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STATE AND LOCAL UPDATE November 29, 2017 Policy and Politics I. Trending Topics TAXES: The Tax Foundation’s Taxes and Growth (TAG) macroeconomic model found that the Senate tax plan would significantly lower marginal tax rates and the cost of capital, which would lead to a 3.7 percent increase in GDP over the long term [and] 2.9 percent higher wages. The TAG model estimates that the plan would result in the creation of roughly 925,000 new full-time equivalent (FTE) jobs, while increasing the after-tax incomes by 4.4 percent in the long run, meaning families would see an after-tax income boost of 4.4 percent by the end of the decade. The increase in family incomes is due in part from individual income tax reductions and the broader rise in productivity and wages due to economic growth. These estimates take into account all aspects of the Senate version of the Tax Cuts and Jobs Act, including changes to the individual and corporate tax codes. See here for a table illustrating the state-by-state impact of the plan for both new jobs and the boost to after-tax incomes for middle-income families. VP PENCE PITCHES TAX REFORM TO GOVERNORS: Vice President Mike Pence pressed the White House's case for a major tax code overhaul by the end of the year during a speech to Republican governors at the Republican Governors Association annual meeting in Austin this month. Pence spoke on the first day of the RGA meeting. Republicans currently hold 34 governorships across the country — the most in U.S. history. TAX REFORM PUTS BLUE STATE REPUBLICANS IN DIFFICULT SPOT: The most vulnerable blue-state House Republicans are stuck between a rock and a hard place on the tax reform. Democrats are pounding them for legislation that potentially would make some voters pay more in high-tax blue states. And, if history is a guide, voting against the bill won’t necessarily protect GOPers in next year’s midterm elections. Indeed, the party in power has lost an average of 25 House seats in midterm elections since World War II. In the nine elections before which the president’s party controlled both chambers of Congress, as is now the case, it has lost an average 33 House seats. GOP TAX EFFORT IS AN INFRASTRUCTURE EFFORT TOO…LEAVING SOME WORRIED: The tax code overhauls being pushed by congressional Republicans might not sound like infrastructure bills, but they contain many provisions that could have a big impact on the ability of states and localities to pay for public works improvements. The proposed plans include major changes to financing roads, ports and airports, as well as state programs related to electric vehicles and wind energy. But the biggest disappointment for many people in infrastructure-related industries is that these changes are part of a tax plan instead of a standalone infrastructure bill. Trump administration officials have repeatedly said they would work on an infrastructure package after the tax overhaul. More here. STATE LAWMAKERS LOOK TO WEIGH-IN ON SALT REPEAL/REFORM: Some members of the National Conference of State Legislatures who come from states that may not benefit as much

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STATE AND LOCAL UPDATE November 29, 2017

Policy and Politics I. Trending Topics

TAXES: The Tax Foundation’s Taxes and Growth (TAG) macroeconomic model found that the Senate tax plan

would significantly lower marginal tax rates and the cost of capital, which would lead to a 3.7 percent increase

in GDP over the long term [and] 2.9 percent higher wages. The TAG model estimates that the plan would

result in the creation of roughly 925,000 new full-time equivalent (FTE) jobs, while increasing the after-tax

incomes by 4.4 percent in the long run, meaning families would see an after-tax income boost of 4.4 percent

by the end of the decade. The increase in family incomes is due in part from individual income tax reductions

and the broader rise in productivity and wages due to economic growth. These estimates take into account

all aspects of the Senate version of the Tax Cuts and Jobs Act, including changes to the individual and

corporate tax codes. See here for a table illustrating the state-by-state impact of the plan for both new jobs

and the boost to after-tax incomes for middle-income families.

VP PENCE PITCHES TAX REFORM TO GOVERNORS: Vice President Mike Pence pressed the

White House's case for a major tax code overhaul by the end of the year during a speech to

Republican governors at the Republican Governors Association annual meeting in Austin this

month. Pence spoke on the first day of the RGA meeting. Republicans currently hold 34

governorships across the country — the most in U.S. history.

TAX REFORM PUTS BLUE STATE REPUBLICANS IN DIFFICULT SPOT: The most vulnerable

blue-state House Republicans are stuck between a rock and a hard place on the tax reform.

Democrats are pounding them for legislation that potentially would make some voters pay more

in high-tax blue states. And, if history is a guide, voting against the bill won’t necessarily protect

GOPers in next year’s midterm elections. Indeed, the party in power has lost an average of 25

House seats in midterm elections since World War II. In the nine elections before which the

president’s party controlled both chambers of Congress, as is now the case, it has lost an average

33 House seats.

GOP TAX EFFORT IS AN INFRASTRUCTURE EFFORT TOO…LEAVING SOME WORRIED: The

tax code overhauls being pushed by congressional Republicans might not sound like

infrastructure bills, but they contain many provisions that could have a big impact on the ability

of states and localities to pay for public works improvements. The proposed plans include major

changes to financing roads, ports and airports, as well as state programs related to electric vehicles

and wind energy. But the biggest disappointment for many people in infrastructure-related

industries is that these changes are part of a tax plan instead of a standalone infrastructure bill.

Trump administration officials have repeatedly said they would work on an infrastructure package

after the tax overhaul. More here.

STATE LAWMAKERS LOOK TO WEIGH-IN ON SALT REPEAL/REFORM: Some members of the

National Conference of State Legislatures who come from states that may not benefit as much

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from the deduction want the group to rethink its opposition. Those members include NORTH

DAKOTA SEN. DWIGHT COOK (R) and WISCONSIN REP. JOHN MACCO (R), who say elimination of the

deduction may ultimately be good for their constituents because ending it would help pay for

income tax cuts. At a Nov. 18 meeting in Miami, Cook made a motion for the NCSL’s task force

on state and local taxes to recommend that NCSL’s budget and finance committee rethink its

position. Macco seconded the motion, which was passed 12 to 2 with the support of members

from high-tax Connecticut and New York—likely to show a willingness to discuss the issue.

Issue in Focus

IN DEMOCRAT-LED STATE CAPITALS, GOP TAX REFORM PUSH COULD SCRAMBLE FISCAL PLANS: The

Republican tax reform push in Washington is setting off budgetary alarm bells in high-tax states like New

York, California and New Jersey, in the latest political skirmish to pit national Republicans against Democratic

state and big-city leaders. With Republicans intent on shrinking or repealing the state and local tax

deduction, California officials are worried that the House-passed tax bill, and the emerging Senate measure,

would force local governments to reduce taxes and make big cuts to schools and social services. In New York,

where New York City and state revenues are heavily reliant on just a handful of wealthy tax filers, budget

watchdogs fear federal tax changes could trigger the flight of those residents. And in New Jersey, plans for a

new millionaire's tax, one of incoming Gov. Phil Murphy's biggest campaign promises, are already being

reined in as the Democratic-led New Jersey Senate waits on the outcome of any federal tax plan.

STATE SPENDING & BUDGETING: The Volcker Alliance is out with a new report, “Truth and Integrity in State

Budgeting: What is the Reality?” They write: “The nation’s states and localities spend more than $3.4 trillion a

year, equivalent to more than a fifth of the entire US gross domestic product. The purposes and manner in

which public funds are spent are matters basic to our well-being as a nation—education, health care, public

safety; they all demand our attention.” The report focuses on five critical areas that explain methods used to

achieve budgetary balance, as well as how budgets and other financial information are disclosed to the public.

States were given grades of A to D-minus for their procedures in: (1) estimating revenues and expenditures;

(2) using one-time actions to balance budgets; (3) adequately funding their public worker retirement and

other postemployment benefits; (4) overseeing and using rainy day funds and other fiscal reserves; and (4),

disclosing budget and related financial information.

STATE SPENDING ON THE RISE: After an anemic 2016, state spending is up this year thanks in

large part to rising Medicaid costs and increased investment in transportation. States collectively

spent nearly $2 trillion in fiscal 2017, an increase of 5.2 percent, according to a newly

released report from the National Association of State Budget Officers (NASBO). The growth rate

is more than double that of fiscal 2016, which saw state budgets struggle to adapt to lower-than-

expected revenues. All eight geographic regions saw at least a slight rise in total state spending,

with the strongest growth reported in the West and the Southeast.

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MORE STATES JOIN CALL FOR CONSTITUTIONAL CONVENTION ON BALANCED BUDGET

AMENDMENT: Wisconsin has joined the growing list of states calling for an Article V convention

to amend the U.S. Constitution under a measure that passed the state Senate by a vote of 19-14.

The Article V resolution could be especially consequential down the road because if enough other

states sign on to the idea, it would mark the first time the process has ever been used since the

U.S. Constitution was ratified in 1787. Republican backers say the convention would focus on a

balanced budget amendment to rein in government debt, which state SEN. DAVE CRAIG, R-Big

Bend, called the main security threat facing the nation. While the exact total is disputed,

Republican backers say the vote makes Wisconsin the 28th state to join the call for a convention.

A total of 34 states are needed.

MEDICAL MARIJUANA – STATES CONTINUE TO EXPLORE MEDICAL MARIJUANA POLICIES: Against the

backdrop of the nation's largest Veterans Day parade, DEMOCRATIC GOV. ANDREW CUOMO announced this

month he'd sign legislation making New York the latest in a fast-rising tide of states to OK therapeutic pot

as a PTSD treatment, though it's illegal under federal law and doesn't boast extensive, conclusive medical

research. Twenty-eight states plus the District of Columbia now include PTSD in their medical marijuana

programs, a tally that has more than doubled in the last two years, according to data compiled by the pro-

legalization Marijuana Policy Project. A 29th state, Alaska, doesn't incorporate PTSD in its medical marijuana

program but allows everyone over 20 to buy pot legally. The increase has come amid increasingly visible

advocacy from veterans' groups. In a sign of how much the issue has taken hold among veterans, the 2.2-

million-member American Legion began pressing the federal government this summer to let Department of

Veterans Affairs doctors recommend medical marijuana where it's legal . The Legion started advocating last

year for easing federal constraints on medical pot research , a departure into drug policy for the nearly

century-old organization.

TRADE – DEMOCRATS AND TRUMP SHIFTING TRADE ALLIANCES IN WASHINGTON: The politics of

trade are shifting in Washington. In the 1990s, a Democrat in the White House, Bill Clinton, worked with free-

market Republicans in Congress to open the world trading system to Mexico and China. Now a White House

Republican, Donald Trump, hopes to work with trade skeptics among the Democrats to reverse that trade

liberalization. It is too soon to say whether Mr. Trump will succeed. But if he does, it will be in alliance with

people like Mr. Brown, a leading voice among Democrats in the Senate against free trade agreements written

in the past three decades.

NAFTA SUPPORTERS HIT THE AIRWAVES: NAFTA supporters are stepping up their campaign

to keep Trump from withdrawing from NAFTA with a new ad running through Nov. 21 in nine

states that voted for the Republican standard bearer in last year's presidential election: Iowa, South

Dakota, Kansas, Missouri, Nebraska, Ohio, Texas, Michigan and Tennessee. "For over 20 years

under the North American Free Trade Agreement, the North American region has grown and the

United States is stronger than ever before," the ad says. "Tell President Trump to keep NAFTA

because NAFTA works for America." The Trade Leadership Coalition, a group led by Caterpillar's

former chief lobbyist, Bill Lane, paid for the ad. The group spent in the "mid-five-figures" on the

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ad buy, and there could be sequels in the coming months, said Jamie McInerney, the coalition's

executive director.

COUNTRIES IN TPP TRADE DEAL MOVE AHEAD WITHOUT U.S.: Countries in the Trans Pacific

Partnership (TPP) trade deal have agreed on the core elements to move ahead without the United

States, officials said on Saturday, after last-minute resistance from Canada raised new doubts

about its survival. The agreement, which still needs to be finalized, would now be called the

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

CLIMATE ACCORD – COALITION OF STATES, BUSINESSES, AND LOCALITIES PUSH AHEAD: A powerful

alliance of leaders representing American cities, states and business said that they would continue to back

the Paris climate accord after President Donald Trump announced earlier this year that he would withdraw

the United States from the 2015 international agreement. The group, which calls itself “America’s Pledge,” is

led by CALIFORNIA GOV. JERRY BROWN and FORMER NEW YORK CITY MAYOR MICHAEL BLOOMBERG. They made

the announcement after presenting a report in Germany during the 23rd U.N. Climate Change Conference,

known as COP23, where hundreds of nations gathered to discuss global warming. The 127-

page report addresses the “scope and scale of non-federal climate action” in the U.S., and also lays out actions

taken by the groups involved in America’s Pledge, who combined represent trillions of dollars in the U.S.

economy. At least 20 states, 110 cities and more than 1,000 businesses and universities have declared

support for the accord.

Be on the Lookout

AGGRESSIVE AGs: State attorneys general have operated in an increasingly partisan manner in recent years

-- both in terms of how they campaign and what cases they pursue. The Republican Attorneys General

Association (RAGA) and the Democratic Attorneys General Association (DAGA) had a handshake agreement

that they wouldn't target seats held by incumbents from the other party. The Republicans voted to end that

policy in March. Once RAGA made its decision, there was never any doubt that Democrats would follow suit.

In 2018, with 32 attorneys general seats at stake, millions more dollars will be spent by the two groups. Big

money in attorney general contests is nothing new. In this year's race in Virginia, RAGA and DAGA spent in

the neighborhood of $10 million between them but up until the Virginia race, the big money against

incumbents came from outside groups, rather than the partisan AG organizations themselves. From now on,

incumbent AGs are going to have to think about their counterparts raising money directly to try to take them

out.

SUPREME COURT SPORTS GAMBLING DECISION LOOMS LARGE FOR STATES: Early next month, the court

will consider an attack by New Jersey on the federal law prohibiting additional states from getting into the

business. A decision that strikes down the law would “be a dam burst,” said Kevin P. Braig, an Ohio lawyer

who specializes in sports law. It presents the justices with a rare opportunity to define the limits of federalism

and the meaning of the 10th Amendment, which says that “the powers not delegated to the United States by

the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

The immediate question is whether Congress can force states to maintain prohibitions on sports gambling.

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But a broad ruling for New Jersey could have consequences for other ways that the federal government tries

to push policy preferences on state officials.

NET NEUTRALITY – WITH WASHINGTON PULLING BACK, STATES COULD FILL THE VOID: At least 22

states proposed broadband privacy legislation this year in the wake of congressional action revoking the

FCC's online privacy rules, heightening the telecom industry’s fear that state legislatures controlled by

Democrats will do the same with net neutrality. Only two states, Minnesota and Nevada, require such privacy

protections for ISPs, and those measures passed many years ago. California came close to passing new

legislation this year but faced tech and ISP industry opposition. New America’s Open Technology Institute

unveiled model legislation state lawmakers can use for future efforts. Several officials in the states raged

against the FCC news that CHAIRMAN AJIT PAI would make sure states can’t impose their own regulations to

fill the void from rolling back net-neutrality. NEW YORK ATTORNEY GENERAL ERIC SCHNEIDERMAN and NEW YORK

CITY MAYOR BILL DE BLASIO, both Democrats, slammed the news, as did FORMER FEDERAL PROSECUTOR RENATO

MARIOTTI, currently vying for the Democratic nomination to be Illinois attorney general.

NGA LAUNCHES INITIATIVE TO EXPLORE “DISRUPTIVE TECHNOLOGIES”: With the rapid pace

of innovation, each governor and state CIOs can be challenged to keep up with emerging

technology developments. The National Governors Association recently launched NGA Future,

an initiative to give governors insights into potentially disruptive technology that is three to five

years away. Timothy Blute, who most recently worked as program director for Homeland Security

and Public Safety Division of the NGA Center for Best Practices, is leading NGA Future’s efforts to

convene stakeholders from industry, government and academia to discuss emerging technology

issues that governors will face during their years in office.

BGR in the News

BGR Group Chairman Ed Rogers writes in the Washington Post: “One under-reported item in the analysis of

[the recent special] election has been the kind of candidate LT. GOV. RALPH NORTHAM was in Virginia;

specifically, from the Republican point of view, what kind of candidate he was not. Northam was not the

candidate Republicans hoped to see emerge from his Democratic Party primary contest against liberal darling

TOM PERRIELLO. Unlike the new-era Bernie-ites who have no sense of how government works (Georgia’s JON

OSSOFF comes immediately to mind), Northam is an experienced, sensible and mostly thoughtful candidate.

And it is worth noting that in 2017’s marquee races for mayor of New York, governor of New Jersey and

governor of Virginia, the winners were all stylistically similar Democrats. Attacking them as leftists is

challenging. Northam in particular wasn’t a good “bad guy” for Republicans. He wasn’t the stereotype

Republicans hope to see.”

HEALTHCARE PRICE TRANSPARENCY: The annual transparency report card, produced by Altarum’s Center

for Payment Innovation and the group Catalyst for Payment Reform, looks at how easily consumers can obtain

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healthcare prices in the various states. States that scored high had consumer-friendly websites with prices for

both inpatient and outpatient procedures. High marks were also given for states that required either provider

price reporting or an all-payer claims database, and those that included amount paid as well as charged. Only

two states — Maine and New Hampshire — earned an “A” on healthcare price transparency. Maryland and

Oregon received a “B” for their efforts, while Colorado, Vermont and Virginia each got a “C.” All of the rest

were rated “F.”

STATE LAWMAKERS STEP UP PRESSURE ON PHARMACEUTICAL COMPANIES: A few years ago,

MISSISSIPPI ATTORNEY GENERAL JIM HOOD was worried about a friend’s son who served two tours in Iraq. After

being injured overseas, he became dependent on prescription painkillers and eventually developed a heroin

addiction. Shortly after that, in 2015, Hood became the first state attorney general to sue a prescription

drugmaker for their role in the opioid epidemic. Since then, more than 100 states, cities and counties have

filed similar lawsuits, with a new one popping up almost every week. In addition to the 100-plus lawsuits, 41

states have banded together to subpoena information from four drug manufacturers: Endo, Johnson &

Johnson's Janssen unit, Teva Pharmaceutical and Allergan. They’ve also put in a request for more information

to Purdue Pharma and drug distributors AmerisourceBergen, Cardinal Health and McKesson.

STATES TAKE ACTION IN UBER BREACH: New revelations that Uber suffered a major security breach in

2016 — and initially withheld details from drivers, riders and regulators alike — is touching off another round

of government probes and customer lawsuits targeting the ride-hailing giant. At least five states — Illinois,

Massachusetts, Missouri, New York and Connecticut — announced that they would investigate the matter,

after Uber that the intrusion affected 57 million customers, compromising names, addresses and driver’s

license numbers in some cases. 48 states maintain some version of a law that requires companies that suffer

a data breach to communicate what happened to consumers. In most cases, companies must disclose a

security incident if hackers steal very sensitive customer data — such as driver’s license numbers, which

happened with Uber in late 2016.

STATES PUSH FOR FEDERAL REGULATION OF AUTONOMOUS VEHICLES: Local and state authorities want

the federal government to be in control of regulating autonomous vehicles, and while this may come as a

surprise to some, that stance has some implications for the future of autonomous vehicles. In a letter signed

by the National Governors Association, National Associations, National Conference of Legislatures, National

League of Cities and others told the Senate Commerce, Science and Transportation Committee that the AV

START Act language should be modified and clarified to ensure safe innovation. The letter writers were

particularly concerned with the use of the word "performance" in the act: "We believe the application of the

term “performance” to the autonomous context is now more complex due to the increasing merger of the

vehicle and the operator." The letter is unlikely to halt business innovation in the autonomous vehicle space,

but the significance of the letter is local and state authorities' abdication of authority in the autonomous

vehicle arena.

II. Politics

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ELECTION DAY 2017: All told, Democrats flipped about two dozen state legislative seats around the country

in November and have now gained at least 30 seats previously held by Republicans since President Donald

Trump won election last year, reversing several years of Republican momentum. “In general, this is a rebuke

of Republican governance of states,” said Jessica Post, executive director of the Democratic Legislative

Campaign Committee. She added: “The other thing it said is we can win all across the country.” The fight for

control of legislative chambers matters not only for policies on health care, taxes and education, but also

because the legislature in most states determines how future congressional and state legislative districts are

drawn. The next round of redistricting will take place after the 2020 Census, and both parties are focused on

controlling as many states as possible by then.

DEMOCRATS RECOVER SOME GROUND IN SEVERAL STATE LEGISLATURES: At the legislative

level, Democrats had a better election night than they could have dared to hope for, making a

huge comeback in the Virginia House and picking up seats in special elections from Georgia to

Washington state. They still have a long way to go to reach parity, given GOP control of 26 states.

But the fact that Democrats have erased a 16-seat Republican majority in the Virginia House, or

come awfully close (depending on recounts), has to be encouraging for Democrats heading into

next year's elections

DEMOCRATS EXPAND MAJORITY AMONG NATION’S MAYORS: NEW YORK'S DEMOCRATIC

MAYOR BILL DE BLASIO, a forceful critic of President Trump, easily won a second term. And

Democrats also won several major cities and closely watched races. In Boston, incumbent

DEMOCRAT MARTY WALSH glided to re-election and a second four-year term, beating back

ROXBURY CITY COUNCILOR TITO JACKSON, who had hoped to become the city's first African-

American mayor. With 100 percent of the precincts counted, Walsh had 65 percent to Jackson's

34 percent. DETROIT MAYOR MIKE DUGGAN, who oversaw the city's emergence from bankruptcy,

easily won re-election, defeating fellow DEMOCRAT COLEMAN A. YOUNG II, a state senator and the

son of the city's first African-American mayor. Duggan got more than 70 percent of the

vote. Charlotte, N.C., elected DEMOCRAT VI LYLES, its first female African-American mayor. In the

primary, she defeated incumbent Democrat Jennifer Roberts. On Tuesday, Lyles easily outpaced

REPUBLICAN CITY COUNCILMAN KENNY SMITH largely on the strength of early voting, winning 58

percent of the vote. In Seattle, DEMOCRAT JENNY DURKAN took a commanding lead over her

opponent, CARY MOON, in the race to replace former Mayor Ed Murray, who resigned amid sexual

abuse allegations.

TRUMP TROUBLES AND TRICKLE DOWN CONCERNS AT STATE AND LOCAL LEVEL : One year after

Donald Trump’s shocking election upset, many Americans who live in the key counties that propelled him to

victory remain unconvinced that the country is better off now that he’s in the White House, a November poll

from NBC News and The Wall Street Journal shows. The poll, which sampled residents of 438 counties that

either flipped from voting Democratic in the 2012 presidential election to Republican in 2016, or saw a

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significant surge for Trump last year, found that a third — 32 percent — believe the country is better off now

than it was before Trump became president.

DEMOCRATIC POLITICAL WAVE BUILDING: Democrats' success in this month's elections was

bigger than expected, and was fueled in part by strong opposition to President Trump. In the past

few weeks, there's been a lot of chatter about whether that means a big, blue wave is forming off

the political coast that could potentially crash into the 2018 midterm elections. See here for five

takeaways.

BGR INSIGHT Riding a wave of discontent with the administration, Democrats made notable gains on November 8th in

states across the country. The gains came even amid increased turnout among Republicans the difference

being that Democrats were able to get more presidential election year voters to the polls. Turnout this

year was up 16% over 2013 with most of the additional numbers coming from white independents and

Democrats in the suburbs. Looking specifically at the battleground state of Virginia, turnout in the northern,

more suburban part of the state was up across the board – 23% in Fairfax County, 26% In Alexandria and

Arlington County, and 31% in Loudoun County. That tilted the state’s electorate Democratic by 11 percentage

points compared with 7 points last year and 5 in 2013. The broad takeaways from these elections are that

politics is more national than ever at the state & local level – even when accounting for historical trends

for a president’s party when in office – and that the 2018 elections, at least federally, will be decided in the

swing suburban districts where the House will be won or lost (note Republicans hold seats in 23 districts

where Hillary Clinton also won).

PARTISAN POLITICS – STATE GOVERNMENTS INCREASINGLY CONTROLLED BY ONE PARTY: In a decade

that has seen a resurgence of American political polarization, two-thirds of all state governments now will be

fully controlled by either Democrats or Republicans. That rivals the predominant levels of single-party

governance last seen in the post-World War II era. The number of unified legislatures paired with same-party

governors has surged significantly since the 1996 election, when just 37 percent of states had single-party

governance. It has remained above 60 percent of all states since Republicans swept into control of many

capitols in 2010. (Single-party governance peaked at 83 percent of states after the 1946 and 1952 elections).

OUTSIDE GROUPS GEAR UP FOR 2020 REDISTRICTING: The right-leaning consulting firm Champion

Group, led by former Americans for Prosperity CEO Luke Hilgemann and COO Sean Lansing, has launched

"Defend Freedom" PAC to bolster Republican efforts in state elections with an eye on 2020 redistricting.

DEMOCRATS FOCUSED ON NEXT ROUND OF REDISTRICTING: Ralph Northam’s landslide

victory in Virginia governor’s race and Democrats’ stunning gains in other state elections this

month have given party activists hope of eroding the GOP’s advantage ahead of the next round

of redistricting. Democrats say part of the reason they don’t control the U.S. House and trail so

badly in state legislatures is because the GOP did a masterful job the last time around in drawing

districts tailored to Republicans. Flipping that script ahead of the next round of redistricting, after

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the 2020 census, is a major focus for Democrats. And it’s a particular passion former President

Barack Obama and former Attorney General Eric H. Holder Jr., who have launched the National

Democratic Redistricting Committee to make more voters aware that redistricting will shape the

next decade of politics.

WAR ROOM: The Republican Attorneys General Association has launched the “RAGA War Room,” an online

platform for interested parties to sign-up to receive updates about their state's race for attorney general, and

the national efforts of the Republican Attorneys General Association to elect Republicans to the Office of

Attorney General.

State of the States CALIFORNIA

California Pushes Ahead on Climate Change: In his final term, DEMOCRAT GOVERNOR JERRY BROWN has

lobbied other states and regions to reduce their greenhouse gas emissions, while augmenting California’s

already expansive suite of climate change programs. But Trump’s election—and the specter of Brown’s own

retirement—have lately set the governor on a tear. In a rush of climate diplomacy this year, Brown traveled

to China to meet with President Xi Jinping, then to Russia to participate in an international economic forum.

This month, we saw him address lawmakers in Brussels and Stuttgart, Germany, and he was preparing for

roundtable meetings with scientists in Oslo before arriving in Bonn for a climate conference, where Brown

will serve as special adviser for states and regions. And he is preparing for California to host an international

climate summit of its own next year in San Francisco.

Crowded Field for Open Gubernatorial Seat in 2018: After running for elected office 12 times since 1970,

GOV. JERRY BROWN is about to exit the center stage of California politics, no longer the brash upstart but now

a senior statesman who could be a model for the next person who will lead the state. Every successor promises

to be better, and different, than the person they replace. In 2018, one of the most wide-open races for

governor in some two decades, the “Jerry question” looms large for both candidates and voters. When asked

whether the next governor should continue Brown’s agenda, 50% of voters said yes. Among Democrats, it

was 71%. In several other subsets — young voters, those with a college degree, Latino voters — a majority

or even close to a supermajority wanted the next governor to carry on. So far, the candidate most preferred

among the “keep doing what Jerry Brown is doing” crowd is LT. GOV. GAVIN NEWSOM, picked by 49% of the

primary voters who want to extend the life of the current governor’s agenda. Twenty-six percent of that group

supported former L.A. MAYOR ANTONIO VILLARAIGOSA and 14% supported TREASURER JOHN CHIANG. The

USC/LAT poll finds support for all other candidates in single digits (or less) among the “Brown policies” voters.

COLORADO

Shifting Race for Governor and Attorney General: Republican George Brauchler, once a leading contender

for governor, announced he will suspend his campaign and instead enter the race for attorney general.

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Brauchler called the decision “neither easy or obvious,” but the move was expected for days as his path to

victory in the governor’s race began to narrow when former U.S. Rep. Tom Tancredo, a firebrand and favorite

among conservative activists, announced his bid for the state’s top job. And when Attorney General Cynthia

Coffman jumped into the race, it left a wide open race to replace her. The Republican Attorneys General

Association immediately issued a statement endorsing Brauchler, a move that showcases the party’s support

and gives the candidate more fundraising power. Other GOP members who have expressed interest in

running for attorney general include state Rep. Cole Wist of Centennial, and George Leing, who lost in

2014 to Democratic U.S. Rep. Jared Polis of Boulder.

Democrat Phil Weiser, former dean of the University of Colorado Law School and a one-time Obama

administration official who got into the attorney general’s race in May, has already hauled in more than

$700,000 in donations. The four other Democrats running for attorney general have been drawing in tens of

thousands of dollars in donations, too. They include MICHAEL DOUGHERTY, assistant district attorney for the

1st Judicial District in Jefferson and Gilpin counties; BRAD LEVIN, a Denver attorney; AMY PADDEN, a former

state and federal prosecutor; and STATE REP. JOE SALAZAR of Thornton. DEMOCRATIC STATE REP. CHRIS HALL

had expressed interest in running for governor back in the spring, but he never made any obvious moves

toward a bid since then. Hall took his name out of contention this week when he endorsed businessman Fred

Hubbell's campaign. Among the Republicans seeking their party’s nomination in the governor’s race, WALKER

STAPLETON and VICTOR MITCHELL have already amassed larger financial war chests. And the addition of

Tancredo made it hard to see Brauchler getting the nomination by lining up the overwhelming support of

hard-line conservatives.

CONNECTICUT

Incumbent Governor Malloy’s Departure Sets off Competitive Race for Open Seat: HARTFORD MAYOR

LUKE BRONIN said he’s now giving serious thought to a gubernatorial run, just days after LT. GOV. NANCY

WYMAN announced she won’t seek the state’s highest office. A growing collection of politicians, from

legislators to mayors, and business leaders are weighing a run for governor in 2018, following GOV. DANNEL

P. MALLOY’S announcement that he will not seek a third term. Wyman’s announcement Thursday that she

wouldn’t seek the state’s top job left an open field of lesser-known candidates. Danbury MAYOR MARK

BOUGHTON, MIDDLETOWN MAYOR DANIEL DREW, TRUMBULL FIRST SELECTMAN TIM HERBST AND FORMER FEDERAL

PROSECUTOR CHRISTOPHER MATTEI are among those who have announced their intentions to run. Another

potential candidate, HOUSE REPUBLICAN LEADER THEMIS KLARIDES, has not yet disclosed her plans.

FLORIDA

Democrats Search for a Competitive Candidate for State’s Top Office:: DEMOCRATIC DONOR JOHN

MORGAN announced he is leaving the Democratic Party, and that Democratic Sen. Bill Nelson should not run

for re-election, but rather seek the governor's mansion so he can leave a "legacy." Morgan did not close the

door on the idea of running for governor himself — a notion supported by many in his party — but said in

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his message, if he did, he would do so as an independent. Even though he is not running, Morgan has lead

the so far lackluster Democratic field in recent polls. The perceived current front-runner is FORMER REP. GWEN

GRAHAM of Tallahassee, who has been running since early May and has roughly $2.5 million in the bank. That

number is surpassed by both declared Republican nominees and likely future candidates already stocking

away cash for a potential run. Two other candidates who have been running for months — TALLAHASSEE

MAYOR ANDREW GILLUM and Winter Park businessman CHRIS KING — have also failed to garner real

momentum. FORMER MIAMI BEACH MAYOR PHILIP LEVINE announced earlier this month he was also seeking

the Democratic gubernatorial nomination. His promise to put up to $25 million of his own wealth into the

race could inject energy into the Democratic field.

GEORGIA

Atlanta Mayoral Race Remains Undecided: Two candidates will compete in a runoff to become Atlanta’s

next mayor. KEISHA LANCE BOTTOMS and MARY NORWOOD took the top two spots in the recent election,

knocking out the 10 other candidates from the crowded field. The results don’t come as a huge surprise.

Norwood and Bottoms had substantial leads going into the race. The runoff election will take place on Dec.

5. The winner of this election will replace current MAYOR KASIM REED.

Democrats Break GOP Supermajority in State Legislature: As part of a larger wave of Democratic wins on

Election Day 2017, Democrats picked up two seats in special elections held for Georgia’s House of Delegates.

DEBORAH GONZALES won House District 117 with 53 percent of the vote and JONATHAN WALLACE won House

District 119 with 56 percent of the vote. Both seats are in the Athens area and both were vacant, hence the

special elections. But not only were the two seats previously held by Republican incumbents, they

were uncontested in the 2016 elections.

ILLINOIS

Democrat Chris Kennedy Picks-Up Key Endorsement for Gubernatorial Run: U.S. REP. DANNY DAVIS

endorsed DEMOCRATIC GUBERNATORIAL CANDIDATE CHRIS KENNEDY. Davis’ endorsement comes as

gubernatorial candidates maneuver to court black voters ahead of the primary March 20. J.B. PRITZKER,

another candidate for the Democratic nomination, announced in August that he’d secured the endorsement

of SECRETARY OF STATE JESSE WHITE, another key black leader. On Sunday, COOK COUNTY COMMISSIONER

RICHARD BOYKIN and FORMER CHICAGO ALD. BOB SHAW endorsed Kennedy alongside Davis. Other Democrats

in the race are state SEN. DANIEL BISS; BOB DAIBER, regional superintendent of schools in downstate Madison

County; anti-violence activist TIO HARDIMAN; ROBERT MARSHALL, a physician from Burr Ridge; and small-

business owner ALEX PATERAKIS.

INDIANA

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Education Reform in the Spotlight for Gov. Holcomb: If Gov. Eric Holcomb’s legislative priorities are any

indication, next year won’t be the kind of education legislative session Hoosiers might be used to, with testing

and school choice possibly taking a back seat to college and career prep. His goals focus primarily on

workforce issues, with K-12 education as one piece of that system. Overall, Holcomb’s education initiatives

stem from a desire to better integrate what schools are teaching students with what employers are looking

for when they hire. Holcomb’s 2018 agenda includes:

• Creating an “Education to Career Pathway Cabinet” to centralize education initiatives among the

department of education, commission for higher education and department of workforce

development.

• Requiring every Indiana school to offer at least one computer science class by 2021, as well as

training for teachers in computer science.

• Creating the Office of Apprenticeship and Work-Based Learning to increase opportunities for high

school students and adults.

• Broadening teacher licensure requirements for people interested in teaching career and technical

education classes.

KANSAS

Shifting Political Lines within the GOP in Kansas? Some Seem to Think So: Leave it to a veteran

Republican campaigner in red-state Kansas to explain why someone other than a die-hard conservative can

be elected governor next November. FORMER SEN. JIM BARNETT, who won the GOP nomination for governor

in 2006 before falling to incumbent GOV. KATHLEEN SEBELIUS, said the unpopularity of policies enacted by

GOV. SAM BROWNBACK and LT. GOV. JEFF COLYER make it possible for moderates to compete in 2018. Colyer,

preparing to ascend to the governorship upon Brownback’s resignation, is running for governor against

SECRETARY OF STATE KRIS KOBACH, INSURANCE COMMISSIONER KEN SELZER, FORMER LEGISLATORS MARK HUTTON

and ED O’MALLEY, businessman WINK HARTMAN, Barnett and others. The whisper of opportunity reaching

Barnett’s ear can be heard by Democratic gubernatorial candidates. The current crop includes WICHITA

LEGISLATOR JIM WARD, Ellsworth County farmer JOSH SVATY, FORMER WICHITA MAYOR CARL BREWER, Olathe

physician ARDEN ANDERSON, Salina resident ROBERT KLINGENBERG and Wichita high school student JACK

BERGESON.

Lawmakers Turn to Government Transparency Following Investigation: Kansas lawmakers from across

the political spectrum said they will push to fix the state’s culture of secrecy in the wake of a Kansas City Star

series that highlights stunning levels of opacity in state and local government. They cautioned, however, that

the next governor will have to champion the issue for the Sunflower State to have truly transparent

government. LT. GOV. JEFF COLYER, who is set to take the reins of power if GOV. SAM BROWNBACK is confirmed

as an ambassador.

LOUISIANA

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First Female Elected Mayor of The Big Easy: New Orleans voters elected LaToya Cantrell as mayor Saturday,

making her the first woman to hold that position in the city's 300-year history. Cantrell, a city councilwoman,

got 60% of the votes over her opponent, former municipal court Judge Desiree Charbonnet, according to

the Louisiana Secretary of State's office.

MAINE

LePage Pushes Back on Medicaid Expansion: Just hours after Maine voters became the first in the nation

to use the ballot box to expand Medicaid under the Affordable Care Act, REPUBLICAN GOV. PAUL LEPAGE said

he wouldn't implement it unless the Legislature funds the state's share of an expansion.

Leadership Changes in the Legislature: SEN. AMY VOLK, R-SCARBOROUGH, was elected assistant majority

leader of the Maine Senate, replacing SEN. ANDRE CUSHING, who stepped down last month. Volk, who is

serving her fourth term in the Legislature, won election as the assistant majority leader in a secret ballot. The

other candidate in the race to succeed Cushing was SEN. JAMES HAMPER, R-OXFORD, the chairman of the

Legislature’s budget-writing Appropriations and Financial Affairs Committee.

MARYLAND

Federal Program Combatting Surging Opioid Epidemic Being Tested: A federal initiative to combat the

opioid epidemic is being tested in Maryland. Maryland, where overdose deaths are surging, is one of seven

states approved to allow large residential centers to bill Medicaid for substance abuse treatment. Under the

new structure, treatment centers receive reimbursement for each patient rather than a set grant. Bernard

Gyebi-Foster is the executive director of one of the city’s best-known treatment facilities. He says the change

allows his organization, Tuerk House, to see more patients. Several other centers say they are considering an

expansion, but few interviewed by the newspaper had increased capacity yet. The change took effect July 1.

A spokeswoman for the state health department says it will provide initial data about how the effort is going

in May.

MASSACHUSETTS

Incumbent Governor Charlie Baker to Run Again: GOVERNOR CHARLIE BAKER and LIEUTENANT GOVERNOR

KARYN POLITO will run for reelection in 2018, according to a senior political adviser, marking an expected but

significant turning point as Baker's political team begins to take steps to build the campaign apparatus that

will be necessary to win another four years in office. The Baker-Polito reelection campaign plans to open a

new headquarters in Allston in early December, and Brian Wynne, the executive director of the MassGOP, will

transition from the party to become the governor's campaign manager. It's unclear who will take over day-

to-day operations of the MassGOP. Running for the Democratic Party nomination for governor is NEWTON

MAYOR SETTI WARREN, FORMER STATE FINANCE SECRETARY AND HEALTH INSURANCE EXECUTIVE JAY GONZALEZ and

environmental activist and entrepreneur ROBERT MASSIE.

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MICHIGAN

Lt. Governor Calley Makes Gubernatorial Run Official: In a long-anticipated development, Lt. Gov. Brian

Calley announced he wants to be governor of Michigan. Calley made the news official after hinting at an

announcement for months — most recently at a Monday appearance with Gov. Rick Snyder, where he took

partial credit for Michigan's improved economy, citing his work on corporate tax cuts and streamlining and

elimination of business regulations and told reporters to "stay tuned for some big news" on Tuesday. Calley

joins a Republican field that includes Attorney General Bill Schuette, the acknowledged frontrunner, as well

as Saginaw Township physician Dr. Jim Hines, and state Sen. Patrick Colbeck of Canton.

Democrat Andy Levin, the son of U.S. Rep. Sandy Levin, said he will not run for governor but did

not rule out a congressional campaign should his father decide to retire. Levin announced his

decision in a Detroit News opinion column, explaining he will not join a Democratic gubernatorial

primary field headlined by former Senate Minority Leader Gretchen Whitmer of East Lansing.

Incumbent Democrat Wins Reelection as Mayor of Detroit: Mike Duggan's landslide re-election may

give him a bully pulpit in a second term to unseat the fellow Detroit Democrats who helped defeat his auto

insurance reform legislation five days before Election Day. The political machine Duggan had already been

building before winning 72 percent of the vote is likely to get stronger, especially given the support he draws

from regional business leaders. The Southeast Michigan business community has proved to be a key cog in

Duggan's growing influence, both in terms of financial support for his re-election campaign and helping carry

out his agenda.

Embattled Mayor of Flint, MI, Hit by Water Scandal, Holds On: Karen Weaver, the mayor of Flint, turned

back a recall attempt. Although the recall was launched in response to a garbage contract, attention turned

during the campaign to the city's water crisis. Nonetheless, Weaver won easily.

NEW HAMPSHIRE

Democrat Picks-Up Long Held GOP Mayor’s Office in Manchester: JOYCE CRAIG became the first woman

to win the Machester mayor's office, and the first Democrat to win the city since 2003, after she ousted four-

term incumbent TED GATSAS

NEW JERSEY

Democrats Have a Big Election Day: Former Goldman Sachs executive PHIL MURPHY easily won the fight

to replace deeply unpopular Gov. Chris Christie, cementing Democratic control in the state (for a list of who

Governor-elect Phil Murphy has appointed to his 14-committee transition team, see here. Democrats added

to their majority in the state Senate and picked up two additional state Assembly seats. Additionally, Murphy’s

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running mate, Assembly Speaker Sheila Oliver, is now the state’s first African American lieutenant

governor. She has also been appointed to serve as commissioner of the Department of Community Affairs.

State Senate Changeover: After a year-long campaign that will go down as one of the most

expensive elections in the state, Chris Brown defeated Colin Bell for the state Senate seat in the

2nd Legislative District. For the 2nd District Assembly seats, Vince Mazzeo and John Armato

defeated Republicans Brenda Taube and Vince Sera.

Republican Legislators Make Leadership Choices: After a tough night for New Jersey

Republicans, TOM KEAN JR. quickly secured the caucus votes for another term as the state Senate’s

GOP leader. All but one of the Republicans elected to the state Senate earlier this month backed

Kean (R-Union) for another term as minority leader, according to a letter signed by 13 members

of the caucus. The only one not to sign on was state SEN. MICHAEL DOHERTY (R-WARREN).

“Millionaires Tax” in Spotlight in 2018: A New Jersey millionaire’s tax boost that REPUBLICAN GOVERNOR

CHRIS CHRISTIE vetoed five times will be Democrats’ top priority with their party newly in control of the

executive branch, said the highest-ranking state lawmaker. SENATE PRESIDENT STEVE SWEENEY, a Democrat

from West Deptford whose party had championed the tax on high earners for almost eight years, only to

meet Christie’s veto pen, revived the matter in a tweet. “The first bill we pass in January with our new governor

will be a long-overdue millionaires tax to fairly and fully fund our schools,” Sweeney wrote. In an interview,

he said the bill would lead to property-tax relief, with more state revenue covering local education costs, a

prime driver of homeowner bills.

Attorney General Sets Sites on Drugmaker: STATE ATTORNEY GENERAL CHRIS PORRINO announced that New

Jersey was amending its consumer fraud and false claims complaint against Arizona-based opioids maker

Insys Therapeutics, Inc. to go after the billionaire founder of the company, John N. Kapoor. In some ways, the

amended civil suit is the lesser of Kapoor's problems. He has already been arrested for conspiracy to commit

racketeering, mail fraud and wire fraud after being indicted in federal court in Boston last month. The federal

government is alleging that Kapoor's company conspired with doctors to fraudulently prescribe the potent

drug to patients who were cancer-free as in need of chemotherapy in order to receive the drug, which is

usually prescribed only for patients who are gravely ill.

NEW MEXICO

GOP Loses Longtime Hold on Albuquerque Mayorship: DEMOCRATIC NEW MEXICO STATE AUDITOR TIM

KELLER has wrestled control of New Mexico's largest city from the GOP to become Albuquerque's next mayor.

Unofficial results showed Keller beating REPUBLICAN ALBUQUERQUE CITY COUNCIL DAN LEWIS with 62 percent

of the vote compared to 38 percent.

NEW YORK

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New York Voters Shoot Down Constitutional Convention Measure: New York voters gave a resounding

thumbs down to a constitutional convention this month, once again rejecting an opportunity to open the

state’s founding document to a full-scale overhaul after opponents stoked fears that such a convention could

result in lost rights and benefits. With most of the state’s election precincts reporting, “No” voters had easily

defeated the ballot measure — known as Proposal One — with more than 80 percent of the vote. The

campaign against the constitutional convention drew a diverse collection of opponents, including

conservative political groups, major labor groups like the A.F.L.-C.I.O., and liberal stalwarts like the New York

branch of Planned Parenthood and the New York Civil Liberties Union. And while their concerns were often

different, the basic logic of the anti-convention forces was similar: Such a convention could result in an

erosion of protections for everything from collective bargaining rights to free public education.

OHIO

Ohioans Reject Measure to Regulate Drug Prices: A ballot proposal to rein in drug costs was soundly

defeated in Ohio after an expensive ballot fight that drew tens of millions of dollars from the pharmaceutical

industry. The ballot proposal, known as the Drug Price Relief Act, was rejected by nearly 80 percent of voters

in final results. It would have required that state agencies pay no more for medicine than the U.S. Department

of Veterans Affairs, which gets a 24 percent discount off average manufacturers’ prices.

OKLAHOMA

Legislature Falls Short in Passing Tax Bill – Budget Woes To Continue: The Oklahoma House of

Representatives fell five votes shy of passing a tax bill that would have shut down the Special Legislative

session and prevented the need for steep budget cuts. The plan was supported by advocates from the health

care, education, and public policy sectors. But the widespread support of nurses and teachers wasn’t enough.

The tax plan would have eased the state’s budget woes by raising taxes on gasoline, tobacco products, beer,

and oil and gas wells. The tax hikes would have amounted to well over half a billion dollars in increased

revenue over the next two years. The plan would have also provided raises for teachers and government

employees. Twenty-Two Republicans voted against the bill, despite pleading from Gov. Mary Fallin and GOP

colleagues in the Legislature. Five Democrats also voted against the measure.

Gov. Mary Fallin shocked lawmakers by vetoing most of their fix to the state’s $215-million

revenue shortfall. Fallin vetoed 165 of 170 sections in House Bill 1019, leaving intact only

provisions that temporarily fund the Department of Human Services, the Department of Mental

Health and Substance Abuse Services and the Oklahoma Health Care Authority and keeping the

Department of Health solvent through the end of the fiscal year. With the state entering a fourth

straight year of declining general revenue, Fallin has urged tapping new sources such as higher

tobacco and fuel taxes.

Democrats Make Gains in Legislature: Democrat Allison Ikley-Freeman defeated Republican Brian O’Hara

in a recent special election for a state Senate seat representing parts of Tulsa. Complete but unofficial election

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results showed that Ikley-Freeman, who is a therapist at a nonprofit mental health agency, won by 31 votes.

That seat was vacated after Republican Sen. Dan Newberry said he would step down early to focus on his

career in banking. Ikley-Freeman’s win marks the fourth pickup for state Democrats in special elections this

year in Oklahoma, where Republicans have dominated state politics in recent years. Republicans held on to

two other legislative seats in the election.

PENNSYLVANIA

GOP Candidate Tosses Hat in Ring for Governor: Republican House Speaker Mike Turzai, a leader of anti-

tax and social conservatives who has helped drive austerity in state budgeting, will run for governor. Turzai,

58, said he will seek the Republican nomination in May's primary election to challenge Democratic Gov.

Tom Wolf, who is running for a second four-year term. Also running are York County state Sen. Scott

Wagner and two first-time candidates from the Pittsburgh area: former health care systems consultant Paul

Mango and lawyer Laura Ellsworth.

Well Known Attorney on Course to Be Next Philadelphia DA: Larry Krasner, a civil rights attorney who

built his professional reputation defending protesters and suing the police, is almost certainly going to be

Philadelphia’s next district attorney. Last month, Krasner beat out six other candidates in the Democratic

primary—clobbering his closest opponent by a near 18-point margin—on a promise to put fewer people in

jail and ruthlessly clean house in the office he intends to run.

Notable Results from November Elections:

The biggest statewide race pitted DEMOCRATIC ALLEGHENY COUNTY JUDGE DWAYNE WOODRUFF

against REPUBLICAN JUSTICE SALLIE MUNDY. Woodruff conceded the race to Justice Mundy. CHIEF

JUSTICE THOMAS SAYLOR and JUSTICE DEBRA MCCLOSKEY TODD were running for retention for

another term on the court. Both cruised early to retention.

ALLENTOWN MAYOR ED PAWLOWSKI won, despite having been indicted on 54 counts of extortion,

bribery and fraud. His re-election margin was down, but some voters said they believe he had

been set up. Pawlowski's case could go to trial as early as January.

In Pittsburgh, DEMOCRAT ANTHONY COGHILL was up against REPUBLICAN CLETUS CIBRONE-ABATE for

the District 4 seat vacated by NATALIA RUDIAK, who decided not to run again this year. Mr. Coghill

defeated Ms. Cibrone-Abate.

Pennsylvania took the first step toward property tax reform in a ballot referendum, putting the

state on a path to potentially overhaul tax law.

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Pittsburgh voters faced a referendum that would loosen job restrictions for city workers. Voters

passed it, agreeing to loosen a rule that prevents city employees from taking simultaneous work

with other government entities.

Gerrymandering Lawsuits Move Head: With drastic changes to Pennsylvania’s political landscape hanging

in the balance, two lawsuits challenging the state’s congressional map are moving forward at rapid speed —

one in state courts, the other in federal. After considering motions to intervene, delay and dismiss the cases,

the Pennsylvania Supreme Court and a three-judge panel on the United States Court of Appeals for the Third

Circuit have teed the cases up to be heard next month. Both challenges claim the state’s 2011 congressional

district map is a partisan gerrymander designed to give Republicans an electoral advantage. The state court

lawsuit claims the General Assembly deliberately took into account political views, voting histories, and party

affiliations when deciding district boundaries, which they argue violates voters’ freedom of expression and

equal protection rights under the state constitution. Similarly, the federal lawsuit brought by five Pennsylvania

voters also claims that the state’s 2011 congressional map is an illegal partisan gerrymander.

State Budget Woes Continue: Pennsylvania is going to borrow against its Tobacco Settlement Fund to fill

in last year's deficit and finish this year's budget. GOVERNOR TOM WOLF’S administration confirmed that it will

tap into the stream of money states have received from tobacco companies since the 1990s. The borrowing

will give the commonwealth money to balance its books up front, and will then be paid back over several

decades. The Commonwealth Financing Authority approved the plan last week. However, Budget Secretary

Randy Albright noted that it's not finalized yet.

RHODE ISLAND

Lt. Governor Draw Primary Challenge: DEMOCRAT RHODE ISLAND LIEUTENANT GOVERNOR DAN MCKEE

announced his reelection bid, setting up a primary battle on the left with STATE REP. AARON REGUNBERG.

TEXAS

Races Taking Shape in the Lone Star State: With less than a month before the filing deadline, the most

prominent declared candidate for Texas governor is probably ANDREW WHITE, the son of FORMER GOVERNOR

MARK WHITE. White, a self-described “very conservative Democrat,” has never run for elected office and holds

views on abortion likely to alienate some Democratic primary voters. DALLAS COUNTY SHERIFF LUPE VALDEZ

announced that she’s considering a gubernatorial run, but her staff refused further comment and Valdez has

yet to file. Whoever faces off with GOVERNOR GREG ABBOTT will be staring down a $41 million war chest.

Democratic party officials insist more candidates are forthcoming: “We’ve taken our punches for withholding

the names of who we’re talking to,” said Manny Garcia, deputy director with the Texas Democratic Party. “It’s

been personally frustrating to me because I know who we’re talking to and I know they’re exciting people.”

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For lieutenant governor, mild-mannered accountant MIKE COLLIER — who lost a run for

comptroller last cycle by 21 percentage points — is challenging DAN PATRICK, one of the state’s

most effective and well-funded conservative firebrands.

ATTORNEY GENERAL KEN PAXTON, who will be fighting his securities fraud indictment during

campaign season, drew a largely unheard-of Democratic opponent last week in attorney JUSTIN

NELSON, a former clerk for U.S. Supreme Court Justice Sandra Day O’Connor.

VIRGINIA

Democrats Ride Blue Wave in State Elections: DEMOCRAT RALPH NORTHAM will be Virginia's next governor,

beating REPUBLICAN ED GILLESPIE. For a list of who is serving on his transition team, see here. Voters in

Northern Virginia also backed DEMOCRATS MARK HERRING and JUSTIN FAIRFAX for attorney general and

lieutenant governor respectively.

Make Significant Gains in Legislature: Democrats surged to victory in more than a dozen Virginia House of

Delegates races during the recent election, unseating several longtime Republican incumbents and coming

within striking distance of retaking control of the House for the first time in 17 years.

In the 10th District, REPUBLICAN INCUMBENT RANDY MINCHEW was defeated by DEMOCRATIC

CANDIDATE WENDY GOODITIS, a Clarke County realtor and former schoolteacher.

In one of the most closely watched races, DEMOCRAT DANICA ROEM, a local journalist, defeated

REPUBLICAN DEL. BOB MARSHALL in Virginia’s 13th District, which includes parts of Prince William

County and Manassas Park. Roem, who carried 54 percent of the vote, made history as the first

openly transgender elected official in Virginia history.

And in the 31st District, DEMOCRATIC CHALLENGER ELIZABETH GUZMAN bested REPUBLICAN SCOTT

LINGAMFELTER, who was elected to the seat in 2001.

In the 32nd District, REPUBLICAN INCUMBENT TAG GREASON, who was first elected to the Loudoun

County seat in 2009, was defeated by DEMOCRAT DAVID REID, a retired Naval intelligence officer

and defense consultant.

In another upset, LEE CARTER, a Navy veteran and self-described Democratic socialist, unseated

REPUBLICAN DEL. JACKSON MILLER, a member of GOP leadership in Richmond, in the 50th District,

which also includes parts of Prince William County.

In the 51st District, which covers parts of Prince William County, DEMOCRATIC CHALLENGER HALA

AYALA, a former cybersecurity specialist at the Department of Homeland Security, defeated

REPUBLICAN INCUMBENT RICH ANDERSON.

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In the 67th District, which covers parts of Fairfax and Loudoun counties, REPUBLICAN INCUMBENT

JIM LEMUNYON was defeated by DEMOCRATIC CHALLENGER KARRIE DELANEY.

But Republicans Maintain Control of House with Controversial Decision: Virginia’s Board of Elections on

Monday unanimously certified two state legislative races — in which 147 voters cast ballots in the wrong

district — in favor of the Republicans in both contests. The decision means that Republicans control 51 seats

in the House of Delegates while Democrats control 49. The action shuts down one potential route, but it does

not end Democrats’ hopes to win control of the chamber.

McAuliffe Bucks Trend and Opposes Trump Impeachment: GOV. TERRY MCAULIFFE, who was awarded the

title of Governing’s 2017 Public Official of the Year, said he does not support impeaching President Donald Trump,

after Democratic billionaire Tom Steyer pressed the case for impeachment at the United Nations climate

conference in Germany.

WASHINGTON

Democrats Take Control of State Senate: For the first time since 2012, Democrats will retake control of the

state Senate next month on the strength of a big win in suburban King County, a victory that solidifies the

Blue Wall of a democratically controlled West Coast – Washington, Oregon and California.

In a race that set Washington records for spending on a legislative race, DEPUTY COUNTY

PROSECUTOR MANKA DHINGRA beat JINYOUNG LEE ENGLUND, a businesswoman and former aide to

U.S. REP. CATHY MCMORRIS RODGERS. Dhingra’s win gives Washington Democrats control of the

Governor’s mansion and both state legislative bodies for the next year, potentially pushing a more

progressive agenda in 2018. In votes counted on Election Night, Dhingra was collecting 55.4

percent of the vote to Englund’s 44.6 percent.

In Northeast Washington’s 7th District, REPUBLICAN SHELLY SHORT, who moved from the House to

the Senate through an appointment to fill an empty seat early this year, easily bested DEMOCRAT

KAREN HARDY.

STATE GOVERNMENT ASSOCIATIONS EVENTS (2017)

DECEMBER 2017

• 1: SLLF 2017 Board Meeting and Leadership Roundtable, Palm Beach, FL

• 1-2: Western Governors Association Winter Meeting, Phoenix, AZ

• 3-4: DGA Annual Meeting & Holiday Party, New Orleans, LA

• 3-5: RSLC Annual Retreat, Jackson Hole, Teton Village, WY

• 6-8: ALEC, States and Nation Policy Summit, Nashville, TN

• 7: DLCC Emerging Leaders Forum, Washington, DC

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• 7: DLCC Holiday Reception, Washington, DC

• 10-13: NCSL Capitol Forum, Coronado, CA

• 14-16: CSG National Conference, Las Vegas, NV

• 29: NLGA Business Meeting, St. Thomas, U.S. Virgin Islands

• 29: CSG Western Legislative Academy, Colorado Springs, CO