The latest pension divestment: fossil fuels.

Which pension plan is considering divestment from fossil fuel interests? Oakland, California Police and Fire Pension System.

The testimony from investment consultants? Such a divestment could reduce returns.

East Bay Express | Oakland Police and Fire Pension Considers Fossil Fuel Divestment 

• Billions can be reclaimed by not cutting retiree health care 
• How are the billions saved? By restructuring retiree health care and not prefunding retiree helath benefits. 
  • Translation: Stop treating retiree health benefits exactly like pensions are treated
• Revamping retiree health benefits save governments money, not pension fixes

The Manhattan Institute | The OPEB Off-Ramp: How to Phase Out State and Local Governments’ Retiree Health Care Costs

Governing | A Missing Opportunity to Fix Government Finances

What did Florida legislators do to the Governor’s Economic Devleopment Plan? Florida legislators rejected Govrnor Scott’s $250 million economic development plan

What did the legislators rely on to reject the economic development plan? Politics. Re-election fears of supporting “corporate welfare”

What is the anticpated economic hit from the legislator rejection of economic development funds? 50,000 jobs and 277 new businesses looking to move or expand in Florida

Tampa Tribune | Editorial: Legislators sabotage economic development 

State Coffers scored a victory, for the mean time. The case got kicked by to the Court of Appeals to deal with the other challenges raised to the tax.

Bonjour 2017 as small tobacco looks for a legislative fix.

Midland Reporter Telegram | Texas Supreme Court upholds $500M state tax on tobacco
Texas Tribune | Texas Supreme Court Upholds Tax on “Small Tobacco”

Previously on Informed Intel:

Which pension board is considering censuring a pension board member? Dallas Police/Fire Pension Fund 

Who is allegedly the target of the censure? Dallas Police/Fire Pension Fund board member Philip Kingston

Why is a censure being considered? Kingston allegedly spoken openly about pension fund liabilities. He’s said to be a lover of transperancy. His words were taken by other pension board members to cause potential harm to the fund and the potential sale of pension property.

What other weird comings and goings are happening in this caper?

• Counsel for the pension resigned after ti came to light he paid a private investigator to look into a councilmember

Dallas Observer | Police and Fire Pension Fund Should Be Ashamed of Going After Kingston

NFIB told Senate Finance that the franchise tax remains a thorn for small businesses because:

• the tax does not generate the projected revenue 
• small businesses think the tax is a failure and a repeal would lead to businesses investing tax dollars in their businesses and employees

82% of NFIB members call for a full repeal of the franchise tax.

NFIB | FRANCHISE TAX STILL A THORN IN SMALL BUSINESS SIDE IN TEXAS

States that deny fantasy sports operations: 5. AZ, IA, LA, MT, WA

States where fantasy sports is contested: 9. TX, GA, IL, HI, MS, NV, NY, SD, VT

States with legislation pending in 2016: 17. AL, CA, CT, FL, KY, MI, MN, MO, NE, NJ, NM, OK, PA, SC, TN, WV, WI

States with no current legislation: 13. AK, AR, CO, DE, ID, ME, NH, NC, ND, OH, OR, UT, WY

ESPN | Daily fantasy sports state-by-state tracker

Why adjust the gas tax?

• Gas tax has not been changed in 25 years
• Cars are more fuel efficient, so less gas is purchased and less revenue is collected
• Roads are more expensive to build than 25 years ago

Time Warner Cable News | State Leaders May Increase Fuel Tax to Improve Roads

San Antonio Express News Editorial, Revenue caps heavy-handed, bad for Texas,  gives us 5 reasons to oppose revenue caps.

Revenue Caps should be opposed because: 

• property taxes are driven by school districts, not counties and municipalities
  • In San Antonio, the average property tax bill is only 22% City of San Antonio 
• Lower property taxes can be achieved with improved state education funding
• City and County property tax levies have increased because of new residents, not by taxing the same static set of residents at a higher rates
• Revenue Caps limit city budget flexibility to plan for economic downturn
• Limiting the freedom of city’s to plan for economic downturns does not increase freedom for all

Which state Attorney General finalized fantasy sports rules? Massachusettes

What 3 elements do the rules target?

• who can play
• how the games are designed
• where companies can advertise

How does the Attorney General address who can play?

• Players must be 21
• Labels for “highly experienced” players if
• • 1,000 contests or
  • win three prizes of $1,000 or more will have to be clearly labeled as “highly experienced.” 
• Beginners will get their own games;
• Company insiders won’t be allowed to play against the general public
• Single screen names per person. 

Are software programs permitted to give players an edge? NO

Can games be designed on college sports? NO

Will there be gambling limitations?

• yes, a $1,000 cap unless the company determines the player meets certain criteria
• Can self limit amounts played

Boston Globe | Mass. finalizes new rules for fantasy sports games

Seattle Times | Massachusetts finalizes comprehensive fantasy sports rules

What loophole closed? the city allowed employees who transferred from the pension plan to a 401(k) style plan to get credit for the present-day value of future pension benefits, regardless of whether the employee had worked the five-year minimum needed to actually be eligible for securing a pension.

What city had this loophole? Jacksonville, FL

The new 401K transfer policy:  employees with less than five years of service move from the pension plan to a 401(k) style plan, the city will only transfer the amount of money the employees contributed from their paychecks.

Jacksonville Florida Times Union | Pension board enacts new policy to close costly loophole

To fill a state budget deficit, Connecticut is proposing a tax on profits to Yale’s endowment. 

Will this new CT legislative proposal apply to all university endowments? No, just those over $10 billion

What do policy makers point to for justification?

• the tax doesn’t apply if Yale, the 5th largest employer in the state, reinvests endowment profits into the local economy or higher education 
• the tax would expand education access and create jobs

WallStreet Journal | One New Fix for Connecticut’s Budget Crunch: Yale University

What’s the cause of Houston’s financial obligations?

• pension liabilities
• years of structural deficits
• spike in debt payments

What triggered the reaction? Moody’s downgradfing Houston’s credit rating on $3 billion in general debt, which will make borrowing more expensive and cost Houston taxpayers more

What solutions are identified?

• stable and growing economy
• removing the revenue cap
• fixing Houston’s pensions (with a special eye on the Houston Fire Department)

Houston Chronicle Editorial | Debt crisis

Draftking and FanDuel are leaving which state? By agreement with the New York Attorney General.

What’s happened in New York? The Attorney General issued an opinion that fantasy sports are illegal gambling. The two sides have been negotiating since.

Are they really leaving New York? They’re operating a free site until the New York Courts make a determination.

Is there any way the shut down will change? Yes, the Legislature is considering legislation to legalize fantasy sports.

Findlaw | DraftKings and FanDuel Pull up Stakes, Leave NY

Wall Street Journal | FanDuel, DraftKings Agree to Shut Down in New York

Which local government is considering more parking meter revenue to fund a stadium? Sacramento

What changes to parking meters are proposed? Meters operate until 10pm, instead of 6pm

Why the extension in time? to cover the fans who attend events at the new stadium

Was this included in the King’s arena deal with the City? Some say by default, as the city agreed to ccommitting to the collection of millions of dollars in new parking revenue

Sacramento Bee | City Council proposes parking meter extension to pay arena debt

How much revenue did the sales tax on recreational marijuana generate in Orgeon in its first month? $3.48 Million. 

Does the marijuana tax in Oregon include medical marijuana? No, medical marijuna is excluded.

Did the sales meet economic estimates to the legislature? The 1st month sales exceeded what economists told the Legislature would be annual sales. The Legislature estimated $2-3 million in annual sales tax revenue. 

what’s the sales tax rate? 25%

is it a statewide decriminalization and taxation? No. 19 counties and 80 cities that have opted out of recreational marijuana sales. Those counties that opt out fo not share the tax revenue

Oregon Live | Oregon collects $3.48 million in revenue from first month of taxed recreational marijuana sales

The Illinois Supreme Court rejected Chicago’s pension reforms that would have required increase contributions by the city and reduced benefits to retirees because the reform plan:

         the reforms violated the Illinois Constitution‘s protections against reducing promised pension benefits.

ABC 7 | ILLINOIS SUPREME COURT STRIKES DOWN CHICAGO PENSIONS PLAN

The rules of attraction are complex  & mysterious.  Its equally true for attracting economic economic development. 

Governing gives us 3 reasons why economic development should focus on what to attract & 3 reasons why economic devleopment should focus on who to attract. Let’s look:

3 reasons why economic development shoud focus on what to attract:

• Resurrects struggling locations or sectors
• Favorite option of local government officials, as it builds things like stadiums
• Incentive for voters to approve spending now, with debt passed to future residents

3 reasons why economic devleopment should focus on who to attract:

• Builds public education programs
• Incentivizes high wages to ecourage an influx of people
• Builds mobility infrastructure

Governing | Should Economic Development Focus on People or Places?

What does TPPF say supports local pension control?

• The Pension Review Board report offers data that shows the high pension liabilities for pensions over which the state can exercize control
  • Since 2015, pension debt has grown by $1.2Billion
• the people directly affected by the pensions are the ones who should have a say
• “Restoring local control is the surest way to bring some short-term sensibility back to Texas’ big city pension plans”
• Its a common sense solution

Quintero: Lack of local control to blame for pension woes? via Statesman

What state is changing contracts in pension systems? Kentucky

What reforms were implemented?

•  Require pension systems to use open, competitive bidding procedures when hiring investment managers
• Require Senate Confirmation of the Governor Appointees to Pension Boards & the Executive Director
• Elected Official Pension systems would be required to post online audits, investment returns and board meeting reports
• Require an accurate disclosure of the millions of dollars in fees they pay those managers
   

•  latest in a series of troubling fiscal incidents
• need reform [on local debt]
• booming economy hid city’s spending and pension problems

TPPF | TPPF Statement on Moody’s Downgrade of Houston

• Lack of transperancy in these revenue generating districts
• The lack of tranperancy is so rampant, there’s an FBI investigation into some districts
• Temporary Voters are permitted to approve millions in bond debt

Empower Texas | Special Districts Run Amok

What is this new found pension panacea? Prevent local government employees from using overtime & other extra compensation to boost  pension benefits

What do supporters say about this new pension fix?  It will lower pension costs and make future pension costs more predictable

Can you imagine a law enforcement pension system that would exclude overtime?

Mackinac Center | New Bill Fixes Pension Problem, Leaves Major Problem Untouched 

Michigan HB 5438

Farm Tourism is a thing. Its a thing that draws tourism dollars to rural areas. “Call it a battle of crop dusters vs. crudités,” according to the Sacramento Bee.

Texas is ripe for agri-tourism, so let’s look at the lessons to learn from the Golden State. The best offense is a good defense:

• Industrial Farms Proprietary Standards are Private.No one wants to see industrial farming & farmers don’t want to open up their industrial farms to tourists. It can harm their industry.
  • “It becomes agricultural Disneyland,” Rominger said. “You don’t have ag production left.”
•  Nuisance Laws. Farming is loud and messy which some in the bed and breakfast business might call a nuisance. Agri trourism could be like a listener of Brahms going to an Opeth concert.
  • “Somebody will say they smell a chemical. Somebody will say we woke ’em up on Sunday morning. It will be an untenable position.”
• County Regulators in the Cross Hairs. Agriculture interests will pressure local license grantors to stop allowing new agri-tourism businesses.

Sacramento Bee | Yolo County struggles to balance farm tourism with farming

The State: Alabama

The Tax Proposal: Make Netflix, Amazon & Itunes purchases a tangible, taxable item

The Grover Norquist Position: Alabama’s economy is sluggish. There are more than 20 new federal taxes. Kill this job killing tax increase.

Americans for Tax Reform | Alabama Lawmakers Push for Gas Tax Hike and Tax on Digital Goods

• Chairman Jim Murphy initiated Attorney General Rquest RQ-0101-KP
• What does he want the A.G. to review?
  • Local pensions codified in state statute
• What does he want to know about the local pensions?
  • What power does the state have over them?
  • What liability does the state have if local pensions are put at risk of default?
  • Does the state have to assume pension payments if the municipality fails to meet pension payments?
  • Clarify the “consequences of decisions made in regards to these municipal retirement systems.”
• What facts does Chair Murphy raise to bolster his request?
  • Rising pension costs
  • Rising healthlcare costs
  • Unpredictable local revenues
  • Aging local infrastructure
  • high local debt load
  • Increasing costs for the delivery of city services
  • Municipalities’ ability to balance budgets
  • Cities ability to maintain strong credit ratings 

Which state are talking about? Florida

Which city pension system was in “crisis”? Jacksonville

What did the Legislature do to “help” Jacksonville? 

• Limited Scope. carves out an exemption limited to Jacksonville
•  Exception to state actuarial standards. the exemption allows for Jacksonville to go “beyond the 30-year maximum period” statutory actuarial soundness requirement
• Permits Local Sales tax to fund local pension. allows local voters to decide if they want to “enact a half-cent sales tax dedicated to helping pay off the city’s roughly $2.7 billion in pension debt”
• Flexibility before 1/2 cent sales tax. Before any new sales tax revenue flows, the city can either:
  • borrow to pay pension costs
  • reduce the actuarial problem by allowing for an accounting mechanism that would allow the present value of the future sales tax increase to count on paper as a financial asset

Florida Times Union | Pension bill lets city exceed pension debt repayment limits, state agency says

As loyal subscribers know, Site Selection Magazine designated Texas the #1 state for economic development.

There are those who oppose economic development programs. Their key phrases are subsidies and corporate welfare, and here are their 3 topline arguments:

• If Texas cut back on corporate subsidies , Texas “could pay the tuition for every college applicant in the state each year, with $500 million left over”
• Texas steers billions from public services to subsidies
• Texas ranks low on household economic security, school spending, public health

Know your opponent, like you know yourself.

Texas Observer | Greg Abbott’s Business-Friendly Cup Overfloweth

Which state was first to regulate fantasy sports? Virginia with SB 646

What regulations did Virginia impose?

• daily and seasonlong fantasy sports
• covering football, basketball and baseball contests, & others
• Registration with the state with a $50,000 fee
• Conflict of Interest provisions to prevent the alleged collusion reported in the media
• Annual Audits

What are other sports? Anything that meets the definitional requirement that

“no winning outcome is based on the score, point spread, or any performance of any single actual team or combination of teams or solely on any single performance of an individual athlete or player in any single actual event. “

Rugby, Cricket, the world’s football AKA soccer….

Governing | Virginia Becomes First State to Regulate Fantasy Sports

• People should be free to earn what they want, when they want to earn it
• Bills directed at the worker status in the sharing economy unfairly target these contract workers over other industries that also utilize contract workers

What governmental bodies are moving this type of sharing economy legislation, that targets the worker bees?

• Seattle by ordinance
• California, pending AB 1727

The Recorder | Internet Association Takes Shot at Gig-Economy Bill

• Texas #12 ranking is for its combined average local and state sales tax of 8.17%
• #1 is Tennessee at 9.46%
• #46 is Alaska at 1.78% (including D.C.)
• The highest local sales tax rate is Louisiana at 5.01% local sales tax
• 4 states have no statewide sales tax: NH, DE, MT, and OR.

Tax Foundation | State and Local Sales Tax Rates in 2016

What’s going on in South Texas? In January 2016, Cameron County and South Padre Island had agreed to a TIRZ for the purpose of the South Padre Island Convention Centre.

The city’s plans changed and now the county is a NO on the TIRZ?  

• Yes, city manager informed the county that the convention center would not be expanded and the city wants to open “ecotourism campuses.
• The city still wants to pursue a TIRZ for the same $12.5 million TIRZ.

Brownsville Herald | County hesitant to proceed with Island TIRZ

• FanDuel settled with Attorney General Paxton and will stop taking bets from Texans on May 2nd, after the lucrative March madness
• Draft Kings sued Paxton in state district court in Dallas
• Draft Kings want the courts to answer whether fantasy sports are legal or illegal in Texas

Governing | One Fantasy Sports Site Strikes Deal With Texas While Another Sues

Comptroller Hegar issued a press release warning caution for capital appreciation bonds. Let’s find out why:

• Capital Appreication Bonds, CABs, are a financial tool that fast growth schools use, but have a high price  in the long term 
• Can be costly to taxpayers when the eventual lump sum payments come due for the school district
• The compounded interest of CABs make the funding option much more expensive and heavy use can result in lowering a district’s debt rating

Supporters of CABs say:

• CABs are necessary “because of the state’s limit on bond debt”

Fiscal Notes March 2016 | Capital Appreciation Bonds

Comptroller Press Relase March 8 2016 | Texas Comptroller: Approach Capital Appreciation Bonds With Caution

• Governor Abbott announced a new 3 agency workforce initiative today.
• The agencies: 
  • TEA Commissioner Morath
  • THECB Commissioner Paredes
  • TWC Commissioner Andres Alcantar
• 8 statewide meeting schedule:
  • Midland – March 10
  • San Antonio – April 26
  • Houston – April 29
  • Dallas – May 11
  • El Paso – May 20
  • McAllen – May 25
  • Tyler/Longview – June 2
  • Austin Workforce Summit  – September
• 6 goals: Report and Recommend to the Legislature on these issues:
  • Identify & advance public and higher education initiatives for affordable college 
  • Work with industry & local stakeholders to assess local workforce needs, innovative workforce development models, coordination with industry partners and promote post-secondary success. 
  • Include career and technical education and science, technology, engineering, and mathematics education models in their assessment
  • Evaluate current agency, state & local efforts for web-based education & career awareness systems to link students, parents, & educators to the broad array of high-demand jobs 
  • Identify gaps in services to Texas veterans to enhance their education and employment opportunities for seamless and accelerated transition into workforce.
  • Recommendations to build workforce skills, advance regional economic expansion, job creation, and the goals of 60x30TX.

Office of the Governor | Governor Abbott Establishes Tri-Agency Workforce Initiative

Who reached an agreement? Attorney General Paxton and Fan Duel

What has FanDuel agreed to do? Stop accepting wagers from Texas by May 2nd.

What occurs before May 2nd? March Madness. Any wagering during March Madness? Hello Profits.

What has Paxton agreed to do? Not take legal action against Fan Duel.

Trailblazers Dallas Morning News | FanDuel agrees to stop paid fantasy sports betting in Texas in settlement with AG Ken Paxton

Texas Attorney General Office | Texas Attorney General Paxton, FanDuel Announce Settlement; Daily Sports Site Will Cease Paid Operations in Texas in May

What state is considering a move that would allow newly formed cities to be assessed a tax to cover existing pension costs? Georgia

Who would pay this new pension funding tax? Any newly formed cities or newly annexed areas in DeKalb County 

How would the tax operate? It would vary by property location, depending how long the locagtion had not been contributing to county coffers in a manner that would cover county pension system

Georgia HB 711

Atlanta Journal Constitution | Residents of DeKalb cities may pay pension tax

What initiative was being considered about commercial property taxes in California?  A 1% surcharge on real estate with assessed values more than $3 million. It’s a 1% on the 1%.

What was the purported purpose for higher commercial property taxes? Estimated to generate estimated $7.7 billion to fund anti-poverty and children’s programs

Was it an organized effort? Yes. It named itself the Lifting Children and Families out of Poverty Act

Sacramento Bee | Plug pulled on California property tax measure

Which publication ranks Texas #1 in economic development? Site Selection magazine

What facts about economic development in Texas did Site Selection review?

• Texas had 702 economic development projects
• Houston is #2 & Dallas #3 in expanded site projects among the top 10 cities
• Houston 7 Dallas produced 485 projects or 70% of Texas economic development

What are the minimum project criteria for Site Selection’s analysis?

• a capital investment of at least $1 million
• creating at least 20 new jobs or adding  at least 20,000 square feet of new floor space

San Antonio Business Journal | See where Texas ranks in economic development game

What entities can participate in the Transparancy Star Award Program?  cities, counties and other local governments

What does the Transperancy Star Program honor? local governmental entities that “go the extra mile in opening their books to the public. “

How are stars awarded? Local governemntal entities can use the online application to apply for recognition in five important transparency areas

What is the Comptroller’s Office looking for to award stars? 

• user-friendly
• graphics
• visualizations
•  downloadable datasets

Transparency Stars website

•  The taxes generated will be earmarked for pre-K education
• The tax will generate $400 million over 5 years for pre-K
• Revenue will also go to community scools, pensions, and parks

What arguments are offered to oppose the new tax?

• the soda industry provides thousands of good-paying jobs in the city
• residents are already overburdened by taxes

• Texas total state fees and taxes on gasoline are 20.00 cents
• Texas neighboring states are similarly low on state gasoline tax rates
• High state gas tax states are:
  • #5 California 40.62 cents
  • #4 Hawaii 42.35 cents
  • #3 New York 42.64 cents
  • #2 Washington 44.50 cents
  • #1 Pennsylvania 50.40 cents

Tax Foundation | State Gasoline Tax Rates in 2016

Which state legislature passed a new tax on MCOs? California

What arguments were made in favor of increased taxes on MCOs? More than $1 billion in federal funds would be drawn down to reduce California state debt

What does the MCO tax entail?

• An offset to minimize hits to MCOs that could be passed down to consumers
  • offsets will be to gross premimum tax & corporate tax
• To appease Republicans:
  • more funds were promised for treating autism
  • more funds for treating developmental disabilities
  • funds to reduce debt owed by hospital based skilled nursing facilities

What did opponents say?

• its offensive to use autism and developmental disabilities are a lure for votes
• nothing in this bill will directly help Californians

Sacramento Bee | California Legislature approves bills on taxing health plans

Los Angeles TImes | Q&A Everything you need to know about the healthcare plans tax the Legislature just passed

California Legislative Analyst Office | Overview of MCO Tax 

Background:

• Last week, the U.S. Supreme Court declined to hear a dispute between the state of New Jersey & its police and fire pension systems. That leaves in tact the ruling by the NJ Supreme Court.
• Around 2010, the pension systems & NJ agreed to changes. Included in those changes were mandatory payments by the state into the pension.
  • The police & fire pension agreed to concessions in exchange for enforceable payments into their pensions by the state.
• The State of NJ didn’t make the required payments & the NJ Supreme Court Agreed. 

The Intel you need to know when negotiating pension reforms:

• An agreement to get a state or city to contribute is unenforceable
• Why would an agreement be unenforceable? courts can say “[it] illegally constrain the ability of future lawmakers and taxpayers to rework future debts”

Christian Science Monitor| Supreme Court denies bid to revive failed NJ pension fix

Which pension system had less than favorable real estate investments? The pensions for Chicago’s teachers, cops, city employees and transit workers

Was it just a bad real estate market? Not, so much. An investigative report revealed:

• At the heart was “a real estate venture created by President Barack Obama’s onetime boss and a nephew of former Mayor Richard M. Daley squandered $68 million”
• The 5 pension plans have lost money on the investment
• The goal was to invest in risky real estate deals, primarily in neglected neighborhoods
• The real estate investment company collected its $9 million of the pension money for management fees

Chicago Sun Times | THE WATCHDOGS: Pension funds lost millions on deals with Daley nephew, Obama pal

27 TIRZ boards raised more than $100 million

What are comparable City of Houston budget items? $100 million is roughly the city’s annual parks & library budgets combined

Houston Chronicle | City Hall update

What pension is claiming a shortfall is really just the use of updated actuarial tables? Detroit

What is Detroit’s new shortfall? isn’t Detroit in bankruptcy proceedings? Yes, hence the close scrutiny that revealed the $491 million pension deficit. 

When were the outmoded actuarial tables from? 2000

Did Detroit know of the outmoded actuarial tables? No, the consultants who reviewed the Detroit pension plan did not inform the public pension of the mortality data.

Crain’s Detroit Business | $491 million pension shortfall may be result of using outdated actuarial tables

FERC Chairman says this is the game changer…. Large battery energy storage.

What will FERC do in response to this new sector of the energy market? ease the transition for large batteries onto the nation’s power grid

What does this mean for costs on the energy storage market? “energy storage costs should decrease 50 percent over the next five years”

Bonjour, Tesla and the others. Loyal Readers will recall the huge economic development deal Nevada put together for Tesla’s new battery plant in Washoe County.

Fuel Fix | FERC chairman: Energy storage potential “game changer”

Which state is contemplating pension funding thresholds be constitutional? New Jersey

What would the pension constitutional amendment require? 

• That the Legislature make full pension payments
• That pension payments must be made quarterly

What are the arguments against constititional pension requirements?

• tie the hands of legislators
• legislators need flexibility for balancing the annual budget
• the pension problem is complex since pensions have not been fully funded in New Jersey since 1997
• we don’t know what crisis might exist year to year and requiring billions come off the top to fund pensions, could harm new Jersey during crisis
• Illinois did this 46 years ago and today Illinois has the worst pension crisis in the country
• It will lead to tax increases that will hit business, and hit small businesses the hardest

New Jersey Business | Keep Pension Funding Out of the Constitution

Texas Public Policy Foundation wants to add these 3 additional items to the ballot for bond measures: 

• How citizens tax bills will be affected
• How much the bond will cost in full (principal and interest)
• How fiscally responsible the local government asking for more debt has been up to this point, i.e. local debt service outstanding per capita

What argumrnts are they using to support their position?

• Debt is bad
• Debt keeps growing for local governemtns in Texas
• At the end of 2015, Local government debt in Texas was an alltime high of  $338 billion
• Texas is #2 in the nation, behind New York and ahead of California, for per capita local indebtedness

Forbes Opinion by TPPF  | The Texas Borrowing Binge: What’s Another $30 Billion In Local Debt?

• California is set to reduce its gas tax by 2.2 cents.
• How did California get here? To keep budgeter hands off California general revenue when paying off transportation bonds, Gov. Schwarzenegger and his Legislature “swapped the state’s sales tax on transportation fuel for an equivalent “gallonage tax.”’
• A 1-cent adjustment to the tax= $149.2 million hit to state revenue
  Sacramento Bee | AM Alert: California set to lower gas tax by 2.2 cents

What state is limiting the number of tax credits? Oklahoma

What are the economic development reforms at play in Oklahoma?

• a two-year moratorium on nearly two dozen tax credits
•  

What impact did that have? 2 Boeing projects were pulled from Oklahoma & the Wind Coalition is threatening to move projects to Kansas

NONDOC | Filter: Feathers ruffled over Oklahoma tax credits

• St. Louis fought hard to keep the Rams in Missouri. A fight that cost $16 million.
• The state share is $12 million to pay off bonds for the stadium.
• The state, city and county will be paying for the stadium bonds until 2021.

Fox 2 Now St. Louis | Missouri legislators ask why $16 million was spent to keep the Rams in St. Louis

Which Southern state struck a deal with AirBnB? Alabama

Which Alablama taxes will be collected by AirBNB?

• The state’s Transient Occupancy Tax
• local lodgings taxes, if the responsibility for collection of those taxes has been assigned to the state’s tax office

is this an outlier tax agreement? No, it follows a model that other states & local taxing jurisdictions have followed

Birmingham Business Journal | Alabama strikes deal with Airbnb on tax collections

Washington Post | Airbnb is about to start collecting hotel taxes in more major cities, including Washington

• What groups are hiring lobbyists?
  • ​FanDuel
  • Draft Kings
  • Their Trade Association
• We talking state or federal legislation? State
• What’s the big picture with fantasy sport legislation in 2016?
  • ​16 + states have pending legislation carving out protections for fantasy sports
  • California, Indiana, & Virigina legislatures have all passed fantasy sport protections
• What does the legislation across the country have in common?
  • ​ no taxation  regulation of fantasy sports
  • no heavily regulation of fantasy sports

Wall Street Journal | Fantasy Sports Industry Mounts Lobbying Blitz

Far right activsits are paying attention to the voting requirements for the creation of special districts. 

What do they have their sites on? the use of temporary trailers to estbalish residency to vote for MUDs.

Big Jolly Politics | County Attorney asked for AG opinion on the use of rented voters- will he or won’t he?

What economic development question does attorney general opinion KP-0065 answer? It clarifies the meaning of the term “site improvements” under section 501.103 of the Local Government Code .

What did the attorney general say? 

• A 2014 Greg Abbott A.G. Opinion says that Section 501.103, Local Government Code, is a limited list an an economic development expenditure must be specifically listed in statute
• There is no definition of site improvement in statute, anywhere….
• the first step is to have board of the economic ·development corporation to determine if an item is a site improvement

What does this mean for 2017? A definition of site improvement is coming fast, and it will look like this :” mean an improvement or permanent enhancement that relates to the development of an area of ground on which a town, building, or monument is constructed. “

John Colyandro and Russell Whithers have an op-ed in the Ft. Worth Star Telegram laying out the rational for why fantasy sports is illegal gambling. 

Here are the Texas Conservative Coalition 3 big points against fantasy sports:

• The Conservative Coalition agrees with the Attorney General Opinion that aligns fantsasy sports with games of chance meeting the standard for illegal gambling in Texas
• There are so many exemptions to the gambling prohibition that the exemptions “swallow the rule.”
• The solutions:
  • Write clearer laws that clearly define games of chance, like the lottery, from games of knowledge or skill, like fantasy sports
  • Or, make all gambling illegal. 

Ft. Worth Star Telegram | Daily fantasy sports games are illegal, so we need better laws

County commissioners rejected, 13 to 2, an appointment to the Wayne County Employees’ Retirement System board because:

Pension retirees filed a federal lawsuit over changes to health care and tp the pension

What led to the pension changes and the rejection of an appointee:

• In 2015 some retirees were transfered from employer-paid group health care to a system in which they get a monthly stipend toward buying coverage on the federal Health Insurance Marketplace.
• health care for active county workers was cut
• health care for future retirees was eliminated
• the pension system was restructured
• these changes cut 64%  from the $1.3 billion in unfunded liabilities to $470 million in unfunded liabilities.

Detroit News | Wayne County panel rejects pension board appointment

What is philanthrocapitalism? When Zuckerberg announced he was giving away $45 billion. he didn’t set up a non-profit. He set up an LLC. 

How does it intersect with government? As an LLC it  won’t have the reporting requirements of a non-profit and can spend money on:

• funding nonprofit organizations
• making private investments
• participating in policy debates

Are there benefits to philanthrocapitalism?

• philanthrocapital could guarantee loans for storm water repairs after a toen is devasted by flood
• it could invest in Public Private Partnerships
• philanthrocapital could back stop small pensions from default

Governing | How ‘Philanthrocapitalism’ Could Transform Government

Where does Texas fall on the list of how well state procurement systems work? Texas doesn’t even make the list of Top 25,  likely due to its lack of centralization

The top of the list? Georgia

What 5 trends in procurement are identified?

• increasing up to date information on purchasing prices as technology improves
• more tracking of the procurement process for greater transperancy
• states are tracking their spending data to make get more favorable prices in their RFPs 
• more contract feedback for better customer service
• more contract management by the states
• more data tracking of WMBEs to improve diversity in contracting

Governing | Purchase Power: A Special Report on State Procurement

Where is this property tax revenue and voucher fight occuring? Wisconsin

What’s the issue? Whether a school district can raise property tax revenue to offset the cost of vouchers.

What kind of voucher program do they have in Wisconsin? A voucher program for students with disabilities

Who is on which side of this fight? 

• The Wisconsin House Speaker opposes allowing school districts to raise proeprty taxes more to offset the cost of vouchers
• Superintendents support the ability to “raise revenue to offset a state-aid reduction used to pay for students in the state’s voucher program”

Wisconsin State Journal | Robin Vos on voucher funding proposal: Superintendents’ rhetoric ‘gets ahead of the reality’

A legislator proposes a 15% sales tax on medical marijuana, but what numbers does medical marijuana generate?

• California medical marijuana is a $1 billion + in sales each year
• A 15% tax would generate $150 million per year

Sacramento Bee | California senator proposes 15 percent medical marijuana sales tax

What’s happening with fantasy sports legislation in California?  It’s moving lightening fast. It sparked ads against the 1 assemblyperson who voted against it. In short, it looked like nothing could slow its momentum.

What groups are raising concerns about the fantasy sports legislation? Tribal casinoes

What concerns does the opposition raise? 

• whether fantasy sports is even regulated gaming
• if it is regulated gaming, the legislation does nothing to punish the illegal activity of these corporate fantasy sports operators
• the bill has little vetting or deliveration
• fantasy sports is akin to online poker and their online gaming bills have failed, so let’s consider the two issues together

Sacramento Bee | Powerful casino tribes raise concerns with California fantasy sports bill

• Remember that the state’s Defined benefit pension funds are better than the average 401(k)
• Remember that 401Ks take bigger risks to prevent the fear of under performing
• It’s the private sector retirement benefit that need review, not the government pensions
• The PRB should continue to use amortization periods as the yard stick to measure financial strength
• The last 5 years of the 83 pensions under the PRB review have yielded the strongest performance

Statesman | Patterson: Texas public employee pensions remain healthy

• Study 1: University of California at Berkeley looks at CALSTRS Teacher Pension
  • ​Conclusion: For 6 of 7 teachers defined contribution plan is a better, more secure investment option than a 401K 
  • Conclusion: Pensions reduce teacher turnover
  • CAUTION: CALSTRS funded the study
• Study 2: TeacherPensions.org examined Illinois teacher pensions
  • ​Conclusion: traditional pensions disproportionately favor those who stick around for 30 or 35 years and are therefore not good for teachers
  • CAUTION: teacherpensions.org is known for critiques of traditional pensions

Governing | The Week in Public Finance: Contradictory Pension Reports, Brewing Pension Battles and Recession Worries

Why is a short bond length important? Atlanta and St. Louis are both paying debt service from bonds on stadiums that are no longer in use. 

Are local governments getting more savvy in negotiations? Yes, contract provisions may require hefty fines for abandoning a stadium before the debt financing is complete.

Aren’t stadiums economic drivers? No, not according to a host of recent econoic studies. “Publicly financed football stadiums are an especially troublesome investment because of their sheer acreage and large seating capacity.”

Governing | Rethinking the Game Plan for Stadium Bonds

Texas Senator Jane Nelson (R) and Texas Representative Dennis Bonnen (R) led the charge to significantly reduce Texas’ problematic Margin Tax, a modified gross receipts tax that is a dark mark in Texas’ otherwise well-structured tax code. For 2016, Texas businesses face rates reduced by 21 percent, from 0.95 percent to 0.75 percent (and prevented an otherwise scheduled increase to 1 percent), and extended eligibility and reduced the rate for EZ computation. HB 32 also includes language of the legislature’s intent to repeal the Margin Tax in future sessions.

Tax Foundation | 2015 Outstanding Achievement in State Tax Reform Awards

Which state had a commission reviewing pension reforms? New Jersey

What steps did it take to make recommendations? A report with recommendations was released in February 2015 & new supplmental recommendations in February 2016.

What are the 2016 supplemental recommendations?

• Keep the cost of the state employee benefits below 15% of the budget
• Align benefits more closely to private sector employer standards and new market developments 
• The reallocations for teacher retirees must not impact property taxes
• Preserve public employees’ and retirees’ health benefit packages at levels above those prevalent in the private sector
• Permit the reallocation to pension funding of over $2 billion a year in health benefits savings
• Fully-fund pension benefits earned to date while insuring that benefits earned in the future remain within the State’s means 

​​​What were the initial 2015 recommendations?

Oklahoma Legislature is moving toward a repeal of its historical tax credit that is utilized to redevelop historic structures.

How the historical tax credit works in Oklahoma:

• reimburse up to 20% of the cost of a redevelopment project
• requires that the building retains much of its original features
• implemented in 2006
• Has provided for $155.9 million in tax credits for 16 projects

How the historical tax credit works in Texas:

• reimbursement for 25% of construction costs
• implemented in 2013

Tulsa World | Historic tax credits spur redevelopment, supporters say

Lessons to learn from Florida as it grapples with a bill to reform Jacksonville’s public pension system:

• Conservative legislatures don’t like giving local pensions flexibility on administrative fees. Even 2% of a pension tax revenue was too much. 
• The new sales tax authority to clean up the local pension needed a firm date. Month, date, year is required. 

Florida Times Union | With slight changes, Curry’s pension-reform bill moves ahead in Senate committee

Previously on informedintel: Lege Trend: A SE State Legislature Tries to Act on a Local Pension. 3 Points to Know. 

Another day, another name for the sharing economy. The NY Times, in discussing a protest among ride share drivers, labled the sharing economy, the gig economy.

Why is this lexicon important? Because “sharing economy” appears in interim charges in 3 different committees – Appropriations, Business & Industry, Economic & Small Business Development

NY Times | Uber Drivers and Others in the Gig Economy Take a Stand

The Kentucky Senate is moving pension reform right along. let’s look at what it did:

• Strengthen pension transperancy & accountability by requiring the adoption of a best practices model
• Requires pension board appointees to have specific accounting skills
• New Contracting requirements for all pension related contracts, including investment contracts, with additional oversight by the board, the auditor & the state Government Contract Review Committee

WKMS | Senate Passes Pension Accountability Bill

Kentucky’s SB 2

Previously on InformedIntel:

5 Lessons from the Most Underfunded Pension in the U.S.

Kentucky, home to horses, is also home to the U.S.’s most underfunded pension. 

What has hampered the Kentucky Pension? Low investment returns, low contributions rates, the need to cash out investments & move investments to low risk, low reward bonds

What are the unfunded liabilities for Kentucky? $10 billion 

What has the Legislature done? In 2013 reforms included:

• creating a hybrid cash plan for new employees (pretty much a defind benefit plan with less risk for the state)
• eliminating COLAs (cost of living adjustments)
• required to the state to make its full actuarial payments immediately (which it hadn’t since 1990s)

Did that help? No. After the reforms, the plan suffered by:

• losing 1/3 of its assets
• only has 19% of the assets it needs to cover 30 years

Were there surprises post-pension reform legislation? Yes, surprises in how quickly the fund lost value

Governing | Kentucky’s Cautionary Tale About Underfunding Pensions

Which groups authored this report?  Workers Defense Project, in collaboration with the LBJ School’s Ray Marshall Center for the Study of Human Resources

The report does not look favorably on economic development based on these factors:

• Texas gave out $500 million in subsidies 
• The promised jobs did not come to fruition
• The jobs that are created required college degrees and went to out of state people

Austin Chronicle | Where the Money Went Report targets Texas Enterprise Fund and other incentive programs

What other pension is also underfunded? The NFL Player Pension

How underfunded is it? It has 72% of the funding to cover future retirement benefits

How does it compare to other multiemployer pension systems? The average is 85% funded

Is the NFL pension improving or declining in funding levels? Improving. 3 years ago the pension was 49% funded.

How did the NFL increase the pension’s funded level? Owners of the league’s 32 teams have contributed a combined $571 million to shore up a shortfall

Wall Street Journal | Latest Workers to Face Pension Woes: NFL Players

• Randy Davis, an Emory small business owner who is retired from the U.S. Army and currently serves in the Texas State Guard, says:
  • “I don’t believe in property taxes. I think it should be done away with.”
  • He favors a consumption tax
• Phillip Hayes, a marketing vice president and the youngest in the race, says:
  • eliminate the margins tax
  • it is bad for small businesses
  • says the margins tax eats up millions of dollars that could be used for economic development instead
  • against property taxes, but wouldn’t eliminate them because that’s how schools are funded
• Cole Hefner, who served four years as Upshur County commissioner, says:
  • margins tax is bad
  • opposed to economic development that gives away tax dollars
  • supports an educated workforce, low regulation and low taxes to lure business to Texas
• Jay Misenheimer, a Lindale small business owner and Lindale ISD board trustee, says:
  • Margins tax is bad

The Daily Tribune | GOP forum features Texas House candidates

Comptroller Hegar made the following 2 appointments to the  Economic Incentive Oversight Development Board:

• George Bayoud
  • former Texas Secretary of State
  • founder of an investment firm, Bayoud & Company Inc.
  • an advisor to the Dallas Cowboys since 2001
• D. Dale Fowler
  •  president of the Victoria Economic Development Corporation
  • certified economic developer with the International Economic Development Council
  • serves on the executive committee of the Texas Economic Development Council

What is the Economic Incentive Oversight Development Board? It reviews “the effectiveness of state incentive programs and funds administered by the offices of the governor, the comptroller and the agriculture commissioner.”

Who else is on this board? 

• Governor Appointees:
  • Adriana Cruz
  • Trevor Pearlman
  • Massey Villarreal
• Speaker has 2 appointees to be named
• Lt. Gov. has 2 appointees to be named.

Comptroller Hegar | Texas Comptroller Glenn Hegar Appoints Two Texans to Key Economic Incentive Oversight Posts

• The Legislature never intended the tax exemption would apply to oil and gas equipment
• If the Court allows the tax exemption, it will have a significant impact on the state budget
• A win for oil and gas would result in $4 billion in refunds & a $500 million per year revenue hit for the state

Why is this important? The Texas Supreme Court is set to hear oral arguments in March on  on whether the oil and gas equipment is taxable. The impact could mean a loss of billions in state revenue.

Texas Public Radio | Comptroller Warns Doing Away With Oil And Gas Tax Would Cost State Billions

Which state has a separate agency that reviews and analyzes all pension changes? Pennsylvania has an agency called the Public Employee Retirement Commission.

What’s going on with this special pension agency? The Pennsylvania line item vetoed it proclaiming each of the state and municipal pension systems already provide this analysis.

Why the fighting over this? The issue is familiar to Texas, does a line item veto shut down an agency or is legislation required to shut down an agency. 

Pittsburgh Post Gazette | Wolf takes aim at commission tasked with reviewing pension legislation for public workers

Which state legislature is working to revamp its local police and fire pension system? Arizona

What sparked the reform of local pension system by the legislature? Cities say their contribution rates too high.

What do we need to know about the compromise reform package?

• benefit increases for current employees must match actual cost of living increases
• small bump in the retirement age
• new hire pension contributions must be a 50/50 match between enrollee and local government

Is there an economic cost benefit for the new plan? For every new hire, local governments will save between 3 and 5.7% of that person’s salary on the pension each and every year. That’s a $3.6 billion savings over 30 years.

How to do enrollees feel about the reform? Public Safety Personnel Retirement System’s board voted to approve the compromise

ABC 15 | Arizona Public safety pension reforms could save taxpayers billions

Loyal subscribers will recall thge luck Georgia had when it increased its gas tax when gas prices were low and taxpayers offered little objection.

Alabama is wading into the waters with this proposal to raise the gas tax:

• 5 cent increase in the gas tax
• with the seal of approval from the Alabama Legislature’s Permanent Joint Transportation Committee
• American Petroleum Institute says the total Alabama gas tax will be 44 cents, that is including 18.4 cents of federal gas tax

The Hill | Alabama considering gas tax hike

Kentucky, home to horses, is also home to the U.S.’s most underfunded pension. 

What has hampered the Kentucky Pension? Low investment returns, low contributions rates, the need to cash out investments & move investments to low risk, low reward bonds

What are the unfunded liabilities for Kentucky? $10 billion 

What has the Legislature done? In 2013 reforms included:

• creating a hybrid cash plan for new employees (pretty much a defind benefit plan with less risk for the state)
• eliminating COLAs (cost of living adjustments)
• required to the state to make its full actuarial payments immediately (which it hadn’t since 1990s)

Did that help? No. After the reforms, the plan suffered by:

• losing 1/3 of its assets
• only has 19% of the assets it needs to cover 30 years

Were there surprises post-pension reform legislation? Yes, surprises in how quickly the fund lost value

Governing | Kentucky’s Cautionary Tale About Underfunding Pensions

The  Fantasy Sports Trade Association ran radio and internet ads targeting the one legislator who called fantasy sports illegal gambling that the Legislature cannot regulate and voted against a bill to require fantasy sports licenses.

Sacramento Bee | Daily fantasy sports industry targets California assemblyman

• Lawmakers asked California Attorney General Harris to issue an opinion on fantasy sports.
• Before the opinion could be issued, the Assembly passed a bill regulating fantasy sports on a vote of 62 to 1
• Fantasy Sports would require a license to operate in California
• Fantasy Sports Trade Association, nuetral on the bill,  saw the bill as a means to target the opponent with ads

Sacramento Bee | Video: Daily fantasy sports bill passes Assembly in blowout

California AB 1437

Which state is tinkering with legislation for industrial tourism? California is considering a new sales tax break for car manufacturers

What kind of the sales tax break is under consideration? eliminate sales tax on new automobiles manufactured in California for out-of-state buyers

• What is the purpose of a pension stabilization account?  it will work like a reserve account to shield a pension from low city contribution years
• How does a reserve account like a pension stabilization work? The city will create a fund equal to 8% of the average of the last 3 years of city contributions to the pension
• Where is this happening? San Diego
• What did the city’s independent budget analyst think? the reserve account is fiscally prudent

Fox 5 | City to consider pension stabilization measures

Nebraska’s LB 862 gives a blanket exemption from gaming prohibitions to fantasy sports. 

Pretty clean and tidy. There’s a definition of fantasy sports too, also very brief with 3 key points:

• cash prizes are ok
• the amounts of prizes have to be known
• a winning outcome is based on a players knowledge and some statistics but definitely not an actual score of an actual game.

Lincoln Journal Star | Fantasy sports: Gambling or not? Nebraska legislature could weigh in

Utah is considering repealing its film tax credit economic development program. The author of the legislation wants to replace the tax credits with multi-million dollar incentive fund which will have greater taxpayer control.

Utah House Bill 162

Fox 13 Salt lake | Bill would scrap movie-making tax credits in Utah

• California is looking at switching the gas tax to a tax on mileage
• Indiana is looking to hike the gas tax and cigarette taxes for roads
• Michigan Republicans see road funding in an increase in sales tax
• Virginia is looking at a tax on mortgage filings and  property lien filings to fund roads

Americans for Tax Reform | Meanwhile, in the States…

California’s Initiative &  Referndum to tighten pensions won’t be on the ballot. 3 Reasons why:

• fundraising problems
• union opposition
• a pending US Supreme Court ruling will strengthen the position of pension reformers.

It’s a 2 year reprieve. Supporters will push for the November 2018 ballot.

Sacramento Bee | Measure to curb California public pensions is pulled – for now

Previously on July 8, 2015 InformedIntel:

• Attorney General found fantasy sports illegal in Maryland
• Maryland Legislature isn’t touching the issue
• Maryland Senate President said “somone needs to take action” but it’s not him.
• co-chairman of the General Assembly’s gaming-oversight committee said:
  • no move to shut down fantasy sports and no action to clarify that it is legal
  • he’d like to see consumer protections either regulatory or legislative
• Maryland Comptroller has regulatory authority & is studying whether the comptroller can tax fantasy sports

Washington Post | Md. legislature quiet on fantasy sports after attorney general’s call for action

• Simpson opposes economic development funds & those funds should go directly to school funding
• Simpson believes in the protection of dedicated funds. He opposes un-dedicating funds
• Lee supports property tax reductions offset by increases in sales tax or implementing a consumption tax
• Simpson supports tax dollars following the tax payer
  • If a tax payer bought goods in Dallas and lives in Marshall, the tax revenue should go back to Marshall

Longview News Journal | Texas Senate District 1 forum focuses on taxes, refugees

The Tax Foundation declares that Texas is #46 in State and Local tax burden. Here’s why:

• Texas state and local tax burden is 7.6% of state income
• Texas per capita state and local tax burden amounts to $3,340
• Most of the least state and local tax burden states forgo a major tax
• New York is #1 at 12.7% state and local tax burden as a percentage of state income
• California is #6 at 11% state and local tax burden as a percentage of state income

Where is this happening? Florida Legislature is trying to affect the Jacksonville, Florida municipal pension program.

What caused the Legislature to act? Jacksonville’s municipal pension program, including police and fire, has “massive debt” of $2.7 billion in 30 year actuarial costs

What does the Legislature want to do to the local pension? 

• The Legislature is considering allowing the city to implement a 1/2 cent sales tax increase to handle the pension liabilities
• With that sales tax increase authority, the Legislature may mandate requirements on the pension program such as:
  • pension restrictions for new employees such as:
    • mandatory 401Ks
    • moving the city employees into the state employee retirement system
  • start a new pension system for new hires

The Florida Times Union | Legislature could try to reshape Jacksonville’s retirement programs in push to approve half-cent tax

Add Texas to the list calling for divestment in Iran.

San Antonio Express News | Abbott pledges to expand ban on Texas investments in Iran

Valley Central | Gov. Greg Abbott: Texas should pass laws to block public investment in Iran

Previously on informedintel from September 22, 2015:

What is the Economic Incentive Oversight Board? 

• HB 26 created it
• Reviews the effectiveness and efficiency of state incentive programs and funds administered by the offices of the Governor, the Comptroller and the Department of Agriculture.
• Makes recommendations to the Legislature 

The Governor Appointees:

Adriana Cruz

• president of the Greater San Marcos Partnership
• treasurer of the Foreign Trade Zone of Central Texas
• UT-Austin

Trevor Pearlman

• Founder, Tregan Partners
• National Association of Royalty Owners
• UT-Austin & J.D. from SMU

Massey Villarreal

• president of Precision Task Group, Inc
• Texas A&M Corpus Christ
• Active in Mexican American & Hispanic Chambers of Commerce

Governor Abbott | Appoints Three To Economic Incentive Oversight Board

On Tuesday, 1.19.16, Attorney General issues opinion KP-0057 finding fantasy sports illegal gaming in Texas because it violates both the constitution and state statutes by:

• Involving betting. Fantasy sports includes a bet, the fee fantasy sports participants pay
• Being a game of chance. Those wagering have no control over how players perform.
• There is a previous AG Opinion that Guides. LO-94-051 requires that to fall into the statutory exception to be a legal bet, there must be direct participation in the betting activity.
• Your office pool is ok. As long as the house doesn’t retain funds, you’re A-OK.

The Houston Chronicle Editorial calls on firegihter pension reform. 

What’s happening? New GASB rules require pension liabilities to be noted on city financials.  That puts Houston’s unfunded liability at $5 billion, up from the previous $3.2 billion estimate.

Should we be surprised? No, InformedIntel had you covered back in January 2015 with New Debt Target for State andLocal Debt: Health Care Benefits

Any hurdles for this call for reform? Yes, a March 2015 argeement for a cease fire between the City of Houston and the Firefighters. Houston Firefighters and City of Houston Reach 3 Year Pension Deal

What reforms does the Houston Chronicle editorial propose?

• static number or fewer fire fighters
  • there are fewer fires
  • fire fighters spend their time on other things like EMT services which account for 85% of their calls
• stop sending fire trucks to medical emergencies
• cut fire stations and add paramedics

Houston Chronicle editorial: Out with the old

Republican House Members in Indiana have a plan, a transportation funding plan to:

• Raise fuel taxes by 4 cents a gallon to 22 cents
• Raise cigarette taxes by $1
• Raise sales tax on fuel by 4 cents a gallon (Roughly $24 per year per motorist)
• Charge electric car owners a $100 yearly registration fee
• Allow cities to charge a “wheel tax,” which is a charge of up to $25 on car registrations to help fund local projects.
• Study turning freeways into tollways

Republican leaders say:

• this plan will end transportation funding diversions
• and increase funding to other programs, like to pay for Medicaid and health programs
• “Hoosiers want investment in roads and infrastructure.”

Opponents say now is not the time to put a burden on hardowrking Hoosiers.

Supporters include Tobacco Free Indiana.

Republican House Leadership Plan counters the Governor’s plan which calls for:

• Earmark $1 billion toward road funds from:
  • a combination of state reserves
  • new bond money
  • financial commitment from the legislature for additional spending.
  •  no additional taxes
  • fund needed highway repairs for four years

IndyStar | House Republicans outline tax plan for additional road funding

Northwest Indiana Times | House Republicans’ transport bill hits the road

Who’s hiring consultants and lobbyists? DraftKings Inc. and FanDuel Inc. are beefing up their presence in the California Capitol

Remind me, what’s the Golden State doing with fantasy sports? the Legislature, in session, is moving a bill that would:

• Allow daily fantasy sports sites to operate after paying a fee and obtaining a license
• Unlike New York and Massachusettes the California Attorney General has not taken a position.

The Recorder | Fantasy Sports Sites Add Lobbying Muscle in Sacramento