In This Issue
Health Savings Account
Budget Update
Sales Tax Exemptions
Transportation Committee
Constitutional Amendment
Health Savings Accounts
The House Committee on Health and Human Services heard testimony on House Bill 2198 last week. This bill requires insurers that offer health insurance to small businesses also offer a high-deductible health plan. It also requires small employers to establish a health savings account in conjunction with the high-deductible health plan. For any health plan offered on or after January 1, 2010, if an employee chooses the high-deductible plan with the health savings account, the employer is required to give a contribution equal to the employer's contribution to any other health plan offered. This contribution would be deposited monthly into the employee's health savings account. The bill would not apply to larger employers with large-group health plans. It is an expansion of last year's Senate bill 81.

Supporters of the bill said it places the emphasis on individual accountability and responsibility.  Additionally, they argued that people enrolled in high-deductible plans were more likely to research treatment options and take part in wellness programs. opposition to the proposal was centered on the argument that a mandate would force small employers to take on what could be a heavy financial responsibility.  There were concerns that this policy would be a direct violation of the federal ERISA law which maintains that states cannot require an employer to do anything regarding health benefits. Currently, Massachusetts is the only other state to enact a law of this nature, and while many believe that it could be in violation of the federal law, it has not been challenged in court to date.


Kansas House Website
Join Our Mailing List
Paid for by
Mike Slattery for Kansas House
Aaron Otto Treasurer
PO Box 1171 Mission, KS 66222
mike@mikeslattery.org

Legislative Newsletter 4

Friends and Family,

The session has been moving very quickly the last week.  The Legislative Calendar requires the majority of bills that come out of the House to be passed by the end of this week.  This required an increase in action in committees and on the floor.  Again, a wide swath of issues were addressed here in Topeka, and I am constantly reminded of the honor to be representing you.  Thank you for the opportunity to serve you in Topeka.

Mike Slattery for the Kansas House - District 24
Representative Mike Slattery
Budget Update

Both the House and the Senate were able to agree upon a version of the budget via the Conference Committee last week. This means that a budget has been passed and will now go before the Governor for her final consideration. The process was drastically slowed due to terrible infighting between the majority leadership in the House and Senate.  A compromise was finally reached on Wednesday evening that included a 4.2 percent cut in all state agencies except K12 education. Instead, K12 education took a $66 base state aid per pupil reduction, for a total cut of $27.8 million in public education more than halfway through the school year.  It also reduced special education funding by $4.5 million.

It is no secret that Kansas is facing extremely difficult economic
times.  With reduced revenues for the state, and increase expenditures, we are looking at an increase budget shortfall.  The House Majority leadership pushed a budget bill that made flat cuts to all departments in Kansas, with a deep funding cut to K-12 Public Schools.  I was opposed to this bill, due to the deep cuts made to public education, ESPECIALLY THE SHAWNEE MISSION SCHOOL DISTRICT.  WHILE PUBLIC EDUCATION COMPRISES ROUGHLY HALF OF OUR STATE'S GENERAL FUND BUDGET, I BELIEVE IT SHOULD BE ONE OF THE LAST PLACES WE LOOK TO IN ORDER TO BALANCE THE BUDGET.  CHILDREN IN TOUGH ECONOMIC TIMES DESERVE THE SAME QUALITY EDUCATION AS STUDENTS IN GOOD TIMES.

Sales Tax Exemptions

The House Tax Committee kept busy this past week considering a number of requests from various organizations to receive tax exemptions.  Some organizations before the committee this week included the All American Beef Battalion, Kansas State Firefighters Association, the Stephanie Waterman Tennis Foundation, the Golden Belt Community Concert Association and the Steve King Foundation.

Each year the House Tax Committee hears from a variety of noble and worthy organizations to request sales tax exemptions. In a year when public schools and services for the physically and developmentally disabled are slated for cut backs, the general atmosphere was a reluctance to support any further reduction to state revenues. For example, one exemption request this week would decrease state revenues by $4,000 and local revenues by $1,000 in FY 2010, a year when we face a $1 billion budget shortfall.

There are currently 24,000 nonprofit organizations in Kansas, 14,000 of which have not yet applied for tax exempt status.  Although the House Taxation Committee will continue to consider requests for sales tax exemptions, it is apparent that Kansas is in dire need of a more stringent set of requirements to qualify for this privilege. 


Transportation Committee Update

Secretary of Transportation Deb Miller visited with the House Transportation Committee to review the challenges facing Kansas roads and discussing the Kansas T-Link program.  T-Link, a task force created last summer, is charged with overseeing important state objectives such as keeping roads and bridges safe and in good repair, in addition to creating new approaches for Kansas' transportation future in light of the state's fiscal limitations. 

The committee discussed Kansas highways, with particular emphasis given over the projected condition of roads in the coming years.  In 2008, 83% of Kansas highways were deemed in "good condition," though that number is expected to drop to 49% by 2019.  There are currently 130,000 miles of local roads and 20,500 bridges in Kansas, and while the most traveled highways have been modernized, the Department admitted it has fallen behind on capacity needs.  To combat this lag, the state plans to develop a strategy worth $200+ million for mega projects such as the I-35/I-435/K-10 interchange.  Additionally, KDOT is considering various improvement projects for the highway systems that would help create 4-lane highways instead of two-lane highways.  T-Link projects that it will meet 66% of its funding needs to further the objectives of preserving, modernizing, and meeting capacity impacts on Kansas roads. 

Constitutional Amendment
The House Elections Committee held a hearing on House Concurrent Resolution 5010 on Wednesday, which would clarify and prescribe the method for filling vacancies of the offices of Governor, Lieutenant Governor, Attorney General, Secretary of State, State Treasurer, Commissioner of Insurance and other statewide elected offices, providing for more immediate input of Kansas voters in the fulfillment of mid-term vacancies.

If it is approved, the resolution will change the procedure for replacing the attorney general, lieutenant governor, state treasurer, secretary of state, or commissioner of insurance when a vacancy occurs. It would revoke the Governor's authority to appoint replacements to statewide offices vacated mid-term.  Instead, it would allow a process similar to the county process for filling vacancies, which means a state central committee of the political party held by the previous officeholder would elect a replacement until the next general election following the vacancy.