Capitol Comments
February 18, 2003
SRS UPDATE
Janet Schalansky, the Secretary of the Kansas Department of Social and Rehabilitation Services (SRS) recently presented information on the agency's budget and how the state budget continues to stress the services provided by SRS. They are most concerned because as they face decreased funding they also face increased health care costs and an increase in the number of Social Service caseloads. This situation will cause problems such as balancing demands for service with funds, maintaining high staff morale, and maintaining programs with fewer dollars and staff.
The Secretary addressed the seriousness of the budget shortfall and SRS' response.. There have been several cost management tools imposed on Medicaid to slow growth. They also have plans to reduce certain programs, redesign the delivery of services, and reduce the current SRS workforce by keeping vacant one out of every six positions. The staff would further be reduced by a layoff of 147 SRS employees and workforce reductions in the state hospitals. The cuts will severely affect our area of the state, particularly on the issue of possible decreased funding for the mentally disabled.
SCHOOLS FOR FAIR FUNDING SETTLEMENT PROPOSAL
A federal district judge in Wichita has authorized the parties in
the "suitable education" suit to open negotiations in order to settle the case
where mid-sized school districts accuse the state of not adequately financing K-12
education in Kansas. Some local school districts are plaintiffs in this action. With this
in mind, plaintiffs are proposing to settle this matter as follows:
Recommend a foundation level or "base cost" for a "suitable
education." The (Augenblick-Meyers) A&M Report sets this foundation at $4,650 per
pupil in 2000-01 dollars. This is currently estimated at $5,055 per pupil in school year
2004-05 dollars. Adjust the foundation level (base cost) by a regional cost factor using
figures from the National Center for Education Statistics until such time as the state
conducts its own study; and adjust the foundation level in recognition of high costs
associated with:
(1) the operation of moderate size and small
school districts
(2) the needs of students in special education
programs
(3) the needs of at-risk students
(4) the needs of bilingual students
Formulas should be sensitive to the enrollment levels of school districts and formulas recommended by the A&M Report shall be adopted.. The formula also calls for an increase in the Local Option Budget "as it was originally designed to operate - as a way for districts to generate revenue above an adequate base". The LOB should continue to be equalized in the same manner as it currently is. Also called for is an increase in the base upon the direction of a committee designed by the legislature to determine an annual rate of increase which should consider annual changes in the Consumer Price Index in Kansas.
The settlement offer requests that the legislature and governor adopt and implement all the findings of the A&M Report effective no later than July 1, 2004. The Plaintiff's opening bid to make the lawsuit go away is estimated to cost the state about $776 million. If the legislature fails to adopt and implement the findings of the A&M Report in its entirety, within the time period set forth, defendants will agree to confess judgment in this case so as not to continue enforcement of a discriminatory and unconstitutional school finance system (the parties will agree to the specific language of any such confession of judgment prior to finalizing any settlement agreement). I believe the legal action as taken by the mid-sized schools will cause legislators to finally realize the need for making the school funding formula more equal.
NEW DRIVERS LICENSE DESIGN
Testimony was recently heard in the Transportation Committee proposing a bill that would implement a vertical format to drivers' licenses and identification cards issued to individuals under the age of 21. This change would make it easier for merchants to identify underage persons who try to purchase tobacco or alcohol products The Director of the Alcoholic Beverage Control Division and the Director of the Kansas Licensed Beverage Association both strongly supported this proposed legislation saying statistics show that 50% of those cited in buyer check programs checked the ID, but miscalculated the age from the dates given. Having a vertical format would eliminate this common mistake. The committee also heard testimony from the Director of the Department of Revenue's Division of Vehicles address funding for the bill. The Director pointed out that since the implementation date coincides with an anticipated update to their driver's license system, the necessary changes can be done at no additional cost. The bill passed out of my committee unanimously.
SALES TAX EXEMPTIONS
Enacting sales tax exemption statutes over many years has now caused major concern for many legislators. The feeling of many is that if the state sales tax rate could be reduced that it would benefit business. This is not the case. If the sales tax exemptions were to be removed it would make Kansas noncompetitive and products subject to double taxation. In order for businesses to expand, Kansas must be able to be competitive with other states. If Kansas were to remove the exemptions of manufacturing machinery and equipment, items consumed in production, component parts, sale of manufactured homes, advertising services as well as others found in the state book, businesses would have to pay an additional 6 to 7 percent on goods purchased. We would then find many companies moving to other states to take advantage of their tax structure. Kansas would not be able to entice many industries and service firms. Having industries leave our state would only present even more fiscal problems.
Double taxation is another problem we face concerning sales tax exemptions. When a product is used to make another product, it is taxed and then sold at retail subjecting that product to be taxed again. Current sales tax exemptions have been through the legislative process and were determined to have merit. Many of the exemptions that apply to businesses were enacted because of our competing with surrounding states having the same type of exemptions. To compete favorably with businesses in our state we must have the same type exemptions as other states. Kansas' tax structure must be competitive in order to grow and expand.
IN CONCLUSION
I enjoyed having Megan Keenan, Tabatha McMullen and Anna Macy from Belle Plaine 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 contact me on the very
important issues before us this session. Several of these bills will create a negative
impact on our local communities. I encourage my constituents to watch the many bills as
they make their way through the legislative process. Continue to contact me with your
concerns. 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 © February, 2003 by Jamiebro Publications. All rights reserved.