School Finance/Miami County

The underlying theme for this legislative session is the importance of our children’s education. Governor Sebelius, in the State of the State Address, presented her Education First initiative, a series of taxes increased for public schools funded by proposed increases in state sales, income, and property taxes. See below:

($in millions)

	Sales Tax	Property Tax	Income Tax	Total New Taxes
FY 2005	$69.340	$ 0	$97.500	$166.840
FY 2006	$114.175	$22.893	$100.000	$237.068
FY 2007	$270.106	$23.974	$102.500	$396.580
FY 2008	$293.537	$49.472	$105.000	$448.009
FY 2009	$303.811	$51.550	$107.500	$462.861
5-Yr Total	$1,050.970	$147.889	$512.500	$1,711.359

As introduced, the plan would alter the way special education funding is allocated to school districts. This new proposal would have hit some schools' budgets extremely hard. Paola would have lost $134,000. Last week Governor Sebelius removed the new funding approach for special education from her proposal. The proposed additional taxes would provide for a $100.00 increase in base state aid per pupil for the 2004-2005 school year. There is also a proposed 5 percent increase in the share of school finance funds for at-risk students and a proposed 2 percent increase for bilingual education. The proposed plan equalizes capitol outlay mill rate up to 4 mills. There is proposed funding for implementation of all-day kindergarten for those attendance centers that have 60 percent or more of the students receiving either free or reduced lunches.

The increased spending is funded by an increase in sales taxes to 5.5 percent to take effect this July rather than being reduced to 5.0 percent as designated in statute. In 2005, the sales tax increases .5 percent to 5.6 and in 2006, the sales tax increases another 1.0 percent to 5.7 percent. These proposed increases in sales tax would increase the zero mill statewide property tax to 21 mills in 2005 and 22 mills in 2007. Finally, individual income taxes would increase with a 5 percent surcharge.

The website for the Kansas State Department of Education (http://www.ksde.org) has the Governor’s Revised School Finance Plan posted. Below is a table showing the estimated effect of the Governor’s Revised School Finance Plan on the districts of Osawatomie, Paola, and Louisburg. Columns are explained as follows:

1 - Estimated effects of increasing BSAPP by $100

2 - Estimated effects of increasing at-risk weighting from 10 to 15 percent

3 - Estimated effects of decreasing correlation weighting from 1,725 to 1,700 students

4 - Estimated effects of increasing bilingual education weighting from 20 to 22 percent

5 - 2003-04 Estimated effects of equalizing capital outlay mill rate up to four mills (some districts do not have a capital outlay levy)

6 - 2003-04 Estimated general state aid for all-day kindergarten for all attendance centers that have 60 percent of more free and reduced price lunch students

7 - Total (Columns 1 through 6)

	1	2	3	4	5	6	7
Osawatomie	161,300	84,083	0	0	0	0	245,383
Paola	237,740	74,101	89,039	0	87,580	0	488,460
Louisburg	185,610	19,982	0	0	0	0	205,592

Source: Kansas State Department of Education Website -http://www.ksde.org

I’ve worked on the calculation of the cost of the tax increases to Miami County. The department of Revenue indicates that Miami County sales tax is .7 percent of State Total. Property Tax is close to 1 percent and individual income tax is 8 percent of the State Total. Our share of the cost is:

($ in millions)

	Sales Tax	Property Tax	Income Tax	Total New Taxes
FY 2005	$0.485	$0.000	$0.780	$1.265
FY 2006	$0.799	$0.023	$0.800	$1.622
FY 2007	$1.891	$0.024	$0.820	$2.735
FY 2008	$2.055	$0.049	$0.840	$2.944
FY 2009	$2.127	$0.052	$0.860	$3.038
5-YR Total	$7.357	$0.148	$4.100	$11.605

Transportation

During our first week in Transportation Committee, we reviewed the Comprehensive Transportation Plan (CTP). The Economic benefits and saved lives are no where more apparent than in Miami County. The two highway extensions will prove to be great investments for our entire region.

Secretary Deb Miller stated that at the end of FY 2009, under current assumptions, we would suffer a $350 million dollar operating deficit. She brought to us the Governor’s proposal to increase our bonding by $465 million as follows: $100 million in 2006, $150 million in 2007, and $215 million in 2008. The Governor would ask for 0 percent sales tax transfer in 2005 and 2006, 3 percent in 2007, and 6 percent thereafter. The House Transportation Chairman has offered another bill which would dedicate 20 percent of the sales taxes from new and used car sales as a dedicated fund in 2005, and an additional 20 percent each year until it is 100 percent.

"It is an every day question from communities across our state, the status of the CTP and the status of their project" said Secretary Miller.

Below are major bond projects currently underway in the State according to the Lawrence Journal World:

• Comprehensive Transportation Program -- $1.27 billion in bonds being paid off from increases in motor fuels tax and vehicle registration fees. Gov. Kathleen Sebelius recommends an additional $465 million in bonds.
• Regents initiative -- $120 million to construct research facilities at state universities, including a life sciences research center at Kansas University. The state is responsible for the first five years of debt service at a total cost of $50 million. Debt payments start July 1 at a cost of about $3.4 million for the fiscal year.
• Statehouse renovation -- $55 million in bonds so far. The debt service is $4.4 million in the current fiscal year. Sebelius is recommending an additional $20 million in bonds to complete the second phase of the project.
• New state security hospital -- $50 million to build a 250-bed hospital on the Larned State Hospital grounds. The facility will be used to house people undergoing psychological evaluations and those committed from the courts or prison system. Debt payment is $3.8 million in the next fiscal year.
• Juvenile facilities -- $50 million approved in 2000 for various conversion and construction projects of juvenile justice facilities. Debt payment around $4 million per year.
• State hospitals -- $49.2 million in bonds to finance rehabilitation and repair projects at state hospitals. Debt payment, $3.4 million.
• "13th Check" -- $40 million in bonds for the Kansas Public Employees Retirement System to provide a 13th retirement check for certain KPERS members, and to fund the actuarial liability for a small group of regents and hospital authority employees. Bond issue paid by increased employer contribution rate.
• Kansas State Fair -- $29 million to improve fairgrounds in Hutchinson. Debt payment, $1.3 million
• State armories -- $22 million to renovate armories and construct replacement armories. Debt payment, $900,000.
- Source: The governor's budget report

Today Kansas enjoys a low debt per capita and a good bond rating. We will review the affects on both when we have hearings on the Governor's Plan to increase bonding authority.

Osawatomie State Hospital

I recently felt compelled to write a letter to the editor of the Miami County Republic concerning Osawatomie State Hospital. I've included a copy of below:

January 27, 2004

Mr. Phil McLaughlin

Editor and Publisher

Miami County Republic

P.O. Box 389

Paola, KS 66071

Dear Mr. McLaughlin:

This is the first time, I believe, that I have ever written a letter to the Editor. I felt compelled to respond to a recent editorial concerning our "state’s oldest mental health hospital", Osawatomie State Hospital. I am passionate about the work done at Osawatomie State Hospital, our hospital with the proud distinction of delivering the best patient care as shown year after year in various government health facility surveys. Osawatomie may be the "oldest" but is also the "best."

More than eleven years ago, on my first visit, I recognized the dedication and care of the employees of Osawatomie State Hospital. I learned then how mental health care has evolved into life changing treatments with wonderful new drugs, therapies, and a focus on patient support through our community mental health system.

Osawatomie must always be a key component in our care for people with severe mental health challenges. There must always be 24 hour intense critical care and full service mental health treatment available for Kansas’ citizens. We must remember that mental illness is like any other illness. It can happen to anyone at any time in their lives. It may be your neighbor, your co-worker, your family or you that needs our State Hospital’s care.

Last Fall, Rep.Feuerborn, Sen. Tyson, and myself reviewed a new three tiered level of care assessment being used at Osawatomie State Hospital. We left the briefing very impressed with how the new system targets delivering better treatment. Essentially, they now deliver not only improved care on an extremely tight budget, but also are treating more patients for more days with less money. Great job!

I for one know that Osawatomie State Hospital is just as critical in our patients’ care as the availability of in-patient care in a hospital is to a cancer patient. To recover from either life threatening illness requires a full spectrum of health care services. Osawatomie State Hospital will continue to meet the challenge and be the best State Hospital in the area of patient care.

Osawatomie State Hospital is vital to our state because of their proven success in caring for patients and for changing lives one person at a time.

Sincerely,

Jene Vickrey

Representative, 6^th District

Various Committee Reports

Below is an update from the various Committees in the House of Representatives:

Agriculture

- Food safety will be the main focus of the Agriculture Committee. Next week they will be holding hearings on the Governor’s Executive Reorganization Order. She is proposing to move food inspections, with the exception of restaurant inspections, from the Kansas Department of Health to the Kansas Department of Agriculture.

Commerce and Labor

- This week the committee has been hearing House Bill 2521, which would give preference to Kansas contractors over out-of-state bidders for construction contracts. The committee expects to begin hearings on the much anticipated workers compensation bill next Friday.

Corrections and Juvenile Justice

- Representative Doug Patterson has introduced legislation, HB 2611, requiring sex offenders to either have a sex offender sticker placed on the bumper of their vehicle or be monitored by a global positioning system. This bill will be heard next week.

Ethics and Elections

- Most of the controversial bills this committee anticipates addressing are currently in the Senate and have not made their way into the House.

Health and Human Services

- Representative Lightner’s proposal allowing students in grades six through twelve with asthma or allergies to self-administer their inhaler or epinephrine auto-injector medication, HB 2478, will be heard next week.

Judiciary

- The Judiciary Committee is considering legislation that would allow the Chief Justice of the Kansas Supreme Court to reallocate funds for magistrate positions from counties with low case loads to judicial districts that have the highest case loads. The outcome of this bill depends on how the budgetary process unfolds. If the judicial branch’s request for additional funding for the high case load districts becomes a reality, the committee will not have to pass this measure.

Local Government

- The biggest item on their plate this session is going the be the Kansas Open Records Act (KORA). The committee has to inspect all the exceptions to the KORA and determine whether or not there is a need for them to exist.

Transportation

- HB 2522, which outlaws mobile infrared transmitter devices that could change traffic signals, passed out of the committee Wednesday. The committee is now preparing to deal with HB 2548. This bill would require an adult with a valid motorcycle license to be operating a motorcycle in the general proximity of the new driver at all times, including when the motorcycle has a thirty-day registration. The Transportation Committee is also anticipating hearing a measure that would allow municipalities the option of placing cameras on traffic lights to take picture of drivers running red lights. That legislation is deemed controversial because the ticket would go to the owner of the car even if it was being driven by someone else.

In closing, I'd like to thank you for the opportunity to represent you in the Kansas House of Representatives. If you have any concerns or questions, please call me at Ph. 785.296.6014.