Northeastern trade directors meet to discuss regional trade development

The Eastern Trade Council held its first meetings in 1999, resulting in a joint report on regional exports that helped state leaders make the case for investment in export development.

Nearly a quarter of a century later, the board is still serving as a catalyst for northeastern state export leaders to collaborate, communicate with federal trade officials, and navigate an increasingly turbulent global marketplace.

The council, also called the ETC, is an affiliate organization of CSG East and is the only organization bringing trade directors together on a regional level.

 

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Recap: Improving Mental Health Services Delivery for Youth and Young Adults with Marginalized Racial Identities

By Dai Nguyen

The number of high school students experiencing feelings of sadness or hopelessness increased by 40% between 2009 and 2019, according to the Centers for Disease Control and Prevention. Hispanic students report these persistent feelings at the highest percentage; and more Black students attempted suicide than students of other races. Young adults ages 18-to-25 with serious mental illness increased from 3.8% to 9.7% (or by 3.3 million people) from 2008 to 2020, according to the 2020 National Survey on Drug Use and Health.

The COVID-19 pandemic accelerated this already dramatic trend as the number of youth and young adults with mental health conditions continued to increase substantially. Recent research covering 80,000 youth found that depressive and anxiety symptoms doubled during the pandemic, with 25% of youth experiencing depressive symptoms and 20% experiencing anxiety symptoms. Many youth and young adults have treatable mental health disorders, but they face a variety of obstacles to accessing the services and supports they need to improve their mental and emotional wellbeing. In fact, mental illness among youth and young adults can significantly influence employment outcomes.

To better understand the mental health challenges and consequent employment challenges faced by youth and young adults, the Center for Advancing Policy on Employment for Youth (CAPE-Youth) held a virtual roundtable on Improving Mental Health Service Delivery for Youth and Youth Adults with Marginalized Racial Identities with the White House Office of Public Engagement on Sept. 27, 2022. The roundtable examined state opportunities to improve mental health service delivery, including supporting better educational and employment outcomes. 

Participants in the roundtable included youth and young adults with lived experience, policymakers, practitioners and community leaders in mental and public health, education and workforce development.

Below are key themes from a few of the guest speakers:

  • Hannah Bristol, senior advisor of public engagement at the White House, emphasized that rates of suicide are highest among young people of color and indigenous and LGBTQIA+ youth. In response, the White House has prioritized the expansion of mental health services for diverse communities. In addition, the Biden administration has invested in workforce development, including the development of care and public health services.   
  • Justin Tapp, a student in the Master of Science in Social Administration program at Case Western Reserve University, discussed his experience when he seeks mental health services as a young adult who is Black, LGBTQ and living with a disability. He emphasized that financial constraints create a cost barrier for people who are members of marginalized communities, particularly those with disabilities. “Being able to afford $150 biweekly out-of-pocket for therapy because my therapist doesn’t like to bill through insurance, I had to sit back, budget out and see if I could actually afford it.”
  • State Senator Marie Pinkney of Delaware suggested policy solutions that can reduce barriers to access to mental health services for minority children and young adults. She noted that states and the federal government can invest in support systems for marginalized communities in schools and community centers where marginalized youth can be reached. She also emphasized the importance of providing extra funding for schools to hire more mental health providers and expanding Medicaid to increase access to mental health services.
  • Allissa Torres, the director of mental health equity at Mental Health America, discussed how the Western Medical Model prioritizes diagnoses, structured treatments and medical settings but does not fully address the needs of Black, Indigenous and People of Color communities compared with European American peers. She introduced self-directed care as an option to address the needs of people with marginalized racial identities. “Self-directed care is an innovative practice that emphasizes that people with mental health and substance use conditions should have decision-making authority over the services that they receive.”

This event will contribute to an upcoming policy brief on what states can do to support youth and young adults from marginalized populations in accessing the mental health services they need. The brief will examine practices to improve the education and employment success of youth and young adults who experience mental health barriers and belong to marginalized racial groups.  


For more information on advancing employment policies for youth with disabilities please visit www.capeyouth.org or contact [email protected].

Anchors Aweigh: Navigating the Policy of Ports

Legislators and staff from across the southeast gathered in Savannah, Georgia for Anchors Aweigh: Navigating the Policy of Ports. Sixteen officials from seven states – Alabama, Kentucky, Louisiana, Missouri, North Carolina, Oklahoma, and South Carolina – participated in the event. 

Over three days, participants heard from experts around the country on port operations, the Jones Act, workforce development, dredging, and the logistical difficulties of the modern supply chain. Participants also toured the third busiest port in the United States, the Port of Savannah. The Masterclass ended with a conversation on how states can make strategic infrastructure investments to facilitate long-term and sustainable growth at their ports. 

Experts from Texas A&M at Galveston, the Georgia Institute of Technology, College of Charleston, The World Association for Waterborne Transport Infrastructure, The American Association of Port Authorities, Savannah Technical College, Roger Williams University School of Law, and the Georgia Ports Authority contributed an in-depth learning environment for participants. 

The Masterclass was hosted by CSG South, with a panel moderated by Women In Government Executive Director Meredith Martino. By interacting with colleagues and experts from around the region, participants gained a deeper knowledge of how ports in their states can not only affect local communities but can also have a broader economic impact across the region.  

Participants included: 

Ms. Archana Cadge, Louisiana 

Representative Mack Cormier, Louisiana 

Ms. Endra Curry, South Carolina 

Representative Dean Davis, Oklahoma 

Mr. David Fleenor, Kentucky 

Senator James Higdon, Kentucky 

Senator Jason Howell, Kentucky 

Senator Patrick McMath, Louisiana 

Ms. Wanda Mehrhoff, Missouri 

Senator John Morris III, Louisiana 

Senator Cody Rogers, Oklahoma 

Representative Troy Romero, Louisiana 

Senator Vickie Sawyer, North Carolina 

Representative Margie Wilcox, Alabama 

Ms. Tanisha Woods, Oklahoma 

Representative Mark Wright, Louisiana 

Click here for photos

Click here for all presentations

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Increasing Early Childhood Education Training and Credentialing

Research shows that “investments in quality preschool programs bolster student success.” Preschool programs prepare students for success in elementary grades, specifically in areas such as literacy and math.

A 2020 policy brief, from the Education Commission of the States, further highlights and quantifies the impacts of quality preschool programs, including positive generational gains, enhanced social and emotional learning skills, and spillover effects to students who did not participate. A recent study also shows that additional training for educators and caregivers further strengthens the impact of those learning experiences.

State policymakers across the country are working to implement policies that expand and enhance training and credentialing opportunities for in-service and pre-service early childhood educators in a variety of ways. Below, we break down specific examples of how states are offering – and funding – these opportunities.

 

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Dark Store Theory: How States are Addressing Retail Property Taxes

By Ishara Nanayakkara

Retailers are trying to lower the amount of property taxes they owe through a legal strategy called “dark story theory.” Dark store theory is championed by many “big box” stores like Walmart and Meijer, asserting that for tax assessment open, bustling stores are equivalent to ones that failed and closed. This means that during the assessment process, a commercial property should be compared to a shuttered warehouse rather than an open store. Companies justify this approach by arguing that stores are designed in such a specialized way that the property will lose much of its value as soon as the company leaves. They argue that these properties should be appraised according to how the next occupant may use it. 

The result is drastically reduced commercial property taxes. These tax reductions directly impact state and local governments by reducing revenue. Local governments are most heavily affected as property taxes are one of the largest sources of revenue. This tax revenue is used to finance public services such as schools, roads, parks and police and fire departments. Schools will feel the greatest impact because of their heavy reliance on property tax revenue. 

State and local governments view dark store theory as harmful and are taking steps to counter it. Schools in Texas were at risk of losing close to $900 million in 2016. Texas policymakers are discussing a bill that values properties as fully functioning rather than obsolete. Gov. Tony Evers of Wisconsin hopes to “close the dark store loophole” with his budget proposal. Michigan state and local governments have lost roughly $100 million in revenue and been forced to cut funding for road maintenance and employee benefits. 

There also have been legal disputes in several states. A common dispute is whether properties should be valued at the market rent (the expected rental value compared with similar properties) or the contract rent (what the lessee actually pays) of a leased property. 

Court Decisions 

There is no consistent pattern in state supreme court decisions because decisions are based largely on individual state law. Most legislation passed or proposed involves creating guidelines or standards to assess property values. The examples below detail a few key court decisions made in the past 15 years. 

Indiana  

Meijer contested the valuation of a property in Wayne County, claiming it to be functionally obsolete. Meijer argued there was a limited number of buyers due to the size of the property and the availability of other big box properties. The Indiana Board of Tax Revenue rejected this argument. But the Indiana Tax Court reversed the board’s decision, citing insufficient market-based evidence to dispute Meijer’s appraisal.  

Meijer also disputed the government valuation of another property in Marion County (assessed at between $15 and $20 million) claiming the value was between $7 and $11 million. The assessments differed on the appropriate list of comparable properties. The Indiana Board of Tax Revenue approved Meijer’s proposed reductions in value based on a finding that Meijer provided stronger evidence. 

Kansas 

The state supreme court reviewed a court of appeals decision in Johnson County. The lower court had upheld the Kansas Board of Tax Appeals’ decision to lower the assessed value of certain Walmart and Sam’s Club stores. The supreme court overturned the original decision of the  Board of Tax Appeals. 

Michigan 

Menards was valued by the city of Escanaba at $8 million. The company claimed the store was worth approximately $3.3 million. Menards compared the property to eight others in the area. The city objected that these properties were not comparable. Menards also asserted the building was functionally obsolete.  

The Michigan Tax Tribunal found in favor of Menards. But the Michigan Court of Appeals reversed this judgement on a finding that the property was not functionally obsolete.  

Ohio 

Meijer contested an assessment of a new property, arguing its value was $9.5 million rather than $13 million. The Ohio Board of Tax Appeals found the original tax assessment appropriate and the state supreme court affirmed.  

The supreme court described the issue as a “fundamental dispute” over valuation methodologies. The assessors compared the disputed space to similar, new spaces. Meijer claimed the new store did not add much market value since it was not adaptable to the needs of potential buyers. For this reason, they used several abandoned Kmarts for comparison. The courts found the new store was in a “growing and flourishing” location and could not be accurately compared to vacant buildings.  

Wisconsin  

This dispute involves assessing stores built under contract by third-party developers and then leased by retail stores. Walgreens maintained two locations with 60-year leases which obligated the company—rather than the developer/owner—to pay property taxes. The city of Madison considered Walgreens’ lease payments as a form of income (i.e., “income approach”). Walgreens argued those payments significantly exceeded market value because the lease payments reflected additional expenses associated with the initial sale-lease transaction including construction, land purchase and financing.  

Lower courts decided in the city’s favor, but the Supreme Court of Wisconsin reversed. The court referred to Section 70.32(1) of the Wisconsin Statutes which stated properties should be assessed “in the manner specified in the Wisconsin property assessment manual.” This manual states the assessors should use market rent rather than contract rent. The justices concluded that the power to determine the appropriate methodology for valuing property for taxation purposes lies with the legislature. 

State Legislation Addressing Dark Store Theory 

The table below provides examples of legislation addressing dark store theory. Please note that this is not a comprehensive list. 

State Bill Status Summary 
Indiana Senate Bill 436 Passed 2015 Requires tax assessors to use the “cost approach” (what it would cost the property renter to build the store) in valuing big box stores over 50,000 square feet. 
Indiana House Bill 1290 Passed 2016 Reversed Senate Bill 436 
Michigan House Bill 5578 In Progress Proposes the establishment of detailed standards for the Michigan Tax Tribunal including restrictions on the use of vacant properties as comparables.  
New York Senate Bill S5715A Passed 2021 Established standards by which assessments should be made in order to assist court decision making. This legislation requires that comparable properties be similar in size, usage and location, among other characteristics.  
Texas House Bill 27 In Progress Proposes that for a property to be comparable for assessment, the property must have the “same highest and best use as the subject property.” This limits the use of vacant properties as comparables as these stores are not at their full potential. 
Wisconsin   s. 70.32(3)  Property must be valued using the actual or best information that the assessor can obtain at full value which could ordinarily be obtained at private sale.  

See Also: Shedding Light on Dark Stores 

The Future State: How Policymakers Can Understand and Incubate Cybersecurity, Technology, and Innovation in the South

Southern state officials and staff gathered in Birmingham for “The Future State: How Policymakers Can Understand and Incubate Cybersecurity, Technology, and Innovation in the South” Policy Masterclass. Nineteen members from eight CSG South states – Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee – participated in the masterclass.

Participants engaged in programming over two days, covering myriad topics and issues across the fields of cybersecurity, innovation, and technology. Briefings covered the importance of investing in rural innovation and expanding opportunities for rural citizens to join the tech workforce, Southern state innovation in biotechnology and remote medical care, the creation and future of the Alabama Innovation Corporation, trends in state information technology and cybersecurity, and how to respond to and prevent cyberattacks on K-12 public school systems. Attendees also toured the National Computer Forensics Institute (NCFI). They received senior staff briefings from the United States Secret Service and Alabama Attorney General’s Office and examined the various training pieces provided to state and local judicial and law enforcement members who study at the NCFI.

Experts from the Center on Rural Innovation, Southern Research Institute, OnMed, Alabama Innovation Corporation, Alabama Legislature, Economic Development Partnership of Alabama, National Association of State Chief Information Officers, North Carolina Department of Information Technology, West Virginia Office of Technology, and the Alabama State Department of Education briefed attendees.

The Masterclass was hosted by CSG South. By interacting with subject matter experts and colleagues from other Southern states, participants increased their knowledge of cybersecurity, government operations, workforce development, innovation, technology, and policies related to these issues.

The Masterclass participants included:

Senator Sam Givhan, AlabamaRepresentative Jeremy Gray, AlabamaRepresentative David Faulkner, AlabamaMs. Jessica Sanders, AlabamaMr. Connor Johnston, AlabamaRepresentative Carol Dalby, ArkansasRepresentative Jack Fortner, ArkansasRepresentative Roger Lynch, ArkansasRepresentative Leesa Hagan, GeorgiaMs. Josselyn Hill, GeorgiaRepresentative Jason Hughes, LouisianaRepresentative Dale Goodin, MississippiRepresentative Carl Mickens, MississippiRepresentative Orlando Paden, MississippiRepresentative Donnie Loftis, North CarolinaMr. Brian Shea, South CarolinaMr. Mark Hendrick, South CarolinaMs. Endra Curry, South CarolinaMr. Scott Sloan, Tennessee

Click here for workshop photos

Presentations:

Alabama State Department of Education

Center on Rural Innovation

Examples of Innovation- OnMed

Examples of Innovation – Southern Research Institute

North Carolina Department of Information Technology

National Association of State Chief Information Officers

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