Headlines
Localities squeezed by reduction in state aid and property taxes
Troubled times at the State Fair
Is your state asking Congress for toll roads to close budget gaps?
WA: Washington state Supreme Court upholds liquor privatization in 5-4 decision
IN: Gov Daniels fights to keep state’s Toll Road perk
WI: Coalition calls for suspension of state efforts to privatize W-2
FL: Miami-Dade questions $1.7M in stadium expenses

Localities squeezed by reduction in state aid and property taxes
While states slowly rebound from the Great Recession, many local governments are struggling with unprecedented fiscal challenges. For the first time since 1980, state aid and property taxes, two primary sources of funding, are dropping simultaneously, according to a new report, The Local Squeeze, released today by The Pew Charitable Trusts. The decrease in revenue, alongside increased demand, is forcing many cities, counties and school districts to eliminate jobs; increase class sizes and shorten school days; reduce services such as public safety, library hours and trash collection; and privatize functions such as park maintenance and 911 dispatching, among other measures. “In many places, the impact of revenue shortfalls and increased need for services has been wide and deep,” said Robert Zahradnik, director of research for Pew’s new American Cities Project. “Going forward, local policy makers will have more tough choices to make. It is unclear whether these changes will be temporary or permanent, but the impacts of the squeeze will be felt for years to come. MarketWatch

Troubled times at the State Fair
On a rainy Monday afternoon in mid-May,  Jeff Carpenter gazed out on the grounds of the State Fair of Virginia, of which he was the sole remaining caretaker. After a life of more than 150 years, the fair had closed. The grounds were about to be auctioned off to the highest bidder. Carpenter was philosophical — and historical. “The Virginia state fair went quiet during the Civil War and during World War II,” he said, “but it always came back.” Carpenter is hopeful that even under new ownership, the fair will come back this time too. But this time is different. The non-profit agency running the fair defaulted on more than $70 million in loans and was forced into Chapter 7 liquidation after the fair was moved from its original Richmond location to The Meadow Event Park grounds just outside Fredericksburg in 2009.  The Meadow Event Park and the State Fair of Virginia, Inc., the non-profit organization responsible for bringing together the annual livestock, entertainment and fried food festival for the state, were sold at auction last week to the for-profit, Tennessee-based Universal Fairs, LLC, for $5.67 million. The sale is the latest example of a cash-strapped state fair turning to a for-profit company in an effort to continue a remnant of the fair tradition, but also to make money. Stateline

Is your state asking Congress for toll roads to close budget gaps?
States are finding it next to impossible to come up with the funding they need for these expenses and are turning to Congress to request permission for toll roads to help raise money they need. Automotive Discovery

WA: Washington state Supreme Court upholds liquor privatization in 5-4 decision
The Washington Supreme Court on Thursday upheld a voter-approved initiative privatizing liquor sales, one day before the measure takes effect. Initiative 1183 allows stores larger than 10000 square feet and some smaller stores to begin selling liquor Friday. Voters approved the plan last fall, and the state already auctioned off the rights to sell liquor at state stores…However, initiative opponents filed suit, arguing that the measure violates state rules requiring initiatives to address only one subject. The measure included a provision for public safety funding.  A judge rejected that claim, but opponents appealed to the Supreme Court. In a 5-4 decision, the court ruled that the opponents had not overcome the presumption that the initiative meets single-subject rules. Washington Post

IN: Gov Daniels fights to keep state’s Toll Road perk
Gov. Mitch Daniels wants Congress to say no to a proposal that would punish states such as Indiana that operate public-private highways…The provision would include the 75-year lease of the Indiana Toll Road to a foreign consortium, plus plans to replace bridges in East Chicago and over the Ohio River with toll spans that will be at least partly privatized…Daniels touted the Toll Road lease and the $4 billion it produced for the Indiana highway construction program known as Major Moves. “We are in a record building boom. … You can’t go 10 miles in our state right now without running into a road grader or a major project.” Fort Wayne Journal Gazette

WI: Coalition calls for suspension of state efforts to privatize W-2
Dane County Executive Joe Parisi is leading a statewide coalition calling for the immediate suspension of state plans to fully privatize the Wisconsin Works (W-2) program. W-2 is a program that helps people get back on their feet after times of trouble, such as losing a job. It connects low-income families with employment opportunities and emergency assistance…Recently the Wisconsin Department of Children and Families started taking bids, from both the private and public sectors to start running it the program. Parisi said cuts proposed by the Department of Children and Families would come at the worst possible time. He also questioned the effectiveness of a private model to run W-2. “If the state wants to say this works better in privatization, let’s compare some of the results, say from Dane County and other counties who do it themselves with some counties where it’s been privatized, and I think you could talk to some of the people in these counties where it’s been privatized and you’ll find that the results have not been great,” Parisi said. the state as to why it wants to privatize the program. “It’s also incumbent on the state, if they’re going to come in and wipe out a program in a couple months without any legislative action, just to quietly issue an RFP, it’s incumbent on the state to tell us why,” Parisi said. Channel 3000

FL: Miami-Dade questions $1.7M in stadium expenses
Miami-Dade County officials are questioning $1.7 million in expenses that baseball’s Miami Marlins say should be credited to the team for its share of the construction costs of a new ballpark, the Miami Herald reports. Under an agreement between the team and the county, the Marlins could spend up to $89.5 million on “soft costs” that would count toward their $120 million portion of the project. They wound up spending $38.5 million in soft costs, but the county says the Marlins shouldn’t have counted expenses like its cable bill, wine purchased for a party, and pillow cases used in an office as part of those soft costs. “If I were the mayor, I’d certainly hire an outside group, forensic accountants, to look into this,” said Norman Braman, the auto magnate who aggressively fought construction of the stadium. An arbiter will ultimately rule on whether those items should count. The disputed expenses are the latest controversy for the $634 million stadium and parking garage. More than 80 percent of the project’s total costs was funded by public money, according to the Miami Herald, and the team gets to keep almost all the revenue the project generates.  Governing