May Pension Litigation Update

While state lawmakers grapple with spending issues in special sessions, the state is hemorrhaging money paying for lawmakers' overtime.

To help clear up the many misconceptions about the arguments, State Budget Solutions put together a helpful Q&A, aimed at informing the interested non-lawyers (and quite possibly the lawyers as well) about the issues before the Court. 

Confirming Polk County Judge Brad McCall's ruling in December 2011, the Iowa Supreme Court unanimously ruled days ago that gubernatorial redirection of money struck through in a line-item veto is unconstitutional. Now, the judicial and legislative branches of government are also questioning governors' use of budget powers and whether it exceeds the bounds of proscribed power.

Well-publicized pension crises are erupting in states nationwide, with litigation ranging from disputes over cost of living adjustments to changing qualifying factors for benefits recipients. Often unseen are the legal issues relating to where, how, and who is investing pension money.

In 2011, the Minnesota government shutdown stalled business, disrupted the lives of citizens and state employees alike, and created a less than favorable impression of government competency. The record-setting nineteen-day closure led lawmakers to vow then that Minnesotans will never experience another government shutdown. Last week, in an effort to follow through with their promise, a Minnesota Senate committee is set to consider a cluster of bills that would make various state functions "shutdown proof."

Federal and state lawmakers face increasingly dismal approval ratings and distrust, in part due to the unbridled spending bills passed recently. Bills passed at the state level, including budgets, are often passed so quickly that neither lawmakers nor the public can possibly know what each entails.

In the increasingly harried approach towards legislating, where compromise and decision-making is done last minute and behind closed doors, it is no wonder that Americans speculate whether legislation is actually read. State legislators are guilty of failing to read legislation, in whole or in part, and of pushing bills through the legislative process so quickly that even the most well-intentioned legislators do not get the opportunity to read bills before a vote is required. 

Bipartisanship aside, tax reform is imminent in a number of states. Since 2000, at least 37 states conducted new tax studies, studying how to better increase revenue elasticity, improve overall fairness, reduce efficiency, and ease administrative and compliance efforts.

Despite the relative obscurity of "service" taxes to the populace, nearly every state taxes some services and are very crafty about finding new ones to tax.

As state lawmakers struggle to close budget gaps and reduce deficits, many are scrambling to find new sources of revenue, often in the form of new taxes. To bolster revenue, states like Texas and Illinois are honing in on a new type of tax, a "skin" tax, aimed at strip clubs in the state.

On February 14^th, we celebrate love, family, and our partners. When it comes to celebrating partners, state governments have a number of Valentines. Because state governments continue to award the sweetest deals to their sweethearts, big business, they are never alone in love on Valentine's Day.

Love is in the air, but not just for romantic couples. In Illinois, Governor Quinn and the Illinois General Assembly love giving tax breaks to keep big business in Illinois.

Love is in the air, but not just for romantic couples. In Illinois, Governor Quinn and the Illinois General Assembly love giving tax breaks to keep big business in Illinois.  Read more about the love fest in the beleaguered state here.

It is time for New Jersey to follow the provisions in the state Constitution, the highest law of the state, and both address their massive deficit and create more responsible budgets in the future.

An analysis of the state constitutional debt provisions in California, New Jersey and Hawaii, and the debt that these states face in spite of those provisions.

Many state pension systems are in shambles, and states face the problem of being accountable for the promises made to their residents in the state's highest legal document and balancing their budget for the present and in the future.