Capitol Comments
January 27, 2003
Over the past several months numerous constituents have questioned how the state could get
into such a difficult fiscal situation in a relatively short period of time. I
will attempt to partially answer that question with this newsletter.
Kansas, like the vast majority of states across our nation, is facing the worst fiscal
conditions since World War II. Many blame the events of September 11, 2001 for
much of the fiscal problem, but in reality the problem goes much deeper and can be
attributed to two factors - an eroding tax base and the explosion in health care
costs. Kansas and other state's fiscal problems are only partially due to the
downturn in the economy which started some months before September 11,
2001. During the second half of the 1990's states experienced a phenomenal
economic growth which to some extent masked the erosion of their tax base. The
recent recession caused a near free fall in income tax revenues received by states because
of the virtual collapse of both capital gains tax revenues and corporate tax
revenues. During the late 1990's Kansas had been experiencing growth rates of 4
to 7% in our income tax revenues. Revenues from individual income tax fell by
$148 million or 17.5%. Much more dramatically, corporate income tax fell from
$212 million in '01 to $94 million in '02, a 55.6% DECREASE.
On the spending side of the ledger, health care costs, especially Medicaid costs, have continued to rapidly increase. Few people understand that across the nation Medicaid expenditures now exceed Medicare in both number of people covered and in total spending. The federal government is the sole supporter of Medicare, however, state governments share a substantial portion of the cost of Medicaid. In Kansas, the federal government provides 60% of the funding for Medicaid services and the state funds the remaining 40%. Because the federal government provides a large portion of the funding for Medicaid, they also mandate the rules and regulations for the program. While Medicaid provides medical services for low income persons of all ages, Medicare provides medical services to our senior population regardless of their income level. In Kansas approximately 27% of the people needing Medicaid services are senior citizens and the disability population. That 27% consume more than 70% of the Medicaid funds. The Medicaid budget in Kansas has grown from $712.4 million in FY '97 to a projected $1,363 billion in FY '04, a 91% growth in 7 years. Medicaid spending in Kansas consumes nearly 15% of our All Funds budget. Unless substantial reform of the Medicaid program is enacted at the federal level, there appears to be no end in sight for the escalating costs.
JUDICIARY UPDATE
The Senate Judiciary Committee opened the current legislative session with a full calendar. Through the end of the second week, my committee listened to testimony on a range of issues including changes to the application requirements for drivers' licenses and identification cards, repeal of the existing criminal defamation law, and expansion of the jurisdiction of Native American tribal law enforcement officers.
Changes to the application requirements for drivers' licenses are intended to enhance public safety, protect Kansans' financial privacy, and reduce fraud losses to retail businesses by strengthening the verifiability of state issued identification. Proponents for repealing Kansas' current criminal defamation law believe that the existing law is bad public policy when applied to political speech. Currently, civil remedies exist that can be pursued in lieu of criminal action, however proponents feel that the civil remedies may limit access to protection from defamation to individuals with money to spend on such cases. Expanding the jurisdiction of Native American tribal law enforcement officers would facilitate a more seamless working relationship between those officers and law enforcement outside tribal lands.
IN CONCLUSION
I enjoyed having Mitchell Hoover, KaCee Carson and Brandi Capps from Oxford page for me this past week. I am always grateful for the parents who see that the students have transportation to Topeka to observe Kansas government in action.
I appreciate the many constituents who have contacted me thus far by telephone, e-mail,
or written letters with suggestions and concerns in regard to this legislative
session. Your input allows me to work effectively for you. With my
heavy committee work I am not always available to take your calls but Betty Manning, my
Office Administrator, will get your messages to me. You can reach me via e-mail
at ggoodwin@ink.org or Goodwin@senate.state.ks.us. My
address is State Capitol, Room 403-N, Topeka, KS 66612; telephone (785) 296-7381 or
1-800-432-3924.
Copyright © January, 2003 by Jamiebro Publications. All rights reserved.