From the Desk of Senator McGinn                                               2/16/2012

Last week we had a glitch in the e-news blast and some of you received multiple copies. We sincerely apologize for any inconvenience. We think we have fixed the problem. Please let us know if we did not.

Kansas policymakers will near the half way mark of the session in just a few weeks.  Most key issues facing the legislature are still being considered in various committees (tax reform, school finance, and KPERS).  Here’s a quick guide to the deadlines that keep the legislative process moving:

February 10-the last day for committees to introduce bills

February 24 – deadline for bills to have cleared their House of Origin

March 31- Consideration of all bills prior to the April Break

April 1-24- April Break (Except for budget committees who will return early to finalize their budget recommendations)

April 25- Veto Session begins.

Bethel College Resolution

On February 15^th, I offered a resolution (SR 1820) honoring Bethel College on its 125^th anniversary. I was pleased that President Perry White and his wife Dalene and former President Laverne Epp and his wife Marilyn were able to receive the resolution and be acknowledged with a standing ovation.

Tax Discussions

The House Tax Committee spent two days this week holding hearings on the Governor’s Tax Proposal (HB 2560).  Many of the proponents voiced support for updating the tax structure in Kansas and suggested a variety of amendments to the bill.  Opponents to the bill also brought suggestions, expressing concern for the elimination of numerous tax credits which have spurred economic activity and/or have supported low income Kansans.  The Senate Tax committee will take up the Governor’s Tax Plan next week with two days of hearings scheduled.

A hearing was held on my bill (SB 312) this week in the Senate Assessment and Taxation Committee. My bill rolls back the sales tax six months early and ensures that the Legislature keeps its promise. My bill keeps the highway maintenance program in place—which pays for the T-Works projects, such as the roundabout at US-50 and Anderson Rd. and improves the off ramp on I-35 where the logistic park is located in Newton. The maintenance dollars also are responsible for the improvements to US-54 in Wichita.

FY 2013 Budget

Having completed their work on the Governor’s current year supplemental appropriations bill (SB 311), the Senate Ways and Means Committee is now in the thick of hearing subcommittee reports and making budget recommendations for next year’s budget.

The Governor’s budget can be found at: http://budget.ks.gov/

Medicaid Reform

This week, the Governor issued his first Executive Reorganization Order (ERO) of the 2012 Legislative Session.  ERO 41 would propose the following:

-          Consolidating the financing arm of Medicaid in KDHE Division of Health Care Finance

-          Renaming the Department on Aging as the Department for Aging and Disability Services

-          Consolidating all disability waiver and mental health services from SRS into the new Department for Aging and Disability Services

-          Renaming SRS as the Department for Children and Families

If the neither chamber rejects the ERO within 60 days of receiving it; it will go into effect July 1, 2012. You can read the executive summary of the proposal at:

http://www.kdheks.gov/hcf/medicaid_reform_forum/download/KanCare_Executive_Summary.pdf

You can read ERO 41 in full at: http://kslegislature.org/li/b2011_12/measures/ero/41/

School Finance

Senate Education committee spent the week hearing from interested parties concerning the Governor’s proposed School Finance Plan.  The discussions focused on three areas: funding formula, career technical education and teacher evaluation.    Legislators looked to the local school districts to help them understand exactly how this proposed formula will affect their districts.

Much of the discussion is narrowing in on the Local Option Budget (LOB) and what will happen to poorer districts if the cap is raised and the wealthier districts can raiser the LOB as high as they would like. Although the wealthier districts seem to be happy with the LOB increase, they have major concerns about what the funding formula does to at-risk students.

The Education committees will continue to sift through the proposal as they try to understand the new formula and its affect on Kansas schools. The teacher evaluation proposal that evaluates teachers and places the results online will most likely not make it into the final bill. Many argue the provision would create more problems than it would solve.

For additional information on the school finance proposal:

https://governor.ks.gov/docs/2012-legislative-agenda/school-funding-formula-summary-final.pdf

Changing Liquor Laws

Last week, the House Commerce and Economic Development Committee heard two days of testimony on HB 2532 which would allow liquor to be sold in convenience stores and grocery stores.  The Committee created a subcommittee to look at the issue and report back to the full committee with their recommendations.  The bill will need to pass on the House Floor before coming to the Senate for consideration.

The measure has not been acted on in the Senate, as a similar measure was killed last year by the Senate Federal and State Affairs Committee.

KPERS

Legislators in both the House and Senate have been meeting for the last five weeks trying to come up with a more efficient KPERS system to save the state money and keep promises made to those vested in KPERS.  So far there has been little work produced outside of the House and Senate Committees and projected costs of the program continue to go up.

Concealed Carry Measure

After hearing two days of testimony on HB 2353, which would allow concealed carry permit holders to carry in all public buildings such as libraries, hospitals and college campuses, unless all entrances to those buildings have metal detectors.

The measure has passed out of the House Federal and State Affairs Committee, and will now move to the full House of Representatives

Groundwater Rights

The elimination of the “use it or lose it” policy for groundwater rights in areas closed to new water right development was unanimously passed February 16^th in the Senate. HB 2451 is one of the key proposals outlined by the Governor.

The Ways and Means Committee for the Week of Feb. 6^th

The Senate Ways and Means Committee heard testimony on SB 336, which creates the Disaster Reimbursement Fund using Kansas Universal Service Funds and taxes collected on insurance premiums. Hearings on SCR 1611, amending the State Constitution to create a rainy-day contingency reserve fund (using annual transfers), began this week. A presentation from Bernie Koch informed the Committee about the findings of the Economic Impact of Proposed Spending Reductions in Kansas study sponsored by the Kansas Economic Progress Council. (Found online at http://ksepc.org/wp-content/uploads/2012/02/Economic-Impact-tax-reductions-KEPC-Study.pdf) The Committee passed an amended SB 311, the supplemental appropriations for FY12 and FY13. The Committee also heard an update on Food Stamp Policy and a report on the Kan-Ed Audit.

Senators Schodorf and V. Schmidt proposed bills this week in the Senate Ways and Means Committee. Schodorf’s bill (SB 407) regards mammography exams. Schmidt’s bill (SB 397) changes terminology in statues from the term “mental retardation” to “intellectual disability” and other similar terms.

The Committee reviewed and adopted the following Subcommittee Reports: Citizens’ Utility Ratepayer Board, Governmental Ethics Commission, Kansas Human Rights Commission, State Corporation Commission, Department of Agriculture, State Fair Board, Department of Labor, Veterans’ Affairs, and the Juvenile Justice Authority.

The Ways and Means Committee for the Week of Feb. 13^th

This week the Senate Ways and Means Committee discussed the proposed changes to Managed Care and ERO No. 41. A bill making technical amendments to KPERS law (HB 2460) was also heard this week.

The Committee reviewed and adopted the following Subcommittee Reports: Public Safety (EMS, Sentencing, Fire Marshall, Highway Patrol, Adjutant General, and the KBI), the Kansas Department of Health and Environment-Health, the Judiciary (Judicial Council, BIDS, Judicial Branch), and the Department of Transportation.

Sen. McGinn introduced a KPERS bill (SB 429), which was sent to the Senate KPERS Select Committee, as well as a driver’s license bill and the Conservation Reserve Enhancement Program (CREP) bill. Sen. Vratil introduced two bills, regarding yard waste (SB 432) and credit unions (SB 431). Sen. McGinn also introduced a bill that expanded the Kansas housing loan program to include adult care facilities (SB 427). Sen. Holland requested a bill regarding phasing out the food sales tax (SB 428).

From the Desk of Senator McGinn                                         February 2, 2012

 Congressional Map Advanced in Senate

On Wednesday, the Senate advanced a plan to redraw the Congressional population lines as required to reflect the 10 year census numbers.  I thought we might see a lot of plans and long debate, but after a little over an hour and three maps proposed, a map was passed.

The first map was proposed by Senator Roger Rietz (R-Manhattan), to keep Geary and Riley County, which includes Kansas State University, in the second district (Rep. Lynn Jenkins).  The problem with this proposal dealt with trying to limit the amount of communities being split in order to get the needed number to balance district populations.

The second proposal was offered by Senator Mike Petersen (R-Wichita).  His proposal split our capital city, a city of the first class, along with Shawnee County in half (between the first and second Congressional Districts).  This proposal would have put our capitol in the first district, which is primarily western Kansas.  The concern I had was that it violated a rule of reapportionment, which is to keep communities in common together.  The final map, which was the map that passed out of the Senate Reapportionment Committee, had the fourth district (Rep. Mike Pompeo) returning Montgomery County back to the second district which is what we heard supported by southeast Kansas citizens during hearings last summer.  It added six western county districts to the fourth district.  Keep in mind, the Senate map will have to be conferenced with the House and will most likely be modified through our process. The House passed a bipartisan State House map on the same day.

To see map proposals and a list of criteria for drawing districts please go the links below:

http://redistricting.ks.gov/

Sen. Reitz’s amendment:

http://redistricting.ks.gov/_Plans/Proposed_Plans/consolidated-m5_postrock.PDF

Sen. Petersen’s amendment:

http://redistricting.ks.gov/_Plans/Proposed_Plans/m5_34thgreatstate2.pdf

SB 344, the Senate Reapportionment Committee’s recommendation, approved by the full Senate:

http://redistricting.ks.gov/_Plans/Proposed_Plans/m5_sunflower9c/m5_sunflower9c.html

New Appointments at the Capitol

Governor Sam Brownback announced the appointment of former State Representative Phyllis Gilmore as Secretary of SRS, (soon to be the Kansas Department for Children and Families). She replaces Rob Siedlecki who resigned earlier this year to return to Florida.

Rainey Gilliland will serve as the acting director of the Legislative Research Department. He replaces Alan Conroy, who is leaving to become the executive director of the Kansas Public Employees Retirement System.

The House of Representatives welcomed its newest member this week as Tom Phillips was sworn in as the Representative for the 67^th House district. Phillips is the former mayor of Manhattan and replaces Rep. Susan Mosier, who resigned to become the director of Medicaid services for Kansas.

Tax Discussions

The January tax-only revenues were down $30.6 million from estimates made in November by the Consensus Revenue Estimating Group. The Department of Revenue indicates that this is due to their ability to issue individual income tax refunds faster to those that file electronically.

Tax discussions will escalate this coming week, as the House Tax Committee has scheduled hearings on the Governor’s Tax Proposal (HB 2560). Further refinement of the proposal was promised as it is now estimated to cost the state approximately $100 million. Also to be reviewed is the House Leadership Tax proposal, which is said to be about $160 million under water.

HB 2560 – Governor’s Tax Plan

http://www.kslegislature.org/li/b2011_12/measures/documents/hb2560_00_0000.pdf

Now that the Senate Tax Policy Group has finished its work, the full Senate Tax Committee is eager to receive a report with its findings and suggestions. In the meantime, the Committee has begun hearing bills on various income tax credits, which may lead to a broader discussion on tax policy. Discussion continues on which tax policy would best provide fairness, stability, and balance.

Medicaid Reform

There has been concern from senators regarding the Governor’s Medicaid Reform package. Legislators will not be able to change the plan as it does not require legislation. It will be implemented through a bid process with managed care companies who will take over the administration of the Medicaid services in Kansas. As a result, Rep. Jim ward introduced a bill this week that would require an annual evaluation of the state’s Medicaid managed care contractors.

Blue Cross of Kansas, the state’s largest insurance company, announced they will not bid to be Medicaid managed care contractor. This announcement fuels discussion on whether the Governor’s plan places unrealistic expectations on those Medicaid managed care contractors.

You can read the executive summary of the proposal at:

http://www.kdheks.gov/hcf/medicaid_reform_forum/download/KanCare_Executive_Summary.pdf

School Finance Debate

This week the Senate Education Committee held three days of hearing on SB 361, which is the Governor’s school finance plan. The hearing will be broken into three topics: Day 1 the Committee heard testimony on the funding formula, Day 2 regarded career technical education, and Day 3 was focused on the teacher evaluation proposal and certification. Education professionals and advocates have encouraged policymakers to think twice before approving the Governor’s school finance plan. The plan has drawn criticism because of a new provision to evaluate teachers and have the results posted on the internet. The provision also includes providing $5,000 bonuses to teachers who are rated highly effective.

For additional information on the school finance proposal:

http://governor.ks.gov/docs/2012-legislative-agenda/school-funding-formula-summary-final.pdf

Kansas Bioscience Authority

The nearly $1 million forensic audit found just under $5,000 in expenses that have now been repaid by former KBA CEO Tom Thornton. It is still uncertain when the $22 million dollars appropriated for the KBA (held up by the Brownback Administration) will be freed for key bioscience investments. Earlier this year, the Governor’s Budget Recommendations called to fully fund the KBA at $35 million. Lawmakers will look at KBA funding during the budget process to determine how to proceed with the agency. However, many have concluded that the audit was thorough and the KBA must return to its core mission of growing the biosciences in Kansas. Additionally, it should be noted that the KBA receives funding through a mechanism set up by the Kansas Economic Growth Act. Funds are based on the growth of state income tax withholdings from employees of bioscience-related companies.

Concealed Carry Measure

The House Federal and State Affairs Committee continued discussion last week on HB 2353, a key gun proposal. The bill is sponsored by Rep. Forrest Knox, and if enacted, would allow concealed carry permit holders to carry in public buildings such as libraries, hospitals, and college campuses unless all entrances to those buildings have metal detectors. Law enforcement officials testified in strong opposition to the measure, explaining that their professional public safety experience and knowledge convince them that the proposal would jeopardize public safety.

Proposed Healthcare Amendment

Since the passage of the Affordable Health Care Act by the U.S. Congress, Kansas legislators have spent an abundance of time trying to figure out the most effective ways to turn it away. Last year, the Kansas House of Representatives passed HCR 5007, a proposed constitutional amendment aimed at preserving the right to choose health care services. It has to be approved by a super majority in both chamber and placed on the November ballot to be voted on. The resolution came to the Senate, where it was sent to a Judiciary subcommittee, but did not gain enough support to pass out of the full committee.

The Senate Judiciary Committee took that measure up again this year, and it gained just enough votes to be advanced to the full Senate. Opponents argue that by the time the Kansans vote on this, the United States Supreme Court will already heard arguments regarding the Affordable Health Care Act.

Senate Ways and Means Committee for the Week of Jan. 30^th

The Senate Ways and Means Committee heard and passed out favorably SB 294, which contains the Joint Committee on Special Claims Against the State recommended payments. The Committee was briefed on and subsequently passed SB 311, which addresses supplemental appropriations for FY ‘12 and FY ‘13 for various state agencies. The Committee was also briefed on SB 338, regarding the enactment of the Kansas Public Employees Retirement System Act of 2014. Senator King gave the report of the KPERS study commission. Rebecca Proctor presented the Senate Minority Report on the KPERS Study Commission. The Committee approved the appointment of Kenneth Buchele to the Board of Directors of the Kansas Bioscience Authority. Mr. Buchele was nominated by Senate President Morris. The Committee held a hearing on SCR 1611, a constitutional amendment that creates a “rainy day fund”.

The Committee introduced a tax bill by Senator Kelsey. Senator Huntington introduced a bill relating to persons making reports of abuse or neglect of children (SB 36

Arts Commission

With 24 votes, the Senate rejected the Governor’s Executive Reorganization Order (ERO) that would have privatized the Arts Commission. This ERO would have saved a relatively small amount of money compared to other EROs.  Many Kansans are very passionate about the arts – including many in our district.

The Senate Ways & Means Committee included some funding in the budget bill for the commission. The challenge will be whether it can sustain a line item veto.

Budget

As I mentioned, this week my committee put together all the pieces of our various subcommittee reports into one mega bill and sent it to the floor for consideration by the full Senate.

We used the Governor’s FY2011 rescission plan as the basis for the FY2012 budget. His rescission plan called for an ending balance of $35 million. However, when Governor Brownback used his statutory authority to enact allotments to balance the FY2011 budget, that authority only allowed him to take the budget to a zero balance; it did not allow for his proposed $35 million ending balance. That meant lawmakers had to find an additional $35 million to make up that difference.

Senate Ways and Means met the Governor’s ending balance objective, produced a fiscally responsible budget bill that does not raise taxes, ends FY2012 in the black, and promotes job growth.

Engineering

Another bit of good news for future job growth: My committee heard and sent to the floor the proposal to increase engineering graduates at Wichita State, K-State and KU.  Last week, we experienced a great deal of support from engineering industries and the universities for this initiative to use future state funding sources, matched with private dollars, to expand engineering programs and add over 1,300 graduates per year. I expect the full Senate to debate the bill next week.

Spring is around the corner and so is our break.  I look forward to being home in the district and starting my spring planting and garden.  Maybe I will see some of you around the community.

Engineering Initiative

Cessna CEO Jack Pelton speaks in the Senate Chamber about growing engineering jobs in Kansas.

Taking a proactive approach to growing jobs in Kansas, we kicked off a proposed initiative at a press conference Thursday morning in the Senate Chamber.  Industry leaders Cessna CEO Jack Pelton, Black and Veatch CAO Jim Lewis and I spoke on the need to increase engineering programs and graduates in Kansas. It was one of the largest press conferences in recent memory – Spirit, Boeing, Bombardier, Westar and many other businesses were represented as well.

Senator McGinn at the engineering initiative press conference

Our state’s economy, particularly our region’s economy, relies heavily on the work of engineers.  For every engineer hired in the state of Kansas, 1.78 other jobs are created.  However, our universities providing engineering education (Wichita State, K-State and KU) cannot keep up with demand to graduate enough qualified engineers each year – particularly as our economy begins to rebound.

The effort is “being done for economic purposes,” said Wichita State University president Don Beggs, who was with the senators in Topeka as they described their proposal.  Beggs continued, “We appreciate that the governor and the state, even in the toughest of economic times, has put dollars in.”

The Governor took the first step by providing a $1 million initial investment in his budget to help the universities expand the number of engineering graduates.   The Senate’s initiative builds on the Governor’s recommendation, and a proposal started in 2008 by Senate President Morris.  This is all about JOBS and our state’s long-term economic prosperity.

Ways & Means Committee

This week, we will assemble all of the subcommittee reports that we have been working on over the past six weeks into what we call a mega-budget bill. To date, my committee has stayed close to the spending level proposed by the Governor.  Several issues remain outstanding, including the future of KTEC, the Arts Commission and Parole Board.

Our conference committee on the Governor’s rescission bill held numerous meetings last week attempting to come to a compromise between the House and Senate positions. The House proposed to accept the final Senate offer but indicated that they would not support the package on the House floor – in essence ensuring that the proposal would fail and bring us back to square one.  The Senate felt this was not a good faith offer.

Governor’s allotments began Friday-most of which was a $50 million cut in education to pay for social services. Because the state received a federal grant for schools unexpectedly, the governor and both chambers had agreed to cut schools by an equal amount in state dollars to pay for social services and build an ending balance to $35 million. Since House conferees would not support the final package on the House floor, destining it for failure, we will most likely take a $0 balance carry over into 2012 instead of $25 million ending balance proposed by the Senate offer. To take care of social services, we will have to have legislative action.

As always, even with a hectic schedule, I appreciate those of you from the district who travel to see me in Topeka.  I am sorry I am not always available to see everyone.  I will continue to remain focused on our Governor’s roadmap to create and increase jobs and improve the economy in our state.

EROs

ERO 39, the Governor’s Executive Reorganization Order that would eliminate the Kansas Arts Commission as a state agency, and transition it into a private organization faced opposition in the Federal and State Affairs Committee.   The Committee presented a resolution to retain the Arts Commission as a state agency expressing concerns of losing federal funding.  The full Senate will vote later this month on whether to maintain or abolish the Arts Commission.

Governor’s Rescission Bill 2011

Several Conference Committee meetings between the Senate Ways and Means Committee and the House Appropriations Committee over the Governor’s proposed 2011 budget cuts yielded no final resolution between the two committees.  One of the largest outstanding issues is the Special Education Maintenance of Effort (MOE). Under the federal stimulus, Kansas must meet this MOE or face losing $20-plus million in federal special education dollars each and every year going forward.

The last position put forth by the Senate Conference Committee would meet the MOE. We continue to wait for the House to call us back into a Conference Committee.  The Senate remains ready and open to negotiations to move forward in this process.

Budget 2012

Subcommittees continue to develop 2012 Budget Recommendations.  As subcommittee work winds down, our focus will shift to the full Ways & Means Committee and putting together a final budget bill, known as the mega bill, to send to the Senate floor.  I continue to be very busy as the Chair of the Committee, and there are many upcoming hurdles.  There are significant funding issues to grapple with such as K-12 Education, Medicaid and KPERS.

Special Recognitions

Senator McGinn with Jordy Nelson, KSU football standout and Super Bowl star.

I had the opportunity to be part of a Senate Resolution honoring Jordy Nelson of the Green Bay Packers, who was a former Kansas State football standout.  It was great to have him come to the Senate Chamber.

We had a chance to recognize Sister Helen Prejean on the Senate floor, for her years of service working toward the abolition of the death penalty.  Sister Helen has pondered deeply–up close & personal– the tragedies of homicide and the death penalty.   Through the stories recounted in her books:  Dead Man Walking, and The Death of Innocents: An Eyewitness Account of Wrongful Executions, we see more clearly what capital punishment truly is when the masks are taken away.  Sister Helen’s profound impact on the thinking of church & society about the death penalty has made a difference to legislators, church leaders, and countless people throughout the world.

At the capital to recognize Kidney Awareness Day: Johnye Van Hekken, Cindy Zielke, Carol Musick, Wendy Funk-Schrag, Carolyn McGinn, and Tom Musick

This past Thursday, I sponsored a resolution for Kidney Awareness Day.  Sometimes we are dealt the challenges of diabetes from our genetics.  Other times we get it later in life.  Some of the harmful impacts of this disease can be controlled by keeping track of your blood pressure, eating right, and exercising.  With health care costs increasing, we need to look at lifestyle changes to prevent serious illness that may impact us for years.  I want to thank Wendy Funk-Schrag from Harvey County, Cindy Zielke a nurse with Kansas Dialysis Services from Topeka, Johnye Van Hekken a social worker with DaVita from Wichita, Tom Musick a dialysis patient from Wichita, and Carol Musick who is Tom’s wife and caregiver for being at the capitol to increase awareness of this challenge to 2,500 Kansans across the state.

It is good to be home from a most challenging legislative session. Life on our farm, including driving tractors, looks like a great alternative. This was a year of difficult discussions, which have relieved some constituents and upset others.  At times, the legislative process can move quickly, and there can be misinterpretations about the various proposals, issues and ideas being discussed.  I hope to provide some additional perspective to further explain our struggles with the issues and options and impacts.

I first want to clarify some misinformation about our budget and tax discussions.  There were many proposals presented during the session, and some versions were heartily endorsed as the “best” options.  Bottom line, as Kansans, we share the pain of the economic difficulties.  Each proposal, like it or not, comes with challenges, opportunities and even consequences.

Selling off state buildings and properties was proposed.  We should definitely look into this. However, trying to do this in one year virtually assures it will be a fire sale, and taxpayers in the state of Kansas will surely lose. Realistically, of our state-owned assets, the Docking building should be imploded; the Landon building is valued at maybe $40 million. Many other buildings are scattered around the state.  Some state-owned buildings — some donated by alumni — sit on our university campuses. Other buildings house regional offices.  While there might be an immediate receipt of cash after selling the buildings, we would still have to rent back the office space at a rate to include maintenance and a profit for the new owner.  It will require careful analysis to determine whether it makes sense or not. The Kansas Dept. of Transportation owns property purchased for easements or rights of way and some could definitely be sold to adjoining landowners over time. We need to study this option and clean up the state’s inventory; this could produce some future revenue.

Another proposal counted on federal dollars that had not been and still have not been secured.   I found that interesting since I am often asked, “Why are we spending money we don’t have?  We don’t do that with our own family budgets.”  The Federal Medicaid Assistance Program (FMAP) was ultimately included in the final budget, but if this does not come through as hoped, we will have $130 million less and will have to adjust for it next year.  The bed tax was also proposed, which I believe should be used for our elderly in nursing homes, not to backfill our budget.

Many say our budget problems result from overspending. I agree changes need to be made in the way we evaluate agency budgets. The Kansas Supreme Court decision on K-12 public education funding forced the State to significantly increase its budget. The House proposed a budget to cut around $172 million to K-12 education, and Governor Parkinson promised to veto this because of a possible violation of taking the stimulus money.  Had we followed this path of trying to cut K-12 as proposed, most likely we would still be in session, wasting your tax dollars, and we would end up with the same results, given the Governor does not change until January.

Our greatest challenge for our state, though, is decreased tax revenues due to the faltering state and US economy. We have already cut over $1 billion out of a $6.3 billion state general fund budget! When the Senate considered deeper cuts to social services, we heard loud and clear the impact it would have on local units of government – not to mention the effect on some of our most vulnerable and needy citizens.

The bottom line:  if the State had not imposed the three-year sales tax, counties and school boards in my district would almost certainly have had to increase property taxes.  If I had voted to balance the state budget problems on the backs of local government, they have very little choice in how to fund the services to our elderly and those most needy. Property tax increases unfairly burden people on fixed incomes, business and industry property owners, and farmers.  Property tax increases rarely go away over time. With sales tax, everyone — including people who travel through our state and individuals who are here illegally – pays.  It is also designed to “sunset” after a set period.

I’ve been asked how I voted on taxes.  In 12 years as a public servant, I voted many times to cut taxes. As a County Commissioner, I voted to lower the mill levy three consecutive years. After 9/11, the economy suffered, and the County made extreme cuts to get through.  This was tough because, in addition to our local challenges, the State of Kansas cut demand transfers, which were originally created in the 1970’s to help local governments reduce property taxes.

As a State Senator, while the economy was strong, I voted to cut the franchise tax (a tax just to do business in Kansas), to cut corporate income taxes, to reduce taxes on machinery and equipment and to begin the phase-out of state taxes on social security. Those cuts were good for Kansas and made our state more business-friendly. While cutting the machinery and equipment tax had a negative impact on local government, a slider was implemented to ease the financial loss. Unfortunately, the slider was later taken away to balance the budget.

At the end of the day (and legislative session), the good news is that the Kansas Constitution requires a balanced budget.  Let’s remember that taxes can also be adjusted annually.  Even though the sales tax is on a three-year plan, it can be changed if other options arise.  If the next governor opposes the sales tax, he can propose to remove it, or if our state economic conditions improve and our state budget situation becomes more manageable, the legislature can move to adjust or remove it.  I will listen to any plan that will balance the budget, as long as it is based on sound fiscal policy.  I believe long-term vision can prevent greater costs in the future.

Thank you for your notes, calls and comments during this past session.

The Legislature is looking at several bills right now related to elections and campaigns. The Voter ID proposal (HB2067) continues to get the most attention.  But another one is a bill that would prohibit elected officials from running public service ads with their likenesses during election time.

Voter ID Proposal

House Bill 2067 would require each voter to provide photo identification when voting and proof of United States citizenship when registering to vote. The bill would also enhance the security of advance ballots transmitted by mail by requiring registered voters to provide identification. Additionally, the bill would prohibit a person from signing an advance voting ballot for another person unless that voter has a disability or has given a family member authorization to sign the ballot.

Unemployment Insurance

Due to the economy, historic unemployment has occurred, hitting the state’s trust fund hard.  Because of this, the state borrowed more than $100 million from the federal government. While this position is not ideal, the Kansas unemployment trust fund is in much better shape than many states’ funds.

The Senate approved SB77 that would begin rebuilding the state’s unemployment fund. It is a balancing act with many parties at the table. The committee has worked with the business community and economists over the past month to create a plan that will provide employers with rate stability while still protecting benefits for working Kansans.

This week we had a hearing on moving the Health Policy Authority to Kansas Department of Health and Environment.  It was an interesting topic.  The Governor’s Office is opposed to the mandatory enrollment.  At the same time, the KDHE/HPA agencies are working with the Insurance Commissioner to implement what is coming down from the Federal Government, which continues to change.

Budget

Both Senate and House Chambers have passed their versions of the rescission bill, and are now in conference.  The main issue for the Senate is to prevent the loss of approximately $22 million in Maintenance of Effort (MOE) for special education.  This money will be lost each and every year going forward if we do not prevent the loss now.  The Senate desires to follow the conference committee process and is waiting for the House response so we can negotiate in good faith.

Parole Board

The Governor issued an Executive Reorganization Order last week that would eliminate the Parole Board and transfer all duties and functions to the Department of Corrections.  I want to make sure parole decisions are made in a cost-effective way that is fair to those who deserve parole yet keeps violent offenders behind bars.  There is a court case that has determined this to be unconstitutional.  We will continue discussions on this issue.

Executive Reorganization Orders

Below is a review of the EROs still being considered. EROs automatically take effect JULY 1 unless one chamber votes to disapprove it.

ERO NO. 34 Consolidation of parole review functions in the executive branch by abolishing the Parole Board as established by K.S.A. 22-3701 et seq. and establishing the Prisoner Review Board within the Department of Corrections

ERO NO. 35  Transfers the functions of the Commission on Disability Concerns under K.S.A. 74-6701 et seq. from the Department of Commerce to the Office of the Governor.

ERO NO. 36 Renaming the Department of Wildlife and Parks as the Department of Wildlife, Parks and Tourism; Abolishing the Assistant Secretary of Operations position and creating an Assistant Secretary of Wildlife, Fisheries, and Boating and an Assistant Secretary of Parks and Tourism; and transferring the Division of Travel and Tourism Development at the Department of Commerce to the Department of Wildlife, Parks and Tourism

ERO NO. 37. Abolishes Kansas, Inc. and transfers its duties to the Secretary of Administration. It was referred to the Commerce Committee.

ERO NO. 38. Merges the Kansas Health Policy Authority (KHPA) into the Division of Health Care Finance within the Department of Health and Environment (KDHE). It was referred to the Commerce Committee.

ERO NO. 39. Transitions the Kansas Arts Commission into a non-profit organization. This order was referred to Federal and State Affairs and it is the ERO that I have heard from constituents the most. Keep sending me your thoughts – I appreciate them!

ERO NO. 40. This ERO moves and consolidates several divisions from across state government into the Department of Agriculture including:  Agriculture Products Development Division, Kansas Animal Health Department, the Livestock Commissioner and the State Conservation Commission. It was referred to the Agriculture Committee.

McGinn, who was on hand to receive the award, said, “Receiving this recognition is extremely rewarding. I appreciate the work of the KWF, and to receive this honor from them means a great deal. We are stewards of this land and its bountiful resources, and I am grateful to be able to play a small role in that effort. I want to thank KWF for this meaningful award, and I will continue to strive to be deserving of it.”

McGinn was nominated for the award by Chris Tymeson, Chief Legal Counsel for the Kansas Department of Wildlife and Parks. In his nomination, Tymeson wrote, “…Senator McGinn has played a vital role in virtually every piece of major wildlife, parks or boating legislation that has passed since 2005, including the Wildlife Violator Compact, a major revision of boating laws, a major revision of deer laws, the enactment of dangerous captive wildlife laws and many other countless laws.  Senator McGinn is an excellent candidate for this special recognition.”

KWF calls for nominations for its Conservation Achievement Program (CAP) Awards each fall. The awards are given annually to individuals or groups actively involved in programs to conserve the environment and promote environmental education and outreach. Honors are bestowed upon individuals or groups who have made special efforts in the areas of land and soil conservation, youth conservation, conservation communication, conservation education, wildlife conservation, water conservation, conservation legislator, conservation farmer/rancher, forestry conservation, stream team conservation, outdoor skills and conservation organization. Awards are not necessarily given in every category every year.

Pictured on the steps of the state capitol building from left to right: Angela Ashton, Jan Lunn, Senator Carolyn McGinn, Joshua Lewis, Brea Short.

Jan Lunn is serving as Committee Assistant to the Senate Ways & Means Committee. Jan comes to my office with 4 previous years experience working with Senator Barnett. Prior to joining the Kansas State Legislative team, Jan worked at Stormont-Vail for over 20 years. She has a business degree from Washburn University, and loves to play golf.

Joshua Lewis is serving as my new budget Chief of Staff. He is glad to be home after spending the last several years with Lynn Jenkins working on her campaign, and serving with her in Washington D.C. Joshua is a farm boy from St. John, Kansas, and earned his accounting degree from Kansas State University … he bleeds purple! In his free time, Joshua enjoys hiking, and traveling.

Angela Ashton is my new office assistant. She spent the last 5 years in Boston working in research and canine physical therapy, and recently returned to her home state of Kansas. Angela earned her BS and MA degrees in Sociology with emphases in Criminology and Research Methodologies from Kansas State University. She enjoys spending her free time hiking in the woods with her dogs and cooking.

Finally, I would like to extend a warm welcome to Brea Short! She is interning this semester with me. Brea is a second year junior at Washburn University and is majoring in Accounting and Finance with a Pre-Law Emphasis. Brea is actively involved in many Washburn University clubs, including the Federation of Kansas College Republicans (Secretary), Washburn University Honors Program (President), Mock Trial Club, Pre-Law Club, Washburn Finance Society, and Political Science Club. She is from Hesston, KS, and likes to play intramural sports, and do puzzles in her free time.

If you know anyone interested in paging opportunities, please contact Angela at 785-296-7377.

Legislative News

EROs – The 2011 Legislative Session has kicked off to a relatively slow start. Governor Sam Brownback has begun sending Executive Reorganization Orders (EROs) to the Legislature for approval. Committees will hold hearings on the various EROs and make recommendations. These EROs include several items with varying degrees of contention that affect the Kansas Technology Enterprise Corporation (KTEC), Department of Agriculture and the Kansas Arts Commission.

Budget – It’s going to be another tough year for making budget decisions. I am now the Chair of the Senate Ways & Means Committee, which makes adjustments to the Governor’s bill before passing to full chamber. We begin, knowing that there is at least a $550 million hole next year that must be filled. The Governor has taken a leadership role on the issue and proposed SB 16 to rescind money already appropriated (but not spent yet) in the current fiscal year.

The process this year on the rescission bill is to have the House run the bill first. As soon as they do, we will run our version in the Senate and then conference. Currently, our subcommittees are intensely working on the 2012 budgets.

The governor has proposed a balanced budget that does not rely on new taxes. We have a lot of work ahead of us but I appreciate having Governor Brownback’s leadership as we tackle the challenges we face.

Utilities – The Utilities Committee, on which I am not a member, is working through issues regarding our 911 system. With changes in phone usage switching from landlines more heavily to cell phones and pre-paid plans, the way we pay for 911 services is getting looked at as the current system is set to expire. We’ll continue to watch this one.

Commerce – Because of the economic downturn and increased demand for unemployment benefits, unemployment insurance could be a big topic this year. But it is both a federal and a state program so it is important to understand the Federal requirements with which the state deals. It can be complicated, but it is also a very important issue to the labor and business communities.

Financial Institutions – The committee has been holding various meetings on the federal Dodd-Frank Act which was one of the largest reforms of the financial industry ever. While banks and other institutions here at home may not have been part of the problem that led to the financial crises, they are all going to face more regulations which can be particularly harmful to the smaller banks in our communities. Dodd-Frank is a federal piece of legislation passed in Washington but we as a state need to understand its implications on our institutions as the law is being implemented.

Ethics and Elections – Our new Secretary of State, Kris Kobach, presented to the committee his 2011 legislative platform, points you might be familiar with from his campaign. The most contentious of which will probably be a voter ID requirement where a voter would show ID (such as a drivers’ license) in order to vote. There likely will be more proposals and I will try to keep you updated as they progress.

Floor Action – There has not been a lot of voting yet on the Chamber Floor; I expect that to change this week. Last week, the Senate confirmed several gubernatorial appointments including:

• Senator Janis Lee as the Chief Hearing Officer of the Court of Tax Appeals
• Kyle Elliott to Kansas Technology Enterprise Corporation (KTEC)
• Brigadier General Lee Tafanelli as Adjutant General
• Nick Jordan as the Secretary of Revenue

Kansas 150th Celebration

This year Kansas celebrated her 150th birthday, also known as the sesquicentennial. Even with a limited budget to celebrate, our state had a nice ceremony on the South steps of the Capitol building on January 28th. We heard from some of the Senate and House leaders and Governor Brownback, there was a military band, and canons fired. The ceremony ended with the crowd singing Home on the Range.

Historic Snow Storm

No one can remember when the last time the legislature was shut down due to a snow storm. This shut down will really tighten down our remaining schedule. I worked both days, and it was good to get a little caught up.