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State Government News Published Monthly by the Council of State Governments
[insert is a stetch the dome of a building with three pictures under it; one of a man on a tractor, second of a crane, and third of a teacher working with a child]
State of the States
February 1975 [stamp of a building, with 9 vertical row of stars. Following text THE COUNCIL OF STATE GOVERNMENT]
[Upside down is the mailing label] Senator Julian Bond P. O. Box 1382 Atlanta, Georgia 30301
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2 [left hand corner] Buidling tomb with text State of the States.
A cautious approach to gevenrment spending and new programs in the coming year and was expressed by most Governors in their state of the state, budget and legislative messages.
States with financial surpluses far outnumbered those with deficits, but the pall of the recession touched even Texas with its $1 billion surplus. Texas Governor Dolph Brisco warned, "We must be acutely aware that our surplus can evaporate just as rapidly as it has developed."
A willingness to tackle in their own States the nationwide problem of the economy was expressed by the Governors. Typical was Indiana Governor Otis R. Bowen's comment, "However, the fact that many of the answers seem to lie in Washington is not an alibi for inaction on our part."
The following summaries are an attempt to provide an overview of the Governors' legislative proposals for 1975.
INDEX TO 1975 STATE OF THE STATES
Taxes - 2 Energy - 5 Government - 7 Fiscal - 3 Environment - 5 Transportation - 7 Justice - 4 Ethics - 6 Education - 8 Consumers -4 Economy - 6-7 Health, Welfare - 8
Taxes Taxes relief favored, some energy [two columns] [one column] Income taxes would be imposed for the first time in New Jersey and South Dakota under gubernatorial proposals. Income tax breaks were suggested by Governors of Colorado, Indiana, Iowa, Oklahoma and Oregon. Pennsylvania's Governor repeated his request for a consitutional amendment to make the income tax graduated. Citing falling revenues, the Governors of Utah and Vermont asked to change from following federal income tax methods. A tax increase on corporate incomes over $25,000 was asked by Colorado's Governor and a hike in the business and occupational tax requested in Washington. Delware's Governor called for a tax on undistributed profits of tax-emempt foundations. The Governors of Florida and Connecticut pledged there would be no persoanl income tax. Michigan's Governor raised the possibility of an income tax hike to make up for the sales tax lost on food. North Dakota's Governor asked a phase-out of t he surtax to fund the Vietnam bonus. Higher incomes would be subject to greater taxes in Vermont under the Governor's proposal in lift the tax ceiling. Alaska;s Governor called for a close in loop-holes in corporate income taxes and a limit on the amoung of equipment qualifying for an investment tax credit. New Yorks' Governor did not request suspension of the 2.5 percent income tax surcharge that had been suspended for the past two years.
Sales tas exemption would be increased under proposals by a number of Governors. Exemptions for food sales were asked in Colorado, North Carolina
[second column] Washington and West Virginia. Repeal of the sales tax on drugs was asked in Mississippi, New Mexico (also on medical care) and Utah. An increase in the food sales tax credit on income taxes was advanced by Idaho's Governor. Exemption of food and drugs was sought in Wyoming, and of prosthetic devices in Indiana. To make up for repeal of the food sales tax, a 1 percent sales tax increase was advocated by Washington's Governor. Application of the sales tax to cigarettes, liquor and gasoline was asked by Vermont's Governor, along with hikes in taxes on cigarettes, rooms and meals, and wine, and balanced with increases in income tax rebates on sales tax for low-income persons. New Jersey's Governor accompanied his call for an income tax on utility bills was aske by Texas' Governor.
A Public vote on an urban bond issue financed by a sale tax hike was proposed by Ohio's Governor.
Campaign Tax credits were called for in Colorado and New York, and an income tax checkoff for campaign contributions asked in Wisconsin.
Property tax relief was advanced by a number of Governors. Expansion of circuit-breakers and
"We were in the lead car of the to the roller coaster going up and we are in the lead car coming down." New York Governor Hugh L. Carey.
STATE GOVERNMENT NEWS, FEBRUARY 1975
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3 Fiscal Most States in the black-some less fortunate
[two columns[] Deficits were forecast for Connecticut ($65 million), Delaware, Florida ($232 million), Massachusetts ($350 million), Missouri ($35.5 million), New Jersey ($487 million), New York, Tennessee ($71.4 million), Vermont ($!1 million), and a possible deficit in Virginia. Measures were proposed by the Governors to reduce the size of the expected deficits.
Surpluses ranged from Texas' $1 billion to more moderate amounts forecast for Alabama ($14 million), Azizonia ($1.2 million), California ($401.2 million), Hawaii ($35 million). Iowa ($221 million), Mississippi ($15 million), Montana, Nevada, New Hampshire ($15 million), New Mexico, North Carolina ($105 million), North Dakota ($145 million), Oregon ($172.5 million),
[second column] South Carolina, Utah ($.8 million), West Virginia ($106.9 million) and Wisconsin ($79.2 million). Tax relief, capital construction and other proposals were suggested by Governors to utilize the surpluses. South Carolina's Governor cautioned that the 1974 surplus was being erased by new spending programs and urged a temporary set-aside of at least 25 percent of any year-end surplus for unusual fiscal situation.
"Unlike the federal government, the State of Vermont cannot print money and cannot consciously program a deficit." Vermont Governor Thomas P. Salmon
[two columns] [first column] tax hikes asked property tax relief measures for the elderly were advocated in Colorado, Idaho, Indiana, Iowa, Kansas, Nevada, New Jersey and Wisconsin. Georgia's Governor asked that $35 million be designated for property tax relief. Minnesota's Governor called for granting property tax relief according to family income levels and continuing the propery tax freeze for the elderly. New tax relief programs for the elderly were proposed in Montana and North Dakota. South Dakota's Governor proposed a repeal of the personal property and business inventory taxes. Return of state property tax revenues to localities was advocated by New Mexico's Governor. Mississippi's and South Carolina's Governors called for property tax equalization, and Nevada's Governor called for fair tax assessment. Farm breaks were advocated by Governors of Kansas and South Carolina.
Gasoline tax hikes were proposed by the Governors of New Jersey, New York, and South Dakota, and the possibility of gasoline tax increases raised in Hawaii and Utah. Mississippi's Governor suggested a percentage gasoline tax and Vermonts's asked for application of the sales tax to gasoline purchases. A higher diesel fuel tax was proposed in Delaware. Ohio's Governor proposed an increase in gas tax to fund a transportation package to be voted on by the people.
Energy resources tax changes were advocated by several Governors. Initation of severance taxes on coal and minerals was asked in California and Colorado, and a severance tax and a tax on energy facilities to replace present coal and electricity taxes suggested
[second coulmn] ]picture of a crane with the following text Coal tax hikes were asked] in North Dakota. A doubling of the servance tax was requested in Wyoming and a change to reflect coal's higher value sought in Montana Repeal of oil depletion allowances was proposed by the Governors of Alaska, California and Delaware. Foreseeing growth of off-shore oil facilities and oil shipping. Washington's Governor called for an oil transfew tax. Delaware's Governor supported a tax breaks for energy conservation, such as carpooling or installation of insulaton.
STATE GOVERNMENT NEWS, FEBRUARY 1975
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4 [two columns] Justice Governors advocate corrections reform
Corrections facilities or programs would be upgraded under proposals by at least 19 Governors. Establishment of deparments of correctons was asked in Delaware and Pennsylvania. Presentence diagnotic centers were advocated in Mississippi, Oklahoma and Rhode Island, and a pretrail detenton center requested in Delaware and receiving centers in Virginia. Many Governors stressed the need for rehabilitation and smaller, community-based corrections centers. Better prison health care was asked in Michigan and Mississippi. Oklahoma's Governor proposed a classification system for prisoners and a statewide school district for corrections. Enactment of the model penal code was asked in New Jersey.
Death penalty laws were called for by the Governors of Kansas, Maryland and Virginia.
Juvenile facilities were requested by the Governors of Missouri and Nevada, juvenile code reform asked in Kansas and Maryland, and better programs for dealing with juveniles sought in Hawaii, South Carolian, Washington and Wisconsin.
Police improvements in funding and standards were called for by a number of Governors, including setting training requirements in Georgia, New Jersey and South Carolina, and police standards in Mississippi.
Crime victims would be compensated by the State under programs proposed by the Governors of Idaho, Michigan and Wisconsin.
Court reforms were proposed by the Governors of Kansas, Mississippi, South Carolina and Wisconsin. Unified court systems were asked in New Jersey and in New York, and a new judicial article requested by Washington's Governor. Criminal code revision was sought in Iowa. Various gun laws woull be stiffened under proposals in Michigan, Mississippi, South Carolina and Wisconsin. Appointment of judges was advocated in Maryland, Michigan and New York.
[boxed text about the Newspaper] STATE GOVERNMENT NEWS @ The Council of State Governments February 1975 vol. 18, No. 2 Published monthly by THE COUNCIL OF STATE GOVERNMENTS P.O. Box 11910, Lexington, Kentuck 40511 Brevard Crihfield, Executive Director Paul Albright, Director of Publicatons Elaine Knapp, Editor, State Government News $5 per year Second class postage paid at Lexington, Kentucky and additonal mailing offices. PostmasterL Send form 3579 to Box 11810, Lexington, Ky. 40511
[column two] [photo of a man's hand on a jail cell door] [text as follows Corrections reform were proposed] [photo by Del Smith, Oklahoma Crime Commission
Consumers Housing aid asked Housing finance agancies to fund construction of low - and middle-incole housing would be established under proposals by the Governors of Iowa, Kansas, Montana, Neveda, Ohio and Utah. More funds for housing were asked by the Governors of Connecticut, Deleware, Illinoi, Marlyand, Michigan, Minnesota, New Jersey, New York, North Carolina and Pennsylvania. Other gubernatiorial requests included a limit on mortgage escalator clauses in Wisconsin, minimum housing stadards in Kansas and Utah, and condominium controls in Pennsylvania.
No-fault auto insurance laws were supported by the Governors of Alaska, Missouri and Wisconsin. A modified no-fault law was asked in Iowa.
Consumer protection measures were proposed by at least 19 Governors. Concern over price fixing generated calls for antitrust laws in Alaska and Pennsylvania, fair trade law repeal in New York, and review in New Jersey. Repeal of milk pricing was asked in North Carolina and placement of consumers on milk commissions advocated in South Carolina and South Dakota. Consumers would be place on the state regulatory boards under suggestions by the Governors of Colorado, Pennsylvania and Wisconsin. High drugs prices prompted proposals for posting of drug substitutes in Washington and Wisconsin. Creation of a consumer affairs division was asked in a New York and a consumer advocate asked for by Pennsylvania's Governor. Cable television regulation was suggested in Iowa, Michigan and Wisconsin.
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5 Environment Land use plans, strip mining controls, recycling, and wateer laws recommended
[two columns] Land use planning was endorsed by the Governors of Alaska, Colorado, Idaho, Iowa, Michigan, New Jersey, North Dakota (local government), Pennsylvania, Rhode Island, South Dakota, Vermont and Wyoming. A cautious updating of the land use law was suggested by Hawaii's Governor. Funds to implement land use plans were asked in Minnesota and Oregon. Delaware's Governor asked that development be regulated in the coastal zone and New York's asked for wetlands protection. Florida's Governor called for a policy of channeling growth where it's needed. Farmland protections were advocated in Montana, North Dakota and Wisconsin.
Strip mining controls were called for in Colorado, Michigan, North Dakota and Utah.
{second column] Recycling and solid waste management proposals were supported by the Governors of Colorado, Indiana and Rhode Island.
Water use revisons or funds for water development were proposed in Idaho, Montana, North Dakota, South Dakota, Texas, Utah, Washington and Wyoming.
Environmenttal protection proposals in a wide variey of areas were proposed by at least 30 governors. Among other gubernatotial proposals were creation of a department of natural resources and an environmental policy for North Dakota, funds to restore private farmlands to productivity in Utah, $25 million for parks in Illinois, a ban on nonreturnable bottles in Michigan, and a real estate tax to finance open space acquistions by local governments in Colorado.
[a picture of a farmer on his tractor plowing a field] [text reads Land use plans were asked for.]
Energy
Utility rate hikes concern Governors
[two columns] [first column] Energy agencies, offices or commssions would be established under proposals by the Governors of California, Michigan, Missouri, New Mexico, Rhode Island and Washington. A comprehensive energy department was asked in Oregon. Creation of an energy development authority was requested in Ohio and a developement fund in Texas. Energy policy plans were called for in Colorado and New Jersey, and a regional plan suggested by Rhode Island's Governor.
Conservation incentives suggested by the Governors included tax breaks for energy conservationists in Colorado and Delaware and energy - saving building codes in Colorado, Delaware, Indiana, Kansas, Kansas, Texas and Wisconsin. Illinois' Governor asked $10 million to insulate state office buildings.
Utility rates increases were a matter of gubernatorial concern. Connecticut's Governor called for a new utility control authority to replace the public utilities commission and asked for bonding authority to aid utilites. Other gubernatorial proposals would make rate changes subject to review in Delaware and more
[second column] public in North Carolina and Pennsylvana, estabilished a public counsel in Missouri and guarantee utilities service tot eh elderly in New Jersey.
Impact of energy developement and how to deal with it was the subject of proposals by the Governors of Alaska, Arizona, Colorado, Montana, North Dakota, Texas and Utah. Montana's Governor asked for legislation allowing cooperative ventures in natural gas production and for state aid to localities affected by coal conversion facilities.
Siting legislation, establishing controls over where energy facilities may be located, was proposed by the Governors of Montana, Oregon, Texas (superports). Utah, Washington, Wisconsin and Wyoming.
"Our Arizona does not need to be turned into a stripped wasteland to supply power and minerals for others," Arizona Governor Raul H. Castro.
STATE GOVERNMENT NEWS, FEBRUARY 1975