Good Afternoon All:
Here is Week 8 of my legislative update. There is tension here in the capitol as the reality of our budget crisis sinks in with February revenues down $71 million and the end of the legislative session looming nearer and nearer. The Senate Ways & Means subcommittees have been meeting for a few weeks and we have been accepting the Governor’s recommended cuts for FY 2011, plus adding another 2.5% cut. The only agencies excluded so far from the additional cuts are public safety agencies, education, human service caseloads and debt service. It has been heart-wrenching to listen to the stories from the disabled and frail and elderly, whose services will be eliminated. Also, if you are on Facebook, please become a fan of my page to get regular updates:
http://www.facebook.com/home.php?#!/pages/Kelly-Kultala/21393851201?v=wall&ref=sgm
Kelly
IN THIS ISSUE:
$ Work Continues on House Bills, Conference Committee Reports
$ Governor Parkinson Puts Forth Plan to Fix $106 Million Budget Gap
$ Attorney General Opinion – City Authority Regarding Lodging Inspections
$ Senate Debates Changes to the Unemployment Insurance Trust Fund
$ Contribution Limits Proposed for Supreme Court and Court of Appeals Judge Campaigns
$ February Revenues Down
$ Changes to Special Education Catastrophic Aid Considered
$ Beloit Juvenile Corrections, Electronic Records Bills Signed
$ Useful State Phone Numbers
WORK CONTINUES ON HOUSE BILLS, COMMITTEE REPORTS
This week, the Senate continued working through a number of bills that have come over from the House of Representatives, as well as conference committee reports. My time will continue to be split between committees and floor debate until the end of March, which will be the deadline for bills originating in the opposite house to be considered.
With little time left in the session for bill debate, I encourage you to contact me with any concerns or questions you have about a particular bill or committee meeting. Complete daily calendars are available for you to follow at www.kslegislature.org along with live broadcasts of Senate and House proceedings.
I am honored to serve as your Senator and am humbled by the support I receive from my community. I want to thank the people of the 5th District for allowing me this opportunity. My office is located in room 124-E. Please feel free to visit, or to contact me at (785) 296-7357, if you should have any questions.
Governor Parkinson Puts Forth Plan to Fix $106 Million Budget Gap
Governor Mark Parkinson has put forward his plan to balance an unexpected $106 million hole in the current fiscal year’s budget by, among other things, reducing work on Kansas’ highways and roads throughout this year and next.
“I have said, time and time again, that there are no great options left to balance the budget. Having already cut more than $1 billion from state spending, every option I have left will harm state programs. However, facing an additional $106 million shortfall with less than four months left in the fiscal year, I am compelled to act.
“A strong infrastructure is critical to our ability to move goods and services to market; and maintaining our roads creates hundreds of potential jobs and millions of dollars in economic activity throughout Kansas. With this in mind, we must work together towards a solution that would recommit our state to a reasonable transportation plan.
“In the meantime, we cannot balance the next budget or protect our schools, public safety and safety net services without new revenue. I look forward to the Legislature to coming to the table, putting politics aside, and raising the revenue we need to get Kansas back on track.”
Administration officials will make a series of cuts, transfers and adjustments to net at least $52 million. The remaining $54 million will require legislative action; therefore, Governor Parkinson has asked the legislature to do the following:
· Transfer $28 million from the highway fund to the State General Fund. This action will require the Department of Transportation to cancel nearly all maintenance projects that have yet to be started in 2010 and 2011.
· Pass HB 2130, primary seatbelt legislation. This action will produce $10 million in federal funds.
· Implement a moratorium on KPERS death and disability payments for the last quarter of FY 2010. This action will produce $12 million in available resources while keeping the fund solvent.
· Pass legislation to codify the Insurance Commissioner’s equal treatment of Kansas’ three Medicaid HMOs. This action will produce $4 million.
ATTORNEY GENERAL OPINION
Early this week I received an Attorney General's opinion requested by Representative Marti Crow and myself. The City of Leavenworth asked for a legal opinion about the authority of the City to use their home rule authority to regulate lodging facilities, restaurants and such in town and enforce the City regulations. The Dept. of Agriculture is the state regulatory agency for food and lodging entities, but the Department announced earlier this year, that due to budget cuts and staff shortages, they will not be inspecting establishments in the near future. The City of Leavenworth wants to take the initiative to do that task. The Attorney General found that the Dept. of Agriculture may contract or delegate to cities and counties the authority to inspect and license lodgings and restaurants for compliance with state and local safety and sanitation standards. The City's regulation would have the same effect and force as the Dept. of Agriculture. The municipality can enact local standards more stringent than the state standards.
The Attorney General also found that the City can charge and collect licensing and inspection fees in addition to the state fees charged and penalties may be imposed by the City for failure to comply with local regulatory provisions. Fees and fines collected by the City can be used to support the inspections and regulation by the City. Attorney General Opinion 2010-7.
SENATE DEBATES CHANGES TO UI TRUST FUND
The Senate on Thursday voted against a conference committee report that would have made several changes to the state’s Unemployment Insurance Trust Fund.
Kansas, like all states, maintains an Unemployment Insurance trust fund with the United States Treasury that is paid for by business employers as a payroll tax. This money is deposited into an account and can only be used to pay benefits to unemployed workers. For the last 3 years employers have not been required to pay into the Unemployment Trust Fund.
The actual tax rate a business is charged depends on that businesses’ experience rating – i.e. their history of employment and charges due to layoffs. Essentially, if your business costs the UI system less, you pay less.
The system usually works well, but because of the national recession, the state’s trust fund balance has dipped from a $700 million surplus in 2008 to a negative balance today. In order to replenish the fund, the Unemployment Tax was reinstated, which resulted in good employers being forced to pay a “compressed rate”, or a rate higher than the maximum allowed by the Employment Security Law.
In February the House of Representatives introduced HB 2676, which was intended to provide immediate relief to thousands of good Kansas businesses. The bill would allow the Secretary of Labor to reduce tax rates for good businesses – those that have positive account balances within the Unemployment Insurance Trust Fund. These businesses, over the course of operation, have paid more into the fund than benefits have been charged to the account.
The bill also included a provision that would give good employers a 90-day grace period to pay their taxes.
Unfortunately, when the bill moved to the Senate Commerce and Labor Committee, a number of changes were made which would hurt unemployed Kansas workers by reducing benefits by $43 million in FY 2010 and by more than $60 million in FY 2011.
Because of the actions of the Senate, the Senate Committee proposals were essentially stripped from the underlying House bill. After a short debate on the original bill, the Senate voted unanimously to pass it and send the bill to the Governor.
I voted in favor of the original House bill because it would provide a tax break for businesses and not reduce benefits for unemployed workers.
CONTRIBUTION LIMITS PROPOSED FOR JUDGE CAMPAIGNS
Two State Senators introduced proposals this week that would correct an unforeseen omission in the state’s election laws. The proposals, which were introduced in two separate Senate Committees on Wednesday, would set a $2,000 contribution limit on donations made to organizations campaigning for or against members of the Kansas Supreme Court and Court of Appeals. The proposals would also require that any organization that accepts donations must report their contributions and expenditures with the Kansas Ethics Commission.
Supreme Court judges are not included in current election laws because appellate court members are appointed by the governor and must stand for retention, but are never technically “elected.” As a result, organizations intending to influence the retention or non-retention of a particular judge have unlimited fundraising powers without having to report the source of any money that has been raised.
I stand in support of these measures, which will help remedy an unanticipated but nonetheless important campaign finance issue before this year’s upcoming November election.
FEBRUARY REVENUES DOWN
As was expected, reports from the Kansas Department of Revenue this week indicate that the state’s tax-only revenues were down again in February. The state took in just under $195 million – $71 million less in revenue than expected for the month – putting the state 3.3 percent under estimates since November 2009.
Several factors played into the below-estimated receipt, including individual income taxes, which came in 42 percent below estimates at just over $46 million. Sales taxes were also down by more than 10 percent, a $14 million shortfall.
With just four months left in the current fiscal year, the state faces an astounding $105 million shortfall – a factor which will have to be accounted for as the legislature continues working toward a balanced state budget for Fiscal Year 2010.
SPECIAL EDUCATION CATASTROPHIC AID RECONSIDERED
A bill currently in the Senate Education Committee aims to increase the per pupil threshold for state catastrophic aid so that all district receive equitable funding for special needs students.
Historically, school districts have only requested catastrophic aid – used to hire full-time teachers and specialized services for students with severe disabilities – when the annual cost to support a special needs student exceeds $25,000.
Since last year, however, three school districts (Shawnee Mission, Blue Valley, and Olathe) have been asking the state for aid for students who are below the $25,000 threshold.
Senate Bill 359 aims to close this loophole and ensure that all schools districts are required to meet the same standards by increasing the student threshold to twice the amount of state aid paid per special education teacher in the preceding school year – which equates to $46,000.
On Monday, the Senate Education Committee is expected to vote whether or not to send the bill to the full Senate chamber.
I support this bill. In the Special Session of 2005 and Regular Session of 2006, the legislature spent hundreds of hours working on a three-year school finance plan that adequately and fairly funds all public schools. Funding for special education should be no different. Every special needs student – regardless of their economic background or school district – should have the same opportunity to learn in a school environment that meets their needs.
BELOIT JUVENILE, ELECTRONIC RECORDS BILLS SIGNED
Governor Mark Parkinson signed two more bills this week, bringing the total number of bills signed during the 2010 legislative session to five.
SB 357 authorizes the Secretary of the Department of Administration to convey Beloit Juvenile Correctional Facility for and on behalf of the Juvenile Justice Authority to the City of Beloit, Kansas. All costs related to the conveyance shall be paid by the City of Beloit. The legislation goes into effect upon its publication in the Kansas Register.
HB 2195 directs the State Archivist to prepare and present recommendations regarding the preservation process for maintaining the authenticity of electronic records. The legislation also enables electronic records maintained pursuant to the preservation process and certified by the electronic signature of the State Archivist to have the same legal effect as the original document; and allows reasonable fees to be charged for electronic copies. The bill takes effect upon its publication in the Kansas Register.
IMPORTANT STATE PHONE NUMBERS
The following is a list of numbers I often receive requests for during the legislative session. You can find these as well as many others online at the following Web site: http://da.state.ks.us/
Attorney General’s Office
(888) 428-8436
Child/Adult Abuse Hotline
(800) 922-5330
Crime Tip Hotline
(800) 572-7463
Crime Victim Referral
(800) 828-9745
Driver’s License Bureau
(785) 296-3963
KPERS
(888) 275-5737
Governor’s Office
(877) 579-6757
Highway Conditions
(800) 585-7623
Housing Hotline
(800) 752-4422
KS Department on Aging
(800) 432-3535
Kansas Jobs
(785) 235-5627
Kansas Lottery
(785) 296-5700
Legislative Hotline
(800) 432-3924
Live Homework Help
Senator Kelly Kultala
Kansas District 5
Wyandotte & Leavenworth Counties
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