3.11.2011 Newsletter

March 11, 2011

It has been another interesting week in Topeka as we completed the 9^th week of this year’s session.   We now arrive at the time when Committees of both the House and Senate will have their last full week to complete public hearings on bills.  Soon we will be working late into the evenings debating legislation on the House Floor.  The end of regular session is April 2^nd, 2011. If you have any questions concerning any legislation or have comments, please do not hesitate to contact me.  I always make time to check e-mails and catch up on phone calls every day although sometimes I do fall behind.   In fact, earlier this week I captured some time and made contact with friends from home concerning their comments from a couple of weeks ago.  I always remember that I work for you.  It is always important to keep in touch with you.

Survey Results

Unemployment Figures

This week the Department of Labor issued new figures on the unemployment rate in Kansas showing a January unemployment rate of 6.8 percent. For January, all major industries in Kansas reported job losses. A majority of these losses were seasonal because of the winter weather and the end of the holiday season. Compared to January 2010, the unemployment rate for January 2011 was down 0.4 percent.

There was, however, some good news included in the report. Five major industries in Kansas reported over-the-year job gains in 2010. These industries include: professional and business services; education and health services; mining and logging; leisure and hospitality; and government. The remaining industries reporting statewide losses over the year were: information services, construction and financial activities.

This report shows the continuing impact the recession has had on our state. The Kansas Secretary of Labor went further saying the true unemployment rate in Kansas, when adding those who have given up looking, is over 12 percent. This number is staggering and unlike recessions we have seen in the past. The recovery is slow and until we are back at 2007 – 2008 revenue levels, we must continue to trim spending to be in line with revenue. While our economy does have some positive signs, this isn’t the time to increase state spending financed by tax payers who are already struggling. This is the time for reform and relief.

Over the next month, the Legislature will be considering a full portfolio of tax reform bills along with economic development packages aimed at attracting new business and thus new jobs for our citizens.

While we’ve made discernable progress on many of these efforts, there’s still a tremendous amount of progress that will need to be made in order to truly begin our recovery and sustain growth in Kansas.

Gubernatorial Inaugural Funds (SB 67)

When Governor Brownback was elected last year, many of us were surprised to find out that under current law he would not be able to donate the proceeds of his inauguration ball to charity as he had planned to do. This is obviously a worthy and creative way to use these funds so I was pleased this week to vote for a solution to this problem.

SB 67 allows unused gubernatorial inaugural funds to be donated to a 501(c)(3) charitable organization. The bill would allow two other options in current law to be deposited in the State Treasury and credited to reimburse amounts spent by the Adjutant General for expenses incurred in connection with the gubernatorial inauguration or to the Executive Mansion Gifts Fund for expenditures related to the governor’s residence, historic properties, or both.

The House debated SB 67 on Friday and a final vote on the bill is expected early next week. You might be surprised by how much these events can raise—so I was very pleased we will now be able to dedicate the funds to deserving recipients, and applaud the Governor for taking the initiative to do so.

Freeze Bill Negotiations Take a Strange Turn

The legislative conference committee concerning the 2011 budget freeze bill failed to produce agreement as of Thursday. If the legislature is not able to pass a bill, Governor Sam Brownback will be forced to make cuts of around $60 million to keep the state budget from dropping below zero.

Late Thursday the conference committee members from the House agreed to accept the Senate’s compromise offer but where surprised that the Senate then would not agree to sign their own offer.

That compromise, if signed and passed by both the House and Senate, would have saved Kansas about $20 million in the current year’s budget which ends June 30. That is less than the $35 million in savings passed back in February by the House and also the amount wanted by Governor Brownback at the beginning of this year’s session in January.

We need to get this budget resolved because next year’s budget projections reveal a hole of over $490 million which can potentially grow for a couple of reasons: The first, if the current short fall in this year’s budget is not resolved, the Governor will be forced to make cuts in order to get the ending balance to at least zero.  If we are going to find further savings in this year’s budget to apply to the 2012 budget, it must be done through the legislative process. Secondly, as I had explained last week, February revenue receipts failed by $11 million to meet projected amounts. If this trend continues through April, it will also add to the state’s budget woes.    

Monday the House will bring the Senate version of the recession bill to the floor in an effort to continue the negotiations with our Senate counterparts. The House and Senate versions both attempt to fully fund the maintenance of effort (MOE) for K-12 Special Education funding but each with different methods. The House version also cuts more providing an ending balance for the FY 2011 budget. It is very important a solution is found because without the correct funding Kansas would lose matching federal funds not only next year but would not have the opportunity to gain that level of funding back in the future.

I hope you are tracking the legislature’s work in Topeka and, if possible, take the time to visit this session. If you would like an individual meeting, I’d be happy to arrange one. In the meantime, I’m always anxious to hear your thoughts and get your input on how the issues discussed in Topeka affect you. Please feel free to call me at 785.291.3500 or email me at jene.vickrey@house.ks.gov and I’d be happy to discuss any topic you are interested in. Thank you for the honor of serving you.

Sincerely,

Jene Vickrey
Speaker Pro Tem