In the September 26, 2008 CSA Update:
Registration is open for the Arizona Association of Counties' Annual Conference, which will take place December 2 - 5 in Glendale, Arizona. Visit their website for additional information.
The majority of the 315 new laws enacted during the 2008 legislative session become effective today, quietly changing many operations throughout the state. Approximately 115 of those laws impact county governments; click here for a complete summary.
Governor, Legislators to Meet on Budget...Eventually
Following the
news that FY09 state revenues are already $90 million below forecasts, some legislative leaders called on the Governor to begin meetings that will set the framework for dealing with the ongoing deficit. In a
letter dated September 23, House Speaker Jim Weiers requested a discussion that would lead to action from both Appropriations Committees once an agreement had been reached on how to proceed.
Governor Napolitano agreed that a meeting should take place but argued there was little value in meeting until after the election, when additional revenue data would be available. She
outlined the steps her office and state agencies have already taken to address the shortfall, and invited legislative leadership to a meeting on November 6.
Speaker Weiers continues to push for a meeting next week, and
announced his intention to hold a presentation at the House next week on the economic forecast. The meeting will feature presentations from Elliott Pollack (
click here for a summary of the forecast Pollack gave to county supervisors last week).
Multi-State Coalition Announces Plan for Greenhouse Gas Reduction
This week the Western Climate Initiative (WCI) Partners, representing seven U.S. states and four Canadian provinces, announced their recommendations for a regional market-based cap-and-trade system to reduce greenhouse gases.
The goal of the initiative is to reduce greenhouse gases 15 percent below 2005 levels by 2020, and it aims to achieve that goal through an ambitious cap-and-trade system that will eventually regulate everything from energy producers to personal vehicles. Each state and province will have to accept the terms of the system and work out implementation details individually, but the overall plan begins with mandatory greenhouse gas reporting in 2011 and then moves to regulate utilities and other large polluters in 2012 before adding vehicle emission standards in 2015.
Large polluters, like electric generation facilities, would have a limit placed on their emissions, and could exceed the limit by purchasing allowances either from the government or from other regulated entities that have not reached their emissions limit. The world's largest cap-and-trade system is at work in the European Union under the Kyoto Protocol, while Australia and Japan are also considering national systems. The U.S. Environmental Protection Agency currently operates a cap-and-trade system aimed at reducing sulfur dioxide and acid rain.
The full recommendations, as well as supporting materials, are available on the WCI website.
Problematic IRS Proposal May Be on Hold
Officials in Arizona breathed a little easier this week when they received news that a proposed IRS rule change may be pushed aside for now. The proposal, which has been the focus of discussions for some time, would utilize a defined age of retirement. It would place many defined benefit plans that use a "years + service" approach out of compliance with federal regulations.
The potential impact to counties is hard to ascertain, in part because the proposed rule is poorly drafted and ambiguous. Further exacerbating the issue is the fact that since many defined benefit plans are constitutionally protected, it is unclear what action these plans could take to remain in compliance.
NACO, as part of a larger coalition, communicated counties' multiple concerns to the IRS about the rule and the implementation date. Senior Treasury officials have indicated that the IRS intends to postpone the implementation of the proposal (previously scheduled to become effective January 1, 2009), though they have not officially suspended the process.
The Arizona State Retirement System is aware of the proposed rule, but does not yet plan to change their procedures.
Read All About It: CSA Online News Updates
For those who want to stay informed but do not have time to read multiple newspapers every day, the CSA website features a collection of county-related news articles from around the state.
