3.4.2011 Newsletter
March 4, 2011
During the first week after “turnaround” there is always a slowdown in the number of bills debated by either body. After “turnaround” both houses begin to consider the bills sent over by the other chamber. Now we start scheduling hearings for the public to come provide their thoughts in testimony. Of the 83 bills that have passed the Senate, I counted around 60 which have been scheduled by House Committees for hearings. To view both the House and Senate calendars for upcoming hearings, go online to www.kslegislature.org. The second half of the session will go quickly as our next hard deadline is April 2nd. That will be the end of Regular Session and will only leave Veto Session to complete this year’s legislative business. You can expect, over the next few weeks, a great amount of our time will be spent on addressing the budget and considering legislation passed by the Senate. Last week the state had received some good economic news about the Boeing contract and the projected 7,500 jobs for Kansas. However, this week we received a negative tax revenue report which will affect our budget. February revenues totaled $224 which fell $11.5 million below the projected estimates.
Below are some of the Senate bills which have hearings coming up in the House.
Miami County Grows / Rural Opportunity Zones (SB 198) Committee Hearing: TBA
US 2010 Census Bureau data was just released showing Miami County’s population grew 4,436 which is a growth of 15.65%. Miami County was the 4th fastest growing county in Kansas with our neighbor Johnson County recording the largest increase in the state. We here in Miami County have so much to be thankful for; our great schools, safe communities, and friendly neighborhoods are just a few of the many reasons Miami County is where people want to live.
That same data reveals that 50 Kansas counties have over the same 10 year period lost double digit population numbers. SB 198 will create Rural Opportunity Zones for these counties and provide an income tax exemption for certain out-of-state taxpayers who relocate to those counties. The bill would also authorize those counties to participate in a state-matching program to repay student loans of up to $15,000 as another incentive for individuals to move to these counties.
The only real long term solution for all our governments, both state and local, is real growth in the economy. This program has a minimal cost to the state because these are dollars we wouldn’t be getting anyway if these people were not here. A healthy economy across our state is good for Kansas as a whole. The bill has been referred to the House Taxation Committee and will be scheduled for hearings soon.
Cell Phone Harassment (SB 55) Committee Hearing: Thursday, 1:30 pm, 144-S
SB 55 creates the crime of harassment by a telecommunications device such as a cell phone to transmit an obscene, lewd, lascivious or indecent image or text. Using a cell phone to send any comment, request, suggestion, proposal, image or text with the intent to abuse, threaten or harass the person on the receiving end would also become a criminal offense. Members of the law enforcement community testified current law makes it difficult to charge individuals who send harassing or threatening text messages and to include the full range of telecommunication devices now available.
Governor’s Charity Ball (SB 67) Committee Hearing: Monday, 9:30 am, 546-S
SB 67 allows gubernatorial inauguration funds remaining after the inauguration of the governor to be donated to a 501(c)(3) organization. Current law only allows the remaining funds to be directed to the Adjutant General for expenses resulting from the inauguration or to the Executive Mansion Gifts Fund for expenses related to Cedar Crest or historic properties. This would allow Governor Brownback to host a charity ball in support of Kansas non-profit organizations.
Unemployment Insurance (SB 77) Committee Hearing: Mon/Tues, 1:30, Docking
SB 77 revises certain provisions of the state employment security law regarding loan interest payments, the taxable wage base and extending tax rate caps on certain employers. The bill creates the Employment Security Interest Assessment Fund to pay interest and principal owed to the U.S. Department of Labor for unemployment compensation advances. Starting in 2011, 50% of the surcharge revenue from negative account employers must be deposited in the fund while remaining revenue would continue to be deposited into the Employment Security Trust Fund.
Over a period of three years, the bill increases the taxable wage base by $1,000 each year until 2013 with the base starting at $10,000 in 2011. In 2014 the base will stay at $11,000. The measure increases the number of rate groups for negative balance employers from 10 to 20 and increases the surcharge rate applied to those employers from 2 to 4% as a way to recoup the costs from those who use the system the most.
The bill would also eliminate the “trailing spouse” exemption allowing spouses who move because of their partners work and have to quit may collect unemployment. This exemption would be limited to U.S. Armed Forces personnel only.
At the beginning of 2009, the Employment Security Trust Fund had a balance of $566.5 million. However, the recession caused the state to pay out $766.8 million in unemployment benefits during 2009. By January 9, 2010, the balance of the trust fund had shrunk to $65.2 million and the state had to borrow money from the federal government to ensure the unemployed in Kansas continued to receive their unemployment. As of January 31, 2011 the balance of that loan is $100.8 million and it is estimated the state will have to pay $6 to $9 million in interest this year to the federal government. Interest began to accrue on the loan balance at the start of the year and the payment is due by September 30, 2011.
If the state is unable to find a way to pay the interest payment, Kansas employers might begin to lose credits to offset the Federal Unemployment Tax Act (FUTA) and the state might lose future borrowing privileges and federal grant funding for administrative costs. In addition, failure to pay the interest might result in the federal government directly collecting the principal directly from Kansas employers through FUTA taxes.
Qualifications for Food Sales Tax Rebate (SB 193) Committee Hearing: TBA
SB 193 would require a valid social security number be given to qualify for the state food sales tax rebate. The fiscal note reveals that the Department of Revenue has been accepting about 9000 plus rebate forms without a SSN. This proposed legislation is a no-brainer. The bill will save 2.4 million dollars that is needed to help make ends meet. This is another example of finding wasteful spending in the budget. SB 193 just passed the Senate and will need to be scheduled for hearings in House Taxation.
On Tuesday I had some special help from home for the day. Emma Rolf, Annie Rolf, Alex Lynch, Beau Lynch visited the Capitol to be pages assisting me on the House Floor. This is a great experience for school children to be able to watch and learn about their government. As always if there is anything I can assist you with or if you know a student who would be interested in being a page please contact my office at 785.291.3500 or email me at jene.vickrey@house.ks.gov.
Sincerely,
Jene Vickrey
Speaker Pro Tem