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Legislative Report, 3/6/02, Status Report and report on results of SurveyDoug Patterson _________________________________ State Capital Room 174W _________________________________ Vice-Chair: Johnson County Legislative Delegation Committees:
KANSAS HOUSE OF REPRESENTATIVES http://www.ink.org/public/legislative/index.cgi http://www.ink.org/public/legislative/status/status.cgi ____________________________________________________________________________
WHERE CREDIT IS DUE AND "NO CALL" In this modern age when "identity theft" is a household term, the House voted this week to make it more difficult for criminals to get their hands on your credit card number. HB 2676 would require retailers to blank out credit card numbers (except for the last five digits) on receipts, both the original and the customer copy. This should make it harder for criminals to find discarded receipts and use them to make fraudulent purchases. The bill passed, 111-7, and moves to the Senate for consideration. Naturally, I supported the measure. The House also had an opportunity to initiate a "No Call" bill. This bill narrowly passed the House in the face of stiff opposition since the bill also dealt with certain agricultural issues. I supported the "No Call" bill. Only 4 of our 19 Representatives voted for the "No Call" measure. We will see how it does in the Senate. SLOTS PROPOSALS GAIN GROUND The state is strapped for cash, which means any and all revenue-generating ideas are getting discussion under the dome. Slot machines at parimutuel racetracks are at the top of the list. The House Committee on Tourism has heard testimony on several proposals that would allow slots in various locations from racetracks to fraternal clubs and veterans organizations. It’s a bit early to know which bill will make its way to the House floor, but I expect at least one slots bill to clear the committee hurdle this session. The big sticking point: What percentage of revenue goes to the state, the veterans groups, racetracks and other interested parties? This will be the cornerstone of debate on any slots bill. I now support a slots bill, as do a majority of the residents of District 28, but I am working on a provision which would fund, in a significant way, gambling addiction programs much like the Missouri "1-800-BETSOFF" program. FIGHTING HEALTH-CARE FRAUD Health care is the single largest cost increase driver in the state budget. That’s why legislators are concerned after seeing the results of a recent audit of Kansas Medicaid fraud prevention program. National statistics indicate that approximately 10 percent of all Medicaid claims are fraudulent, meaning about $138 million each year in Kansas. While I don’t believe this high incidence of fraud exists, even a small 2 percent of fraudulent claims costs us $27 million each year. In an attempt to discourage this fraud, House Bill 2957 would create a civil penalty for those who intentionally defraud or abuse the Medicaid system through false billing practices. This bill gives the Attorney General another tool in pursuing those who seek to steal from our system and thus increase the cost of government and health care for all. This bill was assigned to my Judiciary Committee and I certainly supported the bill. HIGHWAY PLAN HITS SPEED BUMP Speaking of tough times, one area of the budget that hasn’t received much attention is the Comprehensive Transportation Plan. The $13 billion plan was passed in the 1999 session, and depends on revenue from a variety of taxes to keep it in place for the next 10 years. Gov. Graves recommended cutting all funding for the plan from his 2003 budget as a way to cut costs. Translation: The plan is in trouble without new money, refinancing, project cuts, or a combination of the three.
SHOW US THE (SCHOOL) MONEY!!! The budget dilemma of this year’s legislative session presents special challenges for our commitment to funding education, both K-12 and higher education. Almost 70 percent of the state general fund is spent on education, which means any substantial cuts will affect local school districts. As we examine district budgets, it becomes very difficult to sort through the confusing budget documents and reporting systems that vary at each school district. A bill in the House Education Committee would address this problem by creating a uniform method for school district budgeting , including an easy-to-read, school-by-school summary of how money is being spent. This proposal would make it easier for all of us to accurately assess education funding levels and determine how best to support quality educational resources for our children. You have read about various proposals offered by the Governor as well as the Senate. The problem with this approach is that, without a complete picture of the budget, we really don’t know where to find or increase receipts or cut spending in favor of education…or by how much. So while the education oriented models you have read about sound good, they have been manufactured out of a vacuum. Hopefully early this month, the House Appropriations Committee will float a proposed complete budget to put all of these conflicting factors together so as to allow us to see where revenue can be found and what additional revenue enhancements can be offered to education. That is why I have not written about education earlier. There is not a significant amount of proposed legislation out there yet that has a chance. Also, the CREG report (described below) is not scheduled to be released until March 8, 2002. When information arrives, I will let you know. I am in touch with board members, staff and others of Blue Valley and Shawnee Mission school districts on a regular basis. I can tell you that our two school districts are well represented under the dome. A ROUGH ESTIMATE March 8th is a big day as we work to write a state budget. The Consensus Revenue Estimating Group (CREG) will meet to revise its forecast of tax collections for the next 18 months. This group, which includes university economists and state policy analysts, sets the numbers that legislators use to determine how much money can be spent. The CREG numbers will be the driving force behind the rest of the session, as legislators begin to focus more closely on the budget. These numbers will determine the final size of the budget shortfall, already estimated at more than $425 million. If current projections hold true, the state will take in less revenue this year than in fiscal year 2001, a troubling statistic when coupled with the increased financial demands for education, the elderly, courts, transportation and other essential elements of state government. THE SURVEY In January, I sent out a survey containing 14 questions. These questions ranged from financial issues such as what type of tax increase, if any, should be considered, to political quires, such as what type of job you think Insurance Commissioner Kathleen Sebelius is doing. A good sampling of people responded. The results are as follows (and thanks to everyone who took the time to respond):
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. NO 5% NO RESPONSE 8%
PROPERTY 13% TOBACCO 24% INCOME TAX 8% ALCOHOL 10% SALES 19% GASOLINE 3% NONE SPECIFIED 25%
FARMING 2% EDUCATION 67% HOMELAND SECURITY 6% TRANSPORTATION 4% SOCIAL SERVICES 13% DISABLED SERVICES 6% BUSINESS 2% 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? YES 41% NO 16% NO RESPONSE 43%
SALES 28% PROPERTY 25% ALCOHOL/TOBACCO 8% NONE SPECIFIED 25%
NO 10% NO RESPONSE 4% 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? YES 6% NO 40% NO RESPONSE 43%
(LOB) and/or an increase if the LOB? If not please explain. YES 47% NO 2% NOT SURE 6% NO RESPONSE 45%
protect Kansans from threats of terrorism? NONE 4% ANY POSSIBLE 2% I DON’T KNOW 16% SPECIFICALLY SCHOOL PROTECTION 2% AUTHORIZE RIGHT TO CARRY 2% EDUCATION 2% AIRPORT SECURITY 1% BIOLOGICAL/MED RESPONSE 2% PROACTIVE STANCE 6% KEEP TRACK OF IMMIGRANTS 2% NEW LICENSES& SS# 7% POLICE & EMT TRAINING 2% NO RESPONSE 58% 7. How have you and/or your family been affected by the downturn in our state and national economy? SCHOOLS/EDUCATION 4% BUSINESS/SELF EMPLOYED 6% STATE FUNDED PROGRAMS 2% CHARITABLE GIVING 2% STOCKS AND BONDS 8% LOST JOBS 4% SPENDING POWER 4% UPWARD MOVEMENT IN JOBS 2% DEBT 2% BEEN LUCKY 13% NO RESPONSE 54% 8. Would you support allowing slots at current pari-mutuel dog and horse tracks in Kansas such as The Woodlands in Wyandotte County? YES 32% NO 13% NO RESPONSE 55%
organizations, such as VFW, legions, and bingo halls, with a county option vote? YES 19% NO 29% NO RESPONSE 52% 10. What is your perception of tourism in Kansas and how could it be improved? NOT A TOURIST STATE 21% GAMING/GAMBLING CENTERS 7% MAJOR AIRPORTS 2% HISTORICAL VALUES 2% INCREASE SALES TAX 2% FUEL TAX 2% MORE PUBLICITY 7% NO OPINION 7% NO RESPONSE 55% 11. Would you have supported the OZ project in southern Johnson County, Kansas? YES 13% NO 21% NEUTRAL 2% NO RESPONSE 55% 12. Do you believe current Insurance Commissioner Sebelius is doing a good job in protecting consumers from increases in insurance premiums? YES 13% NO 4% DON’T KNOW 21% NO RESPONSE 63% ( I’ll show Carla Stovall and Kent Glasscock this one)
tax increase? If so what?
NO 22% NO RESPONSE 59% DON’T KNOW 2% WHAT? STATEWIDE TRANSPORTATION PLAN 40% EDUCATION 40% GOVERNMENT SERVICES 10% BALANCED BUDGET 10% (this was not a well worded question in light of respondents’ position on taxation and funding for education earlier) 14. Kansas currently maintains a "rainy day fund", 7.5% ending balance requirement. Should this balance be lowered so more dollars could be used? YES 21% NO 15% DON=T KNOW 6% NO RESPONSE 58%
IN CLOSING...
We live in a great State and as always, thank you for the honor and opportunity to serve you in the Kansas Legislature – House of Representatives. I appreciate your continued support and will do my best to represent your interests in Topeka. Respectfully,
C:\Dist28\2002reports\Rep#2 Mar0602.rtf
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