Midwest

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.
CSG Midwest
In May, trends in U.S. unemployment appeared to take a positive turn, one unexpected by many economists. And as the Midwest’s legislators learned on a webinar that same month, changes in this closely watched economic indicator have huge impacts on states’ bottom lines.
“When the national unemployment rate goes up by one percentage point, there are budget shortfalls across all states of about $45 billion,” Michael Horrigan, president of the W.E. Upjohn Institute for Employment Research, said during the webinar hosted by the Midwestern Legislative Conference Economic Development Committee.
“The other estimate that we’ve come up with is that if a state unemployment rate goes up by one percentage point, states lose about 7 percent in tax revenue.”
Though the May numbers were promising — the result of factors such as the end of stay-at-home orders, business reopenings and an influx of federal dollars that, in part, encouraged businesses to retain workers — unemployment rates remain historically high.
CSG Midwest
In the weeks leading up to Nov. 3, Illinois will be preparing for a general election expected to be like none other in the state’s history. That date will be a state holiday, in part to help secure alternative polling sites as some locations become unavailable due to pandemic-related health concerns. On Election Day, individuals as young as age 16 will be poll workers, and election officials will have the authority to administer curbside voting.
And perhaps most noteworthy of all, the state is likely to have a huge jump in the number of people who vote by mail. Every person who has voted over the past two years will receive a mailing to make them aware of this option, and then will receive an absentee-ballot application.
All of those changes are the result of SB 1863, legislation passed earlier this year to help authorities in Illinois conduct an election in the midst of a public health crisis, the COVID-19 pandemic. “The law is for one year only, and that gave people more comfort in knowing that it was a one-time change,” says Illinois Sen. Julie Morrison, who helped lead legislative efforts on SB 1863.
Across the Midwest, big changes already have occurred in 2020, the result of primaries being held when people were being told to socially distance, avoid crowds and stay home whenever possible.
CSG Midwest
With the number of COVID-19 cases increasing, and a rise in deaths from the disease, “social distancing” has become a familiar term and way of life across the country. But how is social distancing possible for people whose days are spent in a 6-by-8-foot cell with another person? How can state and local governments maintain public safety while protecting inmates? How can they prevent outbreaks from starting in correctional facilities, and then spreading to the wider community?
These are some of the questions that have vexed criminal justice administrators, inmates, staff and family members for months. 
CSG Midwest
After the end to an unforeseen school year across the Midwest, state and local education leaders now face a new set of challenges and uncertainties as the start of another year looms. “We have been encouraging our district leaders and our school leaders to have a Plan A, a Plan B and a Plan C,” Illinois State Superintendent of Education Carmen Ayala said in May during a Facebook Live discussion organized by Illinois Rep. Emanuel “Chris” Welch.
“We may see the start of school [in the fall] in a remote fashion. We may see a combination where some children are allowed to come to school on certain days, or where we take the upper grades and are able to spread them out in a school building with social distancing norms. Or we may be able to come back full force.”

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