Supreme Court: Schools May Open Under New Finance Bill

Jun 20, 2017 by

http://www.workingjournalistpress.com/articles/170302/Gannon-Case-Supreme-Court-opinion-released.php

The Kansas Supreme Court yesterday announced that Kansas public schools will be allowed to open under the finance plan passed by the Legislature in Senate Bill 19. This is not, however, to mean that they believe the new formula to be adequate or constitutional. That decision will be made later.

In making the announcement, the Court set July 18 as the hearing day for the new formula. The State will argue that SB 19 fully complies with the Gannon decision, while the plaintiffs will argue that it is inadequate in funding and contains a number of provisions that jeopardize equity. After hearing arguments from both sides, the Court will deliberate before making a ruling on the issues at hand. While the Court has said they will expedite this case, there is no telling how long their deliberations might take before a decision is reached.

Obviously, this means that there will not be a July special legislative session. If the Court rules against the State, there is still the possibility of a fall special session or the Legislature could be given the 2018 regular legislative session to address any shortcomings.

read more

Brownback Signs School Finance Bill

Jun 16, 2017 by

Governor Brownback took his time about it, but yesterday he finally signed SB 19, the new school finance proposal passed by the House and Senate.

Of course, in his signing statement, he had to take the opportunity to complain about the Legislature’s work product saying, “The Legislature missed an opportunity to substantially improve the K-12 funding system.” We suppose he still preferred his unconstitutional block grant system that froze funding thereby helping to pay for his tax cuts for the wealthiest Kansans.

But if Brownback won’t, we will give the Legislature credit for listening, debating, sometimes arguing and eventually coming to a consensus about this new proposed formula. House K-12 Budget Committee Chairman Larry Campbell (R-Olathe) spent the entire session with his committee researching, hearing testimony, studying data and coming to the conclusion that the “old” formula was not terribly flawed and simply needed some adjustments. The House bill was then the framework that Senate Select Committee on School Finance Chairman Jim Denning used with his committee members to guide their work.

Whether this plan fully complies with the Supreme Court order or not, we have to give kudos to the legislators of both chambers who spent the time to do this work and do it conscientiously. The Governor is flat out wrong in his assessment of this as a “missed opportunity.”

We believe that when the Supreme Court is done with their review, they will find the finance formula in SB 19 by and large to be constitutional. There are a couple of issues in the bill that might give them concern- particularly around equalization- but the bill does target funding to the students who need the most help and does so in a rational manner.

We also believe that the Supreme Court will likely rule that the funding is not adequate – particularly after the first year.

Remember when we say this that the only people who get to decide are the members of the Court! We can only speculate.


What might the Court do?

The Court could simply rule that SB 19 does not adequately address Gannon and send the Legislature back to the drawing board in a special session.

Another possibility is that the Court approves the formula, perhaps putting a stay on one or two items as “disequalizing,” but call the funding inadequate and send the Legislature back to work in a special session.

A third possibility is that the Court approves the formula, approves the first year of funding, and gives the Legislature another year to address the adequacy of funding in the out years.

What we do know is that there is June 30 deadline. The Court has said they will take this case on an expedited basis. Between now and the deadline, they will need to hear the State’s defense and the Plaintiff’s arguments. Don’t look for this process to be a couple of days and done!


Guns: Coming to a College Near You This July

The Governor also announced that he would allow the newest gun bill to become law without his signature because the Legislature did not cave to the NRA-written “compromise” on guns in state mental hospitals.

State Hospitals, the KU Medical Center, and all public colleges and universities in Kansas have until July 1, 2017, to either provide metal detectors and security personnel at all entrances or allow concealed firearms to by carried by anyone anywhere anytime – no permit or training necessary.

Several times this session legislators tried to get the law changed for colleges and universities but despite overwhelming public support for allowing colleges to restrict firearms, the NRA demanded blind obedience to their position that guns should be everywhere and the legislation never moved.

It wasn’t until Brownback – who enthusiastically signed the bill opening mental hospitals and colleges to guns – asked for $24 million to secure entrances to mental hospitals for one year that people realized the full extent of meeting the requirement. A bill was then drafted to allow hospitals to ban weapons but the NRA stepped in to fight the bill. Seeing it would likely pass, the NRA then drafted an amendment that would not make them have security but instead allow guns in reception and parking lots, but the hospital would have to provide gun lockers for anyone with a gun seeking to go into patient areas.

In fighting for this amendment, one Senator actually said: “this is the amendment the NRA will allow us to adopt.” Despite the NRA “permission,” the Legislature passed the bill giving hospitals the right to regulate guns on hospital property. This was a loss for the NRA, and this is why the Governor only reluctantly will allow the bill to become law without his signature.

And for those of you working in our technical colleges, community colleges, and universities, it looks like guns will be a reality in your classrooms starting July 1.

read more

The Session is Over, But the Court Must Still Rule

Jun 12, 2017 by

The 2017 Legislative session came to a close on Saturday night with the adoption by both chambers of the final budget conference committee report. There was little specific to public schools in the budget as the K-12 budget is contained in the school finance plan passed earlier (SB 19).

The worst bit of news in the budget bill is that the conferees did not agree to any provision to pay back the money deferred from KPERS. While this action does not jeopardize KPERS retiree benefits, it undoes some of the work done over the past few years to bring KPERS back into fiscal health by reducing the unfunded actuarial liability.

As we look at the work of the 2017 Legislature, it is a good exercise to measure that work against our own KNEA Legislative Agenda.

There are four components to the KNEA Legislative agenda: Taxation, School Finance, Support for Educators, and Advocating a Bright Future for All Kansans.

In the area of Taxation, under income tax we scored a major victory with the passage of SB 30 and subsequent veto override. Every goal we stated under income tax was achieved. The “march to zero” or “glide path” was repealed as was the LLC income tax loophole. The income tax has been restored as the foundation of a balanced tax system, and a new higher income tax bracket was added restoring progressivity to the system.

Our positions on sales tax (lowering the food rate and dealing with sales tax exemptions) while not achieved were included in bills and amendments to bills and all had hearings during the session. Sales tax exemptions on some services were even voted upon. We can report that progress has been made in addressing important sales tax issues.

We also support the repeal of property tax caps on local units of government, an issue that was not resolved this year.

Finally, we support a full repeal of the corporate tuition tax credit program. While this did not happen this year, we had one success as well as one loss in this program. All schools receiving scholarship students must be accredited (for the win) but the credit is now available to individuals (for the loss).

In the area of School Finance, the passage of SB 19 assures that the unconstitutional block grant system is now history. Senate bill 19, for the most part, meets the criteria for a formula that we included in our legislative agenda.While the new formula does not fully fund the excess costs of special education, it does provide additional special education funding. We are especially pleased that it funds all-day kindergarten and provides some funding for pre-school programs. And fortunately, other pre-K programs were protected with the decision to reject the securitization of the tobacco settlement money which funds those programs today.

SB 19 provides two years of funding increases to public education which must be tested by the Supreme Court for adequacy. We do not believe the funding to be adequate to the challenge of Gannon and will be anxiously awaiting the Supreme Court review.

In the area of Support for Educators, we are happy to report that for the first time in many years, there were no attacks on the teaching profession debated in this session! That in and of itself is a major victory and it is in large part thanks to the work KNEA members did in supporting the election of more moderate Republicans and Democrats to the legislature.

Our only loss in this area was the decision to not repay the funds deferred from KPERS. And while we did not manage to get due process protections restored, we did get the restoration through the House with a very strong bipartisan vote. Unfortunately, the Senate never took the issue up and our last chance was an amendment to the school finance bill brought by Rep. Jerry Stogsdill (D-Prairie Village) that was ruled to be not germane to the bill and so was not considered. The votes in the House this year give us hope for the future.

In the area of Advocating a Bright Future for All Kansans, we must report that while we have not won on our issues, we have not lost ground either.

We were delighted to see the expansion of Medicaid pass both chambers and then disheartened with the Governor’s decision to veto it. We are sorry that the Legislature was unable to muster enough votes to override the veto.

Worst of all, despite the best efforts of many legislators, parents, faculty, students, and organizations including KNEA, the Legislature bowed to the NRA and refused to restore control of firearms to our Kansas colleges and universities. Beginning on July 1, 2017, our colleges and universities must either provide metal detectors and security personnel at all entrances or allow anyone to carry a concealed firearm anywhere on campus. Despite overwhelming support from the communities, NRA money and threats continue to carry the day.

So all-in-all, when examined in light of the KNEA Legislative Agenda, this was a very good session for public schools and public school teachers.

So, It’s Over But It’s Not Over…

As we write this today, Governor Brownback has SB 19, the school finance bill, on his desk. What we don’t know is his plan for that bill. Will he sign it? Will he veto it? Will he just let it sit there for ten days until it becomes law without his signature?

Our frustration is that every day that passes is a day less the Supreme Court has for review before the June 30 deadline.

If he vetoes the bill, the Legislature will have an opportunity on June 26 during their ceremonial sine die closing to consider an override vote but by then we are only four days from the deadline.

We are working with KNEA Legal staff to examine the various scenarios that could play out depending on a signature or a veto, an adverse court ruling or a special legislative session. Stay tuned for further KNEA reports as things play out.

read more

A Waiting Game and a Budget

Jun 8, 2017 by

With the passage of a school finance plan and, thanks to a veto override, a tax plan, the legislature has one more major piece of business between them adjournment – the final budget bill.

As we write today, the House is debating their budget bill and the Senate is on a recess, ready to come back to vote, at least, on a conference committee report.

Once both chambers pass a budget, they will need to work out the differences in a conference committee. We anticipate that both budgets will be done today, leaving tomorrow for the adoption of a conference committee report. It is possible to wrap up the session tomorrow but not certain.

But we are also waiting to hear if Governor Brownback signs or vetoes the school finance bill. It was announced that he signed a bill simplifying the rules about working after retirement in KPERS positions but no word yet on SB 19, school finance.

In the meantime, we would suggest you follow twitter. Best sources are, of course our own Mark Desetti (@desettiks), the statehouse reporters (@kprkoranda, @Celia_LJ, @jonshorman, @LJWpqhancock), and one of the best sources of action unfolding in the House is Rep. Stephanie Clayton (@SSCJoCoKs).

read more

It Really is Sunrise in Kansas!

Jun 7, 2017 by

Good happens!

House and Senate majorities on Monday night passed comprehensive tax reform (SB 30). They restored the three income tax brackets and repealed both the glide path to zero and the LLC income tax loophole. They also began the restoration of income tax deductions that help middle and low income families, including medical expenses, child and dependent care expenses, and property taxes paid.

The debate and bill passage were not easy. Some legislators are dug firmly into the position that all taxes and all government services are bad – one Senator even suggested that if you need a service like education, then you should pay for it yourself. But in the end, a majority in both the House and Senate voted to support tax reform. Unfortunately, those majorities were not strong enough to support an effort to override a veto. They fell one vote short in the Senate and 15 in the House.

Governor Brownback did not take long to announce that he would veto the plan because, in his world, his tax experiment is working. Despite all evidence to the contrary, he truly believe his experiment is working.

He vetoed the bill on Tuesday and that night, the Senate took up a motion by Senate Vice President Jeff Longbine (R-Emporia) to override the veto and pass the bill. A roll call vote in the Senate is conducted by calling each Senator’s name and they respond Aye or No. It was the last Senator called who put the bill over the top on the override. Senator Rick Wilborn (R-McPherson), who had voted No on Monday night, voted Yes on the override assuring that it passed.

Those voting NO on the override were Republicans Alley (Winfield), Baumgardner (Louisburg), Fitzgerald (Leavenworth), Hilderbrand (Galena), Lynn (Olathe), Masterson (Andover), Olson (Olathe), Petersen (Wichita), Pilcher-Cook (Shawnee), Pyle (Hiawatha), Suellentrop (Wichita), Tyson (Parker), and Wagle (Wichita).

The veto message then went to the House, where Tax Committee Chairman Steven Johnson (R-Assaria) made the motion to override the veto.

Again, the debate focused mostly around the idea that Kansas “has a spending problem, not a revenue problem,” despite the fact that revenues continue to decline and we have had multiple rounds of budget cuts since 2012.

Moving the House to override was a much bigger task than in the Senate since we had to find 15 members willing to override in addition to the 69 who voted for the bill initially. In the House, roll call votes are done when legislators press a red (for no) or green (for yes) button on their desks. Their names light up in red or green on the vote board. The initial vote came up with 84 Yes votes – just enough to override. Some legislators explained their votes and then four more moved to the Yes column. The final House vote was 88 yes to 31 no.

One legislator, Joe Seiwert (R-Pretty Prairie), voted “present.” Rep. Shannon Francis (R-Liberal) did not vote. Four others – John Barker (R-Abilene), Trevor Jacobs (R-Fort Scott), Les Mason (R-McPherson), and Jack Thimesch (R-Spivey) – were on excused absences.

Those voting NO on the override were Republicans Arnberger (Great Bend), Awerkamp (St. Mary’s), Blex (Independence), Burris (Mulvane), Carpenter (Derby), Claeys (Salina), Corbet (Topeka), Delperdang (Wichita), Dove (Bonner Springs), Ellis (Meriden), Esau (Olathe), Garber (Sabetha), Highland (Wamego), Hoffman (Coldwater), Houser (Columbus), Huebert (Valley Center), Humphries (Wichita), Jones (Wellsville), Landwehr (Wichita), Osterman (Wichita), Powell (Olathe), Rahjes (Agra), Resman (Olathe), Schwab (Olathe), Eric Smith (Burlington), Sutton (Gardner), Vickrey (Louisburg), Weber (Wichita), Whitmer (Wichita), and Williams (Augusta). Also voting NO was Democrat Henderson (Kansas City).

This action puts tax reform to rest for the session. But there is still more to be accomplished.

School Finance Passed But Will It Be Vetoed?

The school finance plan has passed, as we reported yesterday, and is sitting on the Governor’s desk awaiting his decision. So far, Brownback has not given any indication as to whether or not he will sign the bill and let it be sent on to the Supreme Court for review.

While KNEA does not believe the bill will meet constitutional muster, it is important that action be taken on it as quickly as possible. If he intends to veto it, he needs to do it now so the legislature can either override the veto or get to work immediately on an alternative. If he intends to sign it, it should be done now to give the Supreme Court time to review the bill and hear arguments on its pros and cons.

Hopefully a decision will be made soon. Perhaps even before you read this!

What makes us think this bill (SB 19) will not satisfy the Court? Primarily, we believe it will not meet adequacy of overall funding. While most of the policy forms a solid finance formula, the funding amount is far below what the State Board has indicated is needed and will certainly not be adequate in the eyes of the plaintiffs.

Additionally, there are legitimate concerns about how some provisions will impact required equalization. Last year, the Court sent the legislature back to fix equalization issues. This year, some are questioning new provisions regarding the false base for LOB which, under the bill, grows with the CPI-U and a provision on expanded spending authority under capital outlay. The Court may agree that these provisions are disequalizing and reject them. It is unclear whether the Court could separate them from the whole bill or not.

Longest Session Ever?

Well, not yet. The longest Kansas Legislative Session ever was the 2015 session, which lasted 114 days. Today is day 110 for the 2017 session so we’re pushing it now.

We believe it will be over before breaking the record, but it really depends on how the Governor deals with that school finance bill. If it’s vetoed, we could very well move beyond 114.

 

read more

School Finance, Tax Reform, & a Veto Pen

Jun 6, 2017 by

Tell your legislators to override the Governor’s veto of CCR for SB 30!

School Finance Passes on Second Try

Yesterday saw the consideration of two school finance plans. The first was created from the conference committee work on HB 2168. The House put tax policy in the bill. Three provisions were included: the establishment of three income tax brackets, the repeal of the glide path to zero, and the repeal of the LLC loophole. Additionally, the bill would direct all state income tax receipts to K-12 education in Kansas. Under this, all other state services would have to be funded with sales and excise taxes and fees.

This bill also required a “trailer bill” (CCR SB 30) that included other tax provisions many of which lowered the income tax receipts possible under the change in brackets. The revenue raised in the bill was lower than other tax bills considered this year.

KNEA, along with other education organizations, opposed the bill (contained now in CCR SB 19). This bill failed on a vote of 32-91 and was sent back to the conference committee. Since the tax trailer bill was tethered to the school finance bill through a provision that assured if one of the bills failed, they both failed, there was no need to then vote on the trailer bill.

Back in the education conference committee, the income tax changes were stripped out of CCR SB 19 and it was sent back to the floor as a school finance bill only. With the tax policy stripped out, the report was adopted in the House on a vote of 67 to 55 and later in the Senate on a vote of 23 to 17.

KNEA believes that the education finance bill that passed is not likely to meet constitutional muster because the funding is not adequate and because there are several provisions which may be considered by the court to be disequalizing. Additionally, the bill expands the tuition tax credit program diverting state money to private schools. We know that many legislators voted against the bill for these reasons; others voted against it because they have no interest in increasing funding for schools. We also know that many legislators who agree with us on the above issues also voted for the bill because they firmly believe at this late date something must be sent to the court for review. They are counting on a court ruling to move more legislators to support a better plan perhaps in a July special session.

Tax Bill Finally Passes; Governor Vows to Veto

After the failure of the tax/school combo bill, the tax conference committee met and assembled a new tax plan (again in CCR SB 30) that restored the three income tax brackets at higher levels than now but lower than 2012, repealed the glide path and the LLC loophole, and phased back in to law some of the family-friendly deductions (medical care, property taxes paid, mortgage interest, child care) over several years. This bill raised significant new revenue – about $600 million per year – and helped Kansas families. KNEA, AFT, Kansas Action for Children, the Kansas Organization of State Employees, the Kansas Center for Economic Growth, and other allies in Rise Up Kansas threw their support behind the tax bill.

The stand-alone tax bill (CCR SB 30) was ultimately adopted by the House on a vote of 69 to 52 and then by the Senate after midnight on a vote of 26 to 14. We were delighted that a good tax plan was finally adopted but of course, there is still one more hurdle – the intransigence of the man on the second floor.

It wasn’t long before Governor Brownback let it be known that he would veto CCR SB 30. We expected this. After all, Brownback has invested much of his tenure in destroying the tax basis of Kansas, starting with the reckless and irresponsible tax cuts of 2012.

Legislators and Kansas voters know it is time to get the state’s fiscal house in order. In August and November of last year, voters threw out many of the most vocal supporters of the Brownback experiment, replacing them with moderate Republicans and Democrats. Despite Brownback’s lame duck status and persistent rumors of his pending appointment to a position in the Trump administration, he vows to leave the state in fiscal collapse. And sadly, it appears that some in the Legislature are okay with that.

At this time, after six years of falling revenue, after 19 rounds of cuts to state services from universities to K-12 education to public safety, roads and highways, and the social service safety net; after multiple credit downgrades; after putting the state in massive debt through bonding and skipping payments to KPERS, it is time to turn this ship around. It is time to get on the path to fiscal stability.

The Kansas House and Senate must stand up and override the Governor’s veto of CCR SB 30. If they do not, they risk the closure of public schools on July 1.

We need every Kansan who cares, to contact their Representatives and Senators and call upon them to override the Governor’s veto of CCR SB 30.

You can tell your legislator that you want them to override the Governor’s veto easily here.
read more