2002 NLPES Fall Training conference Notes
Emerging Issues Panel
Moderator: Max Arinder
Panelists: Gary VanLandingham - Florida, Craig Kinton - Texas,
Sherry Hayashi - Hawaii, and Brian Armentrout - West Virginia
Max Arinder - Max started the discussion by explaining that the
session would focus on two issues: Evolving policy concerns facing states
and important changes in the policy-making environment. He also presented
the top issues for States as identified by the NCSL:
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Balancing state budgets
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Prescription drugs
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Privacy
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Welfare reform
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Election reform
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Education reform
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Corporate ethics
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Child Abuse
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Homeland security
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Driver's Licenses
A second tier of issues also identified by the NCSL include civic engagement,
long-term care, managing growth, and the nursing shortage.
Max also shared some of the issues facing Mississippi, which include:
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A critical shortage of prison beds in the State
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A big debate about the future of privatization
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Drug costs that totaled $140 billion in 2001 and is expected to rise to
$160 billion in
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2002 (Figures could be national)
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Medicaid costs - State may start using tobacco trust fund
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Using incentive packages to lure industrial investment to the State
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The appropriate use of eminent domain
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Tort reform.
Brian Armentrout - Brian indicated that West Virginia currently
faces 3 issues: a tighter state budget, medical liability, and homeland
security.
Regarding the state budget, West Virginia has over a $14 million surplus
in fiscal year 2002, imposed a 3 percent cut for fiscal year 2003, and
anticipates a $200 million shortfall for fiscal year 2004. Some new concerns
for the budget include a Medicaid funding deficit as a result of rising
drug costs, a public employee insurance deficit that also results from
rising drug costs, and increased reliance on lottery revenues. Older concerns
that continue to be a problem include funding deficits for the Board of
Risk and Insurance Management, Workmen's Comp., and the State Pension Fund.
Medical Liability Insurance is a concern in the state because the number
of lawsuits and awards are high. Carriers are also canceling policies.
This has had a detrimental effect on healthcare in the State, leading to
the early retirement of physicians, physicians leaving the State, difficulty
in recruiting new physicians, limited medical specialists, and the loss
of one of the State's two trauma centers. Potential solutions to this problem
include tort reform, removing bad doctors, and regulating insurance companies.
The West Virginia Legislature has also taken action by creating a State
Insurance Plan for doctors who cannot obtain medical liability insurance
elsewhere, but this is only a temporary fix.
Brian also briefly touched on the State's efforts to improve security
at the State Capitol. These efforts include increased camera surveillance,
electronic locks, employee IDs and upgrades to the Capitol police. The
state has also enhanced its disaster and National Guard training.
Gary VanLandingham - Gary went over the list of emerging issues
offered by the NCSL as they pertained to Florida. Some of the issues that
Gary highlighted include:
Budget and Taxes - The budget is always a big issue in Florida. The
Florida House has proposed a tax reduction along with closing some tax
exemptions. This is on the Fall ballot. Florida is in good shape budget
wise as they have done across the board cuts. Potential impacts to the
budget include free universal pre-school and reducing class size proposals.
Cost estimate on reducing class sizes is $5 - $20 billion.
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Homeland Security - Port security is a big issue in the State.
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Prescription Drugs - The State adopted a drug formulary and has saved $180
million.
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Welfare Reform - The welfare rolls are substantially down in the State.
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Election Reform - Florida has invested a lot of money, but this is also
a county function.
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Education Reform - Florida has done much in this area over the past few
years.
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Child Abuse - This is always a hot topic and Florida is investigating everything.
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Driver's License - Florida plans to roll out a smart card in the next few
years.
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Managing Growth - There is a continuous battle between developers and environmentalists
in the State.
Sherry Hayashi - The three issues facing Hawaii are balancing the
budget, restoring trust in government, and the "No Child Left Behind" policy
initiative.
Hawaii experienced an economic rebound in early 2001 after a decade
of recession. The events of September 11 changed this and tourism swiftly
declined. The State is facing a $315 million shortfall. The Legislature
is pursuing a 2 percent across the board reduction, transferring $29 million
from the State's Hurricane Fund and $150 million from non-general funds,
increasing taxes, and tapping into the State's rainy-day fund for $10 million
to address the shortfall. The State is also exploring establishing a lottery
and eliminating some State agencies.
Hawaii is also attempting to restore trust in government. Sherry presented
a list of elected officials convicted of fraud, theft, and/or tax evasion.
The Legislature passed a bill to reform campaign spending, but the Governor
vetoed the bill because it exempted the Legislature.
On the "No Child Left Behind" policy initiative, Hawaii has 85 schools
with 50,000 students that need improvements. Public schools are already
crowded and there is a teacher shortage.
Craig Kinton - Texas also has budget concerns. Texas is facing
a $5-10 billion shortfall as a result of the slow economy, population increase
of 25 percent over the past 10 years, and rising healthcare and prescription
drug costs. The Texas State Auditor's Office is reviewing fund balances
and the allocations or commitments that have been made with those balances
and reviewing unusual spending patterns.
Another emerging issue for Texas is funding public education. A proposal
under consideration is wealthy districts sending money to poorer districts
in the State. Funding Higher Education is also a hot issue in the State.
Funding healthcare services is another emerging issue. Healthcare spending
has increased significantly and is taking a bigger chunk of the budget.
Other issues of concern for Texas include public safety and homeland
security, the cost and availability of homeowner's insurance due to the
high number of "mold" claims, and water.
 2002
Fall Training Conference Notes
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