State Elections
Legislative Races
Republicans will continue to dominate state legislatures. After an election in which more than 80 percent of 7,383 state legislative seats nationwide were up for grabs. Republicans, who have dominated control of legislatures since the 2010 mid-term election, held the majority in 67 of the country’s 98 partisan legislative chambers, while Democrats had 31 going into the election. Nebraska’s single chamber is nonpartisan.
In Kentucky, Republicans took over the House of Representatives for the first time since 1921, while defeating longtime Democratic House Speaker Greg Stumbo. That result leaves Republicans in control of all 30 legislative chambers in the South for the first time in history. Republicans also wrested control of the Iowa Senate and the Minnesota Senate from Democrats, according to the latest data from the National Conference of State Legislatures (NCSL).
It was not a GOP sweep, though. Democrats hit their target in the New Mexico House of Representatives, gaining a majority of seats, and took over both chambers of the Nevada Legislature. In Hawaii, the only Republican in the Senate was ousted, making the Democratic-controlled chamber the first all one-party state legislative chamber since 1980. One chamber, the Connecticut Senate, came out of the election tied. Democrats also retained control of the Illinois Legislature but lost their veto-proof majority in the House.
As of press time for this article, the New York Senate outcome remains in doubt. Post-election, Democrats have 31 seats and Republicans 30, with two seats to be decided by absentee ballots (Democrats lead in one race and Republicans in the other). The Independent Democratic Caucus (IDC), which has caucused with Republicans, likely has expanded from 5 to 7 members. If the Democrats gain the 32 seats they need for control, the question is whether the IDC will stick with their party or help Republicans gain control.
Governor Races
With such widespread focus on the presidential elections, many may wonder why governors’ races important this year. For starters, governors will approve or reject any new redrawing of legislative districts and this can have repercussions for years to come.
This year, Democrats were defending eight governor’s seats, while the Republicans were trying to hang on to four. At least six of those races were seen as competitive or toss-ups. In the end, Republicans extended their majority of U.S. governorships. As in other down-ballot races, the presidential contest impacted several of these matchups. Trump’s support appeared to help Republicans in Vermont, Indiana, North Dakota, Utah, and Missouri. However, in what appears to be one of the tightest races of the election and is too close to call at the time this article is written, North Carolina incumbent Pat McCrory (R) is fighting for his job against Attorney General Roy Cooper (D), with Cooper leading by only a few thousand votes.
Missouri’s legislature and governor’s office will be totally under Republican control after Eric Greitens won the race to succeed term-limited Democratic Governor Jay Nixon. Vermont will now have a split in party control with a heavily Democratic legislature but a Republican Governor, Phil Scott (R) who defeated Sue Minter (D).
Meanwhile, Delaware stayed in the Democratic column with John Carney (D) winning the governorship, and West Virginia billionaire Jim Justice (D) defeated Senate Leader Bill Cole (R) to keep the governor’s mansion in Democratic hands.
Lieutenant Governors
Three of the seven new governors elected this year are former lieutenant governors. ReMA began an active outreach effort with the states’ second in command in an effort to build recognition and promote our industry among the states’ executive branch officials. Working with the National Lieutenant Governor’s Association (NLGA), this year ReMA succeeded in raising awareness among state Lt. Governors that recyclables are not waste and recycling is into disposal. In July, the NLGA unanimously adopted a Recycling Resolution that acknowledges the importance of the recycling industry and its positive economic and environmental benefits to the states.
ISRI’s work with NLGA has now opened the door to several Governors’ offices that may not have been easily accessible in the past. For instance, Vermont Governor-elect Phil Scott (R) is an active NLGA Executive Committee member and a co-signatory of the ISRI-supported NLGA Recycling Resolution. Indiana Governor-elect Eric Holcomb (R) is an active NLGA member who attended every NLGA meeting in 2016, and former NLGA Chairman John Carney (D) is now Delaware Governor-elect. This means 43 percent of today’s new Governors are former lieutenant governors and each one of which is active with NLGA.
In addition, two former NLGA Chairmen won higher offices. John Carney, just mentioned, and Maryland U.S. Representative-elect Anthony Brown (D), a former NLGA Chair. And history shows, an average of four governors are tapped for service in DC when the White House changes party.
State Attorneys General
There were 10 state attorneys general races this year, five of which were for open seats. All incumbents were reelected. Republicans picked up Missouri, and retained the open seat in Indiana. Democrats retained open seats in North Carolina, Pennsylvania, and Vermont.
The AG landscape now has 28 Republican AGs and 22 Democratic AGs. There may be a recount in North Carolina. New Hampshire elected Republican Chris Sununu as Governor. It is widely expected that Governor-elect Sununu will appoint a Republican AG, which would bring the AG count to 29 Republicans and 21 Democrats.
Ballot Measures
The ballots in 35 states plus the District of Columbia included over 150 ballot questions for voters to decide (and politicos to watch) this year. Some of these ballot initiatives may have an impact on the recycling industry, at least indirectly, particularly as they relate to taxes, labor issues, such as minimum wage and right to work, and criminal justice initiatives.
Here is a recap of some these ballot measures.
Plastic Bag Bans: Californians voted to approve the statewide plastic bag ban originally passed in 2014. Proposition 67 upholds 2014 California SB 270, prohibiting stores from providing single-use carryout bags and requiring a minimum $0.10 price for recycled paper, reusable, or compostable bags. The ballot initiative won 52 percent of the vote; another referendum impacting the bag ban, Proposition 65, failed with only 45 percent of the vote. Proposition 65 would have required money collected from the sale of recycled paper, reusable, or compostable bags be redirected to a special fund administered by the Wildlife Conservation Board for environmental protection and grants. California is the first state to enact a statewide statutory ban on bags. The District of Columbia and many local governments across the nation have also passed bans and/or mandatory fees impacting paper and plastic bags, but other states have taken a different track; Arizona, Idaho, and Missouri have all passed legislation preempting local ordinances. The National Conference of State Legislatures maintains a State Plastic and Paper Bag Legislation page with information on state and local laws impacting bags. ReMA adopted a position in 2013 opposing bans and fees on recyclable paper and plastic as a matter of policy.
Minimum Wage: Proponents of minimum wage increases around the country argue that in many places, minimum wage rates have not kept pace with the cost of living; increasing the minimum wage will lift some workers out of poverty and reduce dependence on public assistance programs; higher wages increase productivity and reduce turnover among workers; and that increased wages in turn increase consumer spending, which is beneficial to state economies. Opponents, on the other hand, argue that raising the minimum wage will lead to increased costs to consumers; decreased levels of employment because hiring workers becomes more costly and encourages employers to automate some positions; decreased investment as states will be less competitive than their neighbors; and that increased wages place an undue burden on small businesses which may already have low profit margins, and therefore, a harder time adjusting to higher employment costs.
Right to Work: Right-to-work laws, which exist in 26 states, allow employees to decide whether to join or financially support a labor union. In the last several years, labor unions lost battles in the Midwest when Indiana, Michigan, and Wisconsin all became right-to-work states. This year, West Virginia became the 26th right-to-work state.
Taxes: Taxes are always a prevalent feature on the ballot, and this year is no exception. Voters in 14 states were asked to decide 25 ballot measures related to tax policy on Election Day. Some of the general trends included:
- Changes to Business Tax Regimes | 2 measures in 2 states | Voters in two states were asked to decide whether or not to make big changes to their business tax structures. In Oregon, voters decided not to impose a gross receipts tax, and Louisiana, decided not to keep a large corporate income tax deduction.
- Various Changes to Sales Taxes | 5 measures in 4 states | There were several measures relating to sales tax this year (Georgia, Missouri, Nevada, and Oklahoma). They ranged from directing revenues from certain portions of the sales tax to certain governmental functions (Georgia) to changing or restricting the base (Missouri and Nevada) to altering the rate (Missouri, Oklahoma, and Washington).
- Increasing (or Retaining Higher) Personal Income Tax Rates | 2 measures in 2 states | Voters in two states were asked to make decisions about how high personal income tax rates will be, either by adding a surcharge to the existing structure for higher-income earners (Maine) or by extending temporarily-imposed higher rates (California).
- Enacting Environmental-Related Tax Provisions | In Washington, voters rejected an initiative to impose a carbon tax.