Talking Taxes and One Senator Wants to Block the Court

Dec 8, 2017 by

Lots to Think About Vis-a-Vis Taxes

The 2017 Joint Committee on Assessment and Taxation met for a day and a half this week to gather information that may guide the work of the 2018 Legislature as they continue to grapple with tax policy.

The Committee members are Rep. Steven Johnson, Chair (R-Assaria), Sen. Caryn Tyson, Vice-chair (R-Lousiburg), Senators Tom Holland (D-Baldwin City) and Dan Kerschen (R-Garden Plain) and Representatives Ken Corbet (R-Topeka), Tom Sawyer (D-Wichita), and Kristey Williams (R-Augusta).

They started by reviewing how tax collections have been going since the passage of SB 30, the bill rescinding the Brownback tax plan. It was noted that while things are looking better – income tax collections are trending upward as are sales tax collections – it was too early to see what the ultimate impact might be. Staff repeatedly told the committee that they would have a much better view once income taxes are filed in April.

Another issue examined was the impact of economic development incentive programs (STAR bonds, PEAK, and HPIP) and how effective Kansas is in analyzing the impact of these credits and incentives. The three eco-devo programs listed above resulted in a diversion of $121 million/year from the state general fund. A study by the Legislative Post Audit Division found that Kansas, unlike our neighbors in Oklahoma, Nebraska, Colorado, and Missouri, has no program in place for measuring the impact of such programs or ensuring that lawmakers understand and act upon the analysis of these programs. Members of the committee expressed interest in improving in this area.

The sales tax was examined for a number of issues. One is the enormous list of sales tax exemptions in state law. Many of those exemptions are required by the federal government or are there to prevent double taxation but it was noted that perhaps Kansas has been too generous in granting additional exemptions. The impact of internet sales on sales tax collections in Kansas was also studied. The US Supreme Court ruled a number of years ago that states could not impose the tax on companies that did not have a physical presence in the state. A number of states, including Kansas, have tried to persuade Congress to take action on this issue to no avail. Currently, there are efforts in other states, notably South Dakota and Massachusetts to find other ways to solve this issue. Technological advances since the initial Supreme Court ruling have made it easy for vendors to charge and remit destination based sales taxes.

The other big issue discussed was the property tax lid passed by the legislature. Under the lid, cities and counties are unable to increase property tax collections beyond the rate of inflation without a vote of the electorate. This has tied the hands of city and county commissioners as they try to deal with local needs and in particular the cost of employee health benefits. Sen. Tyson went on the offense against representatives of cities and counties alleging that they were not following the cap. A Douglas County resident had complained to her that property taxes went up by 10%.

What these legislators fail to understand is that some things are exempt under the lid (public safety) and that the lid does not apply to USD’s. Lawrence USD 497 in Douglas County, for example, passed a large bond issue and had to raise collections under their LOB based on changes in the finance formula. It makes sense that in some places property taxes would still increase overall beyond the CPI limit.

Committee staff will now prepare a report of their findings to go to the Senate and House Tax Committees as the 2018 session starts.

Senator Dennis Pyle Wants to Subvert the Court

Senator Dennis Pyle (R-Hiawatha) who is not known for supporting public education, has proposed a measure to strip the Supreme Court of any authority that would force the legislature to suitably fund public education in Kansas.

The Court, in the Gannon School Finance Decision, said they were no longer going to be party to continuing an unconstitutional system of funding. This has been widely interpreted to mean that if the legislature does not fix the school finance system such that it is both adequately and equitably financed, then the Court would prohibit distribution of funds to schools in an unconstitutional system. Schools would close until the formula was constitutional.

This threat is the only thing that will force the Legislature to move to fix the system. Without the ability to block the funding and close schools, the Legislature can feel free to ignore the Court decision.

Pyle’s proposal would be a constitutional amendment that must get a 2/3 super-majority vote in both the House and Senate and then be approved by the voters. He wants this fast-tracked so it could beat the Supreme Court’s April 30 deadline for briefs on whatever the Legislature passes this year. And if Senator Pyle remains true to form, he won’t support anything that solves the funding issue.

Click here to read the KC Star’s reporting on the Pyle proposal.

 

read more

Big Day Today; Big Week Coming Up!

Feb 3, 2016 by

House Ed Committee to Consider De-Professionalizing Community College & Tech College Instructors

The House Education Committee has scheduled a hearing on HB 2531, a bill eliminating due process protections for instructors at Kansas Community and Technical Colleges. The hearing will be next Tuesday, Feb. 9.

This is part and parcel of the war on dissent being led by Governor Brownback and his legislative allies. They stripped K-12 teachers of due process rights in 2014, the next year they went after state employees ending due process protections for most of them. This year they’ve set their sights on those who serve in our Community and Technical colleges. We can only assume that university professors will be targeted next year.

The legislature has not been hesitant about attacking individual college professors in the past. Twice they’ve gone after individual KU professors – once for a professor teaching a human sexuality course and later for a professor who dared to post a tweet criticizing the NRA. In this brave new world of ours, no one is off-limits. If you disagree with Republican leadership, you will be demonized.

When first reporting on HB 2531, we shared the oft-quoted statement of German theologian Martin Niemöller:

First they came for the Socialists, and I did not speak out—
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out—
Because I was not a Trade Unionist.

Then they came for the Jews, and I did not speak out—
Because I was not a Jew.

Then they came for me—and there was no one left to speak for me.

Will you speak out? Help us stand up for our colleagues and demand an end to war on educators. We must be united in our efforts. We must demand respect for all those who serve our students from pre-school through graduate school. Below are the members of the Committee linked to their emails. Let them know that it’s time to end the war on academic freedom and Kansas teachers. Vote NO on HB 2531.

 


House Committee Amends, Passes Air Gun Bill

The House Federal and State Affairs Committee worked HB 2468, a bill allowing organizations that have air gun activities to conduct those activities on school property. The bill impacts communities in which 4-H clubs, Scouting, or other youth organizations have shooting sports programs.

The bill was amended on a motion by Rep. Nancy Lusk (D-Overland Park) such that school districts could require such organizations to have liability insurance.

Students could be restricted to having possession of their air guns only during the activities. Such activities are generally held after school hours or on weekends.

The amended bill was adopted by the Committee and now must go to the full House for consideration.


Initial House Vote on Supreme Court Constitutional Amendment Shows Little Support

The full House debated and had an initial vote on HCR 5005, a proposal to change the Kansas constitution to give the governor sole power to select members of the Kansas Supreme Court.

Under the Kansas Constitution, a Supreme Court Nominating Commission selects three qualified candidates for a Supreme Court vacancy. Those names are given to the Governor who chooses the new justice. The nominating commission is made up of four attorneys selected by attorneys in each of the State’s four Congressional Districts, four non attorneys selected by the governor in each of the State’s four Congressional Districts, and the Chair who is an attorney elected by attorneys statewide.

The nine-member nominating commission reviews and interviews applicants and makes the selection on merit. The appointee is later subjected to a retention vote at which time all voters weigh in on whether or not that person should continue on the Supreme Court or be replaced.

This process keeps special interests and politics out of the selection of justices and ensures that the Kansas Supreme Court is an independent branch of government that bases their rulings on the law and not on political expediency.

The governor has been working hard to secure the selection process for himself. In a vote on the floor today there were 69 votes for ending the commission and 53 votes to keep merit selection as it is.

This moves the resolution to tomorrow for a final action vote. Because it is a constitutional amendment, it would take 84 yes votes to pass it.

KNEA supports the current merit selection process and the Supreme Court Nominating Commission.


Consolidation Hearing Lopsided

During the hearing on HB 2504, Rep. Bradford’s (R-Lansing) consolidation bill, there were four proponents to 42 opponents. In favor of the bill were Rep. Bradford, Walt Chappell, Mike Howerter (Labette Community College Trustee), and Larry Tawney (concerned citizen).

Opposition was broad including school districts, economic development groups, private citizens, parent’s groups, farm organizations, and KNEA and KASB.

It is hard to imagine that there is much chance for this bill to be worked. Chairman Highland (R-Wamego) has scheduled HB 2486, the Bond Project Review Panel, and HB 2457, the Tuition Tax Credit radical expansion for debate and vote on Monday of next week. HB 2504 is not scheduled to be worked at this time.


Subcommittee on Working after Retirement Formed

Today in House Pensions a couple of “technical clean-up” bills were heard by the committee. The real news from House Pensions is that the chair, Representative Stephen Johnson (R-Asaria), has assigned a subcommittee to review the recent policy changes for participation in Working after Retirement. The subcommittee will meet and develop recommendations which they will then bring to the entire House Pensions Committee for consideration. The work of the subcommittee could lead to changes in the current (new) procedures for participating in WAR. The first meeting of the subcommittee is tomorrow at 9 a.m. Stay Tuned.

 

 

read more