Sometimes states operate against stereotype, and this legislative session is no exception. In contrast to a forward-thinking bill put forward in West Virginia earlier this year, which would have explicitly granted authority over high speed broadband Internet services, it seems the typically consumer-friendly and technologically savvy California legislature is considering moving in the opposite direction, taking up a policy that was endorsed by the ultra-right wing American Legislative Exchange Council (ALEC) when it was under consideration in New York State.
Facing another round of deep cuts to health care and education as a result of ongoing revenue shortages caused by the slow economic recovery, and on the heels of a new national survey reporting that most state budgets have now seen spending fall below pre-recession levels, some states are signaling that they will be pursuing more balanced approaches to their budget troubles in 2012 than they have in previous years.
States looking to avoid making devastating budget cuts following the Great Recession have turned in recent years to closing tax loopholes, including requiring online retailers with a physical presence in-state to collect state sales taxes. Unsurprisingly, states who have pursued this approach have been fought every step of the way by huge corporations, specifically the online retail giant Amazon. This week, the battle came to a head in California, where lawmakers — who had earlier this year passed a measure requiring large online retailers to collect sales taxes — compromised in the face of a multimillion dollar effort by Amazon to take the issue to the voters in a ballot referendum by agreeing to delay the implementation of the law by one year.
During 2011 legislative sessions, most states chose to close severe budget gaps without revenue increases, instead opting for further damaging and deep cuts to critical education, health care, and social service programs. However, now that most sessions have ended, lawmakers, business leaders, and community groups in a number of states appear to be increasingly interested in taking revenue increases to voters as an alternative.