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August 12, 2003
GovPro E-Newsletter
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Tuesday, August 12, 2003

Volume 2, Issue 31

Welcome to the GovPro Newsletter brought to you by the Penton Government Media Group. Look forward to news, resources, product and supplier information, and links relating to the government market.

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Sponsored by Crown Equipment

CONTENTS

States Hooked on Tobacco Money

Hybrid Truck Takes Cross-Country Tour

Digital Recorders Capture Criminals

News of the Weird

FEATURE

State Taxes Surge Mid-Year

State tax increases surged by 48 percent in the first-half of 2003, increasing from $8.8 billion in 2002 to a staggering $13.1 billion total in 2003, according to the Mid-Year Review of State Budget Policy by the American Legislative Exchange Council (ALEC).

"Tax increases are the wrong answer to state budget woes," said Chris Atkins, ALEC's Director of Tax and Fiscal Policy. "It's instructive to remember the recent past--states embracing major tax hikes to close budget gaps during the early 1990s subsequently recovered more slowly from economic recession. Not only did the tax increases retard job, income, and economic growth but also perpetuated state budget deficits longer than states that did not raise taxes."

According to the report, the current state budget climate reveals four trends.

First, tax increases are themselves increasing. In 2002, 21 states raised taxes by a total of $8.8 billion. In 2003, 20 states have thus far raised taxes by $13.1 billion--an increase of 48 percent. Half the states that raised taxes in 2003 also raised taxes in 2002: Connecticut, Illinois, Maryland, Nebraska, New Jersey, New York, North Carolina, Ohio and Utah.

The second disturbing trend is the reliance on borrowing to balance state budgets. Total state borrowing in FY 2002, including general obligation, special revenue, and tobacco settlement bonding, was $30.2 billion. In FY 2003, this number jumped to almost $68 billion, an increase of 125 percent.

Third, spending is increasing, despite tax hikes and borrowing. While states cut over $8 billion from the FY 2003 budgets this year, total spending will increase by over $11 billion. This means a net spending increase of $3 billion in the 2003 fiscal year, and puts the $12 billion tax increases in better context.

Fourth, cigarette taxes were utilized less frequently in 2003. Twenty states raised cigarette taxes in 2002, but only 12 did so in 2003. States continued to use tobacco settlement funds, however, to shore up state budget deficits. Several state attorneys general even intervened--on the tobacco industry's behalf--in an Illinois case that threatened to make several tobacco companies insolvent. Could it be any clearer that the states are hooked on tobacco money?

The Mid-Year Review also says that "in the 2002 sessions, many lawmakers gave approval to short term solutions--like tobacco settlement securitization, general borrowing, and accounting tricks--designed only to erase budget deficits in the short term."

"The states were essentially betting that an economic recovery would yield higher tax revenues in the near future, allowing them to maintain current levels of spending," said Atkins. "The economy betrayed state lawmakers, however, and the short-term solutions adopted in 2002 proved even more disastrous to state budgets in 2003. Unfortunately, lawmakers took the same wager in 2003, voting for even more taxes and borrowing."

The American Legislative Exchange Council (ALEC) is the nation's largest bipartisan, individual membership organization of state legislators with over 2,400 legislator members from all fifty states.

For a copy of the Mid-Year Review of State Budget Policy, or for more information, visit ALEC's Web site at http://www.ALEC.org or contact Bob Adams at 202-466-3800.

CROWN EQUIPMENT

Crown Equipment designs, manufactures, distributes, services, and supports material handling products that provide customers with superior value. Electric lift trucks range from hand pallet trucks to very narrow-aisle (VNA) turret trucks. http://www.crown.com/gsa1

NEWS

HYBRID VEHICLE DRIVES CROSS COUNTRY

The words clean, big, and new were on everyones lips on Friday, July 25, as a Class 7 truck with hybrid diesel-electric (HDE) system began a cross-country drive from Woburn, MA. The vehicle will visit 27 locations in 15 states during its five-week, 6,000-mile odyssey.

The HDE system is designed for trucks with a gross vehicle weight rating of up to 50,000 pounds. This hybrid diesel-electric system was developed to enable public and private entities to comply with the strict U.S. EPA mandates for truck and bus emissions scheduled for implementation in 2007.

The technology, developed by Solectria, already is used in more than 4,000 electric and hybrid-electric vehicles throughout the world. The technology shares an important operational advantage found in conventional diesel vehicles--it uses readily available fuel, and more importantly, 35% less of it. High-power ultra-capacitors are charged and discharged for low speed and peak energy demands, while the diesel engine handles the average demands. Thats right, batteries not included--ever! There is no need to take the truck off the road in search of an electrical outlet. For more information, visit http://www.solectria.com

Police Getting the Word Out

West Valley City, UT, police expect to reduce the time needed to make police reports by 50 percent by giving all patrol officers high-end digital recorders. The officers will be able to perform more patrols with the time saved from not having to type or travel to a police station, according to Assistant Chief Craig Gibson. The audio reports are transcribed in order of importance after they are downloaded into a shared network. All officers can then access the reports via their laptops.

The recorders enable officers to build separate files for each case, while the recordings are paired up with typewritten reports. Gibson says giving the proper narrative portion of the report without too much duplication is the hardest part for officers. He notes that the records department's 21-member staff is being trained to boost report uniformity by sifting through jargon.

The department's total investment for the digital recorders, which cost $230 per unit, is over $18,000. West Valley City police will evaluate the new recorders' effectiveness by studying how quickly officers respond to incidents and how much time they spend on patrol. Source: The National Law Enforcement and Corrections Technology Center (NLECTC).

Carnegie Mellon University e-Procurement Survey Online

Since the earlier announcements in Government Procurement Journal and the GovPro Newsletter, quite a few organizations in the Government sector have already participated in the survey. This is all the more reason why more organizations should participate and share individual experiences.

The Institute for eCommerce at Carnegie Mellon University is conducting the study on e-procurement initiatives in government. The projects authors aim to improve the understanding of barriers and facilitators that affect government organizations ability to adopt and disseminate successful e-procurement applications.

To participate in the online survey, which takes less than 15 minutes to complete, visit: http://epro.gsia.cmu.edu/gov

NEWS OF THE WEIRD: Bizarre but true stories about real people. http://www.govpro.com/GPRONewsletter/Article/29217/

LINKS

ORIX Public Finance, a leading provider of innovative financing for state and local municipalities, offers flexible terms, expedient processing and time-tested expertise. Let an ORIX professional help you today. http://www.orixfin.com

Federal Signal will accelerate your response time with electronic and mechanical outdoor warning sirens, software, and the Informer tone-alert radio. http://www.federalwarningsystems.com

PPI Modular Structures Inc. is a construction company that provides modular and pre-manufactured buildings. Custom applications are our specialty! http://www.ppimod.com

OLYMPIA! The only name you need to know for your office machine requirements! Paper Shredders, Typewriters, Calculators, Paper Handling Equipment. http://www.olympia.to

As a global leader in office furniture, Haworth offers a comprehensive line of furniture and service solutions for any office. http://www.haworth.com

Dawn Enterprises, a long time GSA choice for ultra-secure trashcans, planters, benches and bollards manufactured in either concrete or stone, in the colors of your choice. http://www.trashcans.com

GEM is the zero-emission transportation solution for your fleet needs. This Low Speed Vehicle is ideal for those everyday short distance trips. http://www.gemcar.com/gsa

John Deere. Better machines, greater choices. Lower prices, fewer hassles. Our complete online catalog brings the John Deere showroom right to you. http://www.JohnDeere.com/GovSales

Newark InOne is the only electronics distributor to have a catalog-wide GSA Schedule (GS-06F-0044M) exclusively for the supply of over 150,000 electronic components and supplies. Visit http://www.teamgov.com or contact 1.800.TEAM.GOV (832.6468) for a FREE catalog or to place your next order.

SimplexGrinnell: Your OneStop* provider for integrated fire, security and communications. Serving you via the GSA Schedule. To learn more, visit: http://www.simplexgrinnell.com/gsa

Custom-designed Meyer snow plows fit exact vehicle frame and weight specifications for exceptional performance in all applications. Visit: http://www.meyerproducts.com

KI is an award-winning, international furniture producer. Products include office seating, stacking and guest chairs, tables and wall systems. http://www.KI.com

Polythane Systems and the affiliated companies sell spray polyurethane foam for roofing, walls and tanks and the coatings necessary to complete the system. http://www.polythane.com

Alamo Industrial is the world's largest manufacturer of tractor-mounted vegetation management equipment. Built Sharper to give you the edge you need! Visit http://www.alamo-industrial.com

Installed in over 100 military and government facilities around the world, Onity provides superior electronic locking systems, e-safes and energy management solutions. Visit http://www.onity.biz

Skatewave Modular Skatepark Systems is a division of Landscape Structures Inc. Skatewave was founded in March 2001 and since then has installed more than 350 parks across the United States, Canada and Southeast Asia. Visit http://www.skatewave.com

Electric Eel Mfg. produces a full range of sewer cleaning equipment for the municipal market. Pipeline inspection and location equipment also available. Visit online at http://www.electriceel.com

Rubbermaid Commercial Products: Material handling, transport, sanitary maintenance, safety, waste systems, food service products, and healthcare products. Visit http://www.specialmade.com

Government fleets - comply with EPAct and Executive Order 13149, and meet petroleum reduction goals with help from FuelMaker and NGVs. http://www.fuelmaker.com

Toro. Power, Performance and Productivity. Discover solutions for your turf maintenance challenges at http://www.toro.com/grounds. Register for government updates at http://www.toro.com/grounds/gov/govform2.html

Utility Metals manufactures outdoor lighting products. Lighting poles and brackets are available for immediate shipment. Custom fabrication provides unique solutions for one-of-a-kind applications. Call 800-627-8276 for free catalog or visit: http://www.utilitymetals.com

Safety Storage, the first choice for custom and pre-fabricated hazardous storage buildings. http://www.safetystorage.com

C & H Distributors provide a fast, efficient way to purchase shelving, cabinets, packaging and shipping products, or office furniture. Visit: http://www.chdist.com

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