In the report, the organization considered each provision of the Affordable Care Act (ACA) and examined potential economic impact. “On net, this analysis suggests that upon full implementation in California, the Affordable Care Act will have a positive impact on California’s economy with variation across regions based largely on their socioeconomic makeup. Full implementation of the Affordable Care Act as compared to the non-reform scenario in 2010 would have resulted in 98,861 new jobs in California (a 0.6% increase in total employment) and $4.4 billion in additional gross state output,” report authors write.

Report data shows that Southern California alone would see a 0.7% increase in the number of people with jobs – working out to just under 60,000 people added to the labor force. Adding $3 billion to the local economy.

Report authors note that the law and the funding it provides would essentially be a force mulitplier adding positively to the health care sector and helping to mitigate some of the potentially negative economic effects health care would have as a sector if it remains unchanged.

Several states brought a challenge to the Supreme Court over the individual mandate provision in the ACA. BACEI notes in the report that this provision is likely to be a key job creator and will also improve the productivity of people already with jobs if they now have access to health care.

“The presence of the individual mandate will also be one factor that changes the set of incentives that exists for individuals in ways that will influence their behavior. The individual mandate may, for example, increase the value that people place on employer-sponsored insurance. And in an environment with a greater proportion of the population being insured, in part due to the individual mandate, there will also be greater labor force participation. Also, to the extent that people are employed, the implication is that there will be less time away from work or out of the labor force for reasons related to health,” the report says.

The first bill Senate Bill 2576, will amend the state’s existing Workers Compensation Act, to require employees to provide more evidence that an injury was work related before claiming the benefit. If an employee is found to be on drugs or alcohol at the time of the injury they will risk losing their benefits all together if they file a workers compensation claim under the new rules.

The second bill S.B. 2934, will give businesses a larger tax credit when they pay their inventory taxes each year. The tax credit will increase each year over the next three years.

The third bill H.B. 1537 creates zones of tax incentives spread throughout the state. These zones will provide health care focused businesses with tax credits for bringing their companies to these areas.

The package of legislation covers a large portion of the Governor’s “works” agenda. Critics of the agenda have said that it will make it more difficult for workers to receive due compensation if injured on the job while additional tax incentives will take money away from an already tight state budget.

Governor Sandoval opened the SALT Conference this morning, a global conference of financial, business and political leaders getting under way this week in Las Vegas, Nevada with an overview of the economic activity in his state and what his administration will be working for in the near term. He spoke to improvements in the local economy,including improvements in the housing crisis that has been a persistent drag on the local economy since 2008.

He also announced an aggressive agenda to make the state the most business friendly state in the economy. The state is in the process of eliminating hundreds of regulations and refocusing revenue generation through sales tax and the collection of interstate sales taxes. The Governor has been outspoken in his support for interstate sales tax agreements, like the agreement his state just struck with Amazon to get the taxes on goods purchased by Nevada residents on the website.

These agreements are key for the state which has a limited tax structure that is likely to remain in place. “I am proud to say that Nevada has no corporate or personal income tax,” Sandoval said resulting in loud applause from the audience.

The Governor also announced he will be making the first international trade mission of his tenure later this year. He will be going to China and other areas in Asia in order to “increase Nevada’s global footprint.”

“The Ramapo Jobs Connector” is a free service offered to job seekers that has information about thousands of jobs in multiple industries at all levels of employment. Residents of Ramapo and Rockland County will directly benefit by hearing about available jobs before anyone else, and employers will be able to reach qualified, local candidates fast and first. The Town of Ramapo is the first town in the United States to offer a platform like this.

A number of local companies have already partnered with the Town of Ramapo to post jobs on the site.

“Enhancing economic development and furthering job creation and retention are essential in order for us to achieve economic stability and improve the quality of life for our residents,” said Supervisor St. Lawrence.

Individuals who register at http://ramapo.tweetmyjobs.com or via links from www.ramapo.org will receive relevant job matches instantaneously by e-mail, text message, or from social networks like Twitter and Facebook.

Robert Collins, a former corrections officer in Maryland, said he was asked for his Facebook account information while being recertified for his job following a leave of absence. When this became known through press accounts, social media websites lit up with comments both for and against the practice. According to the Associated Press the Maryland department of corrections assessed 2,689 applications, showing that seven candidates were rejected in part because of information found on their social media profiles.

Collins said that he felt violated by the review and the American Civil Liberties Union filed a complaint on his behalf. Seven other states are pursuing bills of the same type according to the Nationla Conference of State Legislatures. Other states like Illinois have also recently banned employers from running credit checks on potential new hires.

At the federal level, Attorney General Eric Holder has also been asked to investigate whether or not asking for such information violates federal law.

Even if employers are prohibited from logging in as the person they are investigating, employer snooping through public information on social media sites is increasingly common. Online job applications are also asking candidates to “like” their facebook pages, or provide information about their “social media presence.”

US-based law firm Haynes and Boone, noted in a post on its social media law brief that many employers are asking background check firms to include social media screening in their routine background checks of potential employees. According to the attorney’s asking a third party to perform the screening and only report back relevant, legal information is necessary in order to avoid violating equal opportunity employment rules.

“Pre-screening applicants via their social media can lead to the discovery of information regarding the applicant that may be illegal to consider during the interview process. For example, via social media, an employer could discover an individual’s age, religious affiliation, genetic information or disability.”

They further note that if social media profiles are accessed under the Fair Credit Reporting Act, employers are required to provide a two step reporting process back to potential candidates notifying them of why they were overlooked.

“The Federal Trade Commission (“FTC”) recently indicated that the FCRA does apply to a consumer reporting agency’s social media check, when it investigated Social Intelligence Corporation, a consumer reporting agency that conducts background checks that include information from individuals’ social media,” the attorneys write.

Governor O’Malley has said that he is reviewing the legislation and has not yet made a decision about signing the bill.

Utah’s law is notable because it is the first such bill to pass. Over 150 years ago Congress passed the Legal Tender Act which authorized the use of paper notes to pay bills and while paper money still retains the value noted, interest rates governing bonds and other savings or investment vehicles are at historic lows and are expected to remain at those lows through at least 2014.

Gold and silver bullion however, are at historically high values and observers expect those values to remain high for some time. The bill, HB 157 will allow for gold and silver bullion to be used for transactions based on the weight of the amount of metal presented. That is a key distinction because it expands out the use of gold and silver beyond face value on limited runs of precious metal coins offered through the US Treasury.

In practice, in Utah, individuals will be able to use gold and silver bullion in the same way as they would cash for transactions but also for currency exchanges. Individuals with the metal will be able to get fair market value in a trade for cash, or may start depositing or paying with it. The state will also be offering a one-time tax credit to offset any capital gains taxes accrued for individuals who choose to trade metal for paper.

The tax credit essentially ensures that the exchange works like any other currency exchange, say if someone went to Europe and needed to get Euros around that trip. It will also eliminate a shadow market for the metal as those with metal to exchange would normally call around for transaction prices in order to offset fees and taxes.

South Carolina has advanced a similar bill, the legislation is sponsored by Lexington Rep. Rick Quinn and it has passed the House Judiciary Committee and will be sent to the floor. The terms of the South Carolina bill allow gold and silver to be used as long as businesses agree to take them.

Some observers have said that the bills are an over reaction. However, there may be a currency devaluation argument to be made especially if monetary policy continues down the path of measures such as quantitative easing and operation twist. Currently, the money supply in the US has ballooned over trillion dollars in the last ten years. Money supply is defined as currency plus demand deposits.

Low currency value hits municipalities through bonds

Current forecasts from the Federal Reserve show that the money supply is expected to continue growing at a rate of 17.4% over the next 12 months. This rate may increase even more if the US continues to aid the struggling Eurozone. Essentially, what this all means is that with each new dollar printed in that 17.4% the value is less than the one that was printed before. Ten years ago, when the overall supply was just above 1 trillion, those dollars were worth more then than they are now with another trillion+ in the system. Add another 17.4% over the next year, and the value keeps going down backed by almost no interest revenue.

The overall impact for individual savers and states is clear. Individual savers will be eeking out tiny interest revenues on whatever they can save in a high unemployment, high-cost environment. States trying to finance projects and public services through bonds and other vehicles are finding that the offerings are less enticing to investors looking for a rate of return. All of this while overall demand on state infrastructure and government services continues to climb.

Seeking Alpha reports today that further pressure is coming from the feds who are looking at ways to reduce the tax exemption for municipal bonds. The President is proposing capping the tax benefit for muni bonds at 28% and some in Congress have proposed denying the tax exemption on new muni bonds altogether.

If this goes through, existing bonds will fall in value adding more pressure to already tight municipal budgets. Falling muni bond prices can cut projects in the pipeline, raise user fees or local taxes. As the piece notes, this may lead to more federal Build America style bonds, to help municipalities bridge the gaps although that also allows for increased federal scrutiny into projects.

Infrastructure falls further behind

As we have seen with the health care fight, rail and broadband financing, increased federal scrutiny tends to equate with states rejecting the funds. At a macro level this means that US citizens are paying more to receive less, both in terms of the level of service provided by their local governments but also in the overall quality of their local infrastructure. Individuals are typically the most common holders of municipal bonds either through direct purchase or investment funds.

Compared to other countries, the US invests almost nothing in its infrastructure. China spends 9% of GDP, Europe 5% and the US? Just 1.7%. As CivSource has reported before, our failing infrastructure impacts citizen’s ability to find and get jobs and job training, which hurt net competitiveness. Beyond the bottom line, symbolically it hardly says world superpower to run a country on 20+ year old trains, bridges and planes.

Transportation Secretary Ray LaHood has noted a variety of safety concerns that arise when roads and bridges are allowed to remain in use despite being below safety code. To speak nothing of the jobs that could be created through a public works program that would make them safe.

Through this lens, the debate over a long-term federal transportation plan sounds increasingly more absurd. Republicans in the House passed another extension/shell transportation bill yesterday. The bill provides an extension of the federal government’s authority to provide funds through the Highway Trust Fund until September 30. The bill is an extension of another extension passed earlier this year which granted the authority until June 30.

The current extension is a shell bill designed to force a conference so that both parties can hash out the specifics of a long-term transportation plan. The Republican plan is opposed by the Democrats and any compromises arising from the Senate conference are likely to be opposed when it returns to the House for final passage, since a conference bill is unlikely to include a provision for the Keystone XL pipeline. Republicans appear to be more focused on drilling for oil than creating jobs or improving safety.

No long-term plan is expected to pass during an election year as Republicans view that as handing a victory to their election opponent President Obama.

Enter Build America? Maybe. Some such as Jonathan Tisch, Chairman & CEO of Loews Hotels and Loews Corp are calling for private capital to step in and fund these projects through growth in public-private-partnerships and more cost-effective procurement.

The American Jobs Act of 2011 included $140 billion for infrastructure investments and included a provision to establish and infrastructure bank – an idea that has been making the rounds on capital hill for years. But as Bloomberg reported, an infrastructure bank doesn’t solve the reality of financing these projects. A safe bridge doesn’t come with increased value, it just won’t fall down as easily. This is why the private sector isn’t running out to build bridges and why infrastructure financing is hard.

The broader question seems to be how much longer can we afford to print money only to pass it around among assorted failing or terminally weak banks while refusing to spend any of it on our citizens.

According to the Rockerfeller report, state tax collections remain low with more than half of the states reporting that total tax collections were still well below their peaks in 2011. Many states that levy personal income taxes have not yet seen revenue recover as unemployment remains high and wages have fallen significantly.

Economic indicators are showing evidence of a slow gradual recovery, but state revenues often trail the immediate effects of economic shifts. The 2008 financial crisis didn’t hit budget cycles until 2009. So any early recoveries may not be felt until the next budget cycle.

States have made massive cuts in the number of government employees, education budgets, social services and increased service fees in order to make ends meet. These moves have led to some high profile populist uprisings in state’s like Wisconsin and Michigan where Governors who are viewed as acting against average citizens in their austerity measures are now facing increased pressure. Governor Scott Walker of Wisconsin faces an historic recall action to remove him before the end of his first term. And in Michigan, a controversial financial management plan has been halted by the justice system.

The program – the Subsidized Training and Employment Program (STEP UP) provides two types of hiring incentives for companies, a six month wage subsidy or a small grant of up to $12,500 over a six month period. Individuals qualified to be hired through the program must meet basic employment qualifications. The program itself was officially created through a jobs bill that passed the Connecticut state legislature last autumn.

“Even though our unemployment rate is at its lowest point in three years, if you don’t have a job it might as well be at 100%,” said Governor Malloy.

So far, the program has led to 135 new hires.  STEP UP will provide up to $20 million in funding through subsidies.  Many of the early hires have come in service-based roles. Companies that have less than 50 people can apply for subsidies through the program, provided they offer on-site job training. New hires must also be Connecticut residents.

State officials hope that the program will spur small business job growth and economic development in smaller municipalities throughout the state. The Connecticut Department of Labor has put up information on the program on through a new website. The Malloy administration has been focused on finding ways to bring new economic activity to the state, the jobs bill package contained a variety of incentives to foster economic development in addition to job creation. As CivSource previously reported, the state also launched StartUp Connecticut a program designed to support local entrepreneurship.

A similar plan in Detroit was also halted by a different judge for open meetings rules violations. In Detroit, state officials are working on a hybrid option which provides the state with more control over city finances without going so far as to remove municipal authority to appoint a financial manager. State officials plan to appeal both rulings.

The ruling may also halt plans by Flint’s financial manger Michael Brown, who was working on three initiatives to address the city’s finances. Brown was planning to borrow $20 million in municipal bonds.

The bonds, called “fiscal stabilization bonds,” are longer term bonds that can be paid out over a period of up to 25 years. Currently, Flint is prohibited from borrowing money until have a deficit elimination plan that is proposed and approved.

CivSource has been following a bill championed by Republican Senate Majority Leader Chip Rogers, that would seek to limit municipalities in rural Georgia from creating their own municipal wifi networks, despite open admissions from AT&T CEO Randall Stephenson that they have no intention to continue building in those areas. On a conference call discussing the company’s earnings, Stephenson said “We’ve all been trying to find a broadband solution that was economically viable to get out to rural America, and we’re not finding one to be quite candid. The best opportunity we have is LTE.”

According to sources familiar with the bill, that bill will now be altered to become a study bill which will gather further information on broadband network access in the state.

Similar bills are still on the move in Minnesota and South Carolina. Following a playbook initially established by incumbent telecom providers in North Carolina. The Minnesota bill explicitly bans communities from creating their own networks to meet their needs. A surprising move, considering the state is already pushing forward on a large broadband expansion.

In South Carolina, the story is roughly the same. Although no movement is happening on the bill right now, the language suggests that telecom providers are seeking to keep municipalities from creating their own networks even when private providers have indicated that they will not bring services to the area.

Private providers are arguing that municipal networks create unfair competition, forcing them to lower their rates because municipalities have the ability to offer rates below cost. Even if true, we are left to wonder why this is a concern in areas where the providers themselves have said they do not plan to do business. According to a post on Ars Technica yesterday, Charter Communications in Minnesota has done this and apparently so quickly that they put hand written fliers in residents mailboxes. (See the image here.)

There is a new bright spot on the horizon, however, San Jose, California is upgrading an aging and barely used municipal wifi network in order to support municipal infrastructure services. However, the city has no plans to become a wireless provider for residents. Instead, users who happen to be near the network will be able to use it.

The city is building the network through an already existing private fiber network in its downtown district, where carriers cross-connect. The initiaive will expand the network from 1Gbps to 20Gbps.

The economic benefits of large broadband networks throughout states have been well illustrated. However, incumbent providers seem to feel that short term cost outlays will have a greater impact on their bottom line than adding new subscribers.