November 2007 No. 47Table of ContentsIN legislative prayer OK’d…for awhile |
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On November 6, Hoosiers in 119 cities chose mayors for the next 4 years. Of the 20 largest cities, 9 incumbents didn’t run, 9 won, and 2 were defeated including Bart Peterson (D) seeking a 3rd term in Indpls with 1/6th of IN’s population. The newcomer, Greg Ballard (R) ran without the backing of his party or business, spending $300,000 and amassing few political IOUs.
Was this a case of more voting for, or against, a candidate? Political pundits and analysts will chew over this question for months arguing what it means for the Governor’s agenda, the 2008 General Assembly, and for next year’s elections. For now, it means that mayor-elects will be putting together their advisory and administrative teams, and the airways will be cleared of political commercials for a few months.
Referenda. Here are a few states’ ballot measures. New Jersey voters said “no” to a $450 Million stem-cell research proposal; nor will it dedicate 1% of sales taxes for property tax reduction. Texas will now spend $3 Billion more on cancer research. Oregon rejected more health care for uninsured children and low-income adults from an enlarged $2 cigarette tax.
The bottom line – there may be another 15,000 Hoosier jobs next year with the unemployment rate about the same and personal income up about 4%. The IU Business Research Center is “cautiously optimistic” in its annual prognostications for 2008. The experts think Indiana will trail national averages on most indicators with manufacturing jobs holding their own and modest growth in construction, health care, and hospitality industries; corporate profits should edge up under 8%. National inflation will be about 2.6%.
Even with the Federal Reserve cut in “overnight” inter-bank transaction interest rates, higher oil prices—up 50% over last year—and housing foreclosures—Indiana was 10th among states with the highest foreclosure rates that have yet to bottom out—are clouding this picture. Holiday sales are anybody’s guess as economic soothsayers disagree about consumer confidence. Charities reliant on year-end gifts have their fingers crossed.
Hoosier exports reached $22.6 Billion last year, up some 5.3% over 2005, and they’ve increased 10+% this year, reports the Indiana Economic Development Corp. One-sixth of all Indiana manufacturing jobs is devoted to exports. Canada gets nearly half of our exports, followed by Mexico (down from 2005). Exports to the United Kingdom were up 22% in 2006. Hoosier goods go to 196 countries, with the 22 purchasing $100+M making up 93% of the total. Check http://www.ibrc.indiana.edu/
international/pdf/exports_2007.pdf for the details.
The 7th US Circuit Court of Appeals ruled that taxpayers cannot object to sectarian prayers that open Indiana House or Senate sessions because taxes don’t pay for them. However, Hoosiers attending the legislature’s action meetings could bring suit again if they find the prayers offensive to their own beliefs. The ACLU that brought the suit says it’s mulling over that option.
Meanwhile, after a lawsuit brought light on the hiring of a Fort Wayne minister to provide counsel to its employees, the Indiana Family & Social Services Administration quietly exited the program, first putting the chaplain on disability pay and finally choosing not to fill the vacancy once the occupant left. The case drew the attention of The New York Times. Meanwhile, the US Supreme Court decided not to hear several new church-state cases this session.
Quit high school early, and what do you get? About a $10,000 less-paying job, says a new report from the Alliance for Excellent Education. High school graduates are also more likely be healthier, live longer and less likely to become a teen parent, commit a crime, or rely on government healthcare. Overall, dropouts rob the state’s economy of $64 Billion over the kids’ lifetimes. Get The High Cost of High School Dropouts at www.all4ed.org/files/HighCost.pdf.
Average Hoosier pay is up 3.5% in 2007 and likely as much in 2008, according to October’s IndianaBusiness. Service groups had a 4% increase. CEO base salaries averaged $301,000, while administrative assistants got $33,500. Extra vacation time and flexible hours are growing job recruitment tools.
Healthcare insurance is getting tied to employee health risk appraisals. Wellness planning and annual physicals usually pay for themselves. Almost all (90+%) of employers chip in on the cost of their own sponsored employee health insurance—60% ante up 80% or more for the worker alone, and 45% share costs for the family. Nearly 40% of employers have increased the worker’s share of the premium cost; 15% changed carriers; 32% increased deductibles; and 25% now offer deductible choice.
Workplace injuries. There were 131,000 Hoosier occupational injuries and illnesses last year, 5.2% less than in 2005, making Indiana one of only 10 states to post a decrease. Most (32%) were manufacturing related (though this rate dropped), 13% in healthcare, and 10% in retail stores, reported the Bureau of Labor.
There are more than $3 Trillion (with a “T”) in pension fund assets for government workers across America, reports the Pew Center on the States. The Indiana Teachers pension fund has a $9 Billion (with a “B’) liability or an actuarial funding level of 44.3%—meaning it doesn’t have on hand half the money it needs to pay out to retirees. Ten years ago, these funds paid out $60 Billion annually. That’s grown to $150 Billion today with Baby Boomer retirements looming. It’s a precarious balancing act, and “inadequate governance will cause a pension fund to nose-dive and crash,” the Texas Attorney General told Governing magazine.
Indiana is in the middle of the pack of states again, this time for how much it lets voters in on what’s raised and spent on political campaigns. The California Voter Foundation, Center for Government Studies, and UCLA Law School reported that Indiana got a “C” grade overall, with a C- for its laws, C for its e-filing rules, B+ for accessibility, and D+ for Usability. Washington state topped the states with an overall A- grade, four states got B+, and 12 got Fs. See details at http://campaigndisclosure.org/gradingstate/index.html.
A bipartisan group was meeting to draft compromise legislation not only renewing but expanding the Children’s Health Insurance Program—before its current November 18 sunset date—but Republicans in the Senate maneuvered a vote to pass the House version which President Bush had said he would veto, again. The new bill includes changes to tighten eligibility rules for illegal immigrants, cap beneficiary income levels, and prevent adults from services. That wasn’t enough. Bush said he didn’t like the tobacco tax hike to $1/pack that finances the growth in funding from last year’s $25 Billion—for 6.6 million kids—to $60 Billion over 5 years to cover 10 million. The back-room negotiations will continue. What’s next?
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