The Big Picture About Education Spending
in the Kansas State Budget  (February 2009)

I want to make sure that my constituents are made aware of all the facts regarding the education budget as the Kansas Legislature examines strategies to address the $1 billion+ state budget deficit in Fiscal Year 2010 (FY2010).

The state budget for FY 2009 is more than $13 billion, with more than 50% spent on K-12 education. This budget is based on the projection that there will be $13 billion in revenue. If those revenue projections are not met, spending cuts must be made because state law prohibits a deficit at year-end.

In November 2008, a revenue shortfall for FY2009 was projected, and in December there was an additional $28 million shortfall. We did not receive the Governor’s rescission budget for FY2009 until January 13, after the legislative session began. The Governor’s way of addressing needed budget cuts was to “sweep” millions of dollars from funds that were to be paid to municipalities and/or government agencies. This money was owed to municipalities and should have been returned to the cities for their local needs. This “sweep” by the Governor effectively transferred the state deficit to the municipalities and state agencies.

Additionally, the Governor’s original budget did not fund programs for the developmentally and physically disabled, and it froze the waiting list for these people to get help from state agencies. This was unacceptable and we were adamant that the budget should include funds to provide for these vulnerable citizens.

January 2009 revenue receipts showed an additional $21 million deficit and the potential of growing deficits for the remaining five months of the fiscal year. Ultimately, legislators were looking at an approximate $300 million deficit for FY2009, ending on June 30. Both houses of the legislature looked at every area of the state budget to identify potential cuts.

For the next three weeks, we called in the various state agencies, the Department of Education and school districts and asked them for input as to how we could make these cuts and what impact they would have. After considerable study, we projected 4% cuts for all expenditures except education – we reduced that cut to just 1% in FY2009. This amounted to a reduction of $66 per student (this means a reduction from the original budget), out of an annual expenditure by Kansas public schools of more than $11,500 per student. This was the budget we presented to Gov. Sebelius. The Governor vetoed the cut of $66 per student, and replaced it with a cut of $33 per student.

Our work to balance the state budget – a requirement of Kansas state law – was not “taking a dull axe” to the budget but a very methodical and professional attempt to reduce spending while ensuring the various state agencies and departments could perform their functions. We knew that this would impact the school districts but it would not prevent them from attaining their educational goals for this year. It is important to note that even with the FY2009 cuts, we are actually spending more on education in 2009 than 2008.

Of the $6.4 billion in school funding that was provided for in the Fiscal Year 2009 budget, the reduction in education spending was approximately $48 million, spread over 295 school districts. Collectively, the schools had $115 million in contingency funds that could help offset some of the decrease. It is unfortunate that these cuts come very late in the school year, but they also come very late in the fiscal year, which has made it more difficult for all.

As we examine the needs of the Kansas state budget for 2010, we will again proceed with careful consideration of our citizens’ most critical needs. We will prioritize programs that serve our most vulnerable citizens and those most in need of state help. We will scrutinize potential benefits of consolidation that produce efficiencies and savings in the education budget. Most importantly, we will continue to listen to your concerns and make recommendations based on the requirements of the law and our responsibility to be good stewards of taxpayers’ money.

Hopefully, with this explanation, taxpayers can better understand the need for prudent and careful budget decisions in Topeka. This is a formidable challenge for both legislators and taxpayers, as we strive to live within our means and comply with the state law. I encourage you to follow the Fiscal Year 2010 budget developments and other legislation at www.owendonohoe.com or contact me at (785) 296-7682.

Rep. Owen Donohoe of the 39th District in Kansas serves on the House Appropriations, Federal and State Affairs, Economic Development & Tourism and Aging and Long-Term Care Committees.