Legislative Report, 1/30/02, Upcoming Legislative Session

Doug Patterson

KANSAS HOUSE OF REPRESENTATIVES

____________________________________________________________________________

Wednesday, January 30, 2002

During the 2001 legislative session, the approved budget and funding package for 2002 committed 51.4 % to support school districts, 15.7% to the Board of Regents funding state universities and community colleges and 12.9% to the Department of Social Rehabilitation Services; representing 80% of the entire State General Fund Budget.

The 2002 Kansas Legislature began its session on January 14, 2002 with Governor Graves’ State of the State address that evening. Prior to the Governor’s message, we knew of several issues for the 2002 session which affect schools, highways, the court system and social and rehabilitation services for the disabled, elderly, indigent and young. These matters need to be addressed in a year where anticipated revenues are short by over $426 million. The issues we anticipate include: (1) K-12 education funding where it appeared that we will be lucky to hold the Base established last year at $3,870.00 per pupil, (2) homeland security and terrorism, (3) redistricting, (4) pharmaceutical reimbursements for the elderly, (5) increased funding for the handicapped and disabled, (6) slots at pari-mutuel tracks, (7) upkeep and maintenance of the state's highway and road systems, (8) funding of over $110 million of research facilities for KU, Kansas State and Wichita State, (9) securing city right of way while allowing telecommunications companies to expand their facilities, and many more issues which required money. The initial budget prepared by Governor Graves required a balanced budget with no additional revenue enhancement and with a 7.5% State General Fund expenditures ending balance. He did so, but announced that he would not support such budget. Therefore, during his State of the State address, Governor Graves suggested certain additions to his original proposed budget.

The Governor's plan is to not only increase revenues to make up for a part of the $426 million shortfall, but also to raise revenues for certain purposes. In terms of spending, the Governor proposes: (1) increasing the Base for K–12 by $20 per pupil (no special education increase was mentioned); (2) $4.4 million in-home elderly care (thereby reducing reliance upon a nursing homes); (3) $10 million for SRS in the areas of delays in services and for higher reimbursements to doctors; (4) $5.5 million for jails and prisons, (5) $12 million for a 2% raise for state employees; (6) $27 million for higher education and the Board of Regents; (7) $4.1 million to the court system to avoid court closings due to lack of a funding and other increases in the areas of economic development and SRS services. Make no mistake, however, many government agencies/projects will see budget reductions.

In order to finance the recoupment of a portion of the $426 million shortfall, as well as the funding for the above enhancements, the Governor proposes a 65¢ per pack cigarette tax increase which will raise $111 million "on paper". He proposes a 1¢ motor fuel tax to raise $18 million a year, a one-quarter cent state sales-tax which will raise $95 million as well as a 3% the vehicle registration increase which will raise about $40 million per year. He also suggested that he would not oppose slots at pari-mutuel tracks.

Then, just this week, the Senate began is considering a " Recision Bill". This would be TERRIBLE for education, because it would roll back the remainder of this years budget receipts significantly in the middle of a school year, when salaries and similar commitments are already made by our school boards. The Senate will vote on the Recision Bill soon. The president of the Senate, Sen. David Kerr (R- Hutchinson), a potential candidate for Governor, wants this spending cut to show he has political clout..

I oppose a Recision Bill which would not hold education-K-12 harmless, oppose any reduction in educational funding, support an increase in the LOB, support slots (with the taxes generated therefrom dedicated to K-12) and cautiously support the $.65 increase tax for cigarettes so long as the proceeds are allocated to education. I supported all increased funding measures for schools passed last year, but in these times, I need your input on any increases in sales taxes, income taxes or real estate taxes for schools and other purposes.

With so many options, I would appreciate your input on the following questions, as well as other suggestions, in order to have your thoughts about the upcoming legislative year:

1. Are you in favor of a tax increase. if so, what type of tax increase (income tax, property tax, tobacco tax or sales-tax) and for what purpose: education, transportation, homeland security, etc.
2. Are you in favor of a tax increase to continue education funding only at its current level? If so which: income tax, sales tax or real estate tax?
3. In order to increase education funding, would you support a tax increase?
4. Would you support a new "please tax me" fund, where citizens voluntarily send in tax money to the state for education, or other specific purposes?
5. Do you support your local school districts Local Option Budget (LOB) and/or an increase if the LOB? If not please explain.
6. What measures should the State or local governments enforce to protect Kansans from threats of terrorism?
7. How have you and/or your family been affected by the downturn in our state and national economy?
8. Would you support allowing slots at current pari-mutuel dog and horse tracks such as The Woodlands in Wyandotte County?

9. Do you support expanding gambling by allowing slots at fraternal organizations, such as VFW, legions, and bingo halls, with a county option vote?
10. What is your perception of tourism in Kansas and how could it be improved?
11. Would you have supported the OZ project in southern Johnson County, Kansas?

12. Do you believe current Insurance Commissioner Sebelius is doing a good job in protecting consumers from increases in insurance premiums?
13. Are you in favor of any other expenditure which would require a tax increase? If so what?
14. Kansas currently maintains a "rainy day fund", 7.5% ending balance requirement. Should this balance be lowered so more dollars could be used?
15. Please include your name, address and e-mail address.

I would appreciate your input on the above questions and any other issues that are important to you. Please give or e-mail a copy of this to a neighbor. The most efficient and effective means of responding to the above questions would be for you to e-mail it to me at Dpatterson@ink.orq or at Patterson@house.state.ks.us, or you can mail your response to my Topeka office: Room 174W, State Capital Building, Topeka, Kansas 66612-1504. I will assemble your responses and publish the results.

Doug Patterson

Kansas State Representative

District 28, Leawood

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Paid for by the Committee to Elect Doug Patterson, Dave Imhoff, Treasurer