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STATE AND LOCAL UPDATE
November 29, 2017
Policy and Politics
I. Trending Topics
TAXES: The Tax Foundation’s Taxes and Growth (TAG) macroeconomic model found that the Senate tax plan
would significantly lower marginal tax rates and the cost of capital, which would lead to a 3.7 percent increase
in GDP over the long term [and] 2.9 percent higher wages. The TAG model estimates that the plan would
result in the creation of roughly 925,000 new full-time equivalent (FTE) jobs, while increasing the after-tax
incomes by 4.4 percent in the long run, meaning families would see an after-tax income boost of 4.4 percent
by the end of the decade. The increase in family incomes is due in part from individual income tax reductions
and the broader rise in productivity and wages due to economic growth. These estimates take into account
all aspects of the Senate version of the Tax Cuts and Jobs Act, including changes to the individual and
corporate tax codes. See here for a table illustrating the state-by-state impact of the plan for both new jobs
and the boost to after-tax incomes for middle-income families.
VP PENCE PITCHES TAX REFORM TO GOVERNORS: Vice President Mike Pence pressed the
White House's case for a major tax code overhaul by the end of the year during a speech to
Republican governors at the Republican Governors Association annual meeting in Austin this
month. Pence spoke on the first day of the RGA meeting. Republicans currently hold 34
governorships across the country — the most in U.S. history.
TAX REFORM PUTS BLUE STATE REPUBLICANS IN DIFFICULT SPOT: The most vulnerable
blue-state House Republicans are stuck between a rock and a hard place on the tax reform.
Democrats are pounding them for legislation that potentially would make some voters pay more
in high-tax blue states. And, if history is a guide, voting against the bill won’t necessarily protect
GOPers in next year’s midterm elections. Indeed, the party in power has lost an average of 25
House seats in midterm elections since World War II. In the nine elections before which the
president’s party controlled both chambers of Congress, as is now the case, it has lost an average
33 House seats.
GOP TAX EFFORT IS AN INFRASTRUCTURE EFFORT TOO…LEAVING SOME WORRIED: The
tax code overhauls being pushed by congressional Republicans might not sound like
infrastructure bills, but they contain many provisions that could have a big impact on the ability
of states and localities to pay for public works improvements. The proposed plans include major
changes to financing roads, ports and airports, as well as state programs related to electric vehicles
and wind energy. But the biggest disappointment for many people in infrastructure-related
industries is that these changes are part of a tax plan instead of a standalone infrastructure bill.
Trump administration officials have repeatedly said they would work on an infrastructure package
after the tax overhaul. More here.
STATE LAWMAKERS LOOK TO WEIGH-IN ON SALT REPEAL/REFORM: Some members of the
National Conference of State Legislatures who come from states that may not benefit as much
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from the deduction want the group to rethink its opposition. Those members include NORTH
DAKOTA SEN. DWIGHT COOK (R) and WISCONSIN REP. JOHN MACCO (R), who say elimination of the
deduction may ultimately be good for their constituents because ending it would help pay for
income tax cuts. At a Nov. 18 meeting in Miami, Cook made a motion for the NCSL’s task force
on state and local taxes to recommend that NCSL’s budget and finance committee rethink its
position. Macco seconded the motion, which was passed 12 to 2 with the support of members
from high-tax Connecticut and New York—likely to show a willingness to discuss the issue.
Issue in Focus
IN DEMOCRAT-LED STATE CAPITALS, GOP TAX REFORM PUSH COULD SCRAMBLE FISCAL PLANS: The
Republican tax reform push in Washington is setting off budgetary alarm bells in high-tax states like New
York, California and New Jersey, in the latest political skirmish to pit national Republicans against Democratic
state and big-city leaders. With Republicans intent on shrinking or repealing the state and local tax
deduction, California officials are worried that the House-passed tax bill, and the emerging Senate measure,
would force local governments to reduce taxes and make big cuts to schools and social services. In New York,
where New York City and state revenues are heavily reliant on just a handful of wealthy tax filers, budget
watchdogs fear federal tax changes could trigger the flight of those residents. And in New Jersey, plans for a
new millionaire's tax, one of incoming Gov. Phil Murphy's biggest campaign promises, are already being
reined in as the Democratic-led New Jersey Senate waits on the outcome of any federal tax plan.
STATE SPENDING & BUDGETING: The Volcker Alliance is out with a new report, “Truth and Integrity in State
Budgeting: What is the Reality?” They write: “The nation’s states and localities spend more than $3.4 trillion a
year, equivalent to more than a fifth of the entire US gross domestic product. The purposes and manner in
which public funds are spent are matters basic to our well-being as a nation—education, health care, public
safety; they all demand our attention.” The report focuses on five critical areas that explain methods used to
achieve budgetary balance, as well as how budgets and other financial information are disclosed to the public.
States were given grades of A to D-minus for their procedures in: (1) estimating revenues and expenditures;
(2) using one-time actions to balance budgets; (3) adequately funding their public worker retirement and
other postemployment benefits; (4) overseeing and using rainy day funds and other fiscal reserves; and (4),
disclosing budget and related financial information.
STATE SPENDING ON THE RISE: After an anemic 2016, state spending is up this year thanks in
large part to rising Medicaid costs and increased investment in transportation. States collectively
spent nearly $2 trillion in fiscal 2017, an increase of 5.2 percent, according to a newly
released report from the National Association of State Budget Officers (NASBO). The growth rate
is more than double that of fiscal 2016, which saw state budgets struggle to adapt to lower-than-
expected revenues. All eight geographic regions saw at least a slight rise in total state spending,
with the strongest growth reported in the West and the Southeast.
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MORE STATES JOIN CALL FOR CONSTITUTIONAL CONVENTION ON BALANCED BUDGET
AMENDMENT: Wisconsin has joined the growing list of states calling for an Article V convention
to amend the U.S. Constitution under a measure that passed the state Senate by a vote of 19-14.
The Article V resolution could be especially consequential down the road because if enough other
states sign on to the idea, it would mark the first time the process has ever been used since the
U.S. Constitution was ratified in 1787. Republican backers say the convention would focus on a
balanced budget amendment to rein in government debt, which state SEN. DAVE CRAIG, R-Big
Bend, called the main security threat facing the nation. While the exact total is disputed,
Republican backers say the vote makes Wisconsin the 28th state to join the call for a convention.
A total of 34 states are needed.
MEDICAL MARIJUANA – STATES CONTINUE TO EXPLORE MEDICAL MARIJUANA POLICIES: Against the
backdrop of the nation's largest Veterans Day parade, DEMOCRATIC GOV. ANDREW CUOMO announced this
month he'd sign legislation making New York the latest in a fast-rising tide of states to OK therapeutic pot
as a PTSD treatment, though it's illegal under federal law and doesn't boast extensive, conclusive medical
research. Twenty-eight states plus the District of Columbia now include PTSD in their medical marijuana
programs, a tally that has more than doubled in the last two years, according to data compiled by the pro-
legalization Marijuana Policy Project. A 29th state, Alaska, doesn't incorporate PTSD in its medical marijuana
program but allows everyone over 20 to buy pot legally. The increase has come amid increasingly visible
advocacy from veterans' groups. In a sign of how much the issue has taken hold among veterans, the 2.2-
million-member American Legion began pressing the federal government this summer to let Department of
Veterans Affairs doctors recommend medical marijuana where it's legal . The Legion started advocating last
year for easing federal constraints on medical pot research , a departure into drug policy for the nearly
century-old organization.
TRADE – DEMOCRATS AND TRUMP SHIFTING TRADE ALLIANCES IN WASHINGTON: The politics of
trade are shifting in Washington. In the 1990s, a Democrat in the White House, Bill Clinton, worked with free-
market Republicans in Congress to open the world trading system to Mexico and China. Now a White House
Republican, Donald Trump, hopes to work with trade skeptics among the Democrats to reverse that trade
liberalization. It is too soon to say whether Mr. Trump will succeed. But if he does, it will be in alliance with
people like Mr. Brown, a leading voice among Democrats in the Senate against free trade agreements written
in the past three decades.
NAFTA SUPPORTERS HIT THE AIRWAVES: NAFTA supporters are stepping up their campaign
to keep Trump from withdrawing from NAFTA with a new ad running through Nov. 21 in nine
states that voted for the Republican standard bearer in last year's presidential election: Iowa, South
Dakota, Kansas, Missouri, Nebraska, Ohio, Texas, Michigan and Tennessee. "For over 20 years
under the North American Free Trade Agreement, the North American region has grown and the
United States is stronger than ever before," the ad says. "Tell President Trump to keep NAFTA
because NAFTA works for America." The Trade Leadership Coalition, a group led by Caterpillar's
former chief lobbyist, Bill Lane, paid for the ad. The group spent in the "mid-five-figures" on the
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ad buy, and there could be sequels in the coming months, said Jamie McInerney, the coalition's
executive director.
COUNTRIES IN TPP TRADE DEAL MOVE AHEAD WITHOUT U.S.: Countries in the Trans Pacific
Partnership (TPP) trade deal have agreed on the core elements to move ahead without the United
States, officials said on Saturday, after last-minute resistance from Canada raised new doubts
about its survival. The agreement, which still needs to be finalized, would now be called the
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
CLIMATE ACCORD – COALITION OF STATES, BUSINESSES, AND LOCALITIES PUSH AHEAD: A powerful
alliance of leaders representing American cities, states and business said that they would continue to back
the Paris climate accord after President Donald Trump announced earlier this year that he would withdraw
the United States from the 2015 international agreement. The group, which calls itself “America’s Pledge,” is
led by CALIFORNIA GOV. JERRY BROWN and FORMER NEW YORK CITY MAYOR MICHAEL BLOOMBERG. They made
the announcement after presenting a report in Germany during the 23rd U.N. Climate Change Conference,
known as COP23, where hundreds of nations gathered to discuss global warming. The 127-
page report addresses the “scope and scale of non-federal climate action” in the U.S., and also lays out actions
taken by the groups involved in America’s Pledge, who combined represent trillions of dollars in the U.S.
economy. At least 20 states, 110 cities and more than 1,000 businesses and universities have declared
support for the accord.
Be on the Lookout
AGGRESSIVE AGs: State attorneys general have operated in an increasingly partisan manner in recent years
-- both in terms of how they campaign and what cases they pursue. The Republican Attorneys General
Association (RAGA) and the Democratic Attorneys General Association (DAGA) had a handshake agreement
that they wouldn't target seats held by incumbents from the other party. The Republicans voted to end that
policy in March. Once RAGA made its decision, there was never any doubt that Democrats would follow suit.
In 2018, with 32 attorneys general seats at stake, millions more dollars will be spent by the two groups. Big
money in attorney general contests is nothing new. In this year's race in Virginia, RAGA and DAGA spent in
the neighborhood of $10 million between them but up until the Virginia race, the big money against
incumbents came from outside groups, rather than the partisan AG organizations themselves. From now on,
incumbent AGs are going to have to think about their counterparts raising money directly to try to take them
out.
SUPREME COURT SPORTS GAMBLING DECISION LOOMS LARGE FOR STATES: Early next month, the court
will consider an attack by New Jersey on the federal law prohibiting additional states from getting into the
business. A decision that strikes down the law would “be a dam burst,” said Kevin P. Braig, an Ohio lawyer
who specializes in sports law. It presents the justices with a rare opportunity to define the limits of federalism
and the meaning of the 10th Amendment, which says that “the powers not delegated to the United States by
the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”
The immediate question is whether Congress can force states to maintain prohibitions on sports gambling.
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But a broad ruling for New Jersey could have consequences for other ways that the federal government tries
to push policy preferences on state officials.
NET NEUTRALITY – WITH WASHINGTON PULLING BACK, STATES COULD FILL THE VOID: At least 22
states proposed broadband privacy legislation this year in the wake of congressional action revoking the
FCC's online privacy rules, heightening the telecom industry’s fear that state legislatures controlled by
Democrats will do the same with net neutrality. Only two states, Minnesota and Nevada, require such privacy
protections for ISPs, and those measures passed many years ago. California came close to passing new
legislation this year but faced tech and ISP industry opposition. New America’s Open Technology Institute
unveiled model legislation state lawmakers can use for future efforts. Several officials in the states raged
against the FCC news that CHAIRMAN AJIT PAI would make sure states can’t impose their own regulations to
fill the void from rolling back net-neutrality. NEW YORK ATTORNEY GENERAL ERIC SCHNEIDERMAN and NEW YORK
CITY MAYOR BILL DE BLASIO, both Democrats, slammed the news, as did FORMER FEDERAL PROSECUTOR RENATO
MARIOTTI, currently vying for the Democratic nomination to be Illinois attorney general.
NGA LAUNCHES INITIATIVE TO EXPLORE “DISRUPTIVE TECHNOLOGIES”: With the rapid pace
of innovation, each governor and state CIOs can be challenged to keep up with emerging
technology developments. The National Governors Association recently launched NGA Future,
an initiative to give governors insights into potentially disruptive technology that is three to five
years away. Timothy Blute, who most recently worked as program director for Homeland Security
and Public Safety Division of the NGA Center for Best Practices, is leading NGA Future’s efforts to
convene stakeholders from industry, government and academia to discuss emerging technology
issues that governors will face during their years in office.
BGR in the News
BGR Group Chairman Ed Rogers writes in the Washington Post: “One under-reported item in the analysis of
[the recent special] election has been the kind of candidate LT. GOV. RALPH NORTHAM was in Virginia;
specifically, from the Republican point of view, what kind of candidate he was not. Northam was not the
candidate Republicans hoped to see emerge from his Democratic Party primary contest against liberal darling
TOM PERRIELLO. Unlike the new-era Bernie-ites who have no sense of how government works (Georgia’s JON
OSSOFF comes immediately to mind), Northam is an experienced, sensible and mostly thoughtful candidate.
And it is worth noting that in 2017’s marquee races for mayor of New York, governor of New Jersey and
governor of Virginia, the winners were all stylistically similar Democrats. Attacking them as leftists is
challenging. Northam in particular wasn’t a good “bad guy” for Republicans. He wasn’t the stereotype
Republicans hope to see.”
HEALTHCARE PRICE TRANSPARENCY: The annual transparency report card, produced by Altarum’s Center
for Payment Innovation and the group Catalyst for Payment Reform, looks at how easily consumers can obtain
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healthcare prices in the various states. States that scored high had consumer-friendly websites with prices for
both inpatient and outpatient procedures. High marks were also given for states that required either provider
price reporting or an all-payer claims database, and those that included amount paid as well as charged. Only
two states — Maine and New Hampshire — earned an “A” on healthcare price transparency. Maryland and
Oregon received a “B” for their efforts, while Colorado, Vermont and Virginia each got a “C.” All of the rest
were rated “F.”
STATE LAWMAKERS STEP UP PRESSURE ON PHARMACEUTICAL COMPANIES: A few years ago,
MISSISSIPPI ATTORNEY GENERAL JIM HOOD was worried about a friend’s son who served two tours in Iraq. After
being injured overseas, he became dependent on prescription painkillers and eventually developed a heroin
addiction. Shortly after that, in 2015, Hood became the first state attorney general to sue a prescription
drugmaker for their role in the opioid epidemic. Since then, more than 100 states, cities and counties have
filed similar lawsuits, with a new one popping up almost every week. In addition to the 100-plus lawsuits, 41
states have banded together to subpoena information from four drug manufacturers: Endo, Johnson &
Johnson's Janssen unit, Teva Pharmaceutical and Allergan. They’ve also put in a request for more information
to Purdue Pharma and drug distributors AmerisourceBergen, Cardinal Health and McKesson.
STATES TAKE ACTION IN UBER BREACH: New revelations that Uber suffered a major security breach in
2016 — and initially withheld details from drivers, riders and regulators alike — is touching off another round
of government probes and customer lawsuits targeting the ride-hailing giant. At least five states — Illinois,
Massachusetts, Missouri, New York and Connecticut — announced that they would investigate the matter,
after Uber that the intrusion affected 57 million customers, compromising names, addresses and driver’s
license numbers in some cases. 48 states maintain some version of a law that requires companies that suffer
a data breach to communicate what happened to consumers. In most cases, companies must disclose a
security incident if hackers steal very sensitive customer data — such as driver’s license numbers, which
happened with Uber in late 2016.
STATES PUSH FOR FEDERAL REGULATION OF AUTONOMOUS VEHICLES: Local and state authorities want
the federal government to be in control of regulating autonomous vehicles, and while this may come as a
surprise to some, that stance has some implications for the future of autonomous vehicles. In a letter signed
by the National Governors Association, National Associations, National Conference of Legislatures, National
League of Cities and others told the Senate Commerce, Science and Transportation Committee that the AV
START Act language should be modified and clarified to ensure safe innovation. The letter writers were
particularly concerned with the use of the word "performance" in the act: "We believe the application of the
term “performance” to the autonomous context is now more complex due to the increasing merger of the
vehicle and the operator." The letter is unlikely to halt business innovation in the autonomous vehicle space,
but the significance of the letter is local and state authorities' abdication of authority in the autonomous
vehicle arena.
II. Politics
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STATE AND LOCAL UPDATE
ELECTION DAY 2017: All told, Democrats flipped about two dozen state legislative seats around the country
in November and have now gained at least 30 seats previously held by Republicans since President Donald
Trump won election last year, reversing several years of Republican momentum. “In general, this is a rebuke
of Republican governance of states,” said Jessica Post, executive director of the Democratic Legislative
Campaign Committee. She added: “The other thing it said is we can win all across the country.” The fight for
control of legislative chambers matters not only for policies on health care, taxes and education, but also
because the legislature in most states determines how future congressional and state legislative districts are
drawn. The next round of redistricting will take place after the 2020 Census, and both parties are focused on
controlling as many states as possible by then.
DEMOCRATS RECOVER SOME GROUND IN SEVERAL STATE LEGISLATURES: At the legislative
level, Democrats had a better election night than they could have dared to hope for, making a
huge comeback in the Virginia House and picking up seats in special elections from Georgia to
Washington state. They still have a long way to go to reach parity, given GOP control of 26 states.
But the fact that Democrats have erased a 16-seat Republican majority in the Virginia House, or
come awfully close (depending on recounts), has to be encouraging for Democrats heading into
next year's elections
DEMOCRATS EXPAND MAJORITY AMONG NATION’S MAYORS: NEW YORK'S DEMOCRATIC
MAYOR BILL DE BLASIO, a forceful critic of President Trump, easily won a second term. And
Democrats also won several major cities and closely watched races. In Boston, incumbent
DEMOCRAT MARTY WALSH glided to re-election and a second four-year term, beating back
ROXBURY CITY COUNCILOR TITO JACKSON, who had hoped to become the city's first African-
American mayor. With 100 percent of the precincts counted, Walsh had 65 percent to Jackson's
34 percent. DETROIT MAYOR MIKE DUGGAN, who oversaw the city's emergence from bankruptcy,
easily won re-election, defeating fellow DEMOCRAT COLEMAN A. YOUNG II, a state senator and the
son of the city's first African-American mayor. Duggan got more than 70 percent of the
vote. Charlotte, N.C., elected DEMOCRAT VI LYLES, its first female African-American mayor. In the
primary, she defeated incumbent Democrat Jennifer Roberts. On Tuesday, Lyles easily outpaced
REPUBLICAN CITY COUNCILMAN KENNY SMITH largely on the strength of early voting, winning 58
percent of the vote. In Seattle, DEMOCRAT JENNY DURKAN took a commanding lead over her
opponent, CARY MOON, in the race to replace former Mayor Ed Murray, who resigned amid sexual
abuse allegations.
TRUMP TROUBLES AND TRICKLE DOWN CONCERNS AT STATE AND LOCAL LEVEL : One year after
Donald Trump’s shocking election upset, many Americans who live in the key counties that propelled him to
victory remain unconvinced that the country is better off now that he’s in the White House, a November poll
from NBC News and The Wall Street Journal shows. The poll, which sampled residents of 438 counties that
either flipped from voting Democratic in the 2012 presidential election to Republican in 2016, or saw a
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significant surge for Trump last year, found that a third — 32 percent — believe the country is better off now
than it was before Trump became president.
DEMOCRATIC POLITICAL WAVE BUILDING: Democrats' success in this month's elections was
bigger than expected, and was fueled in part by strong opposition to President Trump. In the past
few weeks, there's been a lot of chatter about whether that means a big, blue wave is forming off
the political coast that could potentially crash into the 2018 midterm elections. See here for five
takeaways.
BGR INSIGHT
Riding a wave of discontent with the administration, Democrats made notable gains on November 8th
in
states across the country. The gains came even amid increased turnout among Republicans the difference
being that Democrats were able to get more presidential election year voters to the polls. Turnout this
year was up 16% over 2013 with most of the additional numbers coming from white independents and
Democrats in the suburbs. Looking specifically at the battleground state of Virginia, turnout in the northern,
more suburban part of the state was up across the board – 23% in Fairfax County, 26% In Alexandria and
Arlington County, and 31% in Loudoun County. That tilted the state’s electorate Democratic by 11 percentage
points compared with 7 points last year and 5 in 2013. The broad takeaways from these elections are that
politics is more national than ever at the state & local level – even when accounting for historical trends
for a president’s party when in office – and that the 2018 elections, at least federally, will be decided in the
swing suburban districts where the House will be won or lost (note Republicans hold seats in 23 districts
where Hillary Clinton also won).
PARTISAN POLITICS – STATE GOVERNMENTS INCREASINGLY CONTROLLED BY ONE PARTY: In a decade
that has seen a resurgence of American political polarization, two-thirds of all state governments now will be
fully controlled by either Democrats or Republicans. That rivals the predominant levels of single-party
governance last seen in the post-World War II era. The number of unified legislatures paired with same-party
governors has surged significantly since the 1996 election, when just 37 percent of states had single-party
governance. It has remained above 60 percent of all states since Republicans swept into control of many
capitols in 2010. (Single-party governance peaked at 83 percent of states after the 1946 and 1952 elections).
OUTSIDE GROUPS GEAR UP FOR 2020 REDISTRICTING: The right-leaning consulting firm Champion
Group, led by former Americans for Prosperity CEO Luke Hilgemann and COO Sean Lansing, has launched
"Defend Freedom" PAC to bolster Republican efforts in state elections with an eye on 2020 redistricting.
DEMOCRATS FOCUSED ON NEXT ROUND OF REDISTRICTING: Ralph Northam’s landslide
victory in Virginia governor’s race and Democrats’ stunning gains in other state elections this
month have given party activists hope of eroding the GOP’s advantage ahead of the next round
of redistricting. Democrats say part of the reason they don’t control the U.S. House and trail so
badly in state legislatures is because the GOP did a masterful job the last time around in drawing
districts tailored to Republicans. Flipping that script ahead of the next round of redistricting, after
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the 2020 census, is a major focus for Democrats. And it’s a particular passion former President
Barack Obama and former Attorney General Eric H. Holder Jr., who have launched the National
Democratic Redistricting Committee to make more voters aware that redistricting will shape the
next decade of politics.
WAR ROOM: The Republican Attorneys General Association has launched the “RAGA War Room,” an online
platform for interested parties to sign-up to receive updates about their state's race for attorney general, and
the national efforts of the Republican Attorneys General Association to elect Republicans to the Office of
Attorney General.
State of the States
CALIFORNIA
California Pushes Ahead on Climate Change: In his final term, DEMOCRAT GOVERNOR JERRY BROWN has
lobbied other states and regions to reduce their greenhouse gas emissions, while augmenting California’s
already expansive suite of climate change programs. But Trump’s election—and the specter of Brown’s own
retirement—have lately set the governor on a tear. In a rush of climate diplomacy this year, Brown traveled
to China to meet with President Xi Jinping, then to Russia to participate in an international economic forum.
This month, we saw him address lawmakers in Brussels and Stuttgart, Germany, and he was preparing for
roundtable meetings with scientists in Oslo before arriving in Bonn for a climate conference, where Brown
will serve as special adviser for states and regions. And he is preparing for California to host an international
climate summit of its own next year in San Francisco.
Crowded Field for Open Gubernatorial Seat in 2018: After running for elected office 12 times since 1970,
GOV. JERRY BROWN is about to exit the center stage of California politics, no longer the brash upstart but now
a senior statesman who could be a model for the next person who will lead the state. Every successor promises
to be better, and different, than the person they replace. In 2018, one of the most wide-open races for
governor in some two decades, the “Jerry question” looms large for both candidates and voters. When asked
whether the next governor should continue Brown’s agenda, 50% of voters said yes. Among Democrats, it
was 71%. In several other subsets — young voters, those with a college degree, Latino voters — a majority
or even close to a supermajority wanted the next governor to carry on. So far, the candidate most preferred
among the “keep doing what Jerry Brown is doing” crowd is LT. GOV. GAVIN NEWSOM, picked by 49% of the
primary voters who want to extend the life of the current governor’s agenda. Twenty-six percent of that group
supported former L.A. MAYOR ANTONIO VILLARAIGOSA and 14% supported TREASURER JOHN CHIANG. The
USC/LAT poll finds support for all other candidates in single digits (or less) among the “Brown policies” voters.
COLORADO
Shifting Race for Governor and Attorney General: Republican George Brauchler, once a leading contender
for governor, announced he will suspend his campaign and instead enter the race for attorney general.
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Brauchler called the decision “neither easy or obvious,” but the move was expected for days as his path to
victory in the governor’s race began to narrow when former U.S. Rep. Tom Tancredo, a firebrand and favorite
among conservative activists, announced his bid for the state’s top job. And when Attorney General Cynthia
Coffman jumped into the race, it left a wide open race to replace her. The Republican Attorneys General
Association immediately issued a statement endorsing Brauchler, a move that showcases the party’s support
and gives the candidate more fundraising power. Other GOP members who have expressed interest in
running for attorney general include state Rep. Cole Wist of Centennial, and George Leing, who lost in
2014 to Democratic U.S. Rep. Jared Polis of Boulder.
Democrat Phil Weiser, former dean of the University of Colorado Law School and a one-time Obama
administration official who got into the attorney general’s race in May, has already hauled in more than
$700,000 in donations. The four other Democrats running for attorney general have been drawing in tens of
thousands of dollars in donations, too. They include MICHAEL DOUGHERTY, assistant district attorney for the
1st Judicial District in Jefferson and Gilpin counties; BRAD LEVIN, a Denver attorney; AMY PADDEN, a former
state and federal prosecutor; and STATE REP. JOE SALAZAR of Thornton. DEMOCRATIC STATE REP. CHRIS HALL
had expressed interest in running for governor back in the spring, but he never made any obvious moves
toward a bid since then. Hall took his name out of contention this week when he endorsed businessman Fred
Hubbell's campaign. Among the Republicans seeking their party’s nomination in the governor’s race, WALKER
STAPLETON and VICTOR MITCHELL have already amassed larger financial war chests. And the addition of
Tancredo made it hard to see Brauchler getting the nomination by lining up the overwhelming support of
hard-line conservatives.
CONNECTICUT
Incumbent Governor Malloy’s Departure Sets off Competitive Race for Open Seat: HARTFORD MAYOR
LUKE BRONIN said he’s now giving serious thought to a gubernatorial run, just days after LT. GOV. NANCY
WYMAN announced she won’t seek the state’s highest office. A growing collection of politicians, from
legislators to mayors, and business leaders are weighing a run for governor in 2018, following GOV. DANNEL
P. MALLOY’S announcement that he will not seek a third term. Wyman’s announcement Thursday that she
wouldn’t seek the state’s top job left an open field of lesser-known candidates. Danbury MAYOR MARK
BOUGHTON, MIDDLETOWN MAYOR DANIEL DREW, TRUMBULL FIRST SELECTMAN TIM HERBST AND FORMER FEDERAL
PROSECUTOR CHRISTOPHER MATTEI are among those who have announced their intentions to run. Another
potential candidate, HOUSE REPUBLICAN LEADER THEMIS KLARIDES, has not yet disclosed her plans.
FLORIDA
Democrats Search for a Competitive Candidate for State’s Top Office:: DEMOCRATIC DONOR JOHN
MORGAN announced he is leaving the Democratic Party, and that Democratic Sen. Bill Nelson should not run
for re-election, but rather seek the governor's mansion so he can leave a "legacy." Morgan did not close the
door on the idea of running for governor himself — a notion supported by many in his party — but said in
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his message, if he did, he would do so as an independent. Even though he is not running, Morgan has lead
the so far lackluster Democratic field in recent polls. The perceived current front-runner is FORMER REP. GWEN
GRAHAM of Tallahassee, who has been running since early May and has roughly $2.5 million in the bank. That
number is surpassed by both declared Republican nominees and likely future candidates already stocking
away cash for a potential run. Two other candidates who have been running for months — TALLAHASSEE
MAYOR ANDREW GILLUM and Winter Park businessman CHRIS KING — have also failed to garner real
momentum. FORMER MIAMI BEACH MAYOR PHILIP LEVINE announced earlier this month he was also seeking
the Democratic gubernatorial nomination. His promise to put up to $25 million of his own wealth into the
race could inject energy into the Democratic field.
GEORGIA
Atlanta Mayoral Race Remains Undecided: Two candidates will compete in a runoff to become Atlanta’s
next mayor. KEISHA LANCE BOTTOMS and MARY NORWOOD took the top two spots in the recent election,
knocking out the 10 other candidates from the crowded field. The results don’t come as a huge surprise.
Norwood and Bottoms had substantial leads going into the race. The runoff election will take place on Dec.
5. The winner of this election will replace current MAYOR KASIM REED.
Democrats Break GOP Supermajority in State Legislature: As part of a larger wave of Democratic wins on
Election Day 2017, Democrats picked up two seats in special elections held for Georgia’s House of Delegates.
DEBORAH GONZALES won House District 117 with 53 percent of the vote and JONATHAN WALLACE won House
District 119 with 56 percent of the vote. Both seats are in the Athens area and both were vacant, hence the
special elections. But not only were the two seats previously held by Republican incumbents, they
were uncontested in the 2016 elections.
ILLINOIS
Democrat Chris Kennedy Picks-Up Key Endorsement for Gubernatorial Run: U.S. REP. DANNY DAVIS
endorsed DEMOCRATIC GUBERNATORIAL CANDIDATE CHRIS KENNEDY. Davis’ endorsement comes as
gubernatorial candidates maneuver to court black voters ahead of the primary March 20. J.B. PRITZKER,
another candidate for the Democratic nomination, announced in August that he’d secured the endorsement
of SECRETARY OF STATE JESSE WHITE, another key black leader. On Sunday, COOK COUNTY COMMISSIONER
RICHARD BOYKIN and FORMER CHICAGO ALD. BOB SHAW endorsed Kennedy alongside Davis. Other Democrats
in the race are state SEN. DANIEL BISS; BOB DAIBER, regional superintendent of schools in downstate Madison
County; anti-violence activist TIO HARDIMAN; ROBERT MARSHALL, a physician from Burr Ridge; and small-
business owner ALEX PATERAKIS.
INDIANA
12
STATE AND LOCAL UPDATE
Education Reform in the Spotlight for Gov. Holcomb: If Gov. Eric Holcomb’s legislative priorities are any
indication, next year won’t be the kind of education legislative session Hoosiers might be used to, with testing
and school choice possibly taking a back seat to college and career prep. His goals focus primarily on
workforce issues, with K-12 education as one piece of that system. Overall, Holcomb’s education initiatives
stem from a desire to better integrate what schools are teaching students with what employers are looking
for when they hire. Holcomb’s 2018 agenda includes:
• Creating an “Education to Career Pathway Cabinet” to centralize education initiatives among the
department of education, commission for higher education and department of workforce
development.
• Requiring every Indiana school to offer at least one computer science class by 2021, as well as
training for teachers in computer science.
• Creating the Office of Apprenticeship and Work-Based Learning to increase opportunities for high
school students and adults.
• Broadening teacher licensure requirements for people interested in teaching career and technical
education classes.
KANSAS
Shifting Political Lines within the GOP in Kansas? Some Seem to Think So: Leave it to a veteran
Republican campaigner in red-state Kansas to explain why someone other than a die-hard conservative can
be elected governor next November. FORMER SEN. JIM BARNETT, who won the GOP nomination for governor
in 2006 before falling to incumbent GOV. KATHLEEN SEBELIUS, said the unpopularity of policies enacted by
GOV. SAM BROWNBACK and LT. GOV. JEFF COLYER make it possible for moderates to compete in 2018. Colyer,
preparing to ascend to the governorship upon Brownback’s resignation, is running for governor against
SECRETARY OF STATE KRIS KOBACH, INSURANCE COMMISSIONER KEN SELZER, FORMER LEGISLATORS MARK HUTTON
and ED O’MALLEY, businessman WINK HARTMAN, Barnett and others. The whisper of opportunity reaching
Barnett’s ear can be heard by Democratic gubernatorial candidates. The current crop includes WICHITA
LEGISLATOR JIM WARD, Ellsworth County farmer JOSH SVATY, FORMER WICHITA MAYOR CARL BREWER, Olathe
physician ARDEN ANDERSON, Salina resident ROBERT KLINGENBERG and Wichita high school student JACK
BERGESON.
Lawmakers Turn to Government Transparency Following Investigation: Kansas lawmakers from across
the political spectrum said they will push to fix the state’s culture of secrecy in the wake of a Kansas City Star
series that highlights stunning levels of opacity in state and local government. They cautioned, however, that
the next governor will have to champion the issue for the Sunflower State to have truly transparent
government. LT. GOV. JEFF COLYER, who is set to take the reins of power if GOV. SAM BROWNBACK is confirmed
as an ambassador.
LOUISIANA
13
STATE AND LOCAL UPDATE
First Female Elected Mayor of The Big Easy: New Orleans voters elected LaToya Cantrell as mayor Saturday,
making her the first woman to hold that position in the city's 300-year history. Cantrell, a city councilwoman,
got 60% of the votes over her opponent, former municipal court Judge Desiree Charbonnet, according to
the Louisiana Secretary of State's office.
MAINE
LePage Pushes Back on Medicaid Expansion: Just hours after Maine voters became the first in the nation
to use the ballot box to expand Medicaid under the Affordable Care Act, REPUBLICAN GOV. PAUL LEPAGE said
he wouldn't implement it unless the Legislature funds the state's share of an expansion.
Leadership Changes in the Legislature: SEN. AMY VOLK, R-SCARBOROUGH, was elected assistant majority
leader of the Maine Senate, replacing SEN. ANDRE CUSHING, who stepped down last month. Volk, who is
serving her fourth term in the Legislature, won election as the assistant majority leader in a secret ballot. The
other candidate in the race to succeed Cushing was SEN. JAMES HAMPER, R-OXFORD, the chairman of the
Legislature’s budget-writing Appropriations and Financial Affairs Committee.
MARYLAND
Federal Program Combatting Surging Opioid Epidemic Being Tested: A federal initiative to combat the
opioid epidemic is being tested in Maryland. Maryland, where overdose deaths are surging, is one of seven
states approved to allow large residential centers to bill Medicaid for substance abuse treatment. Under the
new structure, treatment centers receive reimbursement for each patient rather than a set grant. Bernard
Gyebi-Foster is the executive director of one of the city’s best-known treatment facilities. He says the change
allows his organization, Tuerk House, to see more patients. Several other centers say they are considering an
expansion, but few interviewed by the newspaper had increased capacity yet. The change took effect July 1.
A spokeswoman for the state health department says it will provide initial data about how the effort is going
in May.
MASSACHUSETTS
Incumbent Governor Charlie Baker to Run Again: GOVERNOR CHARLIE BAKER and LIEUTENANT GOVERNOR
KARYN POLITO will run for reelection in 2018, according to a senior political adviser, marking an expected but
significant turning point as Baker's political team begins to take steps to build the campaign apparatus that
will be necessary to win another four years in office. The Baker-Polito reelection campaign plans to open a
new headquarters in Allston in early December, and Brian Wynne, the executive director of the MassGOP, will
transition from the party to become the governor's campaign manager. It's unclear who will take over day-
to-day operations of the MassGOP. Running for the Democratic Party nomination for governor is NEWTON
MAYOR SETTI WARREN, FORMER STATE FINANCE SECRETARY AND HEALTH INSURANCE EXECUTIVE JAY GONZALEZ and
environmental activist and entrepreneur ROBERT MASSIE.
14
STATE AND LOCAL UPDATE
MICHIGAN
Lt. Governor Calley Makes Gubernatorial Run Official: In a long-anticipated development, Lt. Gov. Brian
Calley announced he wants to be governor of Michigan. Calley made the news official after hinting at an
announcement for months — most recently at a Monday appearance with Gov. Rick Snyder, where he took
partial credit for Michigan's improved economy, citing his work on corporate tax cuts and streamlining and
elimination of business regulations and told reporters to "stay tuned for some big news" on Tuesday. Calley
joins a Republican field that includes Attorney General Bill Schuette, the acknowledged frontrunner, as well
as Saginaw Township physician Dr. Jim Hines, and state Sen. Patrick Colbeck of Canton.
Democrat Andy Levin, the son of U.S. Rep. Sandy Levin, said he will not run for governor but did
not rule out a congressional campaign should his father decide to retire. Levin announced his
decision in a Detroit News opinion column, explaining he will not join a Democratic gubernatorial
primary field headlined by former Senate Minority Leader Gretchen Whitmer of East Lansing.
Incumbent Democrat Wins Reelection as Mayor of Detroit: Mike Duggan's landslide re-election may
give him a bully pulpit in a second term to unseat the fellow Detroit Democrats who helped defeat his auto
insurance reform legislation five days before Election Day. The political machine Duggan had already been
building before winning 72 percent of the vote is likely to get stronger, especially given the support he draws
from regional business leaders. The Southeast Michigan business community has proved to be a key cog in
Duggan's growing influence, both in terms of financial support for his re-election campaign and helping carry
out his agenda.
Embattled Mayor of Flint, MI, Hit by Water Scandal, Holds On: Karen Weaver, the mayor of Flint, turned
back a recall attempt. Although the recall was launched in response to a garbage contract, attention turned
during the campaign to the city's water crisis. Nonetheless, Weaver won easily.
NEW HAMPSHIRE
Democrat Picks-Up Long Held GOP Mayor’s Office in Manchester: JOYCE CRAIG became the first woman
to win the Machester mayor's office, and the first Democrat to win the city since 2003, after she ousted four-
term incumbent TED GATSAS
NEW JERSEY
Democrats Have a Big Election Day: Former Goldman Sachs executive PHIL MURPHY easily won the fight
to replace deeply unpopular Gov. Chris Christie, cementing Democratic control in the state (for a list of who
Governor-elect Phil Murphy has appointed to his 14-committee transition team, see here. Democrats added
to their majority in the state Senate and picked up two additional state Assembly seats. Additionally, Murphy’s
15
STATE AND LOCAL UPDATE
running mate, Assembly Speaker Sheila Oliver, is now the state’s first African American lieutenant
governor. She has also been appointed to serve as commissioner of the Department of Community Affairs.
State Senate Changeover: After a year-long campaign that will go down as one of the most
expensive elections in the state, Chris Brown defeated Colin Bell for the state Senate seat in the
2nd Legislative District. For the 2nd District Assembly seats, Vince Mazzeo and John Armato
defeated Republicans Brenda Taube and Vince Sera.
Republican Legislators Make Leadership Choices: After a tough night for New Jersey
Republicans, TOM KEAN JR. quickly secured the caucus votes for another term as the state Senate’s
GOP leader. All but one of the Republicans elected to the state Senate earlier this month backed
Kean (R-Union) for another term as minority leader, according to a letter signed by 13 members
of the caucus. The only one not to sign on was state SEN. MICHAEL DOHERTY (R-WARREN).
“Millionaires Tax” in Spotlight in 2018: A New Jersey millionaire’s tax boost that REPUBLICAN GOVERNOR
CHRIS CHRISTIE vetoed five times will be Democrats’ top priority with their party newly in control of the
executive branch, said the highest-ranking state lawmaker. SENATE PRESIDENT STEVE SWEENEY, a Democrat
from West Deptford whose party had championed the tax on high earners for almost eight years, only to
meet Christie’s veto pen, revived the matter in a tweet. “The first bill we pass in January with our new governor
will be a long-overdue millionaires tax to fairly and fully fund our schools,” Sweeney wrote. In an interview,
he said the bill would lead to property-tax relief, with more state revenue covering local education costs, a
prime driver of homeowner bills.
Attorney General Sets Sites on Drugmaker: STATE ATTORNEY GENERAL CHRIS PORRINO announced that New
Jersey was amending its consumer fraud and false claims complaint against Arizona-based opioids maker
Insys Therapeutics, Inc. to go after the billionaire founder of the company, John N. Kapoor. In some ways, the
amended civil suit is the lesser of Kapoor's problems. He has already been arrested for conspiracy to commit
racketeering, mail fraud and wire fraud after being indicted in federal court in Boston last month. The federal
government is alleging that Kapoor's company conspired with doctors to fraudulently prescribe the potent
drug to patients who were cancer-free as in need of chemotherapy in order to receive the drug, which is
usually prescribed only for patients who are gravely ill.
NEW MEXICO
GOP Loses Longtime Hold on Albuquerque Mayorship: DEMOCRATIC NEW MEXICO STATE AUDITOR TIM
KELLER has wrestled control of New Mexico's largest city from the GOP to become Albuquerque's next mayor.
Unofficial results showed Keller beating REPUBLICAN ALBUQUERQUE CITY COUNCIL DAN LEWIS with 62 percent
of the vote compared to 38 percent.
NEW YORK
16
STATE AND LOCAL UPDATE
New York Voters Shoot Down Constitutional Convention Measure: New York voters gave a resounding
thumbs down to a constitutional convention this month, once again rejecting an opportunity to open the
state’s founding document to a full-scale overhaul after opponents stoked fears that such a convention could
result in lost rights and benefits. With most of the state’s election precincts reporting, “No” voters had easily
defeated the ballot measure — known as Proposal One — with more than 80 percent of the vote. The
campaign against the constitutional convention drew a diverse collection of opponents, including
conservative political groups, major labor groups like the A.F.L.-C.I.O., and liberal stalwarts like the New York
branch of Planned Parenthood and the New York Civil Liberties Union. And while their concerns were often
different, the basic logic of the anti-convention forces was similar: Such a convention could result in an
erosion of protections for everything from collective bargaining rights to free public education.
OHIO
Ohioans Reject Measure to Regulate Drug Prices: A ballot proposal to rein in drug costs was soundly
defeated in Ohio after an expensive ballot fight that drew tens of millions of dollars from the pharmaceutical
industry. The ballot proposal, known as the Drug Price Relief Act, was rejected by nearly 80 percent of voters
in final results. It would have required that state agencies pay no more for medicine than the U.S. Department
of Veterans Affairs, which gets a 24 percent discount off average manufacturers’ prices.
OKLAHOMA
Legislature Falls Short in Passing Tax Bill – Budget Woes To Continue: The Oklahoma House of
Representatives fell five votes shy of passing a tax bill that would have shut down the Special Legislative
session and prevented the need for steep budget cuts. The plan was supported by advocates from the health
care, education, and public policy sectors. But the widespread support of nurses and teachers wasn’t enough.
The tax plan would have eased the state’s budget woes by raising taxes on gasoline, tobacco products, beer,
and oil and gas wells. The tax hikes would have amounted to well over half a billion dollars in increased
revenue over the next two years. The plan would have also provided raises for teachers and government
employees. Twenty-Two Republicans voted against the bill, despite pleading from Gov. Mary Fallin and GOP
colleagues in the Legislature. Five Democrats also voted against the measure.
Gov. Mary Fallin shocked lawmakers by vetoing most of their fix to the state’s $215-million
revenue shortfall. Fallin vetoed 165 of 170 sections in House Bill 1019, leaving intact only
provisions that temporarily fund the Department of Human Services, the Department of Mental
Health and Substance Abuse Services and the Oklahoma Health Care Authority and keeping the
Department of Health solvent through the end of the fiscal year. With the state entering a fourth
straight year of declining general revenue, Fallin has urged tapping new sources such as higher
tobacco and fuel taxes.
Democrats Make Gains in Legislature: Democrat Allison Ikley-Freeman defeated Republican Brian O’Hara
in a recent special election for a state Senate seat representing parts of Tulsa. Complete but unofficial election
17
STATE AND LOCAL UPDATE
results showed that Ikley-Freeman, who is a therapist at a nonprofit mental health agency, won by 31 votes.
That seat was vacated after Republican Sen. Dan Newberry said he would step down early to focus on his
career in banking. Ikley-Freeman’s win marks the fourth pickup for state Democrats in special elections this
year in Oklahoma, where Republicans have dominated state politics in recent years. Republicans held on to
two other legislative seats in the election.
PENNSYLVANIA
GOP Candidate Tosses Hat in Ring for Governor: Republican House Speaker Mike Turzai, a leader of anti-
tax and social conservatives who has helped drive austerity in state budgeting, will run for governor. Turzai,
58, said he will seek the Republican nomination in May's primary election to challenge Democratic Gov.
Tom Wolf, who is running for a second four-year term. Also running are York County state Sen. Scott
Wagner and two first-time candidates from the Pittsburgh area: former health care systems consultant Paul
Mango and lawyer Laura Ellsworth.
Well Known Attorney on Course to Be Next Philadelphia DA: Larry Krasner, a civil rights attorney who
built his professional reputation defending protesters and suing the police, is almost certainly going to be
Philadelphia’s next district attorney. Last month, Krasner beat out six other candidates in the Democratic
primary—clobbering his closest opponent by a near 18-point margin—on a promise to put fewer people in
jail and ruthlessly clean house in the office he intends to run.
Notable Results from November Elections:
The biggest statewide race pitted DEMOCRATIC ALLEGHENY COUNTY JUDGE DWAYNE WOODRUFF
against REPUBLICAN JUSTICE SALLIE MUNDY. Woodruff conceded the race to Justice Mundy. CHIEF
JUSTICE THOMAS SAYLOR and JUSTICE DEBRA MCCLOSKEY TODD were running for retention for
another term on the court. Both cruised early to retention.
ALLENTOWN MAYOR ED PAWLOWSKI won, despite having been indicted on 54 counts of extortion,
bribery and fraud. His re-election margin was down, but some voters said they believe he had
been set up. Pawlowski's case could go to trial as early as January.
In Pittsburgh, DEMOCRAT ANTHONY COGHILL was up against REPUBLICAN CLETUS CIBRONE-ABATE for
the District 4 seat vacated by NATALIA RUDIAK, who decided not to run again this year. Mr. Coghill
defeated Ms. Cibrone-Abate.
Pennsylvania took the first step toward property tax reform in a ballot referendum, putting the
state on a path to potentially overhaul tax law.
18
STATE AND LOCAL UPDATE
Pittsburgh voters faced a referendum that would loosen job restrictions for city workers. Voters
passed it, agreeing to loosen a rule that prevents city employees from taking simultaneous work
with other government entities.
Gerrymandering Lawsuits Move Head: With drastic changes to Pennsylvania’s political landscape hanging
in the balance, two lawsuits challenging the state’s congressional map are moving forward at rapid speed —
one in state courts, the other in federal. After considering motions to intervene, delay and dismiss the cases,
the Pennsylvania Supreme Court and a three-judge panel on the United States Court of Appeals for the Third
Circuit have teed the cases up to be heard next month. Both challenges claim the state’s 2011 congressional
district map is a partisan gerrymander designed to give Republicans an electoral advantage. The state court
lawsuit claims the General Assembly deliberately took into account political views, voting histories, and party
affiliations when deciding district boundaries, which they argue violates voters’ freedom of expression and
equal protection rights under the state constitution. Similarly, the federal lawsuit brought by five Pennsylvania
voters also claims that the state’s 2011 congressional map is an illegal partisan gerrymander.
State Budget Woes Continue: Pennsylvania is going to borrow against its Tobacco Settlement Fund to fill
in last year's deficit and finish this year's budget. GOVERNOR TOM WOLF’S administration confirmed that it will
tap into the stream of money states have received from tobacco companies since the 1990s. The borrowing
will give the commonwealth money to balance its books up front, and will then be paid back over several
decades. The Commonwealth Financing Authority approved the plan last week. However, Budget Secretary
Randy Albright noted that it's not finalized yet.
RHODE ISLAND
Lt. Governor Draw Primary Challenge: DEMOCRAT RHODE ISLAND LIEUTENANT GOVERNOR DAN MCKEE
announced his reelection bid, setting up a primary battle on the left with STATE REP. AARON REGUNBERG.
TEXAS
Races Taking Shape in the Lone Star State: With less than a month before the filing deadline, the most
prominent declared candidate for Texas governor is probably ANDREW WHITE, the son of FORMER GOVERNOR
MARK WHITE. White, a self-described “very conservative Democrat,” has never run for elected office and holds
views on abortion likely to alienate some Democratic primary voters. DALLAS COUNTY SHERIFF LUPE VALDEZ
announced that she’s considering a gubernatorial run, but her staff refused further comment and Valdez has
yet to file. Whoever faces off with GOVERNOR GREG ABBOTT will be staring down a $41 million war chest.
Democratic party officials insist more candidates are forthcoming: “We’ve taken our punches for withholding
the names of who we’re talking to,” said Manny Garcia, deputy director with the Texas Democratic Party. “It’s
been personally frustrating to me because I know who we’re talking to and I know they’re exciting people.”
19
STATE AND LOCAL UPDATE
For lieutenant governor, mild-mannered accountant MIKE COLLIER — who lost a run for
comptroller last cycle by 21 percentage points — is challenging DAN PATRICK, one of the state’s
most effective and well-funded conservative firebrands.
ATTORNEY GENERAL KEN PAXTON, who will be fighting his securities fraud indictment during
campaign season, drew a largely unheard-of Democratic opponent last week in attorney JUSTIN
NELSON, a former clerk for U.S. Supreme Court Justice Sandra Day O’Connor.
VIRGINIA
Democrats Ride Blue Wave in State Elections: DEMOCRAT RALPH NORTHAM will be Virginia's next governor,
beating REPUBLICAN ED GILLESPIE. For a list of who is serving on his transition team, see here. Voters in
Northern Virginia also backed DEMOCRATS MARK HERRING and JUSTIN FAIRFAX for attorney general and
lieutenant governor respectively.
Make Significant Gains in Legislature: Democrats surged to victory in more than a dozen Virginia House of
Delegates races during the recent election, unseating several longtime Republican incumbents and coming
within striking distance of retaking control of the House for the first time in 17 years.
In the 10th District, REPUBLICAN INCUMBENT RANDY MINCHEW was defeated by DEMOCRATIC
CANDIDATE WENDY GOODITIS, a Clarke County realtor and former schoolteacher.
In one of the most closely watched races, DEMOCRAT DANICA ROEM, a local journalist, defeated
REPUBLICAN DEL. BOB MARSHALL in Virginia’s 13th District, which includes parts of Prince William
County and Manassas Park. Roem, who carried 54 percent of the vote, made history as the first
openly transgender elected official in Virginia history.
And in the 31st District, DEMOCRATIC CHALLENGER ELIZABETH GUZMAN bested REPUBLICAN SCOTT
LINGAMFELTER, who was elected to the seat in 2001.
In the 32nd District, REPUBLICAN INCUMBENT TAG GREASON, who was first elected to the Loudoun
County seat in 2009, was defeated by DEMOCRAT DAVID REID, a retired Naval intelligence officer
and defense consultant.
In another upset, LEE CARTER, a Navy veteran and self-described Democratic socialist, unseated
REPUBLICAN DEL. JACKSON MILLER, a member of GOP leadership in Richmond, in the 50th District,
which also includes parts of Prince William County.
In the 51st District, which covers parts of Prince William County, DEMOCRATIC CHALLENGER HALA
AYALA, a former cybersecurity specialist at the Department of Homeland Security, defeated
REPUBLICAN INCUMBENT RICH ANDERSON.
20
STATE AND LOCAL UPDATE
In the 67th District, which covers parts of Fairfax and Loudoun counties, REPUBLICAN INCUMBENT
JIM LEMUNYON was defeated by DEMOCRATIC CHALLENGER KARRIE DELANEY.
But Republicans Maintain Control of House with Controversial Decision: Virginia’s Board of Elections on
Monday unanimously certified two state legislative races — in which 147 voters cast ballots in the wrong
district — in favor of the Republicans in both contests. The decision means that Republicans control 51 seats
in the House of Delegates while Democrats control 49. The action shuts down one potential route, but it does
not end Democrats’ hopes to win control of the chamber.
McAuliffe Bucks Trend and Opposes Trump Impeachment: GOV. TERRY MCAULIFFE, who was awarded the
title of Governing’s 2017 Public Official of the Year, said he does not support impeaching President Donald Trump,
after Democratic billionaire Tom Steyer pressed the case for impeachment at the United Nations climate
conference in Germany.
WASHINGTON
Democrats Take Control of State Senate: For the first time since 2012, Democrats will retake control of the
state Senate next month on the strength of a big win in suburban King County, a victory that solidifies the
Blue Wall of a democratically controlled West Coast – Washington, Oregon and California.
In a race that set Washington records for spending on a legislative race, DEPUTY COUNTY
PROSECUTOR MANKA DHINGRA beat JINYOUNG LEE ENGLUND, a businesswoman and former aide to
U.S. REP. CATHY MCMORRIS RODGERS. Dhingra’s win gives Washington Democrats control of the
Governor’s mansion and both state legislative bodies for the next year, potentially pushing a more
progressive agenda in 2018. In votes counted on Election Night, Dhingra was collecting 55.4
percent of the vote to Englund’s 44.6 percent.
In Northeast Washington’s 7th District, REPUBLICAN SHELLY SHORT, who moved from the House to
the Senate through an appointment to fill an empty seat early this year, easily bested DEMOCRAT
KAREN HARDY.
STATE GOVERNMENT ASSOCIATIONS EVENTS (2017)
DECEMBER 2017
• 1: SLLF 2017 Board Meeting and Leadership Roundtable, Palm Beach, FL
• 1-2: Western Governors Association Winter Meeting, Phoenix, AZ
• 3-4: DGA Annual Meeting & Holiday Party, New Orleans, LA
• 3-5: RSLC Annual Retreat, Jackson Hole, Teton Village, WY
• 6-8: ALEC, States and Nation Policy Summit, Nashville, TN
• 7: DLCC Emerging Leaders Forum, Washington, DC
21
STATE AND LOCAL UPDATE
• 7: DLCC Holiday Reception, Washington, DC
• 10-13: NCSL Capitol Forum, Coronado, CA
• 14-16: CSG National Conference, Las Vegas, NV
• 29: NLGA Business Meeting, St. Thomas, U.S. Virgin Islands
• 29: CSG Western Legislative Academy, Colorado Springs, CO

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State and Local Tax Reform Impact

  • 1. STATE AND LOCAL UPDATE November 29, 2017 Policy and Politics I. Trending Topics TAXES: The Tax Foundation’s Taxes and Growth (TAG) macroeconomic model found that the Senate tax plan would significantly lower marginal tax rates and the cost of capital, which would lead to a 3.7 percent increase in GDP over the long term [and] 2.9 percent higher wages. The TAG model estimates that the plan would result in the creation of roughly 925,000 new full-time equivalent (FTE) jobs, while increasing the after-tax incomes by 4.4 percent in the long run, meaning families would see an after-tax income boost of 4.4 percent by the end of the decade. The increase in family incomes is due in part from individual income tax reductions and the broader rise in productivity and wages due to economic growth. These estimates take into account all aspects of the Senate version of the Tax Cuts and Jobs Act, including changes to the individual and corporate tax codes. See here for a table illustrating the state-by-state impact of the plan for both new jobs and the boost to after-tax incomes for middle-income families. VP PENCE PITCHES TAX REFORM TO GOVERNORS: Vice President Mike Pence pressed the White House's case for a major tax code overhaul by the end of the year during a speech to Republican governors at the Republican Governors Association annual meeting in Austin this month. Pence spoke on the first day of the RGA meeting. Republicans currently hold 34 governorships across the country — the most in U.S. history. TAX REFORM PUTS BLUE STATE REPUBLICANS IN DIFFICULT SPOT: The most vulnerable blue-state House Republicans are stuck between a rock and a hard place on the tax reform. Democrats are pounding them for legislation that potentially would make some voters pay more in high-tax blue states. And, if history is a guide, voting against the bill won’t necessarily protect GOPers in next year’s midterm elections. Indeed, the party in power has lost an average of 25 House seats in midterm elections since World War II. In the nine elections before which the president’s party controlled both chambers of Congress, as is now the case, it has lost an average 33 House seats. GOP TAX EFFORT IS AN INFRASTRUCTURE EFFORT TOO…LEAVING SOME WORRIED: The tax code overhauls being pushed by congressional Republicans might not sound like infrastructure bills, but they contain many provisions that could have a big impact on the ability of states and localities to pay for public works improvements. The proposed plans include major changes to financing roads, ports and airports, as well as state programs related to electric vehicles and wind energy. But the biggest disappointment for many people in infrastructure-related industries is that these changes are part of a tax plan instead of a standalone infrastructure bill. Trump administration officials have repeatedly said they would work on an infrastructure package after the tax overhaul. More here. STATE LAWMAKERS LOOK TO WEIGH-IN ON SALT REPEAL/REFORM: Some members of the National Conference of State Legislatures who come from states that may not benefit as much
  • 2. 2 STATE AND LOCAL UPDATE from the deduction want the group to rethink its opposition. Those members include NORTH DAKOTA SEN. DWIGHT COOK (R) and WISCONSIN REP. JOHN MACCO (R), who say elimination of the deduction may ultimately be good for their constituents because ending it would help pay for income tax cuts. At a Nov. 18 meeting in Miami, Cook made a motion for the NCSL’s task force on state and local taxes to recommend that NCSL’s budget and finance committee rethink its position. Macco seconded the motion, which was passed 12 to 2 with the support of members from high-tax Connecticut and New York—likely to show a willingness to discuss the issue. Issue in Focus IN DEMOCRAT-LED STATE CAPITALS, GOP TAX REFORM PUSH COULD SCRAMBLE FISCAL PLANS: The Republican tax reform push in Washington is setting off budgetary alarm bells in high-tax states like New York, California and New Jersey, in the latest political skirmish to pit national Republicans against Democratic state and big-city leaders. With Republicans intent on shrinking or repealing the state and local tax deduction, California officials are worried that the House-passed tax bill, and the emerging Senate measure, would force local governments to reduce taxes and make big cuts to schools and social services. In New York, where New York City and state revenues are heavily reliant on just a handful of wealthy tax filers, budget watchdogs fear federal tax changes could trigger the flight of those residents. And in New Jersey, plans for a new millionaire's tax, one of incoming Gov. Phil Murphy's biggest campaign promises, are already being reined in as the Democratic-led New Jersey Senate waits on the outcome of any federal tax plan. STATE SPENDING & BUDGETING: The Volcker Alliance is out with a new report, “Truth and Integrity in State Budgeting: What is the Reality?” They write: “The nation’s states and localities spend more than $3.4 trillion a year, equivalent to more than a fifth of the entire US gross domestic product. The purposes and manner in which public funds are spent are matters basic to our well-being as a nation—education, health care, public safety; they all demand our attention.” The report focuses on five critical areas that explain methods used to achieve budgetary balance, as well as how budgets and other financial information are disclosed to the public. States were given grades of A to D-minus for their procedures in: (1) estimating revenues and expenditures; (2) using one-time actions to balance budgets; (3) adequately funding their public worker retirement and other postemployment benefits; (4) overseeing and using rainy day funds and other fiscal reserves; and (4), disclosing budget and related financial information. STATE SPENDING ON THE RISE: After an anemic 2016, state spending is up this year thanks in large part to rising Medicaid costs and increased investment in transportation. States collectively spent nearly $2 trillion in fiscal 2017, an increase of 5.2 percent, according to a newly released report from the National Association of State Budget Officers (NASBO). The growth rate is more than double that of fiscal 2016, which saw state budgets struggle to adapt to lower-than- expected revenues. All eight geographic regions saw at least a slight rise in total state spending, with the strongest growth reported in the West and the Southeast.
  • 3. 3 STATE AND LOCAL UPDATE MORE STATES JOIN CALL FOR CONSTITUTIONAL CONVENTION ON BALANCED BUDGET AMENDMENT: Wisconsin has joined the growing list of states calling for an Article V convention to amend the U.S. Constitution under a measure that passed the state Senate by a vote of 19-14. The Article V resolution could be especially consequential down the road because if enough other states sign on to the idea, it would mark the first time the process has ever been used since the U.S. Constitution was ratified in 1787. Republican backers say the convention would focus on a balanced budget amendment to rein in government debt, which state SEN. DAVE CRAIG, R-Big Bend, called the main security threat facing the nation. While the exact total is disputed, Republican backers say the vote makes Wisconsin the 28th state to join the call for a convention. A total of 34 states are needed. MEDICAL MARIJUANA – STATES CONTINUE TO EXPLORE MEDICAL MARIJUANA POLICIES: Against the backdrop of the nation's largest Veterans Day parade, DEMOCRATIC GOV. ANDREW CUOMO announced this month he'd sign legislation making New York the latest in a fast-rising tide of states to OK therapeutic pot as a PTSD treatment, though it's illegal under federal law and doesn't boast extensive, conclusive medical research. Twenty-eight states plus the District of Columbia now include PTSD in their medical marijuana programs, a tally that has more than doubled in the last two years, according to data compiled by the pro- legalization Marijuana Policy Project. A 29th state, Alaska, doesn't incorporate PTSD in its medical marijuana program but allows everyone over 20 to buy pot legally. The increase has come amid increasingly visible advocacy from veterans' groups. In a sign of how much the issue has taken hold among veterans, the 2.2- million-member American Legion began pressing the federal government this summer to let Department of Veterans Affairs doctors recommend medical marijuana where it's legal . The Legion started advocating last year for easing federal constraints on medical pot research , a departure into drug policy for the nearly century-old organization. TRADE – DEMOCRATS AND TRUMP SHIFTING TRADE ALLIANCES IN WASHINGTON: The politics of trade are shifting in Washington. In the 1990s, a Democrat in the White House, Bill Clinton, worked with free- market Republicans in Congress to open the world trading system to Mexico and China. Now a White House Republican, Donald Trump, hopes to work with trade skeptics among the Democrats to reverse that trade liberalization. It is too soon to say whether Mr. Trump will succeed. But if he does, it will be in alliance with people like Mr. Brown, a leading voice among Democrats in the Senate against free trade agreements written in the past three decades. NAFTA SUPPORTERS HIT THE AIRWAVES: NAFTA supporters are stepping up their campaign to keep Trump from withdrawing from NAFTA with a new ad running through Nov. 21 in nine states that voted for the Republican standard bearer in last year's presidential election: Iowa, South Dakota, Kansas, Missouri, Nebraska, Ohio, Texas, Michigan and Tennessee. "For over 20 years under the North American Free Trade Agreement, the North American region has grown and the United States is stronger than ever before," the ad says. "Tell President Trump to keep NAFTA because NAFTA works for America." The Trade Leadership Coalition, a group led by Caterpillar's former chief lobbyist, Bill Lane, paid for the ad. The group spent in the "mid-five-figures" on the
  • 4. 4 STATE AND LOCAL UPDATE ad buy, and there could be sequels in the coming months, said Jamie McInerney, the coalition's executive director. COUNTRIES IN TPP TRADE DEAL MOVE AHEAD WITHOUT U.S.: Countries in the Trans Pacific Partnership (TPP) trade deal have agreed on the core elements to move ahead without the United States, officials said on Saturday, after last-minute resistance from Canada raised new doubts about its survival. The agreement, which still needs to be finalized, would now be called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). CLIMATE ACCORD – COALITION OF STATES, BUSINESSES, AND LOCALITIES PUSH AHEAD: A powerful alliance of leaders representing American cities, states and business said that they would continue to back the Paris climate accord after President Donald Trump announced earlier this year that he would withdraw the United States from the 2015 international agreement. The group, which calls itself “America’s Pledge,” is led by CALIFORNIA GOV. JERRY BROWN and FORMER NEW YORK CITY MAYOR MICHAEL BLOOMBERG. They made the announcement after presenting a report in Germany during the 23rd U.N. Climate Change Conference, known as COP23, where hundreds of nations gathered to discuss global warming. The 127- page report addresses the “scope and scale of non-federal climate action” in the U.S., and also lays out actions taken by the groups involved in America’s Pledge, who combined represent trillions of dollars in the U.S. economy. At least 20 states, 110 cities and more than 1,000 businesses and universities have declared support for the accord. Be on the Lookout AGGRESSIVE AGs: State attorneys general have operated in an increasingly partisan manner in recent years -- both in terms of how they campaign and what cases they pursue. The Republican Attorneys General Association (RAGA) and the Democratic Attorneys General Association (DAGA) had a handshake agreement that they wouldn't target seats held by incumbents from the other party. The Republicans voted to end that policy in March. Once RAGA made its decision, there was never any doubt that Democrats would follow suit. In 2018, with 32 attorneys general seats at stake, millions more dollars will be spent by the two groups. Big money in attorney general contests is nothing new. In this year's race in Virginia, RAGA and DAGA spent in the neighborhood of $10 million between them but up until the Virginia race, the big money against incumbents came from outside groups, rather than the partisan AG organizations themselves. From now on, incumbent AGs are going to have to think about their counterparts raising money directly to try to take them out. SUPREME COURT SPORTS GAMBLING DECISION LOOMS LARGE FOR STATES: Early next month, the court will consider an attack by New Jersey on the federal law prohibiting additional states from getting into the business. A decision that strikes down the law would “be a dam burst,” said Kevin P. Braig, an Ohio lawyer who specializes in sports law. It presents the justices with a rare opportunity to define the limits of federalism and the meaning of the 10th Amendment, which says that “the powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” The immediate question is whether Congress can force states to maintain prohibitions on sports gambling.
  • 5. 5 STATE AND LOCAL UPDATE But a broad ruling for New Jersey could have consequences for other ways that the federal government tries to push policy preferences on state officials. NET NEUTRALITY – WITH WASHINGTON PULLING BACK, STATES COULD FILL THE VOID: At least 22 states proposed broadband privacy legislation this year in the wake of congressional action revoking the FCC's online privacy rules, heightening the telecom industry’s fear that state legislatures controlled by Democrats will do the same with net neutrality. Only two states, Minnesota and Nevada, require such privacy protections for ISPs, and those measures passed many years ago. California came close to passing new legislation this year but faced tech and ISP industry opposition. New America’s Open Technology Institute unveiled model legislation state lawmakers can use for future efforts. Several officials in the states raged against the FCC news that CHAIRMAN AJIT PAI would make sure states can’t impose their own regulations to fill the void from rolling back net-neutrality. NEW YORK ATTORNEY GENERAL ERIC SCHNEIDERMAN and NEW YORK CITY MAYOR BILL DE BLASIO, both Democrats, slammed the news, as did FORMER FEDERAL PROSECUTOR RENATO MARIOTTI, currently vying for the Democratic nomination to be Illinois attorney general. NGA LAUNCHES INITIATIVE TO EXPLORE “DISRUPTIVE TECHNOLOGIES”: With the rapid pace of innovation, each governor and state CIOs can be challenged to keep up with emerging technology developments. The National Governors Association recently launched NGA Future, an initiative to give governors insights into potentially disruptive technology that is three to five years away. Timothy Blute, who most recently worked as program director for Homeland Security and Public Safety Division of the NGA Center for Best Practices, is leading NGA Future’s efforts to convene stakeholders from industry, government and academia to discuss emerging technology issues that governors will face during their years in office. BGR in the News BGR Group Chairman Ed Rogers writes in the Washington Post: “One under-reported item in the analysis of [the recent special] election has been the kind of candidate LT. GOV. RALPH NORTHAM was in Virginia; specifically, from the Republican point of view, what kind of candidate he was not. Northam was not the candidate Republicans hoped to see emerge from his Democratic Party primary contest against liberal darling TOM PERRIELLO. Unlike the new-era Bernie-ites who have no sense of how government works (Georgia’s JON OSSOFF comes immediately to mind), Northam is an experienced, sensible and mostly thoughtful candidate. And it is worth noting that in 2017’s marquee races for mayor of New York, governor of New Jersey and governor of Virginia, the winners were all stylistically similar Democrats. Attacking them as leftists is challenging. Northam in particular wasn’t a good “bad guy” for Republicans. He wasn’t the stereotype Republicans hope to see.” HEALTHCARE PRICE TRANSPARENCY: The annual transparency report card, produced by Altarum’s Center for Payment Innovation and the group Catalyst for Payment Reform, looks at how easily consumers can obtain
  • 6. 6 STATE AND LOCAL UPDATE healthcare prices in the various states. States that scored high had consumer-friendly websites with prices for both inpatient and outpatient procedures. High marks were also given for states that required either provider price reporting or an all-payer claims database, and those that included amount paid as well as charged. Only two states — Maine and New Hampshire — earned an “A” on healthcare price transparency. Maryland and Oregon received a “B” for their efforts, while Colorado, Vermont and Virginia each got a “C.” All of the rest were rated “F.” STATE LAWMAKERS STEP UP PRESSURE ON PHARMACEUTICAL COMPANIES: A few years ago, MISSISSIPPI ATTORNEY GENERAL JIM HOOD was worried about a friend’s son who served two tours in Iraq. After being injured overseas, he became dependent on prescription painkillers and eventually developed a heroin addiction. Shortly after that, in 2015, Hood became the first state attorney general to sue a prescription drugmaker for their role in the opioid epidemic. Since then, more than 100 states, cities and counties have filed similar lawsuits, with a new one popping up almost every week. In addition to the 100-plus lawsuits, 41 states have banded together to subpoena information from four drug manufacturers: Endo, Johnson & Johnson's Janssen unit, Teva Pharmaceutical and Allergan. They’ve also put in a request for more information to Purdue Pharma and drug distributors AmerisourceBergen, Cardinal Health and McKesson. STATES TAKE ACTION IN UBER BREACH: New revelations that Uber suffered a major security breach in 2016 — and initially withheld details from drivers, riders and regulators alike — is touching off another round of government probes and customer lawsuits targeting the ride-hailing giant. At least five states — Illinois, Massachusetts, Missouri, New York and Connecticut — announced that they would investigate the matter, after Uber that the intrusion affected 57 million customers, compromising names, addresses and driver’s license numbers in some cases. 48 states maintain some version of a law that requires companies that suffer a data breach to communicate what happened to consumers. In most cases, companies must disclose a security incident if hackers steal very sensitive customer data — such as driver’s license numbers, which happened with Uber in late 2016. STATES PUSH FOR FEDERAL REGULATION OF AUTONOMOUS VEHICLES: Local and state authorities want the federal government to be in control of regulating autonomous vehicles, and while this may come as a surprise to some, that stance has some implications for the future of autonomous vehicles. In a letter signed by the National Governors Association, National Associations, National Conference of Legislatures, National League of Cities and others told the Senate Commerce, Science and Transportation Committee that the AV START Act language should be modified and clarified to ensure safe innovation. The letter writers were particularly concerned with the use of the word "performance" in the act: "We believe the application of the term “performance” to the autonomous context is now more complex due to the increasing merger of the vehicle and the operator." The letter is unlikely to halt business innovation in the autonomous vehicle space, but the significance of the letter is local and state authorities' abdication of authority in the autonomous vehicle arena. II. Politics
  • 7. 7 STATE AND LOCAL UPDATE ELECTION DAY 2017: All told, Democrats flipped about two dozen state legislative seats around the country in November and have now gained at least 30 seats previously held by Republicans since President Donald Trump won election last year, reversing several years of Republican momentum. “In general, this is a rebuke of Republican governance of states,” said Jessica Post, executive director of the Democratic Legislative Campaign Committee. She added: “The other thing it said is we can win all across the country.” The fight for control of legislative chambers matters not only for policies on health care, taxes and education, but also because the legislature in most states determines how future congressional and state legislative districts are drawn. The next round of redistricting will take place after the 2020 Census, and both parties are focused on controlling as many states as possible by then. DEMOCRATS RECOVER SOME GROUND IN SEVERAL STATE LEGISLATURES: At the legislative level, Democrats had a better election night than they could have dared to hope for, making a huge comeback in the Virginia House and picking up seats in special elections from Georgia to Washington state. They still have a long way to go to reach parity, given GOP control of 26 states. But the fact that Democrats have erased a 16-seat Republican majority in the Virginia House, or come awfully close (depending on recounts), has to be encouraging for Democrats heading into next year's elections DEMOCRATS EXPAND MAJORITY AMONG NATION’S MAYORS: NEW YORK'S DEMOCRATIC MAYOR BILL DE BLASIO, a forceful critic of President Trump, easily won a second term. And Democrats also won several major cities and closely watched races. In Boston, incumbent DEMOCRAT MARTY WALSH glided to re-election and a second four-year term, beating back ROXBURY CITY COUNCILOR TITO JACKSON, who had hoped to become the city's first African- American mayor. With 100 percent of the precincts counted, Walsh had 65 percent to Jackson's 34 percent. DETROIT MAYOR MIKE DUGGAN, who oversaw the city's emergence from bankruptcy, easily won re-election, defeating fellow DEMOCRAT COLEMAN A. YOUNG II, a state senator and the son of the city's first African-American mayor. Duggan got more than 70 percent of the vote. Charlotte, N.C., elected DEMOCRAT VI LYLES, its first female African-American mayor. In the primary, she defeated incumbent Democrat Jennifer Roberts. On Tuesday, Lyles easily outpaced REPUBLICAN CITY COUNCILMAN KENNY SMITH largely on the strength of early voting, winning 58 percent of the vote. In Seattle, DEMOCRAT JENNY DURKAN took a commanding lead over her opponent, CARY MOON, in the race to replace former Mayor Ed Murray, who resigned amid sexual abuse allegations. TRUMP TROUBLES AND TRICKLE DOWN CONCERNS AT STATE AND LOCAL LEVEL : One year after Donald Trump’s shocking election upset, many Americans who live in the key counties that propelled him to victory remain unconvinced that the country is better off now that he’s in the White House, a November poll from NBC News and The Wall Street Journal shows. The poll, which sampled residents of 438 counties that either flipped from voting Democratic in the 2012 presidential election to Republican in 2016, or saw a
  • 8. 8 STATE AND LOCAL UPDATE significant surge for Trump last year, found that a third — 32 percent — believe the country is better off now than it was before Trump became president. DEMOCRATIC POLITICAL WAVE BUILDING: Democrats' success in this month's elections was bigger than expected, and was fueled in part by strong opposition to President Trump. In the past few weeks, there's been a lot of chatter about whether that means a big, blue wave is forming off the political coast that could potentially crash into the 2018 midterm elections. See here for five takeaways. BGR INSIGHT Riding a wave of discontent with the administration, Democrats made notable gains on November 8th in states across the country. The gains came even amid increased turnout among Republicans the difference being that Democrats were able to get more presidential election year voters to the polls. Turnout this year was up 16% over 2013 with most of the additional numbers coming from white independents and Democrats in the suburbs. Looking specifically at the battleground state of Virginia, turnout in the northern, more suburban part of the state was up across the board – 23% in Fairfax County, 26% In Alexandria and Arlington County, and 31% in Loudoun County. That tilted the state’s electorate Democratic by 11 percentage points compared with 7 points last year and 5 in 2013. The broad takeaways from these elections are that politics is more national than ever at the state & local level – even when accounting for historical trends for a president’s party when in office – and that the 2018 elections, at least federally, will be decided in the swing suburban districts where the House will be won or lost (note Republicans hold seats in 23 districts where Hillary Clinton also won). PARTISAN POLITICS – STATE GOVERNMENTS INCREASINGLY CONTROLLED BY ONE PARTY: In a decade that has seen a resurgence of American political polarization, two-thirds of all state governments now will be fully controlled by either Democrats or Republicans. That rivals the predominant levels of single-party governance last seen in the post-World War II era. The number of unified legislatures paired with same-party governors has surged significantly since the 1996 election, when just 37 percent of states had single-party governance. It has remained above 60 percent of all states since Republicans swept into control of many capitols in 2010. (Single-party governance peaked at 83 percent of states after the 1946 and 1952 elections). OUTSIDE GROUPS GEAR UP FOR 2020 REDISTRICTING: The right-leaning consulting firm Champion Group, led by former Americans for Prosperity CEO Luke Hilgemann and COO Sean Lansing, has launched "Defend Freedom" PAC to bolster Republican efforts in state elections with an eye on 2020 redistricting. DEMOCRATS FOCUSED ON NEXT ROUND OF REDISTRICTING: Ralph Northam’s landslide victory in Virginia governor’s race and Democrats’ stunning gains in other state elections this month have given party activists hope of eroding the GOP’s advantage ahead of the next round of redistricting. Democrats say part of the reason they don’t control the U.S. House and trail so badly in state legislatures is because the GOP did a masterful job the last time around in drawing districts tailored to Republicans. Flipping that script ahead of the next round of redistricting, after
  • 9. 9 STATE AND LOCAL UPDATE the 2020 census, is a major focus for Democrats. And it’s a particular passion former President Barack Obama and former Attorney General Eric H. Holder Jr., who have launched the National Democratic Redistricting Committee to make more voters aware that redistricting will shape the next decade of politics. WAR ROOM: The Republican Attorneys General Association has launched the “RAGA War Room,” an online platform for interested parties to sign-up to receive updates about their state's race for attorney general, and the national efforts of the Republican Attorneys General Association to elect Republicans to the Office of Attorney General. State of the States CALIFORNIA California Pushes Ahead on Climate Change: In his final term, DEMOCRAT GOVERNOR JERRY BROWN has lobbied other states and regions to reduce their greenhouse gas emissions, while augmenting California’s already expansive suite of climate change programs. But Trump’s election—and the specter of Brown’s own retirement—have lately set the governor on a tear. In a rush of climate diplomacy this year, Brown traveled to China to meet with President Xi Jinping, then to Russia to participate in an international economic forum. This month, we saw him address lawmakers in Brussels and Stuttgart, Germany, and he was preparing for roundtable meetings with scientists in Oslo before arriving in Bonn for a climate conference, where Brown will serve as special adviser for states and regions. And he is preparing for California to host an international climate summit of its own next year in San Francisco. Crowded Field for Open Gubernatorial Seat in 2018: After running for elected office 12 times since 1970, GOV. JERRY BROWN is about to exit the center stage of California politics, no longer the brash upstart but now a senior statesman who could be a model for the next person who will lead the state. Every successor promises to be better, and different, than the person they replace. In 2018, one of the most wide-open races for governor in some two decades, the “Jerry question” looms large for both candidates and voters. When asked whether the next governor should continue Brown’s agenda, 50% of voters said yes. Among Democrats, it was 71%. In several other subsets — young voters, those with a college degree, Latino voters — a majority or even close to a supermajority wanted the next governor to carry on. So far, the candidate most preferred among the “keep doing what Jerry Brown is doing” crowd is LT. GOV. GAVIN NEWSOM, picked by 49% of the primary voters who want to extend the life of the current governor’s agenda. Twenty-six percent of that group supported former L.A. MAYOR ANTONIO VILLARAIGOSA and 14% supported TREASURER JOHN CHIANG. The USC/LAT poll finds support for all other candidates in single digits (or less) among the “Brown policies” voters. COLORADO Shifting Race for Governor and Attorney General: Republican George Brauchler, once a leading contender for governor, announced he will suspend his campaign and instead enter the race for attorney general.
  • 10. 10 STATE AND LOCAL UPDATE Brauchler called the decision “neither easy or obvious,” but the move was expected for days as his path to victory in the governor’s race began to narrow when former U.S. Rep. Tom Tancredo, a firebrand and favorite among conservative activists, announced his bid for the state’s top job. And when Attorney General Cynthia Coffman jumped into the race, it left a wide open race to replace her. The Republican Attorneys General Association immediately issued a statement endorsing Brauchler, a move that showcases the party’s support and gives the candidate more fundraising power. Other GOP members who have expressed interest in running for attorney general include state Rep. Cole Wist of Centennial, and George Leing, who lost in 2014 to Democratic U.S. Rep. Jared Polis of Boulder. Democrat Phil Weiser, former dean of the University of Colorado Law School and a one-time Obama administration official who got into the attorney general’s race in May, has already hauled in more than $700,000 in donations. The four other Democrats running for attorney general have been drawing in tens of thousands of dollars in donations, too. They include MICHAEL DOUGHERTY, assistant district attorney for the 1st Judicial District in Jefferson and Gilpin counties; BRAD LEVIN, a Denver attorney; AMY PADDEN, a former state and federal prosecutor; and STATE REP. JOE SALAZAR of Thornton. DEMOCRATIC STATE REP. CHRIS HALL had expressed interest in running for governor back in the spring, but he never made any obvious moves toward a bid since then. Hall took his name out of contention this week when he endorsed businessman Fred Hubbell's campaign. Among the Republicans seeking their party’s nomination in the governor’s race, WALKER STAPLETON and VICTOR MITCHELL have already amassed larger financial war chests. And the addition of Tancredo made it hard to see Brauchler getting the nomination by lining up the overwhelming support of hard-line conservatives. CONNECTICUT Incumbent Governor Malloy’s Departure Sets off Competitive Race for Open Seat: HARTFORD MAYOR LUKE BRONIN said he’s now giving serious thought to a gubernatorial run, just days after LT. GOV. NANCY WYMAN announced she won’t seek the state’s highest office. A growing collection of politicians, from legislators to mayors, and business leaders are weighing a run for governor in 2018, following GOV. DANNEL P. MALLOY’S announcement that he will not seek a third term. Wyman’s announcement Thursday that she wouldn’t seek the state’s top job left an open field of lesser-known candidates. Danbury MAYOR MARK BOUGHTON, MIDDLETOWN MAYOR DANIEL DREW, TRUMBULL FIRST SELECTMAN TIM HERBST AND FORMER FEDERAL PROSECUTOR CHRISTOPHER MATTEI are among those who have announced their intentions to run. Another potential candidate, HOUSE REPUBLICAN LEADER THEMIS KLARIDES, has not yet disclosed her plans. FLORIDA Democrats Search for a Competitive Candidate for State’s Top Office:: DEMOCRATIC DONOR JOHN MORGAN announced he is leaving the Democratic Party, and that Democratic Sen. Bill Nelson should not run for re-election, but rather seek the governor's mansion so he can leave a "legacy." Morgan did not close the door on the idea of running for governor himself — a notion supported by many in his party — but said in
  • 11. 11 STATE AND LOCAL UPDATE his message, if he did, he would do so as an independent. Even though he is not running, Morgan has lead the so far lackluster Democratic field in recent polls. The perceived current front-runner is FORMER REP. GWEN GRAHAM of Tallahassee, who has been running since early May and has roughly $2.5 million in the bank. That number is surpassed by both declared Republican nominees and likely future candidates already stocking away cash for a potential run. Two other candidates who have been running for months — TALLAHASSEE MAYOR ANDREW GILLUM and Winter Park businessman CHRIS KING — have also failed to garner real momentum. FORMER MIAMI BEACH MAYOR PHILIP LEVINE announced earlier this month he was also seeking the Democratic gubernatorial nomination. His promise to put up to $25 million of his own wealth into the race could inject energy into the Democratic field. GEORGIA Atlanta Mayoral Race Remains Undecided: Two candidates will compete in a runoff to become Atlanta’s next mayor. KEISHA LANCE BOTTOMS and MARY NORWOOD took the top two spots in the recent election, knocking out the 10 other candidates from the crowded field. The results don’t come as a huge surprise. Norwood and Bottoms had substantial leads going into the race. The runoff election will take place on Dec. 5. The winner of this election will replace current MAYOR KASIM REED. Democrats Break GOP Supermajority in State Legislature: As part of a larger wave of Democratic wins on Election Day 2017, Democrats picked up two seats in special elections held for Georgia’s House of Delegates. DEBORAH GONZALES won House District 117 with 53 percent of the vote and JONATHAN WALLACE won House District 119 with 56 percent of the vote. Both seats are in the Athens area and both were vacant, hence the special elections. But not only were the two seats previously held by Republican incumbents, they were uncontested in the 2016 elections. ILLINOIS Democrat Chris Kennedy Picks-Up Key Endorsement for Gubernatorial Run: U.S. REP. DANNY DAVIS endorsed DEMOCRATIC GUBERNATORIAL CANDIDATE CHRIS KENNEDY. Davis’ endorsement comes as gubernatorial candidates maneuver to court black voters ahead of the primary March 20. J.B. PRITZKER, another candidate for the Democratic nomination, announced in August that he’d secured the endorsement of SECRETARY OF STATE JESSE WHITE, another key black leader. On Sunday, COOK COUNTY COMMISSIONER RICHARD BOYKIN and FORMER CHICAGO ALD. BOB SHAW endorsed Kennedy alongside Davis. Other Democrats in the race are state SEN. DANIEL BISS; BOB DAIBER, regional superintendent of schools in downstate Madison County; anti-violence activist TIO HARDIMAN; ROBERT MARSHALL, a physician from Burr Ridge; and small- business owner ALEX PATERAKIS. INDIANA
  • 12. 12 STATE AND LOCAL UPDATE Education Reform in the Spotlight for Gov. Holcomb: If Gov. Eric Holcomb’s legislative priorities are any indication, next year won’t be the kind of education legislative session Hoosiers might be used to, with testing and school choice possibly taking a back seat to college and career prep. His goals focus primarily on workforce issues, with K-12 education as one piece of that system. Overall, Holcomb’s education initiatives stem from a desire to better integrate what schools are teaching students with what employers are looking for when they hire. Holcomb’s 2018 agenda includes: • Creating an “Education to Career Pathway Cabinet” to centralize education initiatives among the department of education, commission for higher education and department of workforce development. • Requiring every Indiana school to offer at least one computer science class by 2021, as well as training for teachers in computer science. • Creating the Office of Apprenticeship and Work-Based Learning to increase opportunities for high school students and adults. • Broadening teacher licensure requirements for people interested in teaching career and technical education classes. KANSAS Shifting Political Lines within the GOP in Kansas? Some Seem to Think So: Leave it to a veteran Republican campaigner in red-state Kansas to explain why someone other than a die-hard conservative can be elected governor next November. FORMER SEN. JIM BARNETT, who won the GOP nomination for governor in 2006 before falling to incumbent GOV. KATHLEEN SEBELIUS, said the unpopularity of policies enacted by GOV. SAM BROWNBACK and LT. GOV. JEFF COLYER make it possible for moderates to compete in 2018. Colyer, preparing to ascend to the governorship upon Brownback’s resignation, is running for governor against SECRETARY OF STATE KRIS KOBACH, INSURANCE COMMISSIONER KEN SELZER, FORMER LEGISLATORS MARK HUTTON and ED O’MALLEY, businessman WINK HARTMAN, Barnett and others. The whisper of opportunity reaching Barnett’s ear can be heard by Democratic gubernatorial candidates. The current crop includes WICHITA LEGISLATOR JIM WARD, Ellsworth County farmer JOSH SVATY, FORMER WICHITA MAYOR CARL BREWER, Olathe physician ARDEN ANDERSON, Salina resident ROBERT KLINGENBERG and Wichita high school student JACK BERGESON. Lawmakers Turn to Government Transparency Following Investigation: Kansas lawmakers from across the political spectrum said they will push to fix the state’s culture of secrecy in the wake of a Kansas City Star series that highlights stunning levels of opacity in state and local government. They cautioned, however, that the next governor will have to champion the issue for the Sunflower State to have truly transparent government. LT. GOV. JEFF COLYER, who is set to take the reins of power if GOV. SAM BROWNBACK is confirmed as an ambassador. LOUISIANA
  • 13. 13 STATE AND LOCAL UPDATE First Female Elected Mayor of The Big Easy: New Orleans voters elected LaToya Cantrell as mayor Saturday, making her the first woman to hold that position in the city's 300-year history. Cantrell, a city councilwoman, got 60% of the votes over her opponent, former municipal court Judge Desiree Charbonnet, according to the Louisiana Secretary of State's office. MAINE LePage Pushes Back on Medicaid Expansion: Just hours after Maine voters became the first in the nation to use the ballot box to expand Medicaid under the Affordable Care Act, REPUBLICAN GOV. PAUL LEPAGE said he wouldn't implement it unless the Legislature funds the state's share of an expansion. Leadership Changes in the Legislature: SEN. AMY VOLK, R-SCARBOROUGH, was elected assistant majority leader of the Maine Senate, replacing SEN. ANDRE CUSHING, who stepped down last month. Volk, who is serving her fourth term in the Legislature, won election as the assistant majority leader in a secret ballot. The other candidate in the race to succeed Cushing was SEN. JAMES HAMPER, R-OXFORD, the chairman of the Legislature’s budget-writing Appropriations and Financial Affairs Committee. MARYLAND Federal Program Combatting Surging Opioid Epidemic Being Tested: A federal initiative to combat the opioid epidemic is being tested in Maryland. Maryland, where overdose deaths are surging, is one of seven states approved to allow large residential centers to bill Medicaid for substance abuse treatment. Under the new structure, treatment centers receive reimbursement for each patient rather than a set grant. Bernard Gyebi-Foster is the executive director of one of the city’s best-known treatment facilities. He says the change allows his organization, Tuerk House, to see more patients. Several other centers say they are considering an expansion, but few interviewed by the newspaper had increased capacity yet. The change took effect July 1. A spokeswoman for the state health department says it will provide initial data about how the effort is going in May. MASSACHUSETTS Incumbent Governor Charlie Baker to Run Again: GOVERNOR CHARLIE BAKER and LIEUTENANT GOVERNOR KARYN POLITO will run for reelection in 2018, according to a senior political adviser, marking an expected but significant turning point as Baker's political team begins to take steps to build the campaign apparatus that will be necessary to win another four years in office. The Baker-Polito reelection campaign plans to open a new headquarters in Allston in early December, and Brian Wynne, the executive director of the MassGOP, will transition from the party to become the governor's campaign manager. It's unclear who will take over day- to-day operations of the MassGOP. Running for the Democratic Party nomination for governor is NEWTON MAYOR SETTI WARREN, FORMER STATE FINANCE SECRETARY AND HEALTH INSURANCE EXECUTIVE JAY GONZALEZ and environmental activist and entrepreneur ROBERT MASSIE.
  • 14. 14 STATE AND LOCAL UPDATE MICHIGAN Lt. Governor Calley Makes Gubernatorial Run Official: In a long-anticipated development, Lt. Gov. Brian Calley announced he wants to be governor of Michigan. Calley made the news official after hinting at an announcement for months — most recently at a Monday appearance with Gov. Rick Snyder, where he took partial credit for Michigan's improved economy, citing his work on corporate tax cuts and streamlining and elimination of business regulations and told reporters to "stay tuned for some big news" on Tuesday. Calley joins a Republican field that includes Attorney General Bill Schuette, the acknowledged frontrunner, as well as Saginaw Township physician Dr. Jim Hines, and state Sen. Patrick Colbeck of Canton. Democrat Andy Levin, the son of U.S. Rep. Sandy Levin, said he will not run for governor but did not rule out a congressional campaign should his father decide to retire. Levin announced his decision in a Detroit News opinion column, explaining he will not join a Democratic gubernatorial primary field headlined by former Senate Minority Leader Gretchen Whitmer of East Lansing. Incumbent Democrat Wins Reelection as Mayor of Detroit: Mike Duggan's landslide re-election may give him a bully pulpit in a second term to unseat the fellow Detroit Democrats who helped defeat his auto insurance reform legislation five days before Election Day. The political machine Duggan had already been building before winning 72 percent of the vote is likely to get stronger, especially given the support he draws from regional business leaders. The Southeast Michigan business community has proved to be a key cog in Duggan's growing influence, both in terms of financial support for his re-election campaign and helping carry out his agenda. Embattled Mayor of Flint, MI, Hit by Water Scandal, Holds On: Karen Weaver, the mayor of Flint, turned back a recall attempt. Although the recall was launched in response to a garbage contract, attention turned during the campaign to the city's water crisis. Nonetheless, Weaver won easily. NEW HAMPSHIRE Democrat Picks-Up Long Held GOP Mayor’s Office in Manchester: JOYCE CRAIG became the first woman to win the Machester mayor's office, and the first Democrat to win the city since 2003, after she ousted four- term incumbent TED GATSAS NEW JERSEY Democrats Have a Big Election Day: Former Goldman Sachs executive PHIL MURPHY easily won the fight to replace deeply unpopular Gov. Chris Christie, cementing Democratic control in the state (for a list of who Governor-elect Phil Murphy has appointed to his 14-committee transition team, see here. Democrats added to their majority in the state Senate and picked up two additional state Assembly seats. Additionally, Murphy’s
  • 15. 15 STATE AND LOCAL UPDATE running mate, Assembly Speaker Sheila Oliver, is now the state’s first African American lieutenant governor. She has also been appointed to serve as commissioner of the Department of Community Affairs. State Senate Changeover: After a year-long campaign that will go down as one of the most expensive elections in the state, Chris Brown defeated Colin Bell for the state Senate seat in the 2nd Legislative District. For the 2nd District Assembly seats, Vince Mazzeo and John Armato defeated Republicans Brenda Taube and Vince Sera. Republican Legislators Make Leadership Choices: After a tough night for New Jersey Republicans, TOM KEAN JR. quickly secured the caucus votes for another term as the state Senate’s GOP leader. All but one of the Republicans elected to the state Senate earlier this month backed Kean (R-Union) for another term as minority leader, according to a letter signed by 13 members of the caucus. The only one not to sign on was state SEN. MICHAEL DOHERTY (R-WARREN). “Millionaires Tax” in Spotlight in 2018: A New Jersey millionaire’s tax boost that REPUBLICAN GOVERNOR CHRIS CHRISTIE vetoed five times will be Democrats’ top priority with their party newly in control of the executive branch, said the highest-ranking state lawmaker. SENATE PRESIDENT STEVE SWEENEY, a Democrat from West Deptford whose party had championed the tax on high earners for almost eight years, only to meet Christie’s veto pen, revived the matter in a tweet. “The first bill we pass in January with our new governor will be a long-overdue millionaires tax to fairly and fully fund our schools,” Sweeney wrote. In an interview, he said the bill would lead to property-tax relief, with more state revenue covering local education costs, a prime driver of homeowner bills. Attorney General Sets Sites on Drugmaker: STATE ATTORNEY GENERAL CHRIS PORRINO announced that New Jersey was amending its consumer fraud and false claims complaint against Arizona-based opioids maker Insys Therapeutics, Inc. to go after the billionaire founder of the company, John N. Kapoor. In some ways, the amended civil suit is the lesser of Kapoor's problems. He has already been arrested for conspiracy to commit racketeering, mail fraud and wire fraud after being indicted in federal court in Boston last month. The federal government is alleging that Kapoor's company conspired with doctors to fraudulently prescribe the potent drug to patients who were cancer-free as in need of chemotherapy in order to receive the drug, which is usually prescribed only for patients who are gravely ill. NEW MEXICO GOP Loses Longtime Hold on Albuquerque Mayorship: DEMOCRATIC NEW MEXICO STATE AUDITOR TIM KELLER has wrestled control of New Mexico's largest city from the GOP to become Albuquerque's next mayor. Unofficial results showed Keller beating REPUBLICAN ALBUQUERQUE CITY COUNCIL DAN LEWIS with 62 percent of the vote compared to 38 percent. NEW YORK
  • 16. 16 STATE AND LOCAL UPDATE New York Voters Shoot Down Constitutional Convention Measure: New York voters gave a resounding thumbs down to a constitutional convention this month, once again rejecting an opportunity to open the state’s founding document to a full-scale overhaul after opponents stoked fears that such a convention could result in lost rights and benefits. With most of the state’s election precincts reporting, “No” voters had easily defeated the ballot measure — known as Proposal One — with more than 80 percent of the vote. The campaign against the constitutional convention drew a diverse collection of opponents, including conservative political groups, major labor groups like the A.F.L.-C.I.O., and liberal stalwarts like the New York branch of Planned Parenthood and the New York Civil Liberties Union. And while their concerns were often different, the basic logic of the anti-convention forces was similar: Such a convention could result in an erosion of protections for everything from collective bargaining rights to free public education. OHIO Ohioans Reject Measure to Regulate Drug Prices: A ballot proposal to rein in drug costs was soundly defeated in Ohio after an expensive ballot fight that drew tens of millions of dollars from the pharmaceutical industry. The ballot proposal, known as the Drug Price Relief Act, was rejected by nearly 80 percent of voters in final results. It would have required that state agencies pay no more for medicine than the U.S. Department of Veterans Affairs, which gets a 24 percent discount off average manufacturers’ prices. OKLAHOMA Legislature Falls Short in Passing Tax Bill – Budget Woes To Continue: The Oklahoma House of Representatives fell five votes shy of passing a tax bill that would have shut down the Special Legislative session and prevented the need for steep budget cuts. The plan was supported by advocates from the health care, education, and public policy sectors. But the widespread support of nurses and teachers wasn’t enough. The tax plan would have eased the state’s budget woes by raising taxes on gasoline, tobacco products, beer, and oil and gas wells. The tax hikes would have amounted to well over half a billion dollars in increased revenue over the next two years. The plan would have also provided raises for teachers and government employees. Twenty-Two Republicans voted against the bill, despite pleading from Gov. Mary Fallin and GOP colleagues in the Legislature. Five Democrats also voted against the measure. Gov. Mary Fallin shocked lawmakers by vetoing most of their fix to the state’s $215-million revenue shortfall. Fallin vetoed 165 of 170 sections in House Bill 1019, leaving intact only provisions that temporarily fund the Department of Human Services, the Department of Mental Health and Substance Abuse Services and the Oklahoma Health Care Authority and keeping the Department of Health solvent through the end of the fiscal year. With the state entering a fourth straight year of declining general revenue, Fallin has urged tapping new sources such as higher tobacco and fuel taxes. Democrats Make Gains in Legislature: Democrat Allison Ikley-Freeman defeated Republican Brian O’Hara in a recent special election for a state Senate seat representing parts of Tulsa. Complete but unofficial election
  • 17. 17 STATE AND LOCAL UPDATE results showed that Ikley-Freeman, who is a therapist at a nonprofit mental health agency, won by 31 votes. That seat was vacated after Republican Sen. Dan Newberry said he would step down early to focus on his career in banking. Ikley-Freeman’s win marks the fourth pickup for state Democrats in special elections this year in Oklahoma, where Republicans have dominated state politics in recent years. Republicans held on to two other legislative seats in the election. PENNSYLVANIA GOP Candidate Tosses Hat in Ring for Governor: Republican House Speaker Mike Turzai, a leader of anti- tax and social conservatives who has helped drive austerity in state budgeting, will run for governor. Turzai, 58, said he will seek the Republican nomination in May's primary election to challenge Democratic Gov. Tom Wolf, who is running for a second four-year term. Also running are York County state Sen. Scott Wagner and two first-time candidates from the Pittsburgh area: former health care systems consultant Paul Mango and lawyer Laura Ellsworth. Well Known Attorney on Course to Be Next Philadelphia DA: Larry Krasner, a civil rights attorney who built his professional reputation defending protesters and suing the police, is almost certainly going to be Philadelphia’s next district attorney. Last month, Krasner beat out six other candidates in the Democratic primary—clobbering his closest opponent by a near 18-point margin—on a promise to put fewer people in jail and ruthlessly clean house in the office he intends to run. Notable Results from November Elections: The biggest statewide race pitted DEMOCRATIC ALLEGHENY COUNTY JUDGE DWAYNE WOODRUFF against REPUBLICAN JUSTICE SALLIE MUNDY. Woodruff conceded the race to Justice Mundy. CHIEF JUSTICE THOMAS SAYLOR and JUSTICE DEBRA MCCLOSKEY TODD were running for retention for another term on the court. Both cruised early to retention. ALLENTOWN MAYOR ED PAWLOWSKI won, despite having been indicted on 54 counts of extortion, bribery and fraud. His re-election margin was down, but some voters said they believe he had been set up. Pawlowski's case could go to trial as early as January. In Pittsburgh, DEMOCRAT ANTHONY COGHILL was up against REPUBLICAN CLETUS CIBRONE-ABATE for the District 4 seat vacated by NATALIA RUDIAK, who decided not to run again this year. Mr. Coghill defeated Ms. Cibrone-Abate. Pennsylvania took the first step toward property tax reform in a ballot referendum, putting the state on a path to potentially overhaul tax law.
  • 18. 18 STATE AND LOCAL UPDATE Pittsburgh voters faced a referendum that would loosen job restrictions for city workers. Voters passed it, agreeing to loosen a rule that prevents city employees from taking simultaneous work with other government entities. Gerrymandering Lawsuits Move Head: With drastic changes to Pennsylvania’s political landscape hanging in the balance, two lawsuits challenging the state’s congressional map are moving forward at rapid speed — one in state courts, the other in federal. After considering motions to intervene, delay and dismiss the cases, the Pennsylvania Supreme Court and a three-judge panel on the United States Court of Appeals for the Third Circuit have teed the cases up to be heard next month. Both challenges claim the state’s 2011 congressional district map is a partisan gerrymander designed to give Republicans an electoral advantage. The state court lawsuit claims the General Assembly deliberately took into account political views, voting histories, and party affiliations when deciding district boundaries, which they argue violates voters’ freedom of expression and equal protection rights under the state constitution. Similarly, the federal lawsuit brought by five Pennsylvania voters also claims that the state’s 2011 congressional map is an illegal partisan gerrymander. State Budget Woes Continue: Pennsylvania is going to borrow against its Tobacco Settlement Fund to fill in last year's deficit and finish this year's budget. GOVERNOR TOM WOLF’S administration confirmed that it will tap into the stream of money states have received from tobacco companies since the 1990s. The borrowing will give the commonwealth money to balance its books up front, and will then be paid back over several decades. The Commonwealth Financing Authority approved the plan last week. However, Budget Secretary Randy Albright noted that it's not finalized yet. RHODE ISLAND Lt. Governor Draw Primary Challenge: DEMOCRAT RHODE ISLAND LIEUTENANT GOVERNOR DAN MCKEE announced his reelection bid, setting up a primary battle on the left with STATE REP. AARON REGUNBERG. TEXAS Races Taking Shape in the Lone Star State: With less than a month before the filing deadline, the most prominent declared candidate for Texas governor is probably ANDREW WHITE, the son of FORMER GOVERNOR MARK WHITE. White, a self-described “very conservative Democrat,” has never run for elected office and holds views on abortion likely to alienate some Democratic primary voters. DALLAS COUNTY SHERIFF LUPE VALDEZ announced that she’s considering a gubernatorial run, but her staff refused further comment and Valdez has yet to file. Whoever faces off with GOVERNOR GREG ABBOTT will be staring down a $41 million war chest. Democratic party officials insist more candidates are forthcoming: “We’ve taken our punches for withholding the names of who we’re talking to,” said Manny Garcia, deputy director with the Texas Democratic Party. “It’s been personally frustrating to me because I know who we’re talking to and I know they’re exciting people.”
  • 19. 19 STATE AND LOCAL UPDATE For lieutenant governor, mild-mannered accountant MIKE COLLIER — who lost a run for comptroller last cycle by 21 percentage points — is challenging DAN PATRICK, one of the state’s most effective and well-funded conservative firebrands. ATTORNEY GENERAL KEN PAXTON, who will be fighting his securities fraud indictment during campaign season, drew a largely unheard-of Democratic opponent last week in attorney JUSTIN NELSON, a former clerk for U.S. Supreme Court Justice Sandra Day O’Connor. VIRGINIA Democrats Ride Blue Wave in State Elections: DEMOCRAT RALPH NORTHAM will be Virginia's next governor, beating REPUBLICAN ED GILLESPIE. For a list of who is serving on his transition team, see here. Voters in Northern Virginia also backed DEMOCRATS MARK HERRING and JUSTIN FAIRFAX for attorney general and lieutenant governor respectively. Make Significant Gains in Legislature: Democrats surged to victory in more than a dozen Virginia House of Delegates races during the recent election, unseating several longtime Republican incumbents and coming within striking distance of retaking control of the House for the first time in 17 years. In the 10th District, REPUBLICAN INCUMBENT RANDY MINCHEW was defeated by DEMOCRATIC CANDIDATE WENDY GOODITIS, a Clarke County realtor and former schoolteacher. In one of the most closely watched races, DEMOCRAT DANICA ROEM, a local journalist, defeated REPUBLICAN DEL. BOB MARSHALL in Virginia’s 13th District, which includes parts of Prince William County and Manassas Park. Roem, who carried 54 percent of the vote, made history as the first openly transgender elected official in Virginia history. And in the 31st District, DEMOCRATIC CHALLENGER ELIZABETH GUZMAN bested REPUBLICAN SCOTT LINGAMFELTER, who was elected to the seat in 2001. In the 32nd District, REPUBLICAN INCUMBENT TAG GREASON, who was first elected to the Loudoun County seat in 2009, was defeated by DEMOCRAT DAVID REID, a retired Naval intelligence officer and defense consultant. In another upset, LEE CARTER, a Navy veteran and self-described Democratic socialist, unseated REPUBLICAN DEL. JACKSON MILLER, a member of GOP leadership in Richmond, in the 50th District, which also includes parts of Prince William County. In the 51st District, which covers parts of Prince William County, DEMOCRATIC CHALLENGER HALA AYALA, a former cybersecurity specialist at the Department of Homeland Security, defeated REPUBLICAN INCUMBENT RICH ANDERSON.
  • 20. 20 STATE AND LOCAL UPDATE In the 67th District, which covers parts of Fairfax and Loudoun counties, REPUBLICAN INCUMBENT JIM LEMUNYON was defeated by DEMOCRATIC CHALLENGER KARRIE DELANEY. But Republicans Maintain Control of House with Controversial Decision: Virginia’s Board of Elections on Monday unanimously certified two state legislative races — in which 147 voters cast ballots in the wrong district — in favor of the Republicans in both contests. The decision means that Republicans control 51 seats in the House of Delegates while Democrats control 49. The action shuts down one potential route, but it does not end Democrats’ hopes to win control of the chamber. McAuliffe Bucks Trend and Opposes Trump Impeachment: GOV. TERRY MCAULIFFE, who was awarded the title of Governing’s 2017 Public Official of the Year, said he does not support impeaching President Donald Trump, after Democratic billionaire Tom Steyer pressed the case for impeachment at the United Nations climate conference in Germany. WASHINGTON Democrats Take Control of State Senate: For the first time since 2012, Democrats will retake control of the state Senate next month on the strength of a big win in suburban King County, a victory that solidifies the Blue Wall of a democratically controlled West Coast – Washington, Oregon and California. In a race that set Washington records for spending on a legislative race, DEPUTY COUNTY PROSECUTOR MANKA DHINGRA beat JINYOUNG LEE ENGLUND, a businesswoman and former aide to U.S. REP. CATHY MCMORRIS RODGERS. Dhingra’s win gives Washington Democrats control of the Governor’s mansion and both state legislative bodies for the next year, potentially pushing a more progressive agenda in 2018. In votes counted on Election Night, Dhingra was collecting 55.4 percent of the vote to Englund’s 44.6 percent. In Northeast Washington’s 7th District, REPUBLICAN SHELLY SHORT, who moved from the House to the Senate through an appointment to fill an empty seat early this year, easily bested DEMOCRAT KAREN HARDY. STATE GOVERNMENT ASSOCIATIONS EVENTS (2017) DECEMBER 2017 • 1: SLLF 2017 Board Meeting and Leadership Roundtable, Palm Beach, FL • 1-2: Western Governors Association Winter Meeting, Phoenix, AZ • 3-4: DGA Annual Meeting & Holiday Party, New Orleans, LA • 3-5: RSLC Annual Retreat, Jackson Hole, Teton Village, WY • 6-8: ALEC, States and Nation Policy Summit, Nashville, TN • 7: DLCC Emerging Leaders Forum, Washington, DC
  • 21. 21 STATE AND LOCAL UPDATE • 7: DLCC Holiday Reception, Washington, DC • 10-13: NCSL Capitol Forum, Coronado, CA • 14-16: CSG National Conference, Las Vegas, NV • 29: NLGA Business Meeting, St. Thomas, U.S. Virgin Islands • 29: CSG Western Legislative Academy, Colorado Springs, CO