4-15-11 Newsletter
Week of April 8th/15th
On Friday, April 15th the Consensus Revenue Estimating Group met to discuss the economic outlook of Kansas over the next year. This group is comprised of the Legislative Research Director, Governor’s Budget Director, a representative from the Department of Revenue and three economists from the University of Kansas, Kansas State University, and Wichita State University. This group meets twice a year and comes up with an agreed upon report on tax revenue and the future economic conditions of the state. This group takes into account economic activity from numerous indicators and prepares a reliable projection of the next years expected revenues for our State Government. This group year after year has a great reputation and has almost always been accurate with their economic forecast. The Legislature, when we return for Veto Session, will work from these projected numbers to finish the budget for the next fiscal year.
The news was not what we had hoped for. Instead of an upbeat report of a recovering economy we have another budget gap to cover. The group estimated, due to federal tax changes, a drop of $30 million with $10 million in this fiscal year and $20 million in 2012. With numbers that are less than rosy, and possibly will lead to less revenue over the next fiscal year it will be important for the legislature to leave an ending balance for the state to operate with if revenues are even a few million lower than estimates.
In the past few years the legislature has left an ending balance of just a few million, if any and schools have paid the price with having state payments delayed. In previous legislative sessions I have voted against all of these budgets because they just did not balance and failed to take true economic conditions into account. We must stop spending money we don’t have and pass an honest budget which will give schools confidence they will receive payments on time from the state and the Governor won’t be forced to make allotments through the year cutting money from state agencies budgets. The legislature will have a tough task to pass a budget which can honestly make this promise to schools, our social services, public safety and transportation.
The budget we passed in the House before leaving had an ending balance of $80 million which now would be $43 million based on the new projections. And the Senate and Governors budgets will be short by $23 million and $15 million respectively. It is very obvious that further restraint of spending will be the topic of Veto Session.
Rural Opportunity Zones
Based on the 2010 census, many Kansas counties are losing population. In fact some counties are experiencing more than a 20% population reduction. We have a lot to be thankful for. Miami County was one of the top 5 fastest growing counties in Kansas, but not all parts of the state are as lucky. To combat this loss in population, Governor Brownback has proposed Rural Opportunity Zones. These zones would allow non-Kansas citizens to move to rural counties who are losing population to be granted a 5 year grace period on state income taxes. This is a unique proposal which has the potential to grow our state with little burden on the state’s bottom line.
In fact this has the potential to grow local economies by infusing them with new residence and a larger tax base. The Governor is very optimistic at the prospects for this proposal and the growth potential for our state.
Governor Brownback took part in a bill signing tour across the state last week as he signed the Rural Opportunity Zone legislation into law.
Late Term Ban becomes Law
On Tuesday, I traveled to Topeka to take part in Governor Sam Brownback’s bill signing of pro-life legislation into law banning late term abortion in Kansas. We have struggled for many years to enforce legislative intent regarding legislation passed in 1998 to put in place a late term abortion ban. Unfortunately an unintended interpretation rendered the law totally ineffective. For years it was well known that George Tiller performed late term abortions for women who traveled from all over the country to Kansas. The legislature had passed the same provisions several times through the years but has seen it vetoed by previous Governors.
Gun Suppressors
One question a couple of friends had asked was if the new Kansas law allowing gun suppressors would place Kansas citizens in danger. The doubt this new law placed in their thoughts made it a subject that needed to be explained in further detail. The new law only allows suppressors to be used for hunting and the applicants must first be legal Kansas Conceal permit holders.
In addition, there is an expensive license requirement by the Federal agency ATF and a FBI background check. Then the permit holder must keep a copy of the approved paperwork at all times and abide by strict use, storage and transportation requirements. The suppresser itself adds another cost of $600 dollars or more. Before being signed into law by Governor Brownback, the bill had passed the House 124-0 and the Senate 38-1.
EPA Other issues the Legislature has been discussing have caused several questions. Specifically there has been a lot of interest is the possible costs of the proposed EPA requirements on Kansas power plants and how future electric rates would likely be affected. Many of the newly proposed regulations by EPA would put undue regulatory stress on public utilities to comply with Washington bureaucrats. The Legislature is looking at ways to challenge these proposed regulations to protect Kansans from unprecedented rate hikes. I have requested specific information from KCPL asking them to defend any future rate hikes and what effect new EPA policy will have on them. I will pass this information along as I receive it.
KPERS
KPERS retirement system has also generated many questions. I have been spending time finding information and plan to include a summary in next weeks newsletter. As a rule anytime one of my constituents takes their time to contact me with concerns or questions I know that it is certain that many others share the same concerns.
It is always great to get home in April and spend time with my family and get caught back up in our family flooring business. Also this time gives you the opportunity to tell me your thoughts on the significant amount of work yet to be completed during the veto session.
As always if you have questions regarding where any issue is currently in the legislative process just give me a call at my home or send me an e-mail at jene.vickrey@house.ks.gov
Sincerely
Jene Vickrey