OLR Report 2002-R-1004.)
We identified four states (Arkansas, Tennessee, Virginia, and West Virginia) that levy an excise tax on soft drinks, but none that levy an excise tax on candy.
While most states do not impose excise taxes on candy or soft drinks, many tax these goods at a higher sales tax rate than other grocery food. Of the 46 jurisdictions (45 states and the District of Columbia) that impose a state sales tax, 32 exempt grocery food purchases from the sales tax and 7 tax such purchases at a reduced rate. Many of these 39 jurisdictions exclude candy or soft drinks from the definition of grocery food, thus making them taxable or subjecting them to the state's general sales tax rate. In all, 18 jurisdictions tax candy and 23 tax soft drinks at a higher rate than other groceries.
For more information, read the full report.
We identified four states (Arkansas, Tennessee, Virginia, and West Virginia) that levy an excise tax on soft drinks, but none that levy an excise tax on candy.
While most states do not impose excise taxes on candy or soft drinks, many tax these goods at a higher sales tax rate than other grocery food. Of the 46 jurisdictions (45 states and the District of Columbia) that impose a state sales tax, 32 exempt grocery food purchases from the sales tax and 7 tax such purchases at a reduced rate. Many of these 39 jurisdictions exclude candy or soft drinks from the definition of grocery food, thus making them taxable or subjecting them to the state's general sales tax rate. In all, 18 jurisdictions tax candy and 23 tax soft drinks at a higher rate than other groceries.
For more information, read the full report.
Supreme Court Grants Certiorari in Voting Rights Act Case
The SupremeCourt recently granted certiorari to a case challenging the constitutionality
of Section 5 of the Voting Rights Act of 1965. The case (Shelby County v. Holder) was brought by Shelby County, Alabama,
which alleged that Congress exceeded its constitutional authority in 2006 when
it reauthorized Section 5 for 25 years.
Section 5
requires certain state and local governments (“covered jurisdictions”) with a
history of discriminatory voting practices to obtain approval from the
Department of Justice or the U.S. District Court for D.C. before implementing
any change affecting voting. Specifically, preclearance applies to any attempt
to change “any voting qualification or prerequisite to voting, or standard,
practice, or procedure with respect to voting...in any covered jurisdiction.”
In a 2-1
decision, the U.S. Court of Appeals for the District of Columbia (D.C.) Circuit
rejected Shelby County's challenge. The court affirmed a district court
decision that Section 5 remained a “'congruent and proportional' remedy to the
21st century problem of voting discrimination in covered jurisdictions,” and that
failing to reauthorize it would leave minority citizens with inadequate
remedies against discriminatory voting laws. It noted that, in reauthorizing
the act, Congress compiled a 15,000-page record that found numerous
contemporary examples of discrimination in the covered jurisdictions, thus
showing a continued need for preclearance.
Oral
arguments before the Supreme Court are expected in early 2013, with a decision
expected by June 2013.
November 12, 2012
Connecticut West Nile Virus Cases Double in 2012
This year,
Connecticut reported
18 cases of West Nile Virus infections, the most cases ever reported in the
state and double the number reported in 2011. The state attributes the increase
to an abnormally warm winter followed by a record-breaking heat wave this
summer. The number of reported cases has risen nationally as well. The federal
Centers for Disease Control and Prevention cited 4,249 cases of the virus as of
October 9th, the highest number of cases reported through the second week in
October since 2003. Eight states account for 70% of these cases: Texas,
California, Louisiana, Mississippi, South Dakota, Michigan, Oklahoma, and
Illinois.
A Quiet Year for State Taxes…So Far
According
to a recent National Conference of State Legislatures report, many
states have made tax policy changes in the first half of 2012, but the net
effect of these changes is small. State
tax actions in the first half of 2012 have resulted in a net tax decrease of
$1.8 billion, or 0.2% of total state tax collections.
Most of the
cuts were to personal income taxes. Thirteen states made income tax cuts, but Idaho , Kansas , and New York are responsible
for most of the revenue reduction. Idaho reduced its top
income tax rate from 7.8% to 7.4%. Kansas reformed its
personal income tax by reducing the rate, repealing several tax credits, and
increasing standard deductions for certain filers. New
York , on the other hand, restructured its personal
income tax for the 2012 through 2014 tax years, reducing tax rates in most
brackets and increasing rates in the upper brackets.
Only three
states raised income taxes. Maryland ’s
tax increase accounts for most of the new revenue. It raised taxes on higher-income taxpayers by
raising rates and lowering exemptions.
On the
business tax front, 13 states cut corporate taxes and three raised them. Pennsylvania ,
for instance, enacted a single sales factor apportionment formula and approved
several new business tax credits. New York reduced its
corporate income tax rate for manufacturers by lowering the rate from 6.5% to
3.25% and approved a new job retention tax credit.
As for
sales taxes, 13 states cut their sales tax rate and two raised them. Georgia reported the largest sales
tax cut, which resulted from a cut to the sales tax rate on jet fuel and the
repeal of a variety of tax exemptions. Rhode
Island , on the other hand, expanded its sales tax
base to include a number of previously exempt services.
November 9, 2012
Natural Gas Boom a Bust for Some
While the
rapid expansion of the nation's available natural gas supply has generally
benefitted most Americans with lower energy prices, a recent New York Times article
describes how the production boom is hurting the very people who financially
back and produce it. According to the article, the rapid increase in gas
production created a supply glut that drove prices so low that gas companies
are selling it for less than it costs to produce. The problem is compounded by companies'
limited ability to reduce production due to (1) complex financing arrangements
backing their production facilities and (2) leases for land that require them
to drill or lose their rights to the land.
According to one investment banker cited in the article, "we just
killed more meat than we could drag back to the cave and eat…Now we have a
problem."
Northeast Utilities Preserves Open Space
The
Hartford Business Journal reports
that Northeast Utilities (NU) announced the creation of a land trust to
preserve 981 acres in Connecticut
as open space. The land, located in Sharon, Enfield, Newtown, and Waterford, is
valued at $20 million. The land trust was part of an agreement with Connecticut
regulators when NU’s merger with Boston utility NStar was approved. The land
will be open to the public. NU will post maps, pictures, and videos of the
hiking trails and other recreation opportunities on the land at its website.
November 8, 2012
The History of Who's to Blame for Low Achieving Students
While blaming demographic factors used to be how educators and policy people explained poor student performance, that's giving way to something else: blaming the schools themselves.
As schools in urban areas have proved that students in those areas can succeed despite their demographics, the newest phenomenon is to blame the schools and the principals.
Blogger Larry Cuban, an education writer and former teacher, district superintendent, and professor, writes in a post called "Reframing Shame: How and When Blame for Low Student Achievement Shifted," that the two extremes (the students and their backgrounds vs. the school) are each incomplete and do not advance education.
As schools in urban areas have proved that students in those areas can succeed despite their demographics, the newest phenomenon is to blame the schools and the principals.
Blogger Larry Cuban, an education writer and former teacher, district superintendent, and professor, writes in a post called "Reframing Shame: How and When Blame for Low Student Achievement Shifted," that the two extremes (the students and their backgrounds vs. the school) are each incomplete and do not advance education.
Small Businesses Create Most of the New Jobs, Right?
Well,
that’s certainly a mantra in economic development circles, but the May 2012 The
Connecticut Economic Digest shows the story is a little more
complicated. Small, medium, and large businesses are constantly creating and
destroying jobs (i.e., churning). But firm size isn’t the only thing currently affecting
churning; firm age matters too.
From 1988
to 2007, “essentially all net job creation came from new firms, which accounted
for 31,600 new jobs.” Now, when you break down this group by size, 84% of these
jobs came from small firms (under 50 employees). Well, that’s good, right? Yes,
but remember, a new small firm cannot destroy jobs because it was just born, so
to speak. The opposite is true for established firms, regardless of age.
But there’s
more. The data “shows that small firms
end up destroying a majority of the jobs they create as they age from new, into
young, established, and mature firms.” Job destruction comes with aging. Small
firms, regardless of age, accounted for 39% of all jobs created from 1988-2007
and 38% of all that were destroyed. In contrast, “mature firms, which account
for the majority of job creation and destruction, account for negative net job
creation of -16,800, of which 70% comes from small firms.”
According
to the study, most jobs are created in mature firms (11 years or older),
regardless of size. “Even though a greater number of jobs are also destroyed by
mature firms, the number of opportunities available from mature firms outweighs
availability of jobs from firms of all other categories, including small
businesses.”
What does
this mean for public policy? At least two things: policy analysts might examine
the reasons why jobs are destroyed in small and large firms and develop
strategies to counteract that process. Or, they can find ways to help people
who lose their jobs gain the skills needed to fill the ones that are
created.
November 7, 2012
What Payment Methods Do Consumers Use?
A recentstudy by the Boston Federal Reserve compared the use of different payment
methods by consumers in 2006 and 2008.
As might be expected, the study found that the largest change in
consumer practices involved the use of electronic payments. Debit cards were the most intensively used
payment method, accounting for 35% of transactions, while the use of checks
dropped from 38% of all transactions to only 16%.
The study
identified a payment method’s setup and recordkeeping requirements as
especially important in determining whether consumers adopt the method. Convenience, cost, and security affected
whether a method was used.
November 6, 2012
Some OnLine E-Book Buyers In-Line for Refunds
Connecticut
residents who bought certain electronic books (e-books) may be in line for
about $1.3 million of a $69 million nationwide settlement with three e-book
publishers, state attorney General George Jepsen announced in October.
The three
publishers, HarperCollins, Simon & Schuster, and Hachette Book Group,
agreed in September to pay consumers more than $69 million to resolve antitrust
claims alleging a conspiracy to fix e-book prices.
Jepsen said
a court first must approve the settlement. Customers who bought one or more
qualifying e-books between April 1, 2010 and May 21, 2012 will receive a credit
or a check if they follow the instructions in e-mail notices they should have
received.
More
information on the settlement and the credits can be found at www.EBookAGSettlements.com or by
calling, toll free, 866-621-4153 between 9 a.m. and 6 p.m. Eastern time, Monday
through Friday.
Good Health by (Public Housing) Design
The
national goal of many federally funded housing programs includes providing
decent housing and a suitable living environment for low- and moderate-income
people. Well, the Denver Housing Authority (DHA) is stretching this goal to
encompass its tenants' physical
health. In 2009, DHA developed a new master plan for the Lincoln Park/La
Alma neighborhood that incorporated a "Health Impact Assessment"
(HIA), a tool that helps community developers identify how a proposed
project potentially affects people's health.
But DHA didn't
stop there. In 2010, as DHA and its developers began implementing the plan, they
"decided to hold themselves accountable for improving health with every
decision they made. They wanted to measure their success or failure and became
on (sic) of the first in the country to use what's called Health
Development Measurement Tool (HDMT)," an instrument that measures health
broadly from "healthy housing and transportation to the economy,
environmental stewardship and social cohesion--even how amenities affect
people's well-being."
The tool
led DHA and its developers to reconsider their design options. For example, when they used the tool to
assess competing designs, they discovered that "many smaller green spaces
would be healthier for residents than building one large open space. They also
decided not to put exercise equipment in the new buildings, but rather to
encourage people to support their existing community amenities and walk to the
nearby recreation center."
DHA's
experience shows (1) how housing and public health policies intersect and (2) the
benefits of measuring any policy's interdisciplinary effects.
November 5, 2012
The Car’s in Charge
As many as
three-quarters of the motor vehicles on the road 30 years from now may be driving
themselves, according to the Institute of Electrical and Electronics Engineers(IEEE), an international professional organization. As reported on Wired.com, IEEE says the
switch to these autonomous vehicles will not only remake today’s highways and
roads but change how we think about driving.
“IEEE
envisions an absence of traffic signals and lights since highly evolved,
self-driving cars won’t need them, and it believes that full deployment could
even eliminate the need for driver’s licenses,” the article states.
“People do
not need a license to sit on a train or a bus,” the director of IEEE’s Center
for Intelligent Systems Research says in the article. “In a full autonomy case
in which no driver intervention will be allowed, the car will be operating. So
there will not be any special requirements for drivers or occupants to use the
vehicle as a form of transportation.”
IEEE
predicts that driver reluctance to “let go of the steering wheel” will be a
bigger barrier to the adoption of self-driving vehicles than technological issues.
Property Tax Deadlines Extended Due to Hurricane Sandy
Governor
Malloy has issued a series of executive orders in the past few days that extend
certain property tax filing and payment deadlines from November 1 to November
15.
- Executive order No. 26 extends the property tax payment deadline for taxpayers who pay property taxes on a quarterly basis. The extension affects taxpayers in the following 12 towns:
- Andover
- Bethel
- Brooklyn
- Danbury
- Fairfield
- Killingly
- Meriden
- Ridgefield
- Salisbury
- Sharon
- Trumbull
- Westport
- Executive
order No. 25 extends application filing deadlines for various property
tax exemptions, including exemptions for (1) farm machinery, buildings,
and horses; (2) farmland, open space, forest, and maritime heritage
property in the "490" program; and (3) property used for
scientific, educational, literary, historical, charitable, or open space
land preservation purposes.
- Executive order No. 24 extends the deadline for filing or requesting an extension for personal property tax declarations.
Voters in Several States Face Education Ballot Measures
In Tuesday's election, voters
in at least seven states will be called on to decide some controversial issues
concerning K-12 education, including funding, charter school approval, and
teacher working conditions. Among the hot-button ballot initiatives:
·
Arizona: Two measures would increase
education funding, one by extending a one-cent sales tax increase for education
currently scheduled to expire in 2013 and another by allocating more money to
education from the state's public land trust fund.
·
California:
Two measures would
increase state income taxes to avoid major midyear reductions in state funding
for K-12 education.
·
Georgia:
Voters could amend
the state constitution to allow the state to authorize public charter schools
after the state supreme court invalidated a prior state charter school
authorizing commission in 2011.
·
Idaho:
Three ballot initiatives would overturn recently
enacted state laws (1) barring teacher collective bargaining over issues other
than salaries and benefits and limiting contracts to one year; (2) establishing
a teacher evaluation system based partly on student test performance; and (3)
increasing technology use in classrooms including requiring that each high
school student have access to a laptop computer.
·
Missouri: On the ballot is a measure to boost
funding for both K-12 and higher education by increasing the state's tobacco
products taxes.
·
Oregon: Voters will consider a ballot
measure to allocate higher-than-projected corporate and excise tax revenue to
K-12 education instead of refunding it to businesses.
·
Washington:
Voters will
choose whether to allow local school boards or a new state-level commission to
approve charter schools.
Education
Week and Reuters
have detailed rundowns.
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