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Dear Friend:
The 2017 legislative session is underway and it has been a very busy week. We were sworn in Monday by Chief Justice Lawton Nuss in a very simple ceremony in which we swear a solemn oath to uphold both the Kansas and US Constitutions – a responsibility I take seriously.
In the News
State of the State Address (SOTS)
It is a longstanding tradition that House members invite their Senator to sit with them for the State of the State address, which takes place in the House chamber and is actually a joint session. I was honored to have newly elected Senator Barbara Bollier sit with me for the address.
According to our governor, the 2012 tax breaks are spurring record job growth, and Kansas is “the envy of the world.” (Nevermind the $350 million shortfall we are currently facing, and the $580 million projected shortfall in the next fiscal year.) The governor voiced continued opposition to Medicaid expansion and listed a set of policy proposals with scant detail regarding the source of funding for these new programs.
The general sentiment among many colleagues is that funding long-term programs with one-time, borrowed funds is reckless and irresponsible. My comments were included in a number of articles:
Governor’s Budget Proposal
On Wednesday, the governor’s budget report was released. The package was broadly panned, which has served to both point out the dire situation we find ourselves in and help bring lawmakers together with a sense of purpose when it comes to providing long-term sustainable solutions instead of continuing to kick the can down the road with risky one-time maneuvers.
Highlights:
FY 2017 (ending June 30):
- Liquidate long-term investment fund designed to offset the unclaimed property fund. Direct transfer of $45 million in interest earnings to State General Fund (SGF), then transfer the principal of $317 million to SGF and repay over seven years.
- Reduce payments into KPERS by $86 million.
FY 2018 and 2019:
- Securitize (sell off) the revenue stream from the tobacco master settlement in order to receive upfront payments of $265 million in both FY 2018 and 2019.
- Continue reduced payments to KPERS at the 2016 rate rather than staying the course as statutorily required. This generates SGF savings of $140 million in 2018 and $199 million in 2019 but extends the reamortization of KPERS by ten years and therefore extends the timeline before KPERS is fully funded.
- Continue to divert all sales tax revenue from KDOT to SGF. Produces $288 million for the SGF in 2018 and $293 million in 2019.
- Budget for efficiencies in K-12 school operation totaling $47 million in 2018 and $89 million in 2019. This is based upon recommendations contained in the efficiency study commissioned by the legislature in 2015. Legislative committees have already begun consideration of this proposal in order to determine if the proposals are feasible and whether the projected savings are attainable.
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