4-29-2011 Newsletter
April 29, 2011
The Legislature returned to Topeka last Wednesday to begin Veto Session which is tentatively scheduled to last until May 11th. If we can get done sooner we will cut out extra days from the 90 day legislative schedule and save costs to the taxpayers.
Again this year, we have a number of issues still being worked. Of the remaining issues, one of great importance is KPERS reform. The latest information from the ongoing negotiations is that state employees would be able to choose between making a higher contribution or a reduced multiplier rate for future years of service. The passage of a final budget is another tough issue that must be completed. The Kansas Constitution requires the Legislature to produce a budget each year. Prior to adjourning for the annual break, the House and Senate passed their respective budgets and a conference committee began meeting to negotiate the differences. At the start of negotiations there were over 230 differences between the two bills.
To further complicate the process, revenue estimates for Kansas were revised downward by over $20 million before the most recent number came in at the first of May. At first glance, it would seem encouraging until you read further and note the positive number for last month is because a one-time addition of $36 million is included. Without that addition, revenue for the month is in fact $14 million short of projections.
It is evident that the economy is in a very slow recovery, if at all, with unemployment remaining at over 6% for Kansas and the possibility of higher gas prices digging deeper into Kansas families pockets and removing their ability to have extra money to spend. Between the proposed budgets of Governor Brownback, the Senate, and the House, only the House budget remains in with a positive ending balance of $48 million.
The conference committee will continue to meet for long hours to work out the differences and bring back a final budget that can be accepted by both the House and Senate. The House and Senate have both passed a number of significant pieces of legislation; our success will ultimately be measured by our ability to combine those proposals and mold a final product capable of majorities in both chambers. As is always the case with competing interests and diverse constituencies, this is never an easy process. Compromise will require flexibility, patience and focus by all involved. We must work together to pass a responsible budget as we continue to work toward economic recovery.
Governor Brownback talks about the Veto Session
Governor Brownback explained his goals for the 2011 Veto Session. His main focus, consistent with the rest of the session, has been on creating jobs in Kansas. Right now with over 100,000 Kansans currently unemployed, we must do all that is possible to create a business climate that encourages investment and job creation. The Legislature has taken steps to pass policies that promote such an environment including Rural Opportunity Zones (ROZ) which work to bring in new Kansans and workers comp reform which was an agreement reached by business and labor to reform outdated rules which protect people in the line of work and provide compensation when injured on the job. Both have become law.
The bill to change the focus on tax cuts from big corporations to allow full expensing for all businesses small and large was stated as a top priority.
The Governor asked the Legislature to work to find compromises regarding KPERS reform and the budget. KPERS currently has an unfunded actual liability of $7.7 billion. Over 225,000 Kansans are looking to KPERS for their retirement. As I discussed last week, now is the time to get the fund moving in the right direction. Governor Brownback encouraged the Legislature to work together to pass a budget with the greatest ending balance possible to protect state services from inconsistent revenue receipts and an uncertain economy.
Adult Entertainment Regulation (H. Sub. for SB 25)
H. Sub. for SB 25, is a bill which has been referred to as the community defense act and would regulate by state law the location and operation of “Adult Entertainment Businesses.” The bill would establish limitations on how far these businesses can be from specific public and private facilities such as schools, churches and day cares. In addition, the bill restricts the types of performances, hours of operations, age of employees and the activities that can take place in these businesses. The House passed H. Sub. for SB 25 on Friday, April 29th, by a vote of 96 to 23. It is not known if the Senate will have time to work the bill this late in session or if it will lay over till next year.
Constitutionality Question (HR 6015)
HR 6015 would have required the Attorney General to bring legal action concerning questions about the contract for the Mulvane Casino with Peninsula Gaming Partners, LLC. Mulvane is located just south of Wichita and the contract was approved just close to the end last year just before Governor Brownback took office. The constitutionality question is about a provision restricting public officials from certain interactions with gaming matters. In essence, this is a Gag Order placed on elected offices restricting who can investigate the contract or discuss it in any public venue. This provision which became law was part of SB 66, the bill that made the way for State Owned and Operated Casinos, and a bill I opposed and voted against. There was a very close vote on HR 6015 and it failed passage in the House 59-62. Now the decision will be on the shoulders of our Attorney General Schmidt. I am confident that he will take a good look at all the complex issues that surround all these issues and make a right determination.
State Representative Rocky Fund
The members of the House received the very sad news on Thursday that our colleague, Representative Rocky Fund, had passed away after a courageous and hard fought battle with cancer. Rocky was a dedicated and hard working legislator and will be missed. Please keep Rocky’s family in your prayers.
As always if there is anything I may assist you with please let me know. Feel free to contact me at home or in the office at 785-291-3500 or at jene.vickrey@house.ks.gov.
Sincerely,
Jene Vickrey
Speaker Pro Tem