Economics and Finance

HR 2353, or the Carl D. Perkins Career and Technical Education Act of 2006, was reauthorized by President Donald Trump through fiscal year 2023, under the new title Strengthening Career and Technical Education for the 21st Century Act (Perkins V). The act was first established in 1984, then reauthorized in 1998, 2006 and now 2018 to increase the quality of career and technical education (CTE). This act adds $100 million over six years—an 11 percent increase over the fiscal year 2018 funding levels—aimed to expand the reach of CTE programs.

CSG Midwest
When countries enter a trade war, its effects depend in part on how close the nations are, in terms of geography and their existing economic relationship, Dan Ciuriak, a former Canadian government economist who now runs a consulting firm, told a committee of state and provincial legislators in July.
Few, if any, two nations in the world are more closely knit than Canada and the United States — a fact that would seem to point to major economic consequences if the two countries’ use of tariffs and retaliatory tariffs continues to escalate.
CSG Midwest
For the fiscal year that began in July, Illinois assumed a revenue boost that it and most states have long been waiting to get on the books — tax collections from remote sales. The state’s assumption is $150 million, based on the nine months that those collections can begin after Illinois’ “economic nexus” law takes effect this fall. (Spread over the course of a full fiscal year, the estimate rises to $200 million.)
In the years ahead, this revenue source is expected to be part of budget estimates and collections in every Midwestern state, thanks to the U.S. Supreme Court’s June 21 decision in South Dakota v. Wayfair(unlike Illinois, most states did not include an increase from online sales tax collections in their FY 2019 estimates).
By a vote of 5-4, the justices overturned a 1992 ruling, Quill Corp. v. North Dakota, that had barred states and local governments from requiring vendors with no physical presence in the state to collect sales taxes. In the years since Quill, online transactions skyrocketed, calls among brick-and-mortar businesses for sales-tax fairness intensified, and multiple attempts at congressional action (always an alternative to a new court decision) failed.
“Hooray for South Dakota,” John Hicks, executive director of the National Association of State Budget Officers, said, noting the state’s passage of legislation in 2016 that became the basis for challenging, and eventually overturning, Quill.
CSG Midwest
In a July session that largely examined the future of a cornerstone of the Midwest’s economy, three expert speakers also illustrated to legislators just how far it has come over the past few years. “Manufacturing is coming back to North America,” Mark Denzler, vice president and chief operating officer of the Illinois Manufacturers’ Association, told lawmakers who attended a meeting of the Midwestern Legislative Conference’s Economic Development Committee.
On the U.S. side of the border, more than 900,000 manufacturing jobs have been created since 2009, an increase of nearly 8 percent. In Canada, manufacturers have added more than 130,000 jobs since June 2013.
Nowhere do these trends matter more than in the MLC’s 11 states (home to one-third of U.S. manufacturing employment) and four affiliate Canadian provinces (which account for more than half of that nation’s jobs in the manufacturing sector).

States are increasingly pursuing new streams of revenue to effectively operate and minimize debt. Some states have established or are pursuing a “millionaire’s tax” to minimize budget shortfalls and increase state revenue. The tax is primarily an income tax. California, Connecticut, New Jersey and New York have all established a such a tax. Massachusetts chose to not enact their version of the millionaire’s tax. In Arizona, a ballot measure is up for approval. Every state’s tax structure is different, but it boils down to taxing an individual which makes upward of $250,000 or more.

On June 28, 2018, the U.S. Department of Labor’s Veterans’ Employment and Training Services, or VETS, announced a professional license and credential finder portal for military spouses. The webpage comes after President Trump’s Executive Order Enhancing Noncompetitive Civil Service Appointments of Military Spouses. The webpage provides a comprehensive one-stop destination for occupational licensing portability, pulls resources from across the federal government, and highlights states with licensing rights for military spouses.

States have recently been taking a closer look at noncompete agreements and their impacts on the workforce. This year, the Idaho Legislature strengthened its noncompete laws while the South Dakota Supreme Court issued an opinion only partially enforcing a noncompete. According to Peter Steinmeyer, a member of the law firm Epstein Becker Green, these actions are part of the national trend of...

Gag clauses are at the forefront of state policy decisions as state policymakers attempt to reduce the cost of prescription medications. Gag clauses are established in PBM-pharmacy contracts prohibit pharmacists from informing consumers, unless asked, about cheaper ways to purchase prescriptions or access more effective alternatives, i.e., a lower cost generic drug or newer brand name drug with better outcomes. From 2016 to 2018, 22 states enacted legislation to prohibit the use of gag clauses to provide consumers and pharmacists more ability to communicate about cheaper options. Another nine states have legislation still pending. Eight states have legislation regulating pharmacy benefit managers, or PBMs, through audits, licensing and maximum allowable cost statutes that do not directly address gag clauses. More than eight states have Maximum Allowable Cost (MAC) statutes and auditing and licensing procedures enacted, however they also address gag clauses or claw backs specifically in their bill.

The Supreme Court held 5-4 in Janus v. AFSCME that state statutes allowing public sector employers and unions to agree that employees who don’t join the union must still pay their “fair share” of collective bargaining costs violate the First Amendment. The Court also held that employees must “affirmatively consent” to join the union. More than 20 states authorize “fair share” for public sector employees.

In Abood v. Detroit Board of Education (1977) the Supreme Court held that the First Amendment does not prevent “agency shop” arrangements where public employees who do not join the union are still required to pay their “fair share” of union dues for collective-bargaining, contract administration, and grievance-adjustment. In Janus, the Supreme Court overruled Abood.

In South Dakota v. Wayfair the Supreme Court ruled that states and local governments can require vendors with no physical presence in the state to collect sales tax. According to the Court, in a 5-4 decision, “economic and virtual contacts” are enough to create a “substantial nexus” with the state allowing the state to require collection.  

In 1967 in National Bellas Hess  v. Department of Revenue of Illinois, the Supreme Court held that per its Commerce Clause jurisprudence, states and local governments cannot require businesses to collect sales tax unless the business has a physical presence in the state.

Twenty-five years later in Quill v. North Dakota (1992), the Supreme Court reaffirmed the physical presence requirement but admitted that “contemporary Commerce Clause jurisprudence might not dictate the same result” as the Court had reached in Bellas Hess.

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