Executive Branch

CSG Midwest
A disagreement in Minnesota over tax and budget issues this spring led to a surprising action — a line-item veto by Gov. Mark Dayton of the $130 million appropriation for the House and Senate.

It has been more than 17 years since the Governmental Accounting Standards Board, or GASB, issued its landmark Statement No. 34: Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments. It’s hard to believe, but true. With the release of an invitation to comment in December 2016, GASB is again turning its attention to the government reporting model, beginning with a focus on the governmental funds. This highly anticipated reporting model project addresses several potential improvements to governmental fund reporting, and the GASB believes this project will have a significant impact on the foundation of state and local governments’ accounting and financial reporting.

State and territorial attorneys general are using antitrust and consumer protection enforcement authority to address issues in the health care marketplace, as well as warning consumers about virtual currency called Bitcoin.

Without funding or resources to update outdated voting systems and software, states and localities are struggling to understand—and implement—the U.S. Department of Homeland Security’s January 2017 designation of elections as “critical infrastructure.” Many states support a push to have the Trump administration rescind the executive order. Election officials that oppose the measure are concerned about the lack of federal government parameters and the possibility it will create more problems at the polls than it solves, but national intelligence officials say it’s necessary to properly secure the process against threats—particularly foreign-government cyberattacks. No matter what happens in Washington, state policymakers are asking: How can we protect and secure our voting process for the future?

With a national anti-establishment mood and 12 gubernatorial elections—eight in states with a Democrat as sitting governor—the Republicans were optimistic that they would strengthen their hand as they headed into the November elections. Republicans already held 31 governorships to the Democrats’ 18—Alaska Gov. Bill Walker is an Independent—and with about half the gubernatorial elections considered competitive, Republicans had the potential to increase their control to 36 governors’ mansions. For their part, Democrats had a realistic chance to convert only a couple of Republican governorships to their party. Given the party’s win-loss potential, Republicans were optimistic, in a good position.

As Utah code states: “The assignment of important responsibilities to the lieutenant governor is essential to the continuity of state government and for the effective use of funds appropriated to the office of lieutenant governor.” State legislators have a significant role to define responsibilities for a state’s lieutenant governor in statute. Lieutenant governors elected statewide hold an average of eight statutory duties which range from operating a government department to leading an array of commissions.

The slow economy and unpredictable Trump administration have governors in a bit of a straitjacket, some more than others. Chief executives in states with reasonably stable finances are able to speak positively to their public—some are opting for long overdue pay raises for state workers, expanding programs, innovating others, and replenishing rainy day funds. Those in states suffering financially are less sanguine, holding firm to tight agendas by limiting policy concerns, discussion about budget priorities and/or emphasizing the need for continued hard work and sacrifices ahead. This is the first year since 2007 that gubernatorial concerns and policy options related to economic development and jobs have fallen from the top three issues considered by at least two thirds of governors. In 2007, these concerns tracked fifth in terms of being mentioned by at least 66 percent of state chief executives. The Great Recession officially began later that year and states seemingly have yet to fully recover.

Chapter 4 of The Book of the States 2017 contains the following articles and tables:

President Trump released a fiscal 2018 budget plan today, which includes a $54 billion increase to defense spending and a corresponding decrease to domestic spending by the same amount. The fiscal plan, called a “skinny budget,” only contains the top-line spending numbers for each federal agency.  The plan also highlights the major cuts and increases to federal programs that the administration is seeking.

The full budget...

President Trump signed a revised version of the Executive Order on Immigration yesterday, after the original order was blocked by the U.S. Supreme Court. The purpose of the order is to protect U.S. citizens from terrorist attacks, including those committed by foreign nationals. It states that the U.S. will improve screening and vetting and the process of visa issuance. The revised order removes Iraqi citizens from the travel ban and scraps the provision that protected religious minorities. The order also suspends the refugee program for 120 days and lowers the acceptance of refugees from 110,000 to 50,000 a year.

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