Day one of the 2018 legislative wrap-up session was a quiet one. A number of conference committee reports were adopted and some new bills were introduced. The House was done shortly after noon today and the Senate later in the afternoon. Neither chamber planned to work into the night as this is the day of annual Legislative Shrimp Peel, an event to raise money for Kansas Special Olympics.
School Finance Measures
Of the bills introduced in the House, several were addressing the error in SB 423, the school finance bill. We don’t have the numbers yet and they won’t be available online until later but here’s what we understand about three of them:
HB 2796 – This would repeal the mandatory LOB provision that caused the error, restore other LOB provisions that had been changed, and adjust BASE aid accordingly.
HB 2797 – This would somehow amend the mandatory LOB provision so that the lost $80 million would be restored but we believe would keep the mandatory 15% LOB levy.
HB 2798 – This would strike provisions requiring school districts to adopt a minimum local option budget and transfer funds from the supplemental general fund to certain categorical funds; restore certain provisions relating to local option budgets and adjust the BASE aid accordingly.
There was another bill read in – probably HB 2799 – that would do what HB 2798 does and increase BASE aid by adjusting how the cost of living index was applied. It would also increase special education aid to the statutory 92% reimbursement and repeal a cap on bond and interest payments.
There is also a bill in the Senate (we do not have a number yet) that we understand is the same as HB 2796.
We will be keeping an eye on these bills as the session continues.
The KPERS Repayment
Yesterday we reported on a Governor’s Budget Amendment (GBA) that would prepay $82 million in money owed to KPERS. KNEA supported the GBA. The House Appropriations Committee not only supported it, they augmented it by increasing the payment to $192 million before passing their budget bill out of committee.
In response to good revenue projections, the budget committees now have the ability to not just afford the school finance costs in SB 423 but to do good work in other areas as well. These revenue projections are why there is a move to increase the funding in the school finance plan which would, in turn, raise the chances of the plan being constitutionally adequate thus keeping our schools open and ending the need for a special session.
But after adding the increased spending to the budget bill, the committee adopted an amendment by Rep. Brenda Landwehr (R-Wichita) that would lapse all the new spending if the Supreme Court did not accept the school finance plan. House Minority Leader Jim Ward (D-Wichita) said the Landwehr amendment was cruel in that it “dangles money” in front of constituents only to pull it back based on the Court ruling.
The Landwehr amendment was adopted after an 11 to 11 tie vote with Committee Chair Troy Waymaster (R-Bunker Hill) breaking the tie with his YES vote.
In other words, don’t count on the KPERS restoration just yet.
The House will debate the budget bill tomorrow.
House Doesn’t Take the Senate’s Massive Tax Cut
The House did take action today on Sub for HB 2228, the Brownbackian tax cut bill passed by the Senate on April 7. Because the Senate put the plan in a House bill, the House could not amend it, only vote to concur or non-concur in the changes.
Tax Committee Chairman Steven Johnson (R-Assaria) made a motion to non-concur in the Senate changes and send the bill to a conference committee. That motion was passed on a voice vote. What this action means is the chances of the House adopting the Senate tax cuts is remote but what tax cut bill might emerge from conference is anyone’s guess.
KNEA continues to believe that Kansas would be best served if legislators would resist the urge to cut taxes while we are only 10 months into recovery from the disastrous Brownback tax experiment.