Jonathan Kantrowitz

IMAGE: Carbon dioxide emitted from the nation’s coal-fired power plants could be phased out in 20 years using existing or rapidly emerging technology.

The United States could completely stop emissions of carbon dioxide from coal-fired electric power plants, a crucial step for controlling global warming, within 20 years by using technology that already exists or could be commercially available within a decade. That’s the conclusion of an article published online today, along with a news article on the topic, in the American Chemical Society’s semi-monthly journal Environmental Science & Technology (ES&T).

Pushker Kharecha and colleagues say that the global climate change problem becomes manageable only if society deals quickly with emissions of carbon dioxide from burning coal in electric power plants. “The only practical way to preserve a planet resembling that of the Holocene (today’s world) with reasonably stable shorelines and preservation of species, is to rapidly phase out coal emissions and prohibit emissions from unconventional fossil fuels such as oil shale and tar sands,” they state.

The authors outline strategies to make that phase-out possible. They include elimination of subsidies for fossil fuels; putting rising prices on carbon emissions; major improvements in electricity transmission and the energy efficiency of homes, commercial buildings, and appliances; replacing coal power with biomass, geothermal, wind, solar, and third-generation nuclear power; and after successful demonstration at commercial scales, deployment of advanced (fourth-generation) nuclear power plants; and carbon capture and storage at remaining coal plants

The Revenue Accountability Commission bill recently approved by the House and awaiting a Senate vote (H.B. 5534), would require a comprehensive review of Connecticut’s revenue system.

For background on the Revenue Accountability Commission bill, see the following from CT Voices for Children:

Fact sheet

Testimony

and from the Connecticut Association of NonProfits:

Testimony

But:
The CBIA doesn’t want any such review!

Also awaiting floor votes in the House and Senate is the combined reporting bill (SB 485), which would close corporate tax loopholes in the state, raise $88 million in needed revenue, and level the playing field for local and multi-state businesses.

For background on combined reporting, see CT Voices’ fact sheet, research report, and testimony on this issue:
http://ctkidslink.org/pub_detail_504.html
http://ctkidslink.org/pub_detail_503.html
http://ctkidslink.org/testimony/032210_finance_sb485taxfairness.pdf

Follow policy and legislative updates from CT Voices for Children through their new Twitter and Facebook pages!

CT Voices for Children has released a new report on the state’s use of business tax credits on the use of business tax credits in CT.

Business tax credits are a form of government spending: they often result in a net loss of Connecticut state revenue and, since the state budget must be balanced, must be offset by cutting funding for services or by raising taxes on other taxpayers. Connecticut has spent hundreds of millions of dollars in recent years awarding tax credits to a small fraction of the corporations that do business in the state. As Connecticut confronts its largest state budget deficit in history in 2012, all forms of spending, including economic development efforts using tax credits, must be reviewed critically and comprehensively.

This report on the state’s growing use of tax credits finds:

*Connecticut’s inflation-adjusted revenue loss from corporation business tax credits has increased by an estimated 60-fold from 1987 to 2009.

*For every $100 in corporation business taxes that were projected for Fiscal Year 2009, there were an estimated $54 that were not collected because of tax credits.

*No comprehensive economic development plan seems to guide the adoption of new tax credits.

*Many existing credits are ineffective, and some may be damaging to Connecticut’s economy.

*Tax credits favor certain industries and companies over others. In 2003, thirteen corporations claimed tax credits equal to about one-quarter the total corporate tax revenue lost through tax credits.

*Only one-third of Connecticut’s business tax credits put a ceiling on the total amount of credits that can be claimed in a given year. As a result, the state’s total revenue loss through tax credits is open-ended.

*Twelve tax credits are available to corporations even if they have no Connecticut business tax liability to offset. These credits are either transferable to other businesses with tax liability or can be sold back to the state.

*There is no on-going process for the review of business tax credits or the repeal of those credits with inadequate economic return.

*Tax credits reduce the transparency and accountability of the state’s economic development efforts.

Some States Considering Scaling Back Tax Credits for Low-Income Working Families

Thirteen states taxed working-poor families deeper into poverty last year, according to a new report from the Center on Budget and Policy Priorities. In some of those states, poor families faced several hundred dollars in state income taxes — a significant amount for a family struggling to make ends meet, the report said.

Moreover, while some states implemented tax reductions for low-income working families in 2009 (usually enacted before the recession), progress has since ground to a halt because of state budget problems. In fact, some states have enacted or are considering reductions in tax credits for low-income working families, according to a companion report.

“States’ budget challenges are real, but so are the challenges that hard-working families are facing in today’s tough economy,” said Nicholas Johnson, director of the Center’s State Fiscal Project. “States have better ways to balance their budgets than to make their tax codes tougher on low-income workers.”

Some States Tax Families Well Below Poverty Line

The report found that in tax year 2009:

*In 13 of the 42 states that levy income taxes, two-parent families of four with incomes below the federal poverty line are liable for income tax;

*In 11 states, poor single-parent families of three pay income tax;

*And 25 states impose income tax on families of four just above the poverty line.

These findings are based on the poverty line for 2009: $21,947 for a family of four and $17,102 for a family of three. While families below the poverty line don’t pay state income tax in most states, they do pay other taxes such as sales, gas, excise, and property taxes.

Some states levy income tax on working families in severe poverty. For example, Alabama, Georgia, Illinois, Montana, and Ohio tax two-parent families of four earning less than three-quarters of the poverty line ($16,460).

In some states, poor families face several hundred dollars in income tax. In 2009, for example, a two-parent family of four with income at the poverty line owed $468 in Alabama, $266 in Hawaii, and $225 in Montana, according to the report.

Recession Threatens Recent Progress

The number of states levying income tax on working-poor families of four declined from 16 in 2008 to 13 in 2009; the taxes levied by those remaining 13 states also declined. But in the face of state budget problems, this progress has ground to a halt and some states have recently taken steps to cut back their credits, according to the companion report. For example:

*Virginia enacted a cut to its EITC that would raise taxes by $6 million on an estimated 114,000 low-income working families. (This cut might be reversed before it takes effect.)

*Minnesota cut back a renters’ credit affecting 300,000 low- and moderate-income households and eliminated a gas tax credit.

*Georgia is considering eliminating $22 million in wage support for 1 million workers earning less than $20,000 per year.

*Similar measures have been proposed in New Jersey, the District of Columbia, and Montgomery County, Maryland.

Raising taxes on low-income working families is not the best option for raising state revenue, the report explains. Some states are considering such measures alongside proposals to cut taxes for wealthy individuals and corporations, which likely would neither strengthen the economy nor create jobs. States would be better off maintaining their low-income tax credits — which families spend quickly and locally, giving the economy a needed boost — while canceling other tax cuts and raising new revenue from higher-income families and profitable corporations.

View the full reports:

Some States Scaling Back Tax Credits for Low-Income Families
Measures Would Increase Poverty, Slow Job Growth

The Impact of State Income Taxes on Low-Income Families in 2009
With State-by-State Data

More may be needed for Race to the Top victory

ConnCAN CEO Alex Johnston released the following statement in response to the Race to the Top bill SB 438 released today by the Connecticut General Assembly Education Committee co-chairs:

This bill makes real progress for Connecticut public schools. For the first time, every district in the state is required to evaluate teachers based on their students’ achievement. The bill supports districts by creating a data system that links students to their teachers and teachers to their training programs. It creates alternative pathways for our most talented classroom teachers to become principals. It removes caps on the number of seats allowed in Connecticut public charter schools. ConnCAN puts its full weight behind the passage of this bill.

Unfortunately, because Connecticut started so far behind in the Race to the Top, this progress may not be enough to win in Round 2 of the Race and bring home the $175 million sorely needed for our schools. Three key reforms proposed by ConnCAN would have made Connecticut more competitive in the Race to the Top but were not included in this final legislation. Student achievement is not required to be the primary factor in teacher evaluations. There are no consequences attached to teachers whose students don’t achieve. We did not address the unsustainable and unequal funding system for our public charter schools.

Even CBIA is behind education reform:

Our state needs to achieve education reform now, not only to score high enough to win the much-needed RTTP funds but also to ensure that Connecticut has a skilled workforce for the 21st century.
So, where did we fall short? Comments by RTTP officials on aspects of Connecticut’s application provide some insights:

Data systems: “[I]n this plan, the data system area seems under-supported, … There is a lot riding on building robust data systems that can measure student achievement and tie to teacher and principal evaluations, so this is a little concerning. In terms of funding, the CSDE has a history of managing 50 different federal grants and will use the same processes and standards to manage RTTT funds. They have only just begun to think about how other grants can supplement RTTT, but they haven’t shown any possibilities in this proposal.”

Achievement gap: “There is no real evidence of a narrowing of the achievement gap.”

Higher standards: “In 2008, the State Board of Education [SDE] approved the Connecticut Plan for Secondary School Reform, focusing on four key themes: student engagement, 21st century skills, rigorous expectations (higher graduation requirements) and accountability (standards-based assessments, formative and end of course exams.) Because the state was already preparing to implement work toward these themes and because these themes are closely linked to the Common Core State Standards, the state should be able to transition well to implementing the enhanced standards.”

“CT does not provide a high quality STEM [science, technology, engineering and math courses] proposal. Most of the activities are limited and not well integrated throughout the application.”

“Attention to advanced placement or early college STEM initiatives were not identified.”

Fixing the problems

Fortunately, all of these shortcomings can be addressed in time to gain enough points to win the second round of RTTP funding. The Education Committee approved several bills to make that potential a reality; now it is up to the Appropriations Committee and the legislature as a whole to pass them into law.
For example, achieving the goals of the following three proposals could net Connecticut an additional 97 RTTP points:

SB-438 increases dollars per pupil in open choice enrollment and removes the cap on high-achieving charter schools.

SB-440 expands the statewide public school information system to collect and analyze measures of student growth for purposes of monitoring teacher effectiveness.

HB-5421 establishes an alternate route to certification program for administrators and superintendents.

The U.S. House is poised to vote today on H.R. 2499, the Puerto Rico Democracy Act, a bill that would help bring America’s promise of self-determination to the U.S. citizens of Puerto Rico for the first time in 112 years, said Gov. Luis Fortuno (R-Puerto Rico).

“For the 112 years since Puerto Rico joined the United States as a territory, the question of our ultimate political status with our country has been a lingering question,” said Gov. Fortuno. “The Puerto Rico Democracy Act would ask the people of Puerto Rico what they want the territory’s political status to be through a fair, neutral and democratic process sponsored by Congress.”

The question of Puerto Rico’s ultimate status remains the U.S. territory’s central, unresolved issue, and has consistently been a complicating factor in determining many federal policies for the island, Gov. Fortuno said.

As an unincorporated territory, the four million U.S. citizens of Puerto Rico cannot vote for President, have no representation in the U.S. Senate and are represented in the U.S. House by one non-voting Resident Commissioner, he said.

Under H.R. 2499, the territorial government could conduct plebiscites asking voters if they wish to maintain or change the island’s current political status. If a majority of voters want a change, a plebiscite could be held to ask their preference among the other three constitutionally valid options: independence, national sovereignty in association with the United States, and statehood.

H.R. 2499 is co-sponsored by a bipartisan group of 180 members of Congress. The bill is cost-neutral and non-binding, meaning a result in favor of any specific status change would be subject to further congressional consideration.

“A core premise of the bill is that Congress will be better able to decide what action, if any, is appropriate on the issue once it knows if Puerto Ricans want the current status, or one of the possible alternatives. I am hopeful that the U.S. House will approve this legislation and help bring true self-determination to the U.S. citizens of Puerto Rico.”

Puerto Rico has been a U.S. territory for 112 years, and its residents have been U.S. citizens since 1917. With nearly 4 million residents, in population Puerto Rico is larger than Oregon, and slightly smaller than Kentucky.

In response to Governor Rell’s proposed plan to balance the state budget by borrowing about $1 billion for seven years and raiding two funds designated to encourage energy conservation and renewable energy projects, Ned Lamont released the following statement today:

“For the second year in a row, Governor Rell is attempting to close a budget gap with gimmicks that put our state further into debt and threaten our long-term economic prosperity. And while our current governor is refusing to lead, the leading Republican candidate to replace her is out there saying the governor isn’t responsible for our state’s budget mess.

“I’m running because we can’t afford another governor who abdicates leadership every time the going gets tough. I will make the difficult decisions necessary to get us out of this crisis. Give me the job, hold me accountable, and together we can get Connecticut moving forward again.”

The comments from the leading Republican candidate, Tom Foley, came yesterday at a bipartisan gubernatorial forum in Bridgeport. Lamont challenged Foley’s statement that the Democratic majority was solely responsible for the budget crisis, suggesting that if Foley believed all the power resided in the legislature, maybe he should run for the State House of Representatives.

Secretary of the State Susan Bysiewicz today praised the Connecticut House of Representatives for unanimously passing Substitute House Bill # 5441.

The bill, which passed by a vote of 143-0 on April 28th, will ensure voter privacy at the polls by requiring that ballot clerks either offer each voter a privacy sleeve for their individual ballot or ensure that a sleeve is available in each voting booth.

Among the many other technical changes included in this legislation, the bill will eliminate a requirement that Registrars of Voters automatically print numerous copies of voter lists prior to an election. Upon final passage of the bill, voter lists would be printed only upon request which will save towns both money and paper.

The bill also standardizes election procedures to eliminate challenge ballots and to provide provisional ballots to voters every year rather than just in federal elections. Currently, voters cast provisional ballots in federal years and challenge ballots in state/municipal years if there is a voter registration discrepancy at the polls. This can often be a confusing procedure for both election officials and the voter.

“I commend House lawmakers for passing this legislation that will ensure voter privacy at the polls and will also help towns save time and money when preparing for an election,” said Secretary Bysiewicz, Connecticut’s chief Elections Official. “As towns and cities struggle to save every dollar possible during these challenging economic times, we must look at all opportunities to cut costs yet still maintain voter rights and integrity at the polls. With less than a week before the close of the legislative session, I encourage the State Senate to pass this critical legislation that will modernize our election statutes, help our towns and cities, and ensure voter privacy during all elections.”