State & Local Weekly News Wrap-Up

By Timothy Brett posted Apr 23,2012 08:41 AM

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MULTI-JURISDISDICTION

New data from the U.S. Census and the Rockerfeller Institute of Government shows that state tax revenues began to recover in 2011, taking some pressure off of historically tight state budgets. However, overall tax collections are still 2.1% below peak levels. Many states are pushing for ways to increase revenue as persistent unemployment increases demand for state services. According to the Rockerfeller report, state tax collections remain low with more than half of the states reporting that total tax collections were still well below their peaks in 2011. Many states that levy personal income taxes have not yet seen revenue recover as unemployment remains high and wages have fallen significantly. Economic indicators are showing evidence of a slow gradual recovery, but state revenues often trail the immediate effects of economic shifts. The 2008 financial crisis didn’t hit budget cycles until 2009. So any early recoveries may not be felt until the next budget cycle. States have made massive cuts in the number of government employees, education budgets, social services and increased service fees in order to make ends meet. State revenues improve, but still lag peaks

FLORIDA

Some Florida cities are dropping out of the North Florida Broadband Authority citing concerns over the projects debt load and questions about its deployment timeline. The Authority was investigated by federal broadband officials last year over the same types of issues. The city council of Perry, Florida voted to end its involvement in the project. Bradford, Florida also pulled out of the effort after a similar vote recently. In 2009, the North Florida Broadband Authority was established to bring high speed internet access to the rural areas of Northern Florida. The Authority was funded through $30 million in stimulus money. Since then, the project has had little to show for where that money has gone and rural residents still lack access or have gone to private sector providers. On April 10, the Perry City Council took up the issue of its involvement in the Authority, according to an account in the Columbia County Observer, City Manager Bob Brown said that the county seat originally got involved in the project because it claimed that it would provide near free internet access. Now, over a year and $10 million later the project has nothing deployed and the city has access through a variety of private providers. Cities dropping out of north Florida broadband project

NORTH DAKOTA

North Dakota agencies should stick to their current spending levels when preparing new budgets forthe next two years and also provide options for possible cuts, Governor Jack Dalrymple recently said. Dalrymple delivered the directive Monday at a meeting of state agency administrators. He said it would not affect proposals for one-time projects, such as road construction and state aid for North Dakota's flood-stricken regions. State spending has expanded dramatically in recent years as revenues from oil production have fattened North Dakota government's coffers. The state's current two-year, $4 billion general fund budget has risen almost 60% in the last six years. Dalrymple said his instructions did not indicate a belief that North Dakota's economic growth is slowing. "These times of economic prosperity is when you need to be most careful about allowing expansive state government to grow," Dalrymple said in an interview. "We're trying to maintain an efficient, well-run state government, regardless of the fact that our revenues appear to be very good." Dalrymple's directive marked the start of state agencies' preparations of their spending requests for the 2013-2015 budget period. Agencies normally must finish their work by July 15, although the state budget office has authority to grant time extensions. Gov asks ND agencies to hold spending even

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