DENVER - A new law requiring stronger oversight over tax expenditures is headed to Gov. John Hickenlooper's desk.
Colorado has close to 200 tax credits, deductions and exemptions that account for more than $4.6 billion in spending annually. Ali Mickelson, director of tax and legislative policy for the Colorado Fiscal Institute, said evaluating tax expenditures will increase transparency and accountability.
"When we find a new tax credit, which we inevitably do every year, and we hear that it's going to create jobs, this really puts that to the truth test," she said. "Is the tax credit achieving its purpose, and is that the best use of our state taxpayer dollars?"
Senate Bill 203 would treat spending through the tax code the same way it evaluates appropriations for kindergarten-through-12th-grade education or any other state spending. Mickelson noted that the law would require auditors to assess whether tax credits are achieving their stated goals and if they're making good on promises, such as increasing economic activity.
Because Colorado lawmakers have been quick to use the tax code for policy solutions -- to attract new businesses to the state, to increase the use of renewable energy and help struggling families through the earned income tax credit -- it's important for the state to know the return on its investments, Mickelson said.
"It's really important that we evaluate tax expenditures because they're pretty much direct spending, just like any other government appropriation, but through the tax code," she said, "and so they don't have the same level of scrutiny that other direct spending does."
Colorado is expected to join 21 other states that already have passed similar measures.
Details of SB 203 are online at leg.state.co.us.
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Nearly 100 local groups, officials and labor leaders welcomed federal and agency representatives to Sault Ste. Marie for a two-day discussion and listening session.
The meeting focused on fostering economic growth in the Upper Peninsula and northern Lower Michigan. The gathering organized by United Today, Stronger Tomorrow, and other community groups, highlighted promoting and accessing federal programs to meet community needs, such as lack of affordable housing and job creation.
Linda Hoath, executive director of the Sault Ste. Marie Visitors Bureau, feels the listening session was a huge success.
"What I saw was information being shared with many that hadn't been is shared before; how can we work together to help you?" Hoath observed. "I think it was one of the best things that has happened in the eastern UP in a very long time."
The historic funding from the Bipartisan Infrastructure Law and American Rescue Plan Act provided more than $650 million in the Sault Ste. Marie Lock and Dam rehab project and $2 million to upgrade the International 500 Snowmobile Race Track for year-round use.
During the listening session, participants identified barriers to federal investments in UP communities and drafted recommendations for the administration and federal agencies. They also learned about funding streams, formed community partnerships and built relationships with key officials.
Kalvin Carter, program director for Up North Advocacy, appreciated the discussion.
"It meant a lot to see them come into our small rural town and listen to us and help us strategize ways that we can use this historic investment wisely," Carter emphasized.
The goals of the listening session were to provide detailed feedback on federal funding flow, build a strong, well-paid workforce, transition to a new clean-energy future and continue collaboration beyond the session.
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Nebraska legislators are in the first full week of the special session focused on Gov. Jim Pillen's goal of decreasing property taxes by as much as 50%.
Among the groups keeping a close eye on the session and the governor's proposal is the Nebraska nonpartisan fiscal research organization OpenSky Policy Institute.
Rebecca Firestone, executive director of the institute, acknowledged they are still analyzing Pillen's plan and modeling its potential effects. She said it appears it would provide "substantial property cuts for large landowners," many of whom don't live in Nebraska.
"For the large portion of Nebraskans who do not own property, what we're looking at is a tax increase for them," Firestone argued. "It's a tax increase on some core aspects of daily living that for many Nebraskans of modest means will be hard."
Firestone cites sales taxes on automotive repair services as an example of a necessary service likely to become more expensive under this plan. A few of the other services to add sales taxes are veterinary services, hair cutting and legal services.
A document on the governor's website maintains with sales taxes, people are "in control," because they can decide what to purchase, when to purchase it and how much they are willing to pay.
In addition to new sales taxes, funding for the governor's plan would come from budget cuts, including to behavioral health, developmental disabilities and other health and human services programs. Firestone called the cuts unsustainable, potentially harmful and lacking in transparency.
"The methodology driving those cuts, which is from this contractor Epiphany and Associates, has not been made public to the people of Nebraska," Firestone pointed out. "Which is what the legislative process is for, and that needs to be a part of any rationale for budget cuts."
Firestone noted while OpenSky "appreciates the scope and ambition" of Pillen's plan, such a "major overhaul" of the state's revenue system warrants more than a special session.
"The Legislature must have the ability to exercise its oversight over how the state spends its money," Firestone contended. "To sort of redo that in a special session doesn't allow the kind of deliberation and careful scrutiny that our state budget deserves."
Pillen's website document states at the current rate of increase, property taxes in Nebraska will be increasing by $6 billion annually by 2026.
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This month, a Pittsburgh nonprofit working with immigrants was fined almost $200,000 for unfair labor practices.
It is one of a growing number of cases decided by the National Labor Relations Board. The NLRB found the organization Hello Neighbor denied pay increases and let workers go for their union support.
Buddy Maxwell, a United Auto Workers' organizer and Mack Truck worker in Macungie, said the NLRB is necessary for its ability to protect workers' rights, although its future may depend on who wins the presidential race in November.
Maxwell pointed out more workers seem to want to unionize, which he added has been easier under the current administration.
"As of now, we are probably at our highest of organization," Maxwell observed. "I mean, you're talking about wins of over 70% of organizing campaigns, as well as well over probably 100,000 that wanted to join unions and be able to have a say in their workplace."
The NLRB said union election petitions filed with its office were up 35% in the first quarter of 2024, compared to the same time in 2023. But the agency said it has struggling to keep up with the demand, including investigations of unfair labor practices since its budget has been flat for much of the last decade.
Maxwell, an Air Force veteran, explained he has been working for Mack Trucks for 30 years and played a role in his local union's six-week strike last year. He has also helped other workers in their organizing efforts, including at the Westport Axle plant in Alburtis.
"I became a lead organizer, and we ended up winning that organizing drive by over 70% of the vote," Maxwell noted. "And now, I am now working on another project for UAW International, trying to organize between 5,000 and 6,000 employees."
He emphasized the NLRB helped workers who were fired during the Westport Axle organizing drive get their jobs back. He added it is not uncommon for employers to mount anti-union campaigns. The NLRB said unfair labor practice charges were up 7% in the first quarter of this year.
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