Construction up 1% in U.S. in 2002
The final figures are in: total U.S. construction for 2002 advanced 1 percent over the year before to $498.7 billion, according to information released Jan. 31 by the McGraw-Hill Construction Information Group. The increase follows growth rates of 5 percent in 2001 and 6 percent in 2002.

"Total construction in 2002 essentially stabilized close to its 2001 level, as contracting continued to decelerate from the brisk pace of expansion several years ago," said Robert A. Murray, vice president of economic affairs for Dodge. "While the rate of growth has diminished, the overall level of construction has held up reasonably well against the backdrop of the 2001 recession and the economy's fragile recovery in 2002."


Tax-man wants cut of jobless benefits
Michigan's jobless workers may have been pulling their hair out after any recent dealings with understaffed and underfunded Michigan Bureau of Workers and Unemployment Compensation (BWUC), as we reported in our most recent issue.

Now, the state agency is providing Michigan's jobless workers another kick in the pants - but this time, don't kill the messenger. They're reminding workers that when it comes to jobless benefits, as is the case every year, Uncle Sam wants a piece of the action.

"Unemployment benefits are taxable, and those who received benefits will need these statements in order to do their taxes," said David Plawecki, acting director of the BWUC. The 1099-G or "Statement for Recipients of Unemployment Compensation Payments" reports how much individuals received in jobless benefits in 2002. The state mailed 623,200 forms to Michigan claimants, with the final batch of statements going out on Jan. 20.

The number of 1099-G forms mailed last year was the highest total since 1992, when 693,000 forms were mailed. The 1099-G information is also sent to the IRS and the Michigan Department of Treasury.

Bulk drug purchases could save state $
One of the items that may have been overlooked during Gov. Granholm's State of the State address is her proposal to tap into a multi-state prescription drug-buying program that could save big bucks for Michigan's ailing budget.

"We expect to cut tens of millions of dollars from our Medicaid drug costs this year," Granholm said in her State of the State message on Feb. 5. "We will not wait for Washington to act. We will get it done, now."

Discussions are already under way with Indiana, Illinois, Wisconsin, Kansas, Missouri, Vermont and Tennessee. This is one of several mult-state coalitions that are combining their resources with volume purchases in order to lower the bottom line on drug purchases.

The annual price tag for prescription medications for Michigan's 187,000 Medicaid recipients is about $430 million - and an estimated 10 percent discount would save $43 million. The federal government has been slow to act in arranging volume discounts, so states are taking matters into their own hands.

"Over time, you'll eventually see every state enter into a compact or some relationship with surrounding states because there's no sense not to," said John Thomasian, director of the Center of Best Practices at the National Governors Association, in a published report.