Legislative Update Week of January 25, 2010

I have been following developments in the Kansas legislature while I am recovering. Here is an update from our various committees in late January:

Governor’s 18% sales tax increase voted down in House Taxation Committee

HB 2475, the one percentage point sales tax increase (an overall 18% increase in the sales tax), the largest tax increase in Kansas history was reported as “not passed” by a vote of 12-7. This bill then failed in the whole House for lack of a motion to debate. This was a victory for the people of Kansas.

There is great concern amongst my fellow Representatives that the money we are spending, our taxpayer dollars, are not being used as efficiently as possible. We must audit agency budgets to restore accountability of expenditures. The Legislature essentially provides block grants to agencies with no enforceable direction on spending, even if the money is technically provided for a specific purpose. We are also taking a look at the administrative bureaucracy and at programs that may have outlived their purpose. This will free up dollars that can then be redirected to areas that are in need.

Why we must scrutinize the education budget

Despite the dire budget situation, there are still some legislators that are unwilling to examine the largest portion of our state budget (education) and consider cost-saving measures. This unwillingness to look at cuts in K-12 education or, at the very least, efficiency audits, is troubling and will cause many worthwhile programs to suffer.

Currently, K-12 education funding makes up 53% of the Kansas budget. Keep in mind that although we are spending a total of $12,434 per student in the 2010 fiscal year, only 61% of that money makes it to the classroom! There are plenty of efficiencies in that funding stream alone to help offset any cuts that would be made to Medicaid recipients or those on the Developmentally and Physically Disabled Waiver.

There have been 6 school districts who have requested audits and the results are encouraging. The Derby school district found more than a million dollars in savings! If each of the 293 school districts in Kansas would willingly audit themselves and apply uniform and transparent budgeting standards we would be well on our way to ensuring that crucial services are not cut while still providing an excellent academic environment for our children.

Senate passes rescission bill
On Wednesday the Senate on a vote of 36-4, passed the Governor’s rescission bill that included a 10% cut to Medicaid Provider Rate Reimbursement.

The House Appropriations Committee is working this bill and we expect to have our first debate on it sometime in early February.

Proposed tobacco tax will face opposition

Last Friday, Sen. President Morris had his weekly press conference and said a combination of tax increases and cuts will be needed to balance the budget. Morris said the plan to close sales tax exemptions offered by Rev Sec Joan Wagnon would be a good place to start. He also said he senses some support for a tobacco tax increase.

I cannot speak for them, but my office has not received a single call asking for a tax increase. A cigarette tax increase would put us well over our neighbors, especially Missouri. As is stands right now, Kansas has a .79 cent tax as compared to Missouri’s .17 a pack.

Creating a sustainable budget requires cuts

What the proponents of tax increases are failing to realize is this is not just about raising taxes, whether it be for 3 years or, more likely, an indefinite amount of time. And it’s not about one time cuts to budgets across the state. This is about substantive policy changes that will allow for a sustainable budget for years to come. We’ve had to start at square one this year and the Governor’s budget did not provide a lasting solution. Trying to tax our way out of a recession has been proven not to work. Balancing the budget on the back of the taxpayers while doing nothing to stop the systemic overspending of government is irresponsible.

Thank you for your continued support and good wishes.

Sincerely,

Rep. Owen Donohoe

39th District Kansas