Melanie Meier's Adventures in the Statehouse
Kansas House of Representatives
40th District
Volume 2010, Issue 5: Budget Budget Budget
This is the eighth week of our annual 12-week session. The estimated budget shortfall has grown every month, and we have four weeks until First Adjournment (which is the next major legislative deadline). On Friday the 5th, Governor Parkinson announced $85 million in additional cuts, transfers and adjustments to the FY 2010 budget. These cuts are in response to revenues that continue to come in below expectations, further increasing the budget shortfall. February revenues came in $71 million short for the month, for a total $105 million deficit in FY 2010. As Kansans file their taxes this spring, it is hoped that revenues will rebound a bit later in the year. If that is the case, the Governor's actions and recommendations Friday should prevent a seventh round of cuts in FY 2010.
The Governor cannot make all of these latest adjustments without Legislative action. He can reallocate money himself to cover about half of the deficit but can only propose to the legislature the following actions:
· 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 net $10 million in federal funds to Kansas.
· 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.
House Agriculture & Natural Resources Committee hears bills
This past week we heard several Bills, including two that illustrate how the budget short falls have affected the Department of Agriculture and how the agency is struggling to get by.
Senate Bill 396, would allow the Department of Agriculture to take surplus money from their fee funds (up to 10%) and put it in the existing Laboratory Equipment Fund. The Laboratory Equipment fund has no funding mechanism because the fees that sustained it have sunset. However, every agricultural program administered by the department still needs the equipment, which means they need money for maintenance and upgrades. Most of the fee funds across state government were swept in FY 2010, essentially leaving them bankrupt. Legislation like this would give agencies a bit more flexibility to manage their money. There were no opponents. Proponents did speak to the bill because the lab equipment is invaluable to their programs.
Senate Bill 395 proposes raising some fees associated with milk production until 2015. Right now most of Kansas' milk is exported to the southeast region of the United States. Federal law requires the milk industry to be inspected prior to being shipped out of a state. If the fees are not raised then the inspection program will not be funded past 2012 and Kansas would not be able to sell its milk to other states. The bill also has language allowing the Secretary of Agriculture to adjust the fees as necessary up to a certain cap. There were no opponents to the bill.
Although these are fairly "low profile" bills, these are some examples of the extent to which state agencies have been cut, and the somewhat creative measures that must be taken to get by until conditions improve. All state agencies are struggling, and it has a significant "trickle down" effect on every Kansas citizen.
Sales Tax Exemptions Coming up this Week
The House is expecting HB2549 to make it to the floor this coming week for debate and vote. This is the Bill that was introduced by the Kansas Advisory Council on Intergovernmental Relations and amended by the House Taxation Committee to repeal a number of sales tax exemptions effective July 1st. The list includes the following activities:
· Property and services purchased by religious organizations
· Residential utilities
· Lottery tickets
· Coin operated laundry services
· Bingo cards, bingo faces and instant bingo tickets
· Property bought by or for libraries
· Motor vehicles transferred from one family member to another, or one business entity to another
The proposed sales taxes would net approximately $760 million over the next 5 years. The fiscal note from the Budget Division points out that by repealing the exemption for lottery tickets, then Kansas retailers would no longer be able to sell multi-state lottery game tickets. So in order to gain back the $39 million that Kansas does not collect in sales tax, we would lose the sales of $100 million in lottery tickets, and Kansans would not be able to win the power ball without buying a ticket in another State.
Out and About this Week
This week I was busy every day after session and my committee meetings. On Monday, I met with representatives from Westar Energy. Westar is upgrading and replacing a trunk in Southern Leavenworth County that runs into the substation on Thorton Road in Leavenworth and they will be sending out letters soon to warn residents along the route of the pending work that will include a lot of tree cutting. On Tuesday night I headed to Tonganoxie for the Ducks Unlimited Pizza Fest fundraiser. Wednesday I attended LTG Caslen's Assumption of Command ceremony at Fort Leavenworth and later that night met with representatives of Saint Luke's Health System from Leavenworth. Thursday I headed to Manhattan Kansas and attended a Political, Diplomatic and Military Lecture series that was hosted by K-State and Fort Riley. Friday, I was part of the Leavenworth/Lansing Chamber of Commerce Legislative Update at the Carnegie Arts Center. Saturday, I was part of the Atchison Area Chamber of Commerce Legislative Update at the historic Santa Fe Depot in Atchison then caught a bite to eat at Hilltop in Easton and that evening I attended the Fort Leavenworth Hunt Club's Annual Ball. Today I enjoyed the corned beef and cabbage dinner at Immaculate Conception Church in Leavenworth. The food was delicious and the talent show spectacular. I especially enjoyed it when Father Chris wowed the audience by juggling fire!
Keep in Touch
It is a special honor to serve as your state representative. I value and need your input on the various issues facing state government. Please feel free to contact me with your comments and questions. My office address is Room 722, Docking State Office Building, Topeka, KS 66612. You can reach me at (785) 296-7668 or call the legislative hotline at 1-800-432-3924 to leave a message for me. Additionally, you can e-mail me at Melanie.meier@house.ks.gov. You can also follow the legislative session online at www.kslegislature.org.
As always, if you no longer desire to receive updates and information from me, just let me know and I will take you off the mailing list.
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