2021 Challenge Winner

Secure Tokens for State Financial Offerings

Problem

General obligation bonds are prohibited under the Colorado Constitution without voter pre-approval. As a result, capital financing has principally been done through tax or revenue anticipation notes or certificates of participation (COPs). Tax or revenue anticipation notes are used to help cash flow of the General Fund or local school districts, but they are repaid within the same fiscal year. The State of Colorado uses COPs to finance construction of new facilities. These COPs are typically offered to lessors who assign their interests to commercial banks, mutual or pension funds, and PERA to own the property, collect lease and interest payments from the state, and make payments to investors. This method of securing state debts limits the number of businesses and organizations that can invest in the state and assist in financing capital projects.

Solution

In order to reduce the dependence on commercial banks, institutional investors, mutual funds, and pension funds, COPs could be funded by millions of individual investors through the use of secure tokens. The introduction of a policy that sets up a plan for secure tokens to be used to finance COPs would greatly expand the number of potential investors and decrease the interest rate that the state would owe on its principal loan as a result of direct purchases by retail investors. Instead of the state using investment banks that charge high fees to underwrite new COP offerings, Colorado would be able to issue secure token offerings (STOs). This approach would likely lower interest rates compared to traditional COP financing methods and the citizens of Colorado could share in the ownership of new capital assets until the state has paid back the principal and interest to each investor.

Biogas to Vehicle Fuel

Problem

Lincoln is dedicated to a climate-smart, low-carbon way of life and has set an ambitious goal to reduce our net greenhouse gas (GHG) emissions by 80% by 2050. The anaerobic digestion of solids that go to wastewater treatment facilities produces methane, a powerful GHG. Historically, Lincoln burned off the gas by flaring it. By 1991 however, Lincoln installed generators that could harness the biogas from the anaerobic process to produce electricity for the treatment plant. When these generators reached the end of their useful life, Lincoln went in search of solutions that could further optimize our wastewater system by harvesting renewable methane, converting it to usable fuel, and significantly reducing GHG emissions.

Solution

Lincoln developed a new process that treats, cleans, and transforms the biogas generated by our wastewater system into quality, renewable vehicle fuel. This solution also protects air quality by stripping the biogas of dangerous pollutants, including sulfur and carbon dioxide. The City partnered with HDR Engineering, Building Crafts Incorporated, and Black Hills Energy, which built the infrastructure needed to connect the renewable natural gas to the national natural gas pipeline system. To get renewable natural gas on the marketplace, the City is also partnering with Bluesource, a national energy management company.

Kentucky Maternal and Infant Health Project

Problem

Kentucky is in a maternal mortality crisis. The rate of Kentucky women dying from pregnancy-related causes is more than double the national average, with the United States being last in maternal health outcomes among wealthy countries. This crisis is even worse for Black Kentuckians, for whom the infant mortality rate is almost double that of white Kentuckians, while maternal mortality is three to four times higher.

Solution

In 2021, the Kentucky House Democratic Women’s Caucus filed a slate of 21 bills and resolutions designed to raise awareness of the maternal health crisis in our Commonwealth and improve health outcomes for birthing people and infants across Kentucky. The bills cover five broad areas: care for families, mental health, incarceration, access to care, and health equity. Examples of the proposed bills are: Requiring Medicaid to cover the cost of midwives and doulas, who are able to provide a less stressful birth environment and fewer health complications; Expanding the current assistance program for families having their first child (HANDS) to include maternal and postpartum depression referrals and services; Extending Medicaid coverage for up to a year for postpartum-related health issues (currently ends after 60 days); Establishing pregnancy as a qualifying event for health insurance to increase access to prenatal care for those who otherwise may not have health insurance; Removing sales taxes on breastfeeding equipment and having insurance cover these costs; Authorizing a maternal, fetal, and infant mortality working group; Establishing insurance coverage for maternal depression screenings at pediatric visits; Creating a child mental health services access program; Expanding access to pregnancy-related services for incarcerated women.

New Standards for Police Use of Force

Problem

Over the last year and a half, the over policing of certain segments of our communities, particularly for Black and Brown residents, has reached a point of reckoning. Communities across the county have faced terrible incidents of excessive use of force at the hands of police, and Montgomery County, Maryland has not been immune. Here in Montgomery County the data demonstrates disparities. While Black residents make up about 20 percent of the county, they make up 55% of use of force incidents. With Latino residents included, that accounts for over 75% of use of force incidents by police. Unfortunately, we have had incidents of police killing black residents and have also had very public incidents of excessive use of force. But for cell phone and body cameras, these incidents would not have come to light.

Solution

We drafted a law to amend the police use of force policy. This policy prohibits a police officer from using deadly force except when absolutely necessary, when no other alternatives are available. This includes prohibiting neck or carotid restraints and striking a restrained individual. The bill bans no-knock warrants and shooting from or at moving vehicles, unless the vehicle is being used as a weapon and the circumstances would authorize the use of deadly force.

The policy must provide guidelines protecting individuals without regard to race, sex, gender identity or sexual orientation. Rules must protect vulnerable community members and populations disproportionately impacted.

The law requires officers to stop or attempt to stop the use of excessive force or the commission of a crime by another officer. Officers who intervene must not be retaliated against or disciplined for taking action.

Student Loan Repayment Tax Credit

Problem

College tuition at both public and private institutions had exploded, and student loans now exceeded credit card bills or auto loans when it comes to household debt. In fact, Connecticut has the highest student debt per capita in the country, averaging over $30,000 per head. Relatedly, our state is suffering from a brain drain, with highly-skilled graduates leaving Connecticut to start their careers elsewhere. Businesses that have left this state regularly cite the challenge recruiting a talented workforce when explaining their decision to pack their bags.

My co-sponsors and I each represent moderate districts, and we knew that Connecticut couldn’t afford to abolish trillions of dollars of debt with the snap of a finger. So we decided to try something new. We believed that addressing the student loan crisis wasn’t just the right thing to do for young people—it was a necessary component of reviving our economy.

Solution

Together, we drafted and passed SB 72, a corporate tax credit for any business that helped to pay off their employees’ student loans. In short, companies that hire recent graduates can reduce their tax liability by helping to pay back the loans of their employees. The credit is capped at $5,250 per year, to sync with a federal tax benefit available to employers. Republicans loved the bill because it cut taxes for businesses. Democrats loved it because it helped young people afford their college degrees and stay in Connecticut. Realtors helped push it over the finish line, citing evidence that student loan debt delays the purchase of a first home in Connecticut by an average of seven years. SB 72 was approved in the House and Senate on a bipartisan basis.

Secure Tokens for State Financial Offerings

Problem

Solution

Biogas to Vehicle Fuel

Problem

Solution

Kentucky Maternal and Infant Health Project

Problem

Solution

New Standards for Police Use of Force

Problem

Solution

Student Loan Repayment Tax Credit

Problem

Solution

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