Plus: Growth & Taxes
How outdated state tax systems are undercutting economic vitality.

California

Tribes Winning Ban on Bingo Machines

Los Angeles Times

Rich, politically powerful Indian tribes are pushing California legislators to outlaw some casino competition: slot-like bingo machines that generate millions of dollars for high-school sports teams, the blind and disabled. The Assembly voted 56 to 3 to ban the machines, and the Senate is expected to pass the measure soon.

West Virginia

Lawmakers Probing Scandal over Governor’s Daughter’s Degree

Pittsburgh Post-Gazette

An investigative arm of the legislature has asked to review documents showing how West Virginia University officials falsified the academic records of drug-company executive Heather Bresch, the daughter of Gov. Joe Manchin, in retroactively awarding her a master's degree in business administration.

California

Governor Signs Bill to Put Bullet Trains on Ballot

Sacramento Bee

Nearly three weeks after Gov. Arnold Schwarzenegger said he would block any bill that reached his desk until the legislature approves a budget, the governor signed a bill that revises the $9.9 billion high-speed rail bond measure on the November ballot. Schwarzenegger asked legislative leaders to send him four proposals immediately, including the rail measure and a water bond, so they may be placed on the ballot.

Calif. Lawmakers Move to Clamp Down on Hospital Files Los Angeles Times

Alarmed by breaches in which UCLA Medical Center employees snooped in the confidential records of celebrities including Britney Spears, Farrah Fawcett and California First Lady Maria Shriver, lawmakers moved to clamp hospital files shut with new oversight and stiffer penalties.

Mississippi

Lawmakers Join Suit Against Governor’s Medicaid Plan

Jackson Clarion-Ledger

Fourteen Senate Democrats have joined a legal challenge by about 40 hospitals to Republican Gov. Haley Barbour's latest plan to pay for Medicaid with a higher hospital tax and cut in provider payments, arguing that only lawmakers can decide how state programs are funded. Barbour maintains that his plan, scheduled to go into effect Monday, does not require legislative approval.

Georgia

Governor: Reorganize State’s Social Services Agencies

Atlanta Journal-Constitution

Gov. Sonny Perdue wants to reorganize Georgia’s social services agencies, creating a separate department to oversee the perpetually troubled state psychiatric hospitals and other mental health services. Perdue endorsed recommendations from a study group to create three new departments from the two that now provide social and health-care services: the departments of human resources and community health.

Illinois

Override Vowed after Governor Rejects Ethics Bill

Chicago Sun-Times

Gov. Rod Blagojevich rejected ethics legislation aimed at stopping him from taking millions of dollars in campaign contributions from state contractors, sending the bill back to lawmakers and demanding that they include themselves and other state officers in the restrictions. The bill's sponsors vowed to override Blagojevich's changes, blasting his move as an attempt to delay or even kill the restrictions.

New York State

Billionaire Endorses 39 Senate Incumbents

New York Times

A political organization backed by the billionaire and three-time gubernatorial candidate Tom Golisano made dozens of new endorsements in Senate races across the state. Although the Rochester-based businessman has declared that he wants to shake up Albany’s political class, his organization endorsed 39 incumbents, the list closely divided between Democrats and Republicans.

Maryland

Ethics Panel to Probe Senator

Washington Post

Apparent violations of state ethics laws by Sen. Ulysses Currie will be scrutinized by a Maryland legislative ethics committee even if the Prince George's County Democrat is cleared in an ongoing federal investigation of whether he improperly used his office to benefit a grocery chain, Senate President Thomas V. Mike Miller Jr. said.

California

AmEx: State Travel Cards May Be Suspended

Sacramento Bee

American Express has warned the state that its workers may have to leave home without their state AmEx travel card if the state's nearly two-month-old budget impasse drags on much longer. The company, which is carrying $10.4 million in unpaid charges incurred since the fiscal year began July 1, warned state-government travel coordinators that it may suspend state billing accounts.

California Push for Children’s Health Insurance Stalls Los Angeles Times

California's promising strides toward extending medical coverage to all its children have stalled, the result of factors including legislative budget negotiators' decision to increase premiums for the state's Healthy Families program. The changes come as private initiatives that pay for the care of children are running out of money.

Georgia Won’t Fund Land Conservation Atlanta Journal-Constitution

Budget cuts have claimed one of Georgia’s most popular programs, protecting land from development. In a memo to local governments, Georgia's Environmental Facilities Authority executive director said the state will not distribute the $10 million for land conservation included in this year’s budget.

Arizona

Legislative Candidates Sue to Block Public Financing

Arizona Republic

Six Republican legislative candidates filed suit in federal court seeking an immediate injunction that would put the state's system of publicly financed campaigns on ice before the Sept. 2 primary. The plaintiffs say the system known as Clean Elections is unconstitutional and creates an uneven electoral playing field.

California

Lawmakers OK Ban on Texting While Driving

Los Angeles Times

Trying to keep pace with advances in technology, a divided state Senate approved a measure that would outlaw text-messaging while driving. The measure, passed with heavy opposition from Republicans who see the legislation as unnecessary interference in personal behavior, now goes to Gov. Arnold Schwarzenegger, who has said he will not sign any bills until the legislature approves a budget.

Arizona

Funding Restored for Voucher Program

Arizona Republic

House Speaker Jim Weiers' crusade to get funding restored for a $5 million private-school voucher program for disabled and foster children has paid off. Unused dollars in the state's public-education fund will be tapped to reinstate the program, cut from the 2008-09 budget as lawmakers sought ways to close a $2 billion budget deficit.