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Weekly wrap: Recession forcing government overhaul
By Stephen C. Fehr, Stateline.org Staff Writer

Oregon, Louisiana launch review of government; Utah's four-day work week saves on energy costs; new pension report released.
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Sales tax breaks erode state revenues
By Kimberly Leonard and Tony Romm, Special to Stateline.org

As shoppers in 15 states rush to buy tax-free clothing and school supplies this August, some lawmakers are experiencing buyer's remorse: Their "sales-tax holidays" are pinching revenues at a time when state coffers are hurting.
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US: Governors fear added costs in health care overhaul


SEATTLE — The fraying of the nation's Medicaid system has many indicators, and one of them is Connie Baugh's stockings. Ms. Baugh received a letter the other day from the state saying that as a result of budget cuts, Medicaid could no longer pay for the compression stockings that support her circulation and keep her aching leg ulcers from flaring.   Read More
US: Which states are spending highway stimulus fastest?


NEW YORK -- When Congress passed the $787 billion economic stimulus package, it included $26.8 billion for the states to spend on their highways and bridges. One of the congressional mandates was to spend the money quickly. Now Rep. James Oberstar (D) of Minnesota, wants the taxpayers to know who is spending the money and who is not.   Read More

ADDITIONAL HEADLINES RECENT STATELINE.ORG STORIES
OH: July Ohio tax revenue beats projections After months of state revenue coming up short of projections, fiscal 2010 is off to a good start, according to preliminary July numbers released yesterday by Gov. Ted Stricklands office.
NJ: Corzine signs law limiting handgun purchases TRENTON, N.J. -- New Jersey will become the fourth state in the nation to limit handgun purchases to one every month. Gov. Corzine signed the controversial measure into law yesterday.
US: 247,000 jobs lost in July; rate falls slightly to 9.4% The American economy lost 247,000 jobs in July, and in a reversal, the unemployment rate fell slightly, to 9.4 percent, the government reported Friday.
WV: Manchin to call special session on jobless benefits West Virginians who have lost their jobs may receive longer unemployment benefits under a proposal state lawmakers will take up next week.
VA: 3 of 'Norfolk 4' conditionally pardoned in rape, killing Three members of the Norfolk 4 -- sailors serving life in prison for a 1997 rape and murder -- should walk free by Friday after Virginia Gov. Timothy M. Kaine granted them conditional pardons Thursday for crimes to which they all had confessed.
NJ: Ratings firm maintains Jersey's credit level, but raises concerns Another Wall Street ratings agency is raising concerns about New Jerseys high debt burden and growing unfunded pension liability, but has decided not to lower the states credit rating or credit outlook in response.
IL: Panel -- Leaders failed U. of I. After an eight-week investigation found that the states culture of political dealmaking seeped into the admissions process at the University of Illinois, a state panel called Thursday for resignations and reforms to move the school past the embarrassing scandal.
PA: Social-service funds dwindle amid budget impasse The Caring People Alliance made it through the Great Depression, the Second World War, and all the economic dips and jolts that followed. But it might not survive the state budget impasse in Harrisburg.
GA: Furloughs alter teachers' schedules, paychecks The teacher furloughs — believed to be a first for Georgia — are altering the schedules and paychecks of the majority of the states 120,000 school teachers. Some teachers are philosophical about the unpaid days. Others are plainly unhappy.
TN: Tennessee to cut prison population by 3,000 The Tennessee Department of Correction will reduce the states prison population by 3,000 over the next two years, focusing on keeping low-risk offenders from going back to jail, as a way to cope with an ongoing budget crunch.
US: State Guard members at risk of identity theft About 131,000 former and current Army National Guard members, including more than 1,700 in Wisconsin, are at risk of becoming victims of identity theft after a laptop with their personal information was stolen.
CA: California bans threatening noose displays SACRAMENTO, Calif. - California law already bans threatening displays of swastikas and burning crosses. Now add nooses to the list. On Thursday, Gov. Arnold Schwarzenegger signed legislation making such displays punishable by up to a year in jail and a fine of up to $5,000.
IL: Dan Hynes declares candidacy for Illinois governor, will challenge Pat Quinn in primary Illinois Comptroller Dan Hynes will challenge Gov. Pat Quinn in the Feb. 2 Democratic primary, setting up an in-party campaign fight between two of the top elected officials in the states ruling party.
US: State races seen as tests for Obama WASHINGTON — President Obama has returned to the campaign trail. He is appearing in television advertisements in New Jersey this week on behalf of Gov. Jon S. Corzine, the embattled Democrat struggling to win a second term. And he campaigned on Thursday evening alongside R. Creigh Deeds, the candidate for governor fighting to keep Virginia in the Democratic column.
Tracking the recession: Lawmakers dreading end of stimulus dollars Most of the federal stimulus money will be gone after next year, and state officials are growing uneasy about how they will balance future budgets. A new survey shows how much states relied on the stimulus to cover gaps in fiscal 2009 and 2010.
States make deep cuts to health At least 14 states moved to give more children health care this year, but the recession is taking a toll on other state taxpayer-financed programs such as Medicaid, mental health and public health.
Tracking the recession: State stimulus Web sites get mixed marks Interested in learning from your state how it’s spending its federal stimulus dollars? You may find the information more easily if you live in Maryland, Colorado or Washington, but good luck if you call Illinois home.
Tax-hike plan fuels Pa. budget standoff HARRISBURG, Pa. -- California this week closed a staggering $24 billion budget deficit. But in a handful of other state capitals, like this one two hours west of Philadelphia, deeply unpopular fiscal choices still loom for lawmakers who have failed to pass long-overdue spending plans.
Weekly wrap: GOP govs support tax hikes as budget fix Connecticuts M. Jodi Rell is the latest Republican governor to back tax increases, reversing earlier opposition. President Obama talks about the impact of the stimulus on the states. A new article supplies the historical background of the worst recession since the 1930s.



DAILY STATE NEWS
UT: Utah governor confirmed as China envoy
The Senate Friday confirmed Utah Gov. Jon Huntsman Jr., as ambassador to China by voice vote.
CQPolitics.com
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SC: Jenny Sanford: We're moving out of Governor's Mansion
First Lady Jenny Sanford announced Friday she is moving with her four sons to Charleston and will no longer live in the Governor's Mansion.
The State (Columbia)
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DE: Now hiring -- State of Delaware
It took 45 minutes for Jazmon Smith, 23, to get a new driver's license Wednesday, longer than the last time she went to the Division of Motor Vehicles near New Castle. Plans to hire 24 new employees for statewide DMV operations was welcome news to Smith, who was not just excited because her next trip could be quicker.
The News Journal (New Castle-Wilmington)
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Abortion
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Legislative Wrap-up 2009
Legislative Wrap-up 2008
Legislative Wrap-up 2007
Legislative Wrap-up 2006
Medicaid
Minimum wage
Same-sex marriage
Stem cells


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The Stimulus and the
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