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I nclusivityGenderDi ver sit yPower, EthnicityE q u it yGot a Capitol DEI Committee? Oregon Does.In 2016, well before the revelations thatenergized the #MeToo movement,staff and members in Oregon begandiscussing ways to make the Capitola more diverse, equitable and inclusiveplace. The conversation grew out of arecognition, House Speaker Tina Koteksays, that more constituency groups thanever—particularly communities of color—were coming to the building to representand advocate for the broader population.Two years later, the discussion hasled to action: the creation of the CapitolDiversity, Equity and Inclusion Committee and a new full-time staff position withthe title accessibility and inclusion administrator. The committee already is planning and developing an agenda that willguide it through 2019. And the new staffposition, which will be part of the humanresources office, was recently posted.In keeping with the goal of improvingthe Capitol’s workplace culture holistically, the committee includes legislatorsand staff, Kotek says. The group recentlydeveloped definitions of what it means bythe terms diversity, equity and inclusion.On diversity, its definition includesfamiliar references to race, ethnicity andgender but also addresses “power relationships in which the dominant culturalgroup is viewed as one up and the subordinate cultural group is viewed as onedown.” Equity, the committee writes,“involves striving to identify and eliminatebarriers that have prevented the full participation of some groups.”An inclusive climate, the committeesays, “embraces differences and offersrespect in words and actions for allpeople.” But it cautions that “a diversegroup isn’t always inclusive.” It says that,STATE LEGISLATURES7JULY/AUGUST 2018“Increasingly, recognition of unconsciousor ‘implicit bias’ helps organizations tobe deliberate about addressing issues ofinclusivity.”The new administrator position maybe unique among the state legislatures.Oregon’s legislature has long been a leaderin human resource management, and thisinitiative fits with its pattern of innovationin human resource practice.According to the job posting, the newadministrator will develop the “inclusionand equity program’s long-range plans,goals, objectives and milestones,” and“engaging the organization in a dialoguethat promotes understanding, respect andinclusion in the work environment.”Perhaps most important, “This newposition is part of a comprehensive effortto make the Oregon Capitol a modelworkplace,” Kotek says.

TRENDSTo Efficiency and BeyondLLawmakers address building energy use through state commercial and residential building energy codes, which have beenadopted in most states and the District of Columbia. By updatingor strengthening their codes, states can help building owners andrenters realize the economic and comfort benefits of increased efficiency.Beyond-code policies include those that mandate adherence toLEED or other standards and those that set net-zero energy building requirements—the concept that a building produces as muchenergy as it uses, or more, by combining a high degree of efficiencywith on-site renewable energy generation.California’s Long-Term Energy Efficiency Strategic Plan, forexample, set a goal for all new residential and commercial construction to meet net-zero standards by 2020 and 2030, respectively. Ahandful of cities also have established net-zero targets, includingSanta Monica, Calif., which approved an ordinance in 2017 requiring all new single-family construction to be rated net-zero.To encourage going beyond code, states have created incentivesor financing initiatives for high-efficiency buildings. Arizona, forexample, enacted legislation in 2016 that amended tax incentivesfor data centers to include certain newly constructed facilitiesthat meet Energy Star, Green Globes, LEED or comparablestandards. In 2014, Maryland legislation established anenergy-efficient home construction loan program andfund to build low-energy and net-zero homes.Some states have set “lead by example” policies, creating efficiency and green-buildingrequirements for government-owned facilitiesor state-funded projects. In Hawaii, 2015 legislation set a collective goal for the Universityof Hawaii system to be rated net-zero by 2035,and 2017 legislation created a revolving loanfund to help meet that goal. Rhode Island lawmakers enacted companion bills in 2017. Oneexpanded the state’s Green Building Act toinclude public real property; the other updatedstandards, including LEED for building projects, LEED for Neighborhood Developmentand the Green Building Council’s SustainableELECTRIC CARSites.READY GARAGEIn the last two years, at least a dozen statelegislatures enacted bills on high-efficiencybuildings, and in this session at least eightstates have introduced legislation related togreen and net-zero buildings. As they strive forgreater efficiency and more vibrant economies,states may continue going beyond code toachieve their energy conservation goals.— Megan Clevelandawmakers have caught a bit of Buzz Lightyear’s enthusiasmwhen it comes to buildings and energy efficiency.But instead of going beyond infinity, like Buzz, theywant builders to go “beyond code”—that is, beyond traditional energy code requirements for buildings. The policies they’reconsidering incorporate established green-building rating systems:the U.S. Green Building Council’s Leadership in Energy and Environmental Design, known as LEED; the Green Building Initiative’sGreen Globes; the U.S. Environmental Protection Agency’s EnergyStar; or net-zero energy requirements.It takes a lot of energy to power buildings. Residential, government and commercial structures accounted for 39 percent of U.S.energy consumption in 2017, according to the U.S. Energy Information Administration.This power doesn’t come cheap. The electricity required to lightcommercial buildings amounts to more than 35 billion a year, theU.S. Department of Energy estimates. That’s before adding thecosts of maintaining comfortable temperatures, heating water orpowering appliances, computers and office equipment. Loweringbuilding energy use not only decreases operating costs, but alsoreduces air emissions and strain on the electric grid.JULY/AUGUST 20188STATE LEGISLATURES

TRENDSHealth Centers Filling the GapsThe federal Bipartisan Budget Actshowed continued support forcommunity health centers, whichserved around 27 million patientsin 2016, more than ever before. The lawincreases health centers’ discretionarygrant funding, bringing the total fundingfor the centers to 5.4 billion. The moneyhelps to expand the availability of primarycare at health centers across the country.That’s good news for the millions ofpatients who use these nonprofit, community-directed facilities for most of theirmedical needs. Also known as federallyThe PatientsHealth centers served close to 27 millionpatients in 2016. 1 in 6 Medicaid patients1 in 5 uninsured individuals1 in 3 people living below poverty line1 in 6 rural residentsSource: National Association of CommunityHealth Centers, 2017qualified health centers or, simply, health centers, they operateThe Cost Factorin more than 10,400 underThe insurance status of health center patients in 2016served rural and urban communities across the U.S., serving all49% Medicaid or CHIP recipientswho come through the doors,23% Uninsuredregardless of their insurance17% Privately insuredor financial status. The centers9% Medicare recipientsoffer a full range of primary2% Otherand preventive medical services,Source: National Association of Community Health Centersalong with translation, healtheducation and transportationassistance, when needed.cover their costs. In addition, some healthAs their use grows, more are addingcenters also receive state grants to mainsupplemental services, such as dentistry,tain various services. In FY 2017, 33 statesbehavioral health care, pharmacies andprovided direct funding to health centers,substance abuse treatment. Studies indiseveral tapping into tobacco taxes andtobacco settlement funds.cate these centers increase access to careHealth centers employ nearly 213,000and improve patients’ health. For exampeoplenationwide who not only offerple, health center patients have fewerpatients cost-effective care, but alsolow-birthweight babies and higher controlgenerate economic activity in their localrates of diabetes and blood pressure thancommunities, estimated at 45.6 billionthe national averages.in 2014, according to Capital Link, aBut they couldn’t survive withoutnational nonprofit dedicated to strengthadditional funding. Since only 17 percentof health center patients carry privateening community-based health care.insurance, centers rely on federal grants to—Samantha ScottiInternet DeregulationThe Restoring Internet FreedomOrder, which the FederalCommunications Commissionissued early this year, becameeffective June 11. It repeals net neutralityrules established in 2015 that preventedinternet service providers from blocking,slowing down or speeding up the deliveryof content, or favoring one website orapp over another. Supporters say thenew FCC order was needed to replacethose “unnecessary” and “heavy-handed”regulations with strong consumerprotections, increased transparency andcommon-sense regulations that will pavethe way for better, faster, cheaper internetaccess.Many doubt those claims, fearing thatrepealing net neutrality rules will givemajor telecommunications companiesunprecedented control over how we usethe internet. As of June 1, legislators in 30states had introduced more than 65 bills orresolutions in support of maintaining netneutrality principles. Oregon, Vermont andWashington passed legislation. Governorsin Hawaii, Montana, New Jersey, NewYork, Rhode Island and Vermont havesigned executive orders requiring companies wishing to contract with the stateto confirm they will follow net neutralityrequirements. In addition, the mayors of atleast 120 cities also have pledged to requireentities contracting with them to adhere toSTATE LEGISLATURES9JULY/AUGUST 2018net neutrality rules.The rule change also gives primaryjurisdiction over internet service providers’practices to the Federal Trade Commissionand pre-empts actions states take to reinstate net neutrality restrictions. Attorneysgeneral from 22 states have filed a protective petition for review against the FCC inthe U.S. Court of Appeals seeking a determination that the order violates federal lawand is “arbitrary” and “capricious.”—Danielle Dean

TRENDSDefense Spending and the StatesThe U.S. government spends defense dollars in every statethrough purchases of military equipment, wages forservice members and civilians, pension payments, healthcare services and grants to states.But the size and mix of those investments vary substantially bystate, so changes in defense spending will affect each state differently. The effects also depend on which programs and operationsare increased or cut.This analysis of defense spending in the states goes beyond con-tracts and salaries to include retirement payments, nonretirementbenefits and grants.In fiscal year 2015—the most recent year for which completedata are available—federal defense spending totaled 485 billionin the states and the District of Columbia, or 1,510 per person.The amount spent by state per capita ranged from 386 in Michigan to 7,132 in Virginia. The District of Columbia received thehighest amount of spending per capita at 10,413.—Anne StaufferDistribution of Federal Defense SpendingThe Big FivePer capita by state, federal fiscal year 2015; average was 1,510.Defense spending falls into these categories. Contracts for purchases of goods andservices, such as military equipment, informationtechnology, and operations and maintenanceprograms, accounted for 56 percent of allspending in the states. This was the largestcategory in 35 states and the District of Columbia,and it made up at least 70 percent of federaldefense dollars in Connecticut, Massachusetts,Minnesota, Missouri and Pennsylvania. Salaries and wages for active-duty military,civilian, reserve and National Guard personnelaccounted for 28 percent of total spending.California, Texas and Virginia received nearly onethird of these funds, reflecting the high numbersof federal defense employees in these states. For13 states, this category was the largest. Retirement benefits, which are payments toindividuals for military pensions, accounted for 12percent of spending in the states. More than onethird of the total went to California, Florida, Texasand Virginia. Nonretirement benefits, which are paymentsfor health care provided through the military’sTricare Management Program, accounted for 3percent of spending. More than one-fifth of thesefunds went to Florida and Texas. Grants, which include funding to stateand local governments for programs such asNational Guard activities, medical research anddevelopment, and basic and applied scientificresearch, accounted for 1 percent of spending.More than one-fifth of these funds went toCalifornia and Maryland.— Anne Stauffer, Justin Theal and Laura Pontari,The Pew Charitable TrustsRIDCPRVIGUMPASMore than 1,700 900 – 1,700Less than 900No dataNotes: Defense spending is defined as expenditures by the Department of Defense on salaries andwages for military personnel as well as retirement and nonretirement benefits (e.g., military pensionsand health care services, respectively) and obligations for contracts for purchases of goods andservices, such as weapons systems and information technology consulting, and grants to state andlocal governments. Contracts spending also includes “purchases by non-DOD agencies which end upin DOD products,” as reported by the Office of Economic Adjustment.Sources: Pew’s calculations using data from the U.S. Department of Commerce’s Bureau of EconomicAnalysis, Annual State Personal Income and Employment, “Personal Current Transfer Receipts (SA35),”accessed February 2018; USASpending.gov, accessed Feb. 7, 2018; U.S. Department of DefenseOffice of the Actuary, “Statistical Report on the Military Retirement System, Fiscal Year 2015” (2016);Department of Defense Office of Economic Adjustment, “Defense Spending by State, FY 2015”(2017);and U.S. Census Bureau, “Annual Estimates of the Resident Population for the United States”(December 2017).Anne Stauffer is a project director, Justin Theal is a senior associate and Laura Pontari is an associate with The Pew Charitable Trusts’ fiscal federalism initiative.Pew published this article on April 9, 2018.JULY/AUGUST 201810STATE LEGISLATURES

TRENDSOne Size Legislature Fits All?When lawmakers considerchanging the sizes of theirchambers, the debatetypically centers on threemajor themes: representation, efficiencyand cost. This year, at least three statelegislatures debated downsizing.Pennsylvania, with the second largestnumber of lawmakers in the country, isconsidering a bill to shrink the GeneralAssembly from 253 members to 189 members—50 senators to 38, 203 representativesto 151. Representative Jerry Knowles (R),who introduced the bill, toldpublic radio that, with fewermembers, there “would justbe better discussion, betterdebate.” In a smaller legislature, the responsibility ofeach member increases andRepresentativelegislators become moreJerry KnowlesPennsylvaniavisible, supporters argue.It’s also cheaper to shrink.Pennsylvania would save an estimated 15million a year if Knowles’ bill passes andcitizens approve it.But rural lawmakers worry that if thenumber of legislators is decreased and theAlaska Senate chambersize of districts is increased, it will be moredifficult to connect with constituents. Themore the members, the fewer the constituents for each. With fewer constituents,opponents to these bills argue, it’s easier tohave face-to-face dea

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