Eutopian Central Bank

[Voshkod]

The Eutopian Central Bank is the keeper of the budget. Each term, it will release current budget numbers, and it will track increases and decreases in funding available to the Government.

The Government and members of the Assembly may send financial impact statements to the ECB on proposed policy goals and legislation. The ECB will analyize the proposed impacts and publish their opinions.

The Term 12 (or "Levarge") Budget​

​

[b][i]Expenditures[/i]

President[/B]
Government Administration	4.5
Defense			        7
Foreign Intelligence		1
Foreign Aid                     1
Foreign Affairs                 1

[B]Attorney General[/B]
Federal Law Enforcement	        5.5
Domestic Intelligence		2
Border Protection		1
Court System			3

[B]Interior Minister[/B]
Land Transportation		3
Air Transportation		1
Sea Transportation		2
Coast Guard			3
Environmental Protection	1
National Parks			1
Postal Service			2
Government Media		3
[B]
Finance Minister[/B]
Industry and Labor		6.5
Trade and Customs		4
Natural Resources		3
Treasury Enforcement		2

[B]Social Services Minister[/B]
Public Health                   11
Welfare                         15
Omnicare                        8.5
Sports				1
Education			4
Science and Research		2
Drug Control			1

Total Expenditures		100

[I][b]Revenue[/b][/I]

[b]Income Tax by Household Income[/b]

Poverty Line (15%)              0
Lower Class (35%)               10
Middle Class (35%)              25
Upper Class (10%)               20
Wealthy (5%)                    15

[B]Total Income Tax[/B]                60
[B]
Personal Property/Estate Tax[/B]    5

[B]Corporate Tax [/B]                  30

[B]Natural Resource Leasings [/B]      5
[B]
Total Revenue[/B]                   100
[B]
[I]Current debt[/B][/I]                    0

The Term XIII Budget​

​

Expenditures                 Prior       Term XIII
                             Levels      Approved          Difference
[B]President[/B]
Government Admin.            4.5         4.5               0
Defense                      7           8                 1
Foreign Intelligence         1	         1.25	           .25
Foreign Aid                  1	         .5	           -.5
Foreign Affairs              1    	 1.5	           .5
					
[B]Attorney General[/B]				 	
Federal Law Enf.             5.5	 5.75              .25
Domestic Intelligence        2           2                 0
Border Protection            1	         1	           0
Court System                 3           3	           0
					
[B]Interior Minister[/B]					
Land Transportation          3 	         3	           0
Air Transportation           1           1.5               .5
Sea Transportation           2 	         3.5		   1.5
Coast Guard                  3 	         3		   0
Environ. Protection          1 	         1                 0
National Parks               1 	         1.25		   .25
Postal Service               2	         2		   0
Government Media             3           2.75              -.25
					
[B]Finance Minister[/B]	
Industry and Labor           6.5         6.5               0
Trade and Customs            4           4                 0
Natural Resources            3           3                 0
Treasury Enforcement         2           2                 0
					
[B]Social Services Minister[/B]					
Public Health                11	         9                 -2
Welfare                      15	         13                -2
Omnicare                     8.5	 8                 -.5
Sports                       1  	 1                 0
Education                    4	         4                 0
Science and Research         2           2.25              .25
Drug Control                 1           1                 0
					
[B]Provincial Subsidy[/B]	     0	         0                 0

[B]Surplus[/B]	                     0           1.25              1.25
					
[B]Total Expenditures[/B]           100         98.75             -1.25

See Rule 47 for an explanation of how the budget works.

 

[Voshkod]

Press Release​

The Eutopian Central Bank, having completed its analysis of the expenditures of the Levarge regime, will be issuing budgetary figures for the notional term XII in short order.

- Pierre Murat

 

[Voshkod]

Per Murat approaches the podium. "Good afternoon. The Central Bank has completed its analysis of the notional term 12, or 'Levarge,' budget. The results are available at the Bank's headquarters.

"By way of summary, it is the considered opinion of the Bank that foreign affairs - whether diplomatic, intelligence, or aid - were underfunded. The Levarge regime also underfunded the transportation sector, environmental protection, the national park system, and drug control.

"The Bank believes that welfare and Omnicare funding are adaquate, but that cuts would potentially endanger the 'social safety net' enjoyed by Eutopian citizens. Public health funding is . . . robust, as is advanced education. Perhaps the local jurisdictions can shoulder more of this burden.

"The Bank remains ready to consider budgetary impact reports from the future Government. Thank you."

 

[unmerged(33865)]

A packet arrives from the ELP offices addressed to the Economic Impact Assessment department containing a copy of the Census bill, with the Economic Impact Analysis highlighted and some additional analysis:

Fiscal Impact: In terms where a census will be conducted and tabulated, the cost is estimated to be 0.1% of the federal budget for that year.

There are an uncertain number of people in the United Provinces of Eutopia, which is why we are having the census. The census would be mostly conducted by mail and with follow-up by paid surveyors to visit households not responding. Assuming 80% mail response at $5 per person counted and 20% tabulated by survey at $75 per person counted, the weighted cost would be $19 per person counted. If there is about 21 million people in the UPE, it would cost about $315 million, which is approximately 0.1% of the budget, rounded to the nearest 0.1%.

Respectfully submitted,

(Submission edited to reflect friendly amendment in general assembly.)

 

[Voshkod]

The ECB has reviewed the budgetary impact of the Census bill, and found it to be negligible. Any expense can be covered through excess receipts and unexpended funds.

 

[Craig Ashley]

I'd like to submit the following potential bill and economic impact report for ECB study.

The Narcotics Reform Act

I. Narcotics possessing the following characteristics shall be classified as Class 1 Narcotics. They shall have little to no addictive qualities, present a moderate to small risk of fatal overdose, and shall not pose a excessive threat to public safety. The office of the General Attorney is authorized to decide the status of each individual narcotic based on these guidelines, and its decisions in this matter are subject to judicial review.

Narcotics possessing unacceptable levels of addiction, risk of overdose, or posing a strong threat to the public good shall be classified as Class II Narcotics and shall remain illegal.

II. Class I Narcotics, being defined above, shall be decriminalized. Users are still subject to local ordinances and fines, but shall not be punishable by imprisonment or other excessive penalties.

III. Use and possession without intent to distribute of Class II Narcotics offenders shall have the option to complete an prescribed addiction recovery program in lieu of any sentence. Completion shall result in the suspension of the sentence and a period of probation decided by the courts. Failure to complete the perscribed addiction recovery program shall result in the sentence being carried out in full.

The state shall have the option of either creating its own addiction recovery programs or using approved private organizations and paying for the individual's stay. Private organizations have the right to refuse offenders due to violent history if they are inadaquetely equipped to handle such risks.

This clause shall not affect the prosecution or sentencing of any other crimes commited while in possession of or under the influence of Class II Narcotics.

IV. Possession with intent to distribute shall remain subject to imprisonment and all other applicable penalties without the addiction recovery option.

Fiscal Impact Report (ECB Approval Pending)

Overall impact is negligible. Reduced costs in law enforcement and the corrections system from the decriminalization of Class I Narcotics and the fines generated by offenders will be offset by the new costs of state funded rehab programs or enrolling offenders in private rehab centers.

The budget may need to be changed to move a small sum from law enforcement to drug control, but the overall total expenditures will remain stable.

 

[The_Hawk]

The ECB has reviewed the budgetary impact of the Narcotics Reform Act (NRA), and found that a slight reduction in overall drug enforcement costs is likely. The ECB funding is based on extensive studies comparing rehabilitation costs versus prosecution, punishment, and incarceration costs in nations such as the United States, where rehabilitation costs are invariably considerably lower than the cost of incarceration. However, the cost reduction will be substantially lower in Eutopia because 1) fewer drug crimes are punished by substantial incarceration in Eutopia (thus making the costs lower to begin with), and 2) the requirement of state funding of treatment programs in the NRA.

Depending on various factors, the cost reduction may be anywhere from .1% to .5% of both the law enforcement and drug control budgets.

 

[Craig Ashley]

A new bill is submitted for consideration.

Veteran's Pension Act

In addition to current spending levels, an additional 0.25% of total government spending shall be dedicated towards an across the board increase in the pensions of Eutopia's veterans of the armed services.

Once a new budget is introduced in Term 13, it will be enpowered to supercede this legislation.

Fiscal Impact Report

Since the military budget has already recieved a 1% increase in total spending, this bill will not alter the existing budget. Instead it simply mandates where a portion of that increase must be spent.

Increase funds in the hands of veteran consumers may result in a slight increase in overall domestic spending, but the affect would be negligible. Overall economic impact is minimal.

 

[Craig Ashley]

Another bill is submitted for consideration.

Economic Recovery and Tax Reform Act

1. The corporate tax rate on dividends shall be reduced to 15%.

2. Income earned on dividends recieved by the shareholders shall be exempt to income tax.

3. Capital gains paid on profits made on stock sales shall be taxed at the normal income tax rate, not the speical capital gains rate.

Fiscal Impact Report

Taxes on dividends currently represent 0.9% of all government revenues. The proposed cuts would reduce this total revenues by 0.8%. However, such a drastic reduction in the dividend tax rate is expected to dramatically increase dividend payouts. This increased activity should cover the shortfall and then some. Corporations can also be expected to put the new infusion of capital to work on various projects and expansions, generating further growth. New corporations are also expected to form in Eutopia to take advantage of the new tax system and would then pay Eutopian corporate taxes. In addition, dividends paid to Eutopian investors would represent new disposable income pumped into the economy, generating more economic activity and fostering an increase in consumption, pushing all other tax revenues higher.

Capital gains paid on stock sales currently represent 0.5% of total government revenues. The proposed decrease would half the revenues generated. However, the new lower rate, coupled with the new dividend rates would make investing in Eutopia a far more attractive option. There should a large increase in the number of cases where capital gains taxes would apply to stock sales, and this volume would easily cover the shortfall and beyond.

Conservatively, the total economic impact is estimated to be an additional 5% in government revenues.

 

[Craig Ashley]

Clean Eutopia Act

1. Section I of this act is aimed at illegal dumping of all types, be it material, chemical or biological not related to air and water dumping, which is a separate issue and will be addressed later in this bill. Hefty fines and punishments are entailed as well.

1A. Littering: $500 dollar fine. Cigarettes and other small trash must be put into proper receptacles, not just tossed on the ground.

1B. Trash dumping: $1,000-$10,000 fine. Anything from a few bags of trash to truckloads of trash dumping in nonapproaved locations, aka landfills.

1C. Chemical Dumping: $1,000-$1,000,000 fine. Whether by invidual or a business, chemical dumping of such is now illegal. Such chemicals must be disposed of in approved containers and stored or destroyed properly.

1D. Biological Dumping: $1,000 to $100,000 fine. For dumping biological materials up to and including biohazardous materials instead of disposing of them in the proper manner.


2. Section II is the Clean Air portion of this bill. Emissions from internal combustion engines, steam engines, power companies and factories are covered in this portion of the bill.

2A. Internal Combustion/ Steam Engine Emissions: Automotive manufactures and steam engine manufacturers must reduce emissions to the rate concurrent with US California emissions standards. Which for Eutopia equals a reduction of such emissions by 75%. Manufacturers who cannot meet these standards within 3 years of the passing of this bill will no longer be allowed to do business in Eutopia. Such manufacturers include automobiles, trucks, SUV's, buses, motorcycles and any other conveyance that uses such engines as well as supplemental power generators.

2B. Smoke Stack Emissions. Fines will range from $50,000 - $1,000,000. Electrical power plants as well as factories must reduce such emissions by 75% within three years of this bill passing. Failure to do so will result in the levying of fines and a warning to comply within one more year or face further fines and the immediate shut down of the facility.


3. Section III is the Clean Water section of this bill.

3A. Trash Dumping:$500-$100,000 fine. Whether by individual or business such would immediately become illegal upon passing of this bill.

3B. Chemical Dumping:$1,000-$1,000,000 fine. Whether by individual or business such is now illegal upon the passing of this bill. Businesses have 3 years to completely halt all such dumping, whether by pipe or whatever other means they are doing such or face maximum fines and a warning to comply within 1 more year or face further fines and a complete closure of the facility.

3C. Biological Dumping: $1,000-$1,000,000 fine. Whether by individual or business such dumping is now illegal. Businesses have 1 year to comply with this law or face maximum fines and closure of the facility.

3D. Engine Emissions From Watercraft: $500-$100,000 fine. Whether by individual or business such emissions such as fuel and oil leakage, must be reduced by 75%. Proper maintenance of of engines is the personal or businesses responsibility. There is a 2 year window on thissubsection 3D to comply.

4. Section IV is the Enforcement section of this bill.

4A. The Eutopian Environmental Agency in the Environmental department of the Ministry of the Interior will be responsible for inspecting air, water, and ground quality at, surrounding, and near businesses to ensure compliance.

4B. The EEA is responsible for levying fines and closing noncompliant businesses.

4C. The EEA will NOT actively hunt down individual offenders. However if an EEA agent personally notes a Clean Eutopia Act violation in progress, said agent can write out a fine notice on the spot.

4D. Criminal action is construed as habitually continuing to pollute. A third offense is considered habitual and prosecution will follow. Minimum sentence is recommended at 1 year while a maximum sentence is recommended at 10 years.

4F. Fine amounts levied will depend on the amount of environmental damage that is determined.

5. Section V is the funding portion of this bill.

5A. The Eutopian Environmental Agency which is the agency charged with enforcing this bill will be funded by the Ministry of the Interior.

5B. Fines levied will be placed in interest bearing funds to help with the costs of environmental clean up projects.

A fiscal impact report is requested regarding this bill. Also a seperate report regarding a possible amendment including a tax credit for all one time expenses incurred to be compliant with the bill for businesses.

 

[Craig Ashley]

OOC: Just for you, Voshkod.

Freeport Expansion Act

The General Assembly hereby authorizes the creation of a second Freeport in the Wrexford-Spalding metropolitian area. This freeport shall be subject to all the regulations outlined in the original Freeport of Eutopia Act.

Fiscal Impact Report

Wrexford-Spalding is an excellent natural port and sits along several major transportation routes. The Eutopian freeways system runs through the cities and the Orange River serves a shipping lane to the interior of the country. It is also a smaller community, with room to accomodate growth and expansion. These factors make it an excellent candidate for the increased traffic a second freeport would bring.

The second freeport should not negatively impact the existing freeport in New Lancaster. Businesses that have set up there have no incentive to move their operations to Spalding-Wrexford. However, New Lancaster's airport and docks have nearly reached capacity, and there is limited room for expansion. The overflow can now be directed to Wrexford-Spalding.

The end result should be an increase in both air traffic and shipping traffic, increasing Eutopia's position as a regional travel hub. This should bring in more foriegn investors and companies and see an increase the number of shipping and transportation companies in the region.

However, new infrastructure will be needed to make this work. Wrexford-Spalding is a much smaller metropolitian area than New Lancaster. It's port facilities are well maintained, but would need expansion. It also lacks an international airport, and a new one would need to be constructed to maximize the benefits of its freeport status.
These projects will be costly and in the jurisidiction of the federal government. They must be undertaken to make the new freeport a viable center of trade and transportation. On the positive side, the relative smallness fo the location provides plenty of room for growth and expansion.

The impact on the local economy would be dramatic growth and expansion. More local infrastructure projects may be necessary, but the increased economic activity in the are should fund these projects adaquetely. Nationally, our shipping, transportation, and ship building/repair industries can expect the largest gains. However, the freeport will also result in an increase in manufacturing and assembly activity (located within the freeport zone). Total impact would see an increase in annual government revenues by 1 to 2%.

Wrexford-Spalding Infrastructure Expansion Act

The MoI is charged with overseeing the expansion of Spalding-Wrexford's port facilities and the creation of a new international airport. The appropriate provincial authorities are authorized and mandated to create a specific, singular organization to oversee the process and to levy special local taxes to businesses that will benefit from the expansion to help offset the construction costs. These taxes and levies must be temporary in nature and not harmful to the existing business comittee.

Fiscal Impact Report

The special taxes and levies, if implemented in a wise manner, should have minimal impact on the region and reduce the need for federal funding. However, should federal funding be needed, the budget was increased in both air and sea infrastructure and those funds can be directed here to help with the costs. The airport construction and port expansion will create new jobs locally, both in the construction phase and the operation phase.

The total cost of the airport and port construction projects is expected to equal roughly 3% of the federal budget. The jobs created by this expansion may account for a 0.25% increase in federal revenues. Local taxes and levies can raise two thirds of the needed funds without causing significant hardships to the local business community and its consumers.

Revised Worker's Bill of Rights Act

I. Wages & Time Off
1. All workers are entitled to be made a minimum wage, as established by the government and indexed to inflation.
2. Workers are also entitled to two weeks vacation a year, after serving a minimum probationary period of 9 months. Paid leave may be awarded on an accumulated basis, based on time worked.
3. Employers shall make available to every employee an half-hour break at least once per 8-hour shift and a paid 10-minute break for each 4-hours worked.


II. Working conditions
1. Government will guarantee the institution of local representative commissions with effective powers for reporting health and security concerns workmates to state authorities without sanction
2 Government will ensure that sufficient government inspectors are employed to enforce health, safety, and labour laws in the workplace.
3. No worker shall be work more than 20 hours per week until reaching the age of 16. The government will provide exemptions for family-based businesses.


III. Workers Rights of Organization
1. Workers are guaranteed the union rights to organize inside the private sector, though the government reserves the right to replace workers in crises of national emergency.
2. Unions are guaranteed the rights to sue firms that don't respect labour laws
3. All workers over the age of 16 and in good standing of their unions shall be allowed to vote in professional elections.

V. Education and Training
1. The government shall commit itself to a program to develop industrial education that shall be made available in the secondary education system.
2. The government establish program to provide workplace training for the unemployed and shall give particular attention to retraining programs for those who have their lost their jobs in declining industries.


VI. Employment Security and Benefits
1. Workers are entitled to fair and reasonable unemployment benefits.
2. Workers shall be entitled to full retirement rights after 40 years of full contribution.

Fiscal Impact Report

Removing some of the more restrictive measures of the previous bill will allow the market greater power to dictate labor benefits. Some may recieve more benefits as a result, others will recieve less. However, guarantees of retirement rights, scheduled breaks, vacation, unions, safe working conditions, and minimum wage remain in place. This will make Eutopia slightly more attractive to businesses and overtime will result in more jobs, particularly in the manufacturing sector.

Should Eutopia take other actions to make itself more attractive for companies to operate here, a economic upswing could be execpted. However, by itself this action will not cause a large increase in corporations doing business here. However, it will provide some relief for our existing beleaguered industries.

Immediate impact will be minimal, but long term the government may see an 0.25 to 0.5 increase in revenues and unemployment should drop as well.

 

[Voshkod]

The ECB agrees with the submitted assessment of the Veteran's Pension Act, provided that the one percent of spending required comes solely from the previously appropriated military budget.

The ECB disagrees with the submitted assessment of the Economic Recovery and Tax Reform Act. To presume that this act will increase the Eutopian economy and budgetary intake by five percent is assuming the most positive outcome. The ECB assessment is that this Act may increase the budgetary intake by two percent.

The ECB requests input from all interested parties as to their views of the budgetary impact of the Clean Eutopia Act.

 

[The_Hawk]

The ECB has reviewed the Freeport Expansion Act and strongly disagrees with its premises. Discussions with Ministry of the Interior representatives indicate no overload of the Port of New Lancaster. New Lancaster International is operating at capacity in terms of aircraft landed and airlines served, but individual aircraft flying into and out of NLIA generally carry less than maximum capacity; ergo, getting from foreign nations to New Lancaster is not generally difficult. As for cargo, there would be little incentive to ship into Wrexford/Spalding while the Port of New Lancaster remains under maximum capacity. MoI representatives recommend the investigation of other locales for a similar project; however, it is not within the ECB's mandate to gauge such potential projects before they are proposed.

For the foregoing reasons, the ECB anticipates no significant increase in revenues from this bill.

* * *​

The ECB presumes that the Wrexford-Spalding Infrastructure Expansion Act is contingent on the Freeport Expansion Act. Thus, we did only a cursory investigation. The ECB generally agrees with the conclusions made, but assumes they are irrelevant given the analysis of the Freeport Expansion Act.

* * *​

A full analysis of the Revised Worker's Bill of Rights Act is forthcoming.

 

[Craig Ashley]

I suggest the MoI look more deeply into the situation at the Port of New Lancaster. It has recieved a significant increase in traffic since become a Freeport Zone, but has not recieved any expansion of its facilities. Given the cramp nature of New Lancaster it is likely that there is limited room for expansion and the costs of such an expansion would be exceedingly high.

As to the situation in NLIA, yes the planes are not yet at maximum capacity, but there were a few airlines excluded from the last airport expansion who wanted to use NLIA as a regional hub. Since NLIA cannot be expanded without great cost, these companies and all of their customers were lost to us. More foriegn airlines means more foreign customers and more foriegn companies shipping their goods here by air.

And a report published by MERL in Term VI stated "Spalding/Wrexford makes an attractive second option to New Lancaster and could serve as a national hub due to its location on the Orange River which passes through Neuwestbaden, Eutopia City, and its tributary, the Garrone, reaches Eauze as it winds through southeastern portion of the nation." in regards to its port facilities. While it is geographically close to New Lancaster, that does not preclude it from become a port of entry on its own. The United States has the major port cities of New York, Boston, Baltimore, and Philidelphia all packed together in a close area. And these cities were major ports dating back to even colonial times, before the U.S. was the economic giant it is now. Eutopia being a relatively small island, goods arriving anywhere on the island can be quickly transported elsewhere.

Kirby is another possible major port of entry. It has existing facilities in ship building and repair, oil refineries for our oil fields in the west, and an established port. However, it is not connected to the freeway system and therefor the infrastructure costs would be greater of such a move.

Farpoint has been cited as a candidate, but it is even more remote than Kirby. Also, rapid urbanization and modernization of the area may upset the traditional topans residing in the are. Other candidates such as Hurteau and Eirikshamn are also far away from the freeway system and have much smaller local infrastructure that require a major upgrade to become a national port of entry.

Another possibility is splitting the port expansion and the air expansion by creating two additional freeport zones. The Infrastructure Report of Term VI covered our airports as well.

Eutopia has 18 international airports located in New Lancaster, Eutopia City, Fort-aux-Francais, Capistrano, Verneuil, Buen Puerto, Neuwestbaden, Gilford, Douglas, St. Brendanstown, Hurteau, Chateauvallon, Dunwich, Kirby, Witney, Villefranche, Hannover, and Farpoint. However, only six of these (New Lancaster City, Eutopia City, Buen Puerto, Neuwestbaden, Hurteau, Douglas, and Chateauvallon), serve major international airlines. The rest accommodate private international, commercial, and military carriers.

New Lancaster is far and away the busiest, followed by Eutopia City, Chateauvallon, and Buen Puerto. New Lancaster has nearly reached their maximum limit for the current facilities. Eutopia City also is unable to expand further due to the crampedness of its surroundings. Chateauvallon and Buen Puerto airports face far less restrictive surroundings, and could be expanded to much larger sizes. The facilities are adequately maintained and present no immediate concern. Age varies from city to city.

It seems Chateauvallon would be a strong choice for an airport expansion. We may also want to look into Nuewestbaden, considering its significnat economic growth over the years.

 

[The_Hawk]

The ECB can only consider concrete proposals, and if the Ministry of the Interior must be consulted, it should be contacted directly. MoI reports used in the preparation of the ECB's earlier review are available upon request, however, and would on first blush seem to substantiate the viability of an alternative venue for a new Freeport project.

 

[Craig Ashley]

I would greatly appreciate having a copy of those reports forwarded to my office. Thank you.

 

[Craig Ashley]

Submitted for consideration.

Infrastructure Expansion Act

I. Freeway Expansion

The following routes shall be added to the national freeway system in phase one: Uxbridge-Kirby-Harton-Farpoint, Harton-Dunwich-Gilford, Dunwich-Erikshamm, Chateauvallon-Villefrancha-Castellar-Rochefort-Grandeville-Hurteau. Phase two shall add the route of Kirby-Douglas-Nuewestbaden-Eauze.

Phase one's construction is authorized to begin immediately. Phase two shall begin once phase one is complete, but no later than Term XIV.

II. Airport Expansion

Chateauvallon International Airport shall be expanded by 35%. Eutopia City International Airport shall be expanded by 25%

III. Port Expansion

The port facilites in Eirkshamm by 50% and Hurteau's facilities shall be expanded by 25%. Additional funds will be made available to assit in upgrading local infrastructure needed to handle the expected increase in traffic. These additional funds shall not exceed 50% of any projects total costs, unless specifically exempted by the Minister of Interior.

IV. Finance

The Ministry ofthe Interior is authorized to oversee the expansions outlined above. The freeway expansion shall be financed by a 1% increase in the Land Transportation budget of Term XIII.

The air expansions shall be financed by the Air Transportation budget. In the event of any shortfalls, the MoI is authorized to create local taxes and levies of businesses that will gain from the expansion. These taxes and levies must be temporary in nature and not cause undue harm to the local economy.

The port expansion and the qualifying local infrastructure expansions shall be funded by the Sea Transportation budget. In the event of a shortfall, the MoI is authorized to create local taxes and levies of businesses that will gain from the expansion. These taxes and levies must be temporary in nature and not cause undue harm to the local economy.

Fiscal Impact Report

The 1% budget increase is adaquete to fund phase one of the freeway expansion. Phase two will require, when the time comes, approximately 0.25% of the budget. Land transportation budgets in the future will need a slight increase in cover maintaining the new roadways.

The air transportation budget recieved a 0.5% increase, and it will not be enough to cover the entire cost of the projects. The Eutopia City expansion will be very costly due to the geography of the area. Additional funds, equaling 0.5% of the budget will be needed. These costs can be applied to the local business community of Eutopia City and Chateauvallon as outlined without causing damage to the local economy.

The sea transportation budget recieved a 1.5% increase. The expansion itself is estimated to cost 0.5%. Hurteau will need some local infrastructure improvements and these will cost 0.25% of the budget. Erikshamm, being a much smaller community to start with, will need dramatic upgrades to handle the expected increase in traffic. These upgrades will cost and additional 0.5% of budget, assuming the maximum of 50% of the cost is paid for by the federal government in both cases.

Both Hurteau and Erikshamm stand to become major ports of entry for Eutopia. They offer distinct geographic alternatives to New Lancaster. Erikshamm can also become a major oil refining center as the off shore oil rigs are not far away.

Similarly, Chateauvallon should experience rapid growth as a transportation hub. Many international airlines should be interested in using it as a regional hub. This coupled with its appeal as a tourist destination should result in large scale growth to the area. Eutopia City will also see itself become a international transportation alternative to New Lancaster.

New Lancaster should not be negatively affected by these expansions, as companies already doing business there will not be interested in relocating and the costs that woudl incur.

The freeway expansion will relieve stress on local roadways, thus decreasing the maintence costs to the local governments. Also it will make internal transportation easier and cheaper, providing a mild combatant to inflation.

The construction itself will create new temporary jobs, which will pump more money into the economy. The airport and port expansions will also create new permanent jobs. And the increased capacity for traffic, coupled with Etuopia's natural geographic position will make an attractive transportation hub for goods from around the world, creating even more jobs.

Short term economic impact will be a slight decrease in unemployment and the costs associated with it. Long term, once a majority of the expansions are in place, the Eutopian economy can be expected to grow by 1 - 3%, government revenues growing at the same pace.

 

[Craig Ashley]

Submitted for consideration.

The Shipping, Transportation, and Maritime Construction Stimulus Bill

I. Taxes

All companies in the shipping, transportation, and ship building or repair sectors shall be subject to 70% of existing corporate tax rates for the next two terms. The following term, they shall be taxed at 85% of the existing rate. After which, they shall pay the full tax

MoF shall decided what companies are eligible for the tax break through a standard application process.

II. Grants and Training Programs

The Federal government shall adminster job training programs to qualified applicants in order increase the available pool of workers with the necessary skills for these industries. These grants shall be administered by MoF and be available for the next two terms.

Furthermore, MoF shall be authorized to issue grants to qualified companies in these sectors for start up or capital expansion. No company shall recieve a grant larger than 250 million dollars, and the total grants issues shall not exceed 0.5% of the budget.

III. Finance

The Industry and Labor section of the budget shall be increased 0.75% to fund the grants and training programs.

Fiscal Impact Report

The tax breaks would amount to 0.5% in loss revenue from existing companies. However, this figure will largely be offset by new companies in this sector, taking advantage of the tax relief, grants, and worker training programs.

The grants are exepcted to be near the cap of 0.5% of the budget. Worker training programs will cost an additional 0.25% of the budget.

Given Eutopia's desirable location, many companies should seek to take advantage of lowered taxes, start up capital, and pool of trained workers. These companies will create new jobs in related fields as well. Dock workers, trucking, packaging, and airline workers are among the industries expected to be positively impacted. Also the transportation and ship building/repair industries will create increased demand for each other. Unemployment and the related costs will see a mild drop. Overall, the economic growth should be between 2-4%. Government revenues can be expected to increase by 1.5 - 3% for the first two terms, and then the full 2 - 4% once the normal tax rate is restored.

 

[Craig Ashley]

Submited for consideration.

The Equal Rights Amendment

Equality of rights under the law shall not be denied or abridged by the United Provinces of Eutopia on account of sex or sexual orientation. All Eutopians are guaranteed equal rights including but not limited to matters of marriage, divorce, adoption, pay, property and inheritance.

Fiscal Impact Report

Minimal to none.

.............

Clean Eutopia Act

I. Illegal Dumping/Littering

A. Littering: $100-$500 dollar fine. Cigarettes and other small trash must be put into proper receptacles, not just tossed on the ground.

B. Trash dumping: $500-$10,000 fine. Anything from a few bags of trash to truckloads of trash dumping in nonapproaved locations, aka landfills.

C. Chemical Dumping: $1,000-$1,000,000 fine. Whether by invidual or a business, chemical dumping of such is now illegal. Such chemicals must be disposed of in approved containers and stored or destroyed properly.

D. Biological Dumping: $1,000 to $100,000 fine. For dumping biological materials up to and including biohazardous materials instead of disposing of them in the proper manner.


II. Emissions

A. Internal Combustion/ Steam Engine Emissions: Automotive manufactures and steam engine manufacturers must reduce emissions by 50%. Manufacturers who cannot meet these standards within 3 years of the passing of this bill will no longer be allowed to do business in Eutopia. Such manufacturers include automobiles, trucks, SUV's, buses, motorcycles and any other conveyance that uses such engines as well as supplemental power generators.

B. Smoke Stack Emissions. Fines will range from $50,000 - $1,000,000. Electrical power plants as well as factories must reduce such emissions by 40% within two terms of this bill passing. Failure to do so will result in the levying of fines and a warning to comply within one more term or face further fines and/or the immediate shut down of the facility.

III. Clean Water

A. Trash Dumping:$500-$100,000 fine. Whether by individual or business such would immediately become illegal upon passing of this bill.

B. Chemical Dumping:$1,000-$1,000,000 fine. Whether by individual or business such is now illegal upon the passing of this bill. Businesses have 3 years to completely halt all such dumping, whether by pipe or whatever other means they are doing such or face maximum fines and a warning to comply within 1 more year or face further fines and/or a complete closure of the facility.

C. Biological Dumping: $1,000-$1,000,000 fine. Whether by individual or business such dumping is now illegal. Businesses have 1 year to comply with this law or face maximum fines and/or closure of the facility.

D. Engine Emissions From Watercraft: $250-$100,000 fine. Whether by individual or business such emissions such as fuel and oil leakage, must be reduced by 75%. Proper maintenance of of engines is the personal or businesses responsibility. There is a 2 year window on this subsection D to comply.


IV. Enforcement

A. The Eutopian Environmental Agency in the Environmental department of the Ministry of the Interior will be responsible for inspecting air, water, and ground quality at, surrounding, and near businesses to ensure compliance.

B. The EEA is responsible for levying fines and closing noncompliant businesses.

C. The EEA will is empowered to act on tips and to conduct regular inspections of factories and work sites.

D. Criminal action is construed as habitually continuing to pollute. A third offense is considered habitual and prosecution will follow. Minimum sentence is recommended at 1 year while a maximum sentence is recommended at 10 years. Except in the case of habitual littering, where the minimum sentence is recomended at 3 days and the maximum is recomended at 60 days.

F. Fine amounts levied will depend on the amount of environmental damage that is determined.


V. Finance

A. The Eutopian Environmental Agency which is the agency charged with enforcing this bill will be funded by the Ministry of the Interior.

B. Fines levied will be placed in interest bearing funds to help with the costs of environmental clean up projects.

VI. Tax Incentives

A. All one time costs incurred to meet these regulations over the next three years will be applied towards a tax credit. The credit will not exceed 5% of the companies total tax liability. Any credits not applied the year they were incurred, may be rolled over to the next year and each successive year, with the annual credit never exceeding 5% of the total tax liability, until the credit is spent in full.

Fiscal Impact Report

Heavy manufacturing, chemical production, energy, construction, fishing, shipping and transportation, automobiles, and bio tech will be the industries most impacted by the Clean Eutopia Act.

The one time costs of complying with this legislation are expected to equal 1.25% of the federal budget. However, the staggered credit provisions would mean that only 0.75% would be credited this term, with the remaining 0.5% credited the following term.

The cost of maintaining compliance with the Clean Eutopia Act will represent a mild increase in the overall annual cost fo doing business in Eutopia. Whenever possible, companies will pass this cost on to the consumers, possibly causing a mild increase in inflation.

A small minority of companies may be driven out of business by the new regulations, but given the tax credits and lengthy period of time to comply, a vast majority of companies will not be so adversely affected. A fractional increase in short term unemployment is possible.

However, if the provisions are properly enforced, it will result in a long term decrease in health care spending. For this term the cost decrease would be negligible, but for the next term health care spending may decrease by 0.25% to 0.5% of the federal budget. The following term would see a similar decrease, and then spending would stabalize.

 

[unmerged(33865)]

Housing Reform Package

A letter arrives with three attachments.

Dear Sir or Madam:

Please find attached and in subsequent packages the text of three draft bills related to housing. Could you kindly provide your budgetary and economic impact assessment of them? Thanks in advance for your prompt attention to this matter.

Respectfully Submitted,

Eutopian Federal Mortgage Guarantee Corporation Establishment Act ("EFMGCEA")

Whereas, higher percentages of home ownership are positively correlated with better standards of living, and increasing percentages of home ownership are positively correlated with economic growth, and

Whereas, since the privatization of RECOM, and the subsequent virtual elimination of the public debt of the United Provinces of Eutopia, there has been a shortage of the highest quality locally issued debt relative to investor demands, which has tended to lead to investment in other markets, most notably the United States, which could be filled by guaranteed local mortgage backed securities, and

Whereas, the lack of an organized process of mortgage securitization has led to higher mortgage rates for current and potential homeowners in the UPE, thus acting as a disincentive to home ownership, and

Whereas, in other countries, standardization and securitization of mortgages has led to lower mortgage rates and increased home ownership percentages, be it therefore

Resolved, that the Eutopian Federal Mortgage Guarantee Corporation is hereby established as government chartered corporation, under the portfolio of the Minister of Finance, and be it further

Resolved, that said corporation is hereby authorized to sell non-voting preferred stock to banks and other financial institutions, and is authorized to borrow in bond or debt markets for up to 12.5 times the amount of its net capital, and be it further

Resolved, that the sole business of the said corporation is to guarantee the timely payment of principal and interest on securities backed by pools of mortgages on one to four family owner occupied principal residences located within the boundaries of the United Provinces of Eutopia, where the amount of the mortgage at time of securitization is not more than twice the median house price in United Provinces of Eutopia, and be it further

Resolved, that said corporation shall charge a guarantee fee sufficient to cover expected losses and provide a fair return to its investors after tax, and be it further

Resolved, that said corporation shall be entitled to set mortgage underwriting standards, including, but not limited to, loan to value ratios, minimum down payments, and income to debt service percentages for the mortgages it is willing to guarantee, and be it further

Resolved, the federal anti-discrimination regulations will apply to the Eutopian Federal Mortgage Guarantee Corporation.

Draft Budgetary and Economic Impact Assessment
No direct or immediate budgetary impact. If this bill facilitates the development of the mortgage market, it would be expected to directly benefit the home construction and home improvement sectors of the economy and thus increase economic growth and tax reciepts by a percentage proportional to the increase in that sector, multiplied by the usual factor to estimate the impact of additional spending by those directly benefiting from higher incomes in those sectors.