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2010 Budget Update
Omnibus Bill
House Bill 2292
Energy Tax Credits
Unemployment Numbers

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Legislative Newsletter 7

Dear Friends and Family,

With the House reconvening this Wednesday, I wanted to get an update out on some of the more important issues and give you an outline of what the rest of session will look like. This edition of the newsletter contains several updates on budgetary policies which will have both an immediate and future impact on Kansas economy.

This week, we will be returning to Topeka for the second part of the legislative session. This time is commonly known as the "Veto Session" and we will be working very hard in order to get the best policies for Kansas passed.

As always, I will be keeping you up to date throughout the remainder of the session.

Sincerely,
Mike Slattery for the Kansas House - District 24
Mike Slattery,
State Representative

Budget Update FY 2010

The House and Senate came to an agreement on the FY 2010 Mega Budget Bill, which was officially approved by both chambers.  I have a number of concerns about this budget, which is why I stood in opposition to the bill.

The $13 billion budget may not take full advantage of federal stimulus dollars to protect higher education, but it includes $58.3 more in spending than Governor Sebelius proposed.  We did this while cutting public education- which is one of our most important investments and something we have worked to protect all session.

It is important to remember that this budget has been created using a four-month-old financial forecast.  On April 17, a new revenue estimate was created that showed a $328 million decline in revenue available for FY09 and FY10. This means the mega budget approved in early April will not balance, and legislators will be forced to revise it during the veto session in late April.  At that point, the mega bill will provide a blueprint which will be adjusted to create a balanced budget.  Once the legislative session adjourns in May, the Governor can make adjustments during the interim to prevent the state from operating in the red.


Civics 101: The Omnibus Bill

One of the primary tasks of the Wrap Up Session is to approve the Omnibus 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.  The Omnibus Bill also differs from other appropriations bills in that the Omnibus Bill, as introduced, 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. 

 
House Bill 2292 Protects Kansas Consumers

House Bill 2292 will increase the consumer's ability to place a security freeze on credit reports.  The bill is before Governor Kathleen Sebelius awaiting her action.  Currently, only victims of identity theft have the authority to freeze their consumer reports, but this legislation will expand the right to all consumers.  House Bill 2292 deletes the requirement for a police report or identity theft and enables consumers to request a security freeze by mail, through a secure website of the consumer reporting agency, or by telephone  The agency may charge a fee of $5 or less for placing, temporarily lifting or removing each freeze.  No fee can be charged to a documented victim of identity theft.  

Also, the bill would allow consumers who suspect that they are victim of identity theft to the police file a report.  The police in the jurisdiction where the consumer lives would file the report and could then send the report to the police in another jurisdiction.  

The freeze will prohibit credit reporting agencies from releasing the credit report or credit score of the consumer, allowing individuals to take control over who is allowed access to the personal and financial information.  Within 10 days of placing a freeze, the agency must issue a personal identification number to use like a password if you choose to remove the security freeze from your file or authorize the temporary release of your credit report for a specific person or period after the security freeze is in place.  Each agency must place a security freeze on a consumer report no later than five business days after receiving your request.  They must lift a freeze within three days if requested by mail and within 15 minutes when requested electronically.
 

Update on Energy Credits and Biofuels

The number of ethanol and biodiesel plants in Kansas is growing. Currently there are 11 ethanol plants operating in Kansas, three under construction, three have received necessary permits but have yet to begin construction, and unfortunately two have recently gone idle due to the economic downturn.  There is currently only one operating biodiesel plant in Kansas, although two are under construction, two have yet to break ground, while two biodiesel plants have also gone idle. The growth in the ethanol and biodiesel industry is proof that recent energy tax credit incentives are helping bolster development.  It is expected that these tax credits will be critical to future growth by incentivizing out of state investment.  

The outlook of the pilot plant under construction in Hugoton is also positive. The $500 million plus investment project is expected to begin construction sometime later this year and is expected to be operational by 2011. This plant is the first commercial facility of Abengoa that utilizes cellulose-based ethanol technology. The project will not only bring millions of investment dollars to Kansas, but will also be utilizing local agricultural production for raw materials - an obvious plus for Kansas. Abengoa has also taken great caution to ensure that the local environments where they operate remain as healthy and integral as possible. To date, Abengoa has already invested twenty million dollars in the project and yields of staff in excess of 150 people.
 
State Unemployment Update

The Kansas Department of Labor released information that the March unemployment rate was 6.5 percent, up from 6.2 percent last month.  These numbers are troubling for everyone in Kansas.  The entire state has felt the burden of the economic downturn, with some of the state's largest employers significantly scaling back personnel.  Throughout the last few months we have seen mass layoffs at Cessna, Hawker Beechcraft and Boeing in Wichita, Goodyear in Topeka, and General Motors in Kansas City.

The American Recovery and Reinvestment Act will provide an important opportunity to expand unemployment benefits to Kansans struggling to make ends meet.  The Kansas Legislature, however, must do its part.  In order to qualify for $69 million in federal stimulus money, the Legislature must modify the method of determining a worker's base wage period.  

House Bill 2374 would lengthen the period of employment that can be considered in deciding whether a laid-off worker is eligible for benefits. It would also allow workers to receive unemployment benefits if they voluntarily leave their jobs to care for a sick or disabled member of their immediate family.  The bill will increase the number of workers eligible for unemployment benefits, helping those without work pay for basic necessities.