Fifty Schmidts and a few Schmitts put name behind Gov. Laura Kelly’s reelection bid

by Tim Carpenter, Kansas Reflector

Topeka — The Kansas Democratic Party tracked down more than 50 Kansans with Schmidt-sounding surnames who endorsed Gov. Laura Kelly’s reelection rather than support Republican frontrunner Derek Schmidt in the 2022 campaign.

The partisan roster, including dozens of Schmidts and a sprinkling of Schmitts, offered endorsements used Monday by the Democratic Party to renew an assertion Attorney General Schmidt’s election would return Kansas to the financially troubled era of GOP Gov. Sam Brownback.

“As a Schmidt, I’m proud to support Governor Laura Kelly for reelection,” said Rep. Chuck Schmidt, a Wichita Democrat. “Governor Kelly’s fiscally responsible policies have saved Kansas from the drastic underfunding of our public schools and an economy in freefall. Meanwhile, her opponent, Derek Schmidt, threatens to take us back to the Brownback days we’ve worked so hard to put behind us these last four years.”

The list of like-minded Schmidts included Chuck Schmidt of Wichita, Melissa Schmidt of Strong City, Kathleen Schmidt of Wathena, Nancy Schmidt of Abilene, Louis Schmitt of Lawrence, Archie Schmidt of Newton, Carol Schmidt of Leavenworth, April Schmidt of Prairie Village and Jessica Schmitt of Overland Park.

In the past week, the Kansas Livestock Association threw its support to candidate Schmidt for fostering “a positive business climate for livestock producers” as a state senator and the attorney general. He also secured an endorsement of Missouri Gov. Mike Parson, who offered his “full support.” The Missouri Republican governor praised Schmidt for opposing President Joe Biden.

“Simply put, Kansas can do better than the Kelly-Biden agenda that’s creating hardship for families and businesses, not helping them thrive,” Schmidt said.

Also Monday, the Kansas State AFL-CIO endorsed Kelly in recognition of her administration’s advocacy for working families and for bringing jobs to the state.

“The successes that Governor Kelly accomplished these past few years is nothing short of incredible. Businesses are flocking to Kansas, unemployment has hit an all-time low and there are more job opportunities than ever before,” said Tony Spicer, president of the state’s AFL-CIO.

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Kelly, Schmidt clash over development of $969M Kansas state rainy day reserve fund

Kansas avoids borrowing to cover day-to-day expenses for first time since 1999

by Tim Carpenter, Kansas Reflector

Topeka — The state of Kansas had sufficient cash flow for the first time in more than 20 years to avoid borrowing to cover day-to-day operating expenses while simultaneously building a reserve fund in the just-completed fiscal year with a balance of nearly $1 billion.

The State Finance Council, comprised of the governor and legislative leaders, typically issues certificates of indebtedness for hundreds of millions of dollars to cover for inconsistencies in the flow of tax revenue to the state treasury. The certificates are an IOU the state writes to itself and must be repaid on an annual basis.

Gov. Laura Kelly, a Democrat seeking reelection, said the state closed out the 2022 fiscal year without making use of that borrowing mechanism. It was the first time since 1999 that Kansas lawmakers hadn’t done so, she said.

“When I first came into office, Kansas had no savings, and in fact, was going into debt every year,” said Kelly, who was elected in 2018. “My administration worked to put Kansas on a consistent path of fiscal stability and economic growth.”

As recently as 2020, amid the COVID-19 pandemic, the State Finance Council authorized borrowing $900 million from various state funds to cover expenses. In 2016, the State Finance Council approved an identical $900 million certificate of indebtedness when Republican Sam Brownback was governor.

Meanwhile, Kelly said, the 2022 Legislature and governor collaborated on authorization of deposits into the rainy-day fund that grew to $969 million by July 1. The governor signed budget bills that earmarked deposits of $500 million and $250 million into that savings reservoir. Tax revenue to the state continued to exceeded projections, resulting in an end-of-year deposit of $219 million.

The state’s rainy-day account was established in 2017, and the previous high balance was $81.9 million.

Kelly said the state government built strong cash reserves and avoided operational borrowing at the same time it maneuvered to reduce state taxes, invested in higher education and law enforcement, and fully financed public K-12 education.

Attorney General Derek Schmidt, a Republican and frontrunner for the GOP nomination for governor, said Kansas’ treasury was the beneficiary of an outpouring of federal aid. That funding was approved by Congress and Presidents Donald Trump and Joe Biden in response to COVID-19 and to spur economic growth.

“As I have said repeatedly, Kansas — like most other states — is riding a national wave of revenue caused by Joe Biden’s inflation, and that’s nothing to brag about,” Schmidt said.

He said Kansas’ financial condition was influenced by approval in the GOP-led Legislature of investments in the rainy-day fund and the deposit of $1.1 billion in the state’s public employee pension system. He was among politicians who advocated for those allocations of surplus revenue.

“These prudent measures will help stabilize state services for years to come and help make possible my plan to let Kansans retire tax free,” Schmidt said.

Schmidt also said Kansas lagged behind pre-pandemic economic growth projections.

“We need to grow our state, and as governor, I will continue to work closely with the Legislative to ensure a strong fiscal foundation to weather the inevitable storm that will come when the federal largesse wanes,” Schmidt said.

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Schmidt, Kelly campaigns at odds on approach to Medicaid expansion in Kansas

by Noah Taborda, Kansas Reflector

Topeka — Katie Sawyer, Republican gubernatorial candidate Derek Schmidt’s running mate, said neither she nor the attorney general would support Medicaid expansion in its current proposed form.

Sawyer made the remarks at a candidate forum in Salina over the weekend in response to a question from an audience member who asked if Schmidt would support a plan to expand KanCare, the state-run Medicaid program. The audience member also questioned former Gov. Sam Brownback’s stance against expansion, arguing the state lost billions of dollars by not expanding.

“I can’t speak to what Gov. Brownback did,” Sawyer said. “What I will say pretty clearly is, as it stands right now in its current proposed form, Derek Schmidt would not be supportive of expanding Medicaid.”

C.J. Grover, campaign manager for Schmidt, said the attorney general could not support current proposals because they would assist able-bodied Kansans without children without a work requirement. No matter who is governor, Grover said he did not believe the Legislature was likely to pass Medicaid expansion.

Overall, he said Schmidt considers himself a “open-minded skeptic” on the issue.

“Should the Legislature one day reconsider and decide to advance a proposal, there are requirements AG Schmidt believes must be met,” Grover said. “First, the state share of the expansion cost must be honestly paid for, second there must be a work or job training requirement to ensure expansion is not a welfare program but instead a way to help able-bodied Kansans who are working to support themselves, and third there must be a clear and enforceable prohibition of any taxpayer funding for abortion coverage.

According to the most recent Kansas Health Institute estimates, expansion in January 2023 would lead to 148,000 newly enrolled Kansans. Nearly 88,000 adults who currently fall in the “Medicaid coverage gap” would gain coverage if Medicaid were to expand.

The April estimates indicate an increase of 36% from the pre-pandemic monthly average KanCare enrollment, but only a 1.4% increase in spending. In addition, KHI estimated that the American Rescue Plan Act would create $418 million in savings for Kansas over two years if KanCare were expanded to low-income adults.

“None of the non-expansion states have adopted expansion since ARPA was enacted,” the brief notes in conclusion. “In the meantime, Kansans who remain in the coverage gap have few alternatives for comprehensive affordable health insurance.”

KHI estimates include indirect effects of expansion enrollment for children and currently eligible adults.

Alliance for a Healthy Kansas estimates the state has lost out on over $5.6 billion without expansion and 150,000 Kansans fall in the Medicaid gap.

Proponents of expansion also highlight concerns with rural hospital closures. Since 2005, nine rural hospitals in the state have closed, and of the 105 rural hospitals in Kansas 75 are currently running at a loss and are vulnerable to closure, according to a Center for Health Care Quality and Payment Reform study.

Madison Andrus, a campaign spokeswoman for Gov. Laura Kelly, said the governor would continue to strongly support expansion.

“It will expand quality health care for 150,000 hardworking Kansans and create 23,000 jobs,” Andrus said. “That’s good for rural Kansas, good for the Kansas economy, and good for Kansas health care workers — and it will remain a top priority in her second term.”

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