HB 2032, unanimously passed the House, changing regulation requirements for municipally owned or operated electric or natural gas public utilities.
HB 2034, passed 65/54, removing the provision requiring disclosure of security costs every two years. This bill’s passage encourages the long term security of our utilities from individuals who threaten public safety with that information.
HB 2038, passed the House on a preliminary vote, ensuring Kansas the opportunity to pursue more efficient energy and offsets the rising cost of energy production.
HB 2039, also passed unanimously, establishing a definition of renewable energy resources and technologies. The economic impact associated with energy production and maintenance demands that we look carefully at innovative ways of handling and encouraging energy management in Kansas. It’s important to set up appropriate definitions and a scope of focus in a pursuit of this magnitude and 2039 does that.
After committee hearings, vigorous floor debates, and amendments offered at times, each of these bills, passed by final action has received fair consideration and has been tempered by the wisdom of the body. The House is off to a great start, pushing out important legislation and passing bills that speak to the best interests of Kansas. After 146 years, the state is still forging ahead to find innovative ways to address everyday concerns.
Legislative News This Week
The House Taxation Committee is still holding hearings on the Franchise Tax repeal. There are varied feelings about how much the Franchise Tax should be changed. The Governor proposed to increase the exemption level, while the House Republican Caucus supports a complete repeal. The Wichita Eagle ran a story last Friday supporting the house position and showing the benefits for businesses of eliminating this tax. For a full text for the story, go to http://www.kansas.com/mld/kansas/news/state/16555417.htm,p>
After the House passage of SB30 last week, the Governor followed suit and announced her own plan for funding the “crumbling classrooms” initiative. Though the governor’s proposed policy supports the adoption of SB30, it also calls to increase tolls collected by the Kansas Turnpike Authority for the purpose of funding deferred maintenance. The Topeka Capital Journal and the Hutch Daily News printed pieces high-lighting the negative precedent set by this policy. For full text of the story, view: http://www.cjonline.com/stories/020107/sta_143670000.shtml and
http://www.hutchnews.com/news/regional/stories/toll020107.shtml
Here in the statehouse, the Kansas House of Representatives announced the launch of a new legislative website this week. The website provides information on legislative issues, the Republican Caucus and the House Leadership Team. In addition to serving as a tool for legislators, it is a great source for daily information on the work of the House of Representatives. News releases are posted daily and there are numerous portals that allow for you to personally follow what is happening this legislative session. The site is up and running but is still a work in process. Please visit us at www.kansashouse.org and watch as this new tool takes shape.
Next Week at the Statehouse
Joint Session of the House and Senate, Monday February 5 – U.S. Senator Pat Roberts has been invited to address a joint session of the Kansas House and Senate. Senator Roberts will talk to state lawmakers about our state’s efforts to bring the National Bio and Agro-Defense Facility (NBAF) to Kansas.
House Commerce and Labor Committee continues hearings regarding recent LPA findings regarding overpayment of Unemployment by the Kansas Department of Labor. To view a news release regarding the LPA study, see attachment.
The deadline for bill introductions now having passed, committee work and floor debate will begin in earnest.
Key Points on the Governor’s Budget
Overall Spending: The governor’s proposed budget policy for Fiscal Year 2008 puts total state spending at $12.4 billion.
The governor’s proposed budget for FY 2008 would increase State General Fund spending by $429.0 million or 7.7% - the largest one-year increase in state history.
Her budget recommendations for State General Fund expenditures exceed revenues by $327.9 million.
If enacted as proposed, the governor’s budget will drive the state $128 million into debt in 2010.
The House Republican Caucus believes better budget policy is not to overspend as some of her proposed policies to create new spending would have the state do. We enacted the three-year school finance bill last year with the expectations of paying for it with existing and future resources. Most of us realized that this would require frugal spending for the next several years.
What’s Missing: Despite these proposed policies to increase state spending, the governor’s budget fails to address several important items.
Her budget includes no money for estimated $800-950 in deferred maintenance at university campuses and community colleges.
The House Republican Caucus Agenda proposes schools submit a five-year
comprehensive plan that lists project priorities and sets up a $75 million trust
fund for future maintenance.
The House has already approved a plan that pays off the Regents schools’ last Crumbling
Classroom Bond Debt of $76.6 million. The payoff will free up $15 million annually for
Regents schools to use toward their deferred maintenance.
The budget assumes no tax cuts other than the $12 million recommended by the governor for businesses.
The House Republican Caucus Agenda proposes tax relief for Kansas businesses, property owners and Kansas seniors to help grow our economy and lessen the tax burden on all Kansans.
Fudged Factors: In addition to these notable omissions, her proposed budget policies use other fudge factors to hide the true size of the deficit:
Her budget raids the highway fund for more than $60 million to pay for operations of the highway patrol in FY 2007 and FY 2008.
The House Republican Caucus disagrees with the Governor’s policy to take money from the highway plan to allow for increase spending in other areas.
Her spending policy drives the ending balance down to an unacceptably low level of $125 million in 2009 and then puts the state in debt by $128 million in 2010.
Her budget policy fails to protect the third year of funding for the K-12 finance plan.
House Republicans voted to protect the third year funding.
Her budget policy has the state spending more than expected revenue receipts for 2008. The Consensus Revenue Estimating Group projects revenue receipts will increase by 1.9% in FY 2008. But to equal the governor’s spending request, the state’s revenue receipts need to increase by 7.8%.
House Republican Caucus believes the better fiscal policy for the state is to live within its means and be prepared for a possible downturn in our economy.
Legislative Post Audit Uncovers Alarming Failure by Department of Labor
Topeka - The Legislative Division of Post Audit presented its findings today to the Joint Legislative Post Audit Committee regarding the Kansas Department of Labor’s administration of the state’s unemployment insurance program. Some of the post audit findings included:
Kansas has the nation’s highest overpayment rate in 2003, 2004, and 2005.
The Kansas Department of Labor issued $115.2 millions in overpayments in 2005; 45% of the $256.1 million paid out in unemployment insurance were overpayments.
Kansas Department of Labor’s is responsible for a 29% increase in overpayments since 2002.
Dept of Labor Secretary Jim Gardner widened the loophole that allows some individuals receiving unemployment to abstain from Job Services registration. The regulation is contrary to Kansas law, which requires the Job Services registration of every person receiving unemployment insurance.
Of the 486 benefit payments reviewed by LPA Investigators, 232 or 47% were flawed.
Joint Committee Chairman Rep. Peggy Mast said she was stunned and concerned by what she learned.
“The post audit findings lead me to believe we are failing Kansans who need our help the most and failing Kansas businesses by not being good stewards of the money they pay into the unemployment insurance fund,” said Chairman Mast. “Unemployed Kansans needs more than a temporary handout – they need a hand up to a good paying job.”
Fellow Joint Committee member Rep. John Grange said lawmakers and Kansans need to look carefully at the findings of the audit and then at the Department of Labor’s response.
“I was amazed by the cavalier attitude of Secretary Gardner, saying the non compliance with state law had been going on since 1980 and he didn’t think it necessary to change the way things were done,” said Rep. Grange. “Based on the numbers found by LPA under Gardner’s watch, I believe a change is absolutely necessary. I trust we will have another opportunity to question the department and Secretary Gardner.”
Rep. Steve Brunk, chairman of the House Commerce and Labor Committee said he is extremely disappointed by how poorly state agencies are executing their responsibilities and managing state resources.
“This audit illustrates the pressing need for comprehensive reform of our unemployment insurance and job training programs,” said Rep. Brunk.
Chairman Mast and Chairman Brunk said the problems brought to light today will not go unaddressed. Their House committees will review the audit in-depth and make recommendations for broad reform.
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