Legislative Update Week of March 8, 2010

Governor Blames Business-Friendly Tax Policy

for State Deficit

This week Speaker of the House Mike O’Neal responded on behalf of the House Republican Leadership and the members of our caucus to assertions made by the Governor regarding the budget deficit and recession:

“I respectfully disagree with Governor Parkinson’s statements today blaming Kansas’ business friendly tax policies for the state’s deficit. Kansas has a spending problem, not a revenue problem. Contrary to the Governor’s assertions, the state budget crisis is not the taxpayer’s fault. It is the government that cannot rein in its spending. We should not punish Kansas families and businesses, whose hardships already far outweigh those of the government, by forcing them to contribute even more to fuel the state’s addiction to spending.

“This recession has made clear that states fare better and recover faster with a business friendly tax climate, while states with big government and high taxes struggle to keep pace and suffer for longer periods of time. Kansas would have been hit much harder in this recession if it were not for its proactive policies that have fostered a productive private sector.

“Before enacting massive tax increases that will damage our economy and put more working Kansans out of a job, state government should take a lesson from Kansas families and learn to live within its means. Rather than pursuing the same old policy of taxes, taxes and more taxes as the solution to every problem, the Governor and Senate leadership should look for real solutions to our budget crisis by following the House Appropriations committee’s lead in pursuing fundamental budgeting reforms and maximizing existing revenue sources. And instead of pursuing tax increases that will only lead to higher unemployment and prolong the recession, I would urge the Governor and Senate Leadership to do the hard but necessary work of trimming the fat out of the state’s budget,” says the House Speaker.

With that said, House Leadership is committed to having a free and open debate on tax policy in Kansas, and House members that believe we should raise taxes on Kansas families will have a chance to express that desire on the record. The debate on taxes is a crucial step in determining exactly where House members stand. While I question the appetite of even members of the Governor’s own party for a massive tax increase, the debate and vote will enable the House Appropriations committee to finish our work on a responsible budget.

I think that says it all.

Liquor Tax Considered in Committee

The House Tax Committee tabled the proposed alcohol tax this week. The increase would have raised $21.8 million a year. However, by not voting it down, the bill remains alive as a possible alternative to the budget shortfall. In this version of the bill, the tax revenue would be used for mental health programs and to assist those with developmental disabilities. One issue with the bill was whether or not it would ensure that the tax money would end up going to the allocated areas in the budget or if it would just be used to fill other holes that are not as critical.

K-2 Ban signed into Law

This week Governor Parkinson signed HB 2411, making synthetic marijuana illegal. K-2 is an herbal substance that has a chemical additive that mimics the affects of marijuana on the brain. We heard testimony in committee and debate on the House floor that this substance is beginning to show up in schools with increasing frequency. While other states are considering the ban, Kansas is the first in the nation to pass such a bill.

Sovereignty Bill Passes out of Judiciary

SCR 1615, as amended, is a nonbinding resolution expressing the sentiment that:

• Kansas claims all powers not otherwise enumerated and granted to the federal government by the Constitution of the United States;
• Kansas serves notice and demand to the federal government to cease and desist mandates beyond the scope of these constitutionally delegated powers; and
• That all compulsory federal legislation which directs states to comply under threat of civil or criminal penalties, sanctions, or loss of federal funding be prohibited or repealed.

If passed by both Chambers, a copy of the resolution would be distributed to the President of
the United States, the President of the United States Senate (the Vice President of the United States), the Majority Leader of the United States Senate, the Speaker of the United States House of Representatives, the Speaker of the House and the President of the Senate of each state’s legislature of the United States of America, and each member of the Kansas Congressional Delegation.

More Efficiency Programs

The Kansas Corporation Commission sent me more details regarding New Energy Efficiency Programs for Local Governments. I would be very interested in hearing how you feel about these programs and the initiatives in the last newsletter.

As part of its statewide strategy to promote energy-efficiency retrofits in public buildings, the State Energy Office has established two new grant programs to assist cities and counties—the Public Projects Grant Program and the Energy Manager Grant Program. The programs are funded with $5.7 million in federal funds received from the Department of Energy as part of the American Recovery and Reinvestment Act (ARRA).

The Public Projects Grants are designed to supplement the existing Facility Conservation Improvement Program (FCIP) by focusing on energy efficiency projects in public buildings that are either too small for FCIP or include specific improvements that exceed FCIP’s 30-year statutory payback period. Examples of improvements funded through these grants include lighting, heating and cooling equipment, energy management controls, and insulation or other envelope measures. The application deadline for this program is July 15, 2010. For eligibility requirements and additional information, see the State Energy Office web site (http://www.kcc.state.ks.us/energy/arra/publicproj.htm) or contact Peter Armesto (785-271-3241; p.armesto@kcc.ks.gov).

The Energy Manager Grants provide coalitions of local governments (cities, counties, school districts) with an annual stipend of $50,000 for up to two years to hire an energy manager. Energy managers will develop both short- and long-term plans for each of the coalition members, with the goal of reducing energy usage in both the public and private section. The application deadline for this grant is April 15, 2010. For eligibility requirements and additional information, see the State Energy Office web site (www.kcc.ks.gov/energy/arra/energymgr.htm), or contact Stuart Yoho (785-271-3352; s.yoho@kcc.ks.gov).

Please visit the State Energy Office website (http://www.kcc.state.ks.us/energy/index.htm) for more information about these new grant programs and all the programs administered by the State Energy Office.

Sincerely,

Rep. Owen Donohoe

39th District Kansas