From the Statehouse: Week 12

This Week at the Statehouse

After 12 weeks, we have reached First Adjournment and have completed the 2011 regular session. We will now break for a few weeks and return for Veto/Wrap Up Session on April 27^th, during which the Legislature will take up items of unfinished business. Throughout the break, the Governor will review the bills that have been sent to his desk for signature or veto.

I am looking forward to being back in the district full time for the next few weeks. I hope to see you at events in the community to further discuss the important issues that have come before the Legislature this session.

Civics 101: The Omnibus Budget Bill

One of the primary tasks of the Wrap Up Session is to approve the Omnibus Budget Bill. It is called the Omnibus Bill because it includes appropriations for a wide variety of purposes and for every agency requiring further appropriation action for the current or forthcoming fiscal year. The Omnibus Bill normally contains three basic types of items: technical adjustments to previous appropriations bills, financing for Governor's budget amendments which were not considered as part of regular appropriations bills, and financing of substantive legislation that passed the Legislature earlier in the session.

Additionally, this bill sometimes includes various items of interest to individual legislators that are offered as amendments during either Appropriations/Ways and Means Committees or Committee of the Whole deliberations (although there won't be much of that this year due to the new "paygo" rule). The Omnibus Bill also differs from other appropriations bills in that the Omnibus Bill actually is prepared by a legislative committee. Most other Appropriations bills, while nominally authored by the Appropriations/Ways and Means Committees, actually begin as the Governor's recommendations. The Omnibus Bill is one of the last bills passed each session.

FY 2012 Budget Update

The most significant piece of legislation passed this week was House Bill 2383, also known as the FY 2012 mega appropriations bill.  We devoted all of Thursday to the budget on the floor, with 14 amendments being introduced.  After several hours of debate, the $14 billion bill passed by a 69-52 vote. 

Although we made some positive amendments, I have a number of concerns with the House proposal, which is why I stood in opposition to the bill. I broke down some highlights of the final House package below, but the budget debate is not over.  There are a number of differences between the House and Senate versions, which means there still could be several changes once the two bills are reconciled.

It is important to remember that this budget has been created using a four-month-old financial forecast.  The next forecast will come on April 15, while the Legislature is on April break. If tax collections fall short by a significant amount, the mega budget approved this week will not balance, and legislators will be forced to revise it during the veto session in late April. Once the session adjourns in May, the Governor can make adjustments during the interim to prevent the state from operating in the red, or he can call a special session.

The House adjourned on Friday afternoon and will not reconvene until the end of April. During the break, Senate and House conference committee members will begin budget negotiations. We will not have a final vote on the budget until after we come back for Veto Session.

Budget Highlights:

K12 Education

The House budget passed a $250 cut in per pupil cuts to education since 2010, taking us back to 1999 funding levels.

Vulnerable Kansans

The House budget reduces Meals on Wheels funding by $300,000, which would mean a reduction of 53,286 meals. The funding reduction could also possibly close some meal sites.

The House budget reduces direct care for seniors by $1.3 million (or 21.2%), leaving 1,140 low income seniors without services

The House budget reduces General Assistance for disabled Kansans by $3 million. General Assistance provides services for those who do not qualify for other state or federal programs. Over 2,000 individuals will be eliminated from services.

The House budget reduces mental health aid by $3 million. Over 70,000 uninsured and underinsured Kansans depend on crisis and emergency mental health services for at Community Mental Health Centers

The House budget completely eliminates funding for Family Centered System of Care ($5 million). This program serves 850 children and families with a severe mental illness. These families will lose critical services such as psychiatric medication, therapy, rehab services, support to families and parent support.

State Employees

Although state employees have endured devastating salary cuts over the last two years, every Brownback Cabinet secretary salary has been increased. After cutting state employee salary, we increased state workers' health insurance cost by 5%

The House budget includes an additional 1.1% across-the-board cut to state agencies.  Since most nonessential programs and services have already been eliminated, it is likely that this will result in further layoffs, salary reductions, etc.

The budget suspends the third year of the state employee pay plan, which was passed to make state employee salaries competitive with the private sector (state employees currently work approximately 15-25% below market).

Unnecessary Expenditures

The one group of state employees who are not suffering during this difficult budget year is Governor Brownback's Cabinet. Cabinet agency heads are earning more than his/her predecessor in the Sebelius/Parkinson Administration.

March revenues down

On the day we debated the FY 2012 budget, we received the unhappy news that the state's revenue collections for the month of March fell $19.4 million below what was expected. According to the Department of Revenue, March revenues totaled $380.2 million, approximately 5% below the official forecast.

The shortfall occurred mostly in sales, use and individual income taxes. It was predicted that tax refunds also impacted the drop.

In total so far, revenues are running nearly $26 million below what economists predicted and what the state needs to keep the budget in the black through June 30. While this is not "good" news, we are in a much better position financially now than we were a year ago. Kansas collected $361 million more through March 2011 than in the first nine months of the previous fiscal year.

House Debates KNI Closure

The House debated a bill that would set the groundwork for closing the Kansas Neurological Institute (KNI). Current residents of KNI would be transitioned back to their local communities and received medical services there. This would bolster the current effort at SRS to provide more services through home community based programs.

Proponents of the bill argued two main points. The arguments in support of the bill focused around the KNI closure committee recommendations for increased reliance on home community based services and the estimated savings that would occur from providing services to KNI residents in their local communities. They also argued that KNI would eventually close its doors because of the dwindling population care for at the facility.

Opponents argued that there were not enough local resources to adequately provide care to current KNI residents and that there would be no true cost savings because of increased hospitalizations. One of the stronger arguments focused on the fact that the most residents have lived at KNI for at least ten years and an average of 40 years. KNI is there home and relocating them near family members would be equivalent to evicting them to areas that could not provide adequate services.

The House recommended approved the bill by a vote of 75-48.

Then, during the budget debate on Thursday an amendment was offered to restore KNI funding by deleting state purchases of bottled water and office supplies. That amendment passed 105-14.

The future of KNI remains unclear; the budget amendment that restored KNI funding could be removed in conference committee. It looks like there won't be a final answer on this until after the budget is approved during Veto Session.

Abortion Debate Continues

A bill that would increase restrictions on abortion was debated in the House on Wednesday. House Substitute for Senate Bill 36 would require abortion clinics to register with the Kansas Department of Health. The new requirements would add numerous regulatory hurdles for medical facilities that perform abortions.

Supporters for the bill claim that the additional oversight is necessary. Legislators argued that Senate Bill 36 would help to protect the health of patients that underwent the medical procedures.

Opponents argue that the bill would result in unnecessary and burdensome government oversight. Facilities that perform these procedures would be forced to adhere to dozens of regulations more stringent than any other type of medical facility. It is unfair to force these medical professionals to take these extra steps, according to opponents. Opponents also argue that the estimates for fiscal impact of the new regulations vary greatly. These estimates vary from over $1.25 million to about $65,000. More research needs to be done before action is taken in support of the bill, according to proponents.

The bill the House by a vote of 97-26.

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 Docking Building, 300 SW 10th, Topeka, KS 66612.  You can reach me at (785) 296-7687 or call the legislative hotline at 1-800-432-3924 to leave a message for me.  Additionally, you can e-mail me at mike.slattery@house.ks.gov.  You can also follow the legislative session online at www.kslegislature.org.