Economics and Finance

CSG Midwest
In some rural parts of Ohio, access to broadband seems a long way off, with entire areas lacking access to high-speed internet service. For other businesses and residents, the infrastructure is frustratingly close, but out of reach.
“We have a marbling effect throughout the rest of the state — even in suburban and urban areas — where we have a street over here or a cluster of homes over there that cannot get broadband infrastructure built out to them,” Ohio Rep. Rick Carfagna explains.
Two separate bills are being considered this year to address those two distinct problems associated with Ohio’s digital divide.
Under HB 378, the state would use some money from its existing Third Frontier Initiative ($50 million for each of the next two years from the proceeds of bond issues) to help fund broadband infrastructure projects in underserved areas of the state.
CSG South

The U.S. Department of Commerce reported that real gross domestic product (GDP) increased 2.3 percent nationally between 2016 and 2017. Economic growth was widespread, with 20 of 22 industry groups contributing to the increase. Despite this growth, the agriculture, forestry, fishing, and hunting sector decreased 9.4 percent nationally – the culmination of five consecutive quarterly declines.

In June 2017, Oregon became the first state to pass legislation requiring retail, hospitality, and food service employers with more than 500 employees to give workers their schedules at least one week in advance. The legislation also requires workers to be given a 10-hour break between shifts or receive extra pay. After passage of the bill, Gov. Kate Brown stated on ...

CSG Midwest
When President Trump announced that he intended to levy a 25 percent tariff on imported steel, and a 10 percent tariff on imported aluminum, U.S. trade partners were surprised — and angry.  
His actions came after a U.S. Commerce Department report found that the unfair “dumping” of steel and aluminum (exporting these products to the United States at below domestic market value) by other countries was leading to plant closings and job losses. This has been deemed by the Trump administration a threat not only to domestic manufacturing, but also to national security.
At first stating that there would be no exceptions to the tariffs, Trump stepped back from that position by the time of his formal declaration. He exempted Canada (the largest exporter of steel and aluminum to the United States) and Mexico from the tariffs, at least temporarily.
For the many integrated industries in the Midwest that rely on cross-border trade, such as the auto sector, this exemption was particularly important. 

In South Dakota v. Wayfair South Dakota is asking the Supreme Court to rule that states and local governments may require retailers with no in-state physical presence to collect sales tax. Doing so will require the Court to overrule Quill v. North Dakota (1992), where it held that states and local governments cannot require a business to collect sales tax unless the business has a physical presence in the state.

Based on oral argument the Court is likely to follow one of three paths. It could keep the physical presence test and not overturn Quill. It could overturn Quill and replace (or add to) the physical presence test an economic nexus test (like the South Dakota law which requires out-of-state vendors to collect tax only if they annually conduct $100,000 worth of business or 200 separate transactions annually in the state). Finally, it could overturn Quill and allow states to require all out-of-state vendors to collect sales tax no matter how much (or little) business they do in a state.

In South Dakota v. Wayfair South Dakota is asking the Supreme Court to overrule precedent and hold that states and local governments may require retailers with no in-state physical presence to collect sales tax. The National Conference of State Legislatures estimated that states lost $23.3 billion in 2012 from being prohibited from collecting sales tax from online and catalog purchases. 

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.

While state policy makers frequently express concern about the increasing percentage of state funds required to fund their Medicaid programs, the programs bring in large amounts of federal dollars to states. Across all states, two thirds of all federal grant funds received by states in 2017 are for Medicaid health services for low-income, disabled and elderly individuals. 

Following a nationwide search for a place in which to locate its second headquarters, Amazon is expected to announce a winner perhaps soon from among a group of 20 finalists announced in January. As I noted in a post last Fall, the heated competition for HQ2 has not only demonstrated the growing importance of ecommerce and logistics to the nation’s economy but also allowed communities to tout existing infrastructure assets or proposed infrastructure improvements as part of their bids to attract the project. As the finalists have tried to shore up their bids in recent weeks and those that failed to make the list have begun to examine what went wrong, transportation and infrastructure issues have come into play in a variety of ways.

A recent report by the U.S. Fish and Wildlife Service shows the continued decline in the number of Americans who hunt. Currently, only about 5 percent of people 16 and over hunt, whereas it was nearly double that five decades ago. Less people acquiring a hunting license has created funding problems for state conservation programs,...

CSG Midwest
The U.S. Department of Commerce reported that real gross domestic product increased 2.3 percent nationally between 2016 and 2017, but agriculture subtracted from overall economic growth in every state in the Midwest — most notably Iowa, Nebraska and South Dakota.

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