Opinion
by State Sen. Steve Fitzgerald, R-5th Dist.
Quick facts
It appears that the national economy is doing very well and Kansas is seeing the benefits.
However, many factors are at work and the increase in state revenue could be more a matter of reaction to the new federal tax law than economics. Time will tell. Meanwhile, the outlook seems very good.
• Kansas State revenue collections for the month are $746.65 million which is over $165 million above expectations (Kansas Department of Revenue)
• Receipts for the fiscal year to date total is $3.94 billion, which is $248.63 million above expectations (Kansas Department of Revenue)
• Sales tax collections have averaged approximately 3 percent above the previous year, which is about $40.43 million more in revenue (Kansas Department of Revenue)
• Kansas Attorney General Derek Schmidt has called for a review to find out whether millions of dollars in unauthorized school spending in Kansas was an isolated departure from the law or a more widespread problem. (Source: http://www.kansas.com/news/politics-government/article197176999.html)
• The Institute for Supply Management released its state by state results for January with an index ranging between 0 and 100. Growth neutral is 50, and a figure greater than 50 indicates an expanding economy over the next three to six months. For Kansas, the overall index was at 59.6 for Kansas last month. All other states in the region were lower. Details can be found here.
(Source: http://www.kansas.com/news/business/article197804704.html)
• GDP is expected to surge 5.4 percent to start 2018, the central bank branch estimated in its latest rolling look at how the economy is progressing. (Source: https://www.cnbc.com/2018/02/01/economy-to-grow-at-5-point-4-percent-rate-in-first-quarter-atlanta-fed-tracker-shows.html?__source=twitter%7Cmain)
Wallet watch
Thanks to the federal tax cuts enacted late last year, most Americans are receiving a boost in pay this week. While those on the left deride the cuts as “crumbs,” Americans seem happy with the returns – and this is on top of more companies adding jobs and helping workers as a result of the tax cuts.
Here in Kansas, the effect of the tax cuts has unfortunately been offset by last year’s retroactive tax increase, SB 30, on Kansas families and businesses.
Kansas Department of Education ignores legislative approval
Senate Majority Leader Jim Denning wrote an editorial regarding the LPA Audit which found that KSDE implemented a change to the K-12 transportation formula without legislative authorization. The full editorial is here http://www.cjonline.com/opinion/20180201/jim-denning-ksde-ignores-legislative-approval. Here is a key excerpt:
“During Friday’s meeting, KSDE completely ignored the audit’s damning findings. Not only did the board not discuss corrective action needed by the audit findings, it plans to openly continue spending the unauthorized money even though it has been informed by LPA it is not legal.
“Several board of education members, including board chairman Jim Porter, of Fredonia, and Ken Willard, of Hutchinson, have said the burden of responsibility for examining school funding distribution ‘lies with the Legislature.’ In other words, they are saying the Legislature should have self-identified if the amounts are correct or not, even though these dollar amounts are presented directly to the Legislature by the Kansas Department of Education.
“However, LPA auditors only recently uncovered the unauthorized $45 million payments, which were intentionally embedded in the spreadsheet KSDE uses to calculate transportation state aid. Senate Leadership and the A.G.’s office recommended KSDE perform a forensic audit on the entire formula to verify that nothing like the LPA’s findings are occurring elsewhere in the formula.”
Rep. Kristey Williams wrote a two-part column on school finance:
Part 1: http://www.butlercountytimesgazette.com/opinion/20180123/rep-kristey-williams-are-schools-unfunded
Part 2:http://www.butlercountytimesgazette.com/opinion/20180129/rep-kristey-williams–are-local-boe-maximizing-local-funding-options
Here are some excerpts:
“The Kansas Constitution (Article 6, Section 6) states that the Legislature shall ‘make suitable provision for finance of educational interests of the State.’ The Constitutional wording ‘suitable provision’ in question was first added to our Constitution in 1966.
“Here is the key word in question: suitable. The word ‘suitable’ has been defined by the Supreme Court to mean both ‘equitable and adequate.’ The definition and measurement for reaching what is ‘equitable and adequate’ has changed for the past decade. In essence, the Legislature has been given an impossible task in which the goalpost of ‘equitable and adequacy’ continually move with each ruling.
“53 years since the word ‘suitable’ was added to our State Constitution, we find ourselves in litigation brought on by self-serving lawyers who have taken more than $6 million from Kansas taxpayers to line their own pockets.
“Let’s go back to the four schools that were part of the original lawsuit. These schools are not currently using their maximum taxing authority. If these four districts needed more funds for teacher raises or classroom enhancements, the money is already available today – without any more lawsuit wins or increased state funding. These four schools would need only to increase their local property tax rates to the statutory maximum levels and be subject to a 30-day protest petition.
“These districts are suing you instead. In essence, by not maximizing their local funding authority, their actions indicate they would prefer for you, everyone else in the state, to pay more for their schools rather than ask their local voters/patrons.
Floor action
The Senate passed several bills, all unanimously, mostly housekeeping and a bill to honor Dwight D. Eisenhower.
Updating effective risk-based capital instructions date (SB 267): SB 267 changes the effective date specified in the Insurance Code for the risk-based capital (RBC) instructions promulgated by the National Association of Insurance Commissioners for property and casualty companies and for life insurance companies. The instructions currently specified became effective on Dec. 31, 2016. The bill would update the effective date on the RBC instructions to Dec. 31, 2017. This bill passed the Senate 39-0.
Mid-term appointments of Credit Union Council members (SB 275): SB 275 adjust the provisions relating to the terms of service for members of the Credit Union Council (Council). The bill would specify a council member could not serve more than two consecutive full three-year terms. The bill would require the governor, in the event of vacancy on the council, to appoint a new member to fill the unexpired term, but this mid-term appointment of a new council member would not be considered a full term for purposes of the two-term limit. This bill passed the Senate 39-0.
Authorization of the construction of a statue honoring Dwight D. Eisenhower (SB 262) SB 262 would authorize the Capitol Preservation Committee to approve plans to place a permanent statue of Dwight D. Eisenhower on the northwest quadrant of Kansas Capitol grounds. The bill also authorizes the Department of Administration to receive moneys from grants, gifts, contributions, or bequests to finance the construction of the statue and its pedestal. All funds received would be remitted to the Dwight D. Eisenhower Statue Fund, which would be created by the bill and would be used solely for creating and constructing the statue and its pedestal or other purposes specifically indicated in the bequest. No public funds would be used to construct the statue and pedestal. The monument will be an exact replica of the statue created by Lawrence native, Jim Brothers, which currently resides in the Rotunda of the U.S. Capitol in Washington D.C. This bill passed the Senate 39-0.
Audits of the Kansas 911 Act (SB 255): SB 255 would modify the Kansas 911 Act by changing the duration between audits of the 911 system from three years to five years. The bill requires on or before December 31, 2018, and at least once every five years thereafter, the Division of Legislative Post Audit to conduct an audit of the 911 system. This bill passed the Senate 39-0.
Transferring duties from judicial administrator to director of property valuation (SB 261):
SB 261 revises the law requiring an appraisal prior to the state purchasing or disposing of any real property. The bill transfers the duty to appoint a disinterested appraiser from the Judicial Administrator to the Director of Property Valuation, the head of the Department of Revenue’s Division of Property Valuation. Similarly, if the county assessment value of the real property is over $200,000, the bill would allow the Director of Property Valuation to appoint three disinterested appraisers, rather than the Judicial Administrator. This bill passed the Senate 39-0.
Dr. Jeff Colyer 47th governor of Kansas
On Wednesday, Jan. 31, Jeff Colyer was sworn in as the 47thgovernor of Kansas replacing Sam Brownback. The inauguration of Colyer comes after Gov. Brownback resigned from office to become the U.S. Ambassador to International Freedom. I wish Ambassador and Mrs. Brownback Godspeed in their next chapter of public service. They have been examples of grace and forbearance.
Gov. Colyer was accompanied by his wife, Ruth, and two of their daughters as he took the oath of office in a ceremony at the Kansas Statehouse.
“I demand transparency and we embrace accountability,” Colyer said in his speech. “I pledge to do the right thing even when nobody is looking, and we will set a tone and insist on an environment of openness, honesty and respect and without harassment, especially in this building.”
Gov. Colyer is scheduled to address the legislature next Wednesday. I look forward to a productive relationship between the legislature and the new governor.
Medicaid suspension bill heads to Senate
On Tuesday, the Senate Public Health and Welfare Committee sent SB 195 out of committee to the Senate. SB 195 would suspend instead of eliminate eligibility for Medicaid benefits for those in prison, jail, or mental health facilities. The bill does not require the person to reapply for their KanCare coverage therefore allowing them to immediately receive benefits when they are released from a state facility. SB 195 would not allow reimbursement while incarcerated but works to decrease the amount of time an individual must wait to receive coverage after being released.
Supporters of the bill believe it will lower recidivism rates since it will provide access to continuous mental health coverage. A mental health task force had recommended the policy to legislators earlier this month.
I support actions to reduce recidivism and to help mental health and therefore expect to vote for this bill when it comes before the Senate.
Bill calls for shared parenting time
On Tuesday, the Senate Judiciary Committee held a hearing on SB 257 which would provide divorcing parents equal amount of time with their child by default. If the parents do not have a parenting plan one would be created for them allowing each parent equal custody. If evidence shows that equal time with both parents is not in the best interest of the child the court can create a different custody arrangement.
The bill, which was created to promote the involvement of the father and co-parenting, was filed before the legislative session by Sen. Steve Fitzgerald (R-Leavenworth). During the hearing, research was presented that showed the involvement of both parents is better for the child.
The Department of Children and Families believes SB 257 would decrease fee fund receipts by $6 million after FY2019. This decrease would result from reduced court actions.
The bill does not address child support. Proponents and opponents are meeting to try and address concerns expressed by two judges and the trial lawyers.
Cybersecurity Act
On Thursday, the Senate Ways and Means Committee held a hearing on SB 342 which enacts the Kansas Cybersecurity Act. The Cybersecurity Act focuses on making data in the state more secure. Throughout the past eight years, the bill has taken various forms while the need for cybersecurity has steadily increased.
The bill provides five main goals:
1. Protect state information and systems
2. Reduce cyber risks through programs and initiatives
3. Effective and efficient cybersecurity capability
4. Enterprise approach to cybersecurity through a centralized process
5. A cyber secure state
The bill aims to protect Kansas from cyber-attacks, loss of sensitive information, and financial liability due to breaches of information. SB 342 would focus on providing a secure network to the executive branch agency, with the exclusion of elected office agencies, regents’ institutions, or the board of regents. Non-governmental agencies would be required to provide their own security services.
Online sales tax hearing
This week the Joint Tax Committee heard from the South Dakota Attorney General’s office on their pending lawsuit before the U.S. Supreme Court regarding online sales tax. South Dakota passed legislation that would require sales tax to be remitted to the state from remote sellers who do not have a physical presence within the state but have what is considered an ‘economic presence.’
This comes after a growing concern from many states that are seeing sluggish sales tax receipts due to more Americans shopping online rather than in-store.
The attorney general of South Dakota recommended that Kansas write an amicus brief in support of South Dakota’s efforts. This would have to come from the Kansas Attorney General.
South Dakota expects a ruling to come from the Supreme Court this summer.
This week
Tuesday-
• Hearing on: SB 299, election commissioners; role of secretary of state and boards of county commissioners – [Senate Ethics, Elections and Local Government; Feb. 6 at 9:30 a.m.]
• Hearing on: HB 2439, creating an additional crime of involuntary manslaughter for certain violations of driving under the influence of alcohol or drugs – [Senate Judiciary Committee; Feb. 6 at 10:30 a.m.]
• Briefing on: Options for a New Mental Health Hospital, Kansas Department for Aging and Disability Services – [Senate Ways and Means Committee; Feb. 6 at 10:30 a.m.]
Wednesday –
• Final action on: SB 312, licensure of dental therapists – [Senate Public Health and Welfare Committee; Feb. 7 at 9:30 a.m.]
• Hearing on: SB 328, prohibiting the outsourcing of privatization of any operations or facilities of any correctional institution or juvenile correctional facility; allowing existing contracts to be renewed – [Senate Federal and State Affairs; Feb. 7 at 10:30 a.m.]
Thursday-
• Hearing on: SB 316, providing Medicaid coverage for tobacco cessation – [Senate Public Health and Welfare Committee; Feb. 8 at 9:30 a.m.]
Friday-
• Hearing on: SB 332, removing Medicaid services for intellectual and developmental disabilities from managed care delivery – [Senate Public Health and Welfare Committee; Feb. 9 at 9:30 a.m.]
2018 Sessions dates and deadlines
All dates are subject to change
Monday, Feb. 5, Last day for non-exempt committees to request bill drafts
Wednesday, Feb. 7, Last day for bill introductions by members
Friday, Feb. 9, Last day for non-exempt committee bill introduction
Friday, Feb. 16, Pro forma
Monday, Feb. 19, Last day for AM/PM committees to meet
Tuesday, Feb. 20, On floor all day
Wednesday, Feb. 21, On floor all day
Thursday, Feb. 22, Last day for non-exempt bills in house of origin
Feb. 23-27, No session
Friday, March 2, Pro forma
Friday, March 23, Last day for non-exempt committee consideration
March 26-28, On floor all day
Thursday, March 29, On floor all day; Last day to consider non-exempt bills not in originating chamber
Friday, March 30, No session
Friday, April 6, Drop dead day; first adjournment
Thursday, April 26, Veto session begins
Thursday, May 4, Day 90
Kansas Legislature
Links to follow the Kansas Legislature:
Website – www.kslegislature.org. Great for looking up bills, calendars, journals, as well as the Roster in each Chamber.
YouTube of Legislature –
http://bit.ly/2CZj9O0 Did you know the legislature is now streaming its proceedings? The YouTube page has an archive of the sessions thus far – including the State of the State and the State of the Judiciary.
Committee Streaming – http://sg001-harmony.sliq.net/00287/Harmony/en/View/Calendar/
The Kansas Legislature is also streaming committees, with every committee room equipped with audio streaming technology.
Sen. Steve Fitzgerald, R-5th Dist., represents western Wyandotte County and part of Leavenworth County.