Capitol Comments

CSG Midwest
Already one of the seven Midwestern states that limited schools’ non-emergency use of physical restraints and seclusion on students, Wisconsin has a new law that further restricts these techniques, while also strengthening the rules on training, data collection and parental notification.
SB 527 was signed by Gov. Tony Evers in March.
“This is a pretty tough issue, and every time we take it on it takes a long time and many redrafts of the legislation,” says Wisconsin Sen. Luther Olsen, primary sponsor of SB 527, as well as the state’s original law from 2012 on physical restraint and seclusion. “You have people coming from very different sides — advocates for students and children with disabilities, and advocates for schools. You want to get to a place where you’re protecting everybody.”
CSG Midwest
In their federal lawsuit against the state of Michigan, seven students of Detroit’s public schools told of buildings that were unsafe and of classrooms that were unfit for learning.
The smell of “dead vermin and black mold in hallways.”
Teachers absent as many as 50 days a year.
Classes run by substitute teachers, paraprofessionals or even the students themselves.
Out-of-date textbooks having to be shared by multiple students.
Classroom temperatures exceeding 90 degrees, or freezing cold other times of the year.
“The basic thesis of the case was that these were schools in name only, and they were not capable of delivering even basic literacy instruction,” says Mark Rosenbaum, director of Public Counsel, the largest pro bono law firm in the nation and an attorney for the student-plaintiffs. “As a result, the students were not being put in a position where they could better their circumstances or where they could be meaningful participants in a democracy.”

CSG Midwest
As part of her study of the nation’s state legislative institutions, on topics such as term limits and oversight of the executive branch, Marjorie Sarbaugh-Thompson found herself viewing old, archived committee hearings in Michigan from a few decades ago.
The subject was turkey habitats. The place was a cramped committee room in Lansing. Led by two lawmakers — one Democrat, one Republican — the legislative branch was grilling members of the executive branch on implementation of a law to protect the state’s population of wild turkeys.
“They were sharing notes and drilling down with an incredible amount of knowledge, about the law and about turkeys,” she says. “It was a gold standard in legislative oversight.”
That work in Michigan was being done largely outside the public eye, on a subject not likely to win or lose anyone an election. Yet this bipartisan group of lawmakers found it to be an integral part of their responsibility.
“I would hope that legislators see oversight as a big part of their job, at least one-third of it,” says Sarbaugh-Thompson, a professor of political science at Wayne State University. “If we’re spending the money [on a program, agency or regulation], we ought to want to make sure it’s going where it’s supposed to go and that it’s working.”
CSG Midwest
Indiana has received federal approval of a first-of-its-kind program that helps individuals transition from Medicaid to employer-based health coverage or a plan in the individual marketplace. The new “workforce bridge” builds on the Healthy Indiana Plan (HIP), which is used by the state to expand Medicaid to cover low-income adults.
Each HIP participant has $2,500 placed in an account each year to use for health care expenses. But what happens when someone no longer qualifies for HIP, due to a new job or other factors that cause his or her income to rise above eligibility thresholds?
Previously, participants lost the ability to use any funds in their state-funded account. However, with implementation of the HIP Workforce Bridge, members leaving the Healthy Indiana Plan can continue to use up to $1,000 from their account for up to 12 months in order to pay premiums, deductibles, co-payments and co-insurance during their transition to other types of coverage.
CSG Midwest
An ESOP is a type of tax-qualified retirement plan, one that states such as Iowa have identified as a tool for helping retain businesses when owners decide to sell some or all of their interests in a company.
Here is how an ESOP generally works: A privately held company contributes its stock, or money to buy its stock, to a retirement plan for employees. Each worker participating in the plan has his or her own account, and an ESOP trust is created to hold these shares of company stock. ESOPs can be a mechanism for allowing partial or full ownership of a privately held company to be transferred to employees (when the owner retires, for example). In contrast, the sale of a business to an outside entity increases the risk of lost jobs.
According to the National Center for Employee Ownership, other potential benefits of ESOPs include improving retirement security, reducing a company’s tax burden, bolstering worker morale, and giving employees a voice in management. Since the passage of legislation in 2012 (HF 2465), Iowa has provided a tax incentive to encourage the sale of in-state businesses to employees: Owners get a 50 percent deduction from income taxes on any net gains from the sale; the transaction must result in the employees (via the ESOP) owning at least 30 percent of the company. Iowa also reimburses 50 percent of the costs for businesses that conduct studies on the feasibility of setting up an ESOP.

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