Taxes, Due Process, & Tempers that Flare; Just Another Day Under the Dome

Feb 15, 2017 by

Post Highlights

  • KNEA supports House tax bill believing there is room for improvement, but it is a good first step.
  • The bill repeals the LLC income tax loophole beginning with tax year 2017, ends the glide path to zero income taxes, and sets three income tax brackets at 2.70 percent, 5.25 percent, and 5.45 percent.
  • This was our first chance to see how the moderate Republicans and Democrats would cooperate and they did not disappoint.
  • Fallout continues from yesterday’s House Education Committee hearing on due process.
  • Aurand’s announcement that he did not plan to work the bill at all angered not only the proponents who testified in the hearing but also the majority of committee members who are ready and willing to pass the bill.
  • Leaders from KNEA (bill proponent) and KASB (bill opponent) met to discuss concerns and look for a path forward.
  • Chairman Aurand has scheduled a committee meeting for Monday afternoon for the purpose of “considering bills already heard.” There are only three bills that this could apply to and one of them is HB 2179.
  • We urge our members and friends to continue to let Chairman Aurand know that this bill needs a fair hearing and a vote. You can email Chairman Aurand at clay.aurand@house.ks.gov.
  • SEE FULL POST FOR SPECIAL EDITORIAL REGARDING PARTISAN RANCOR UNDER THE DOME.  THIS IS A VERY IMPORTANT READ FOR ALL PUBLIC EDUCATION ADVOCATES.

House Advances Tax Bill Reversing Much of Brownback’s Policy

It was a surprise this morning when the full House voted to advance House Sub for HB 2178, the tax bill crafted in the committee last week. It only took a few minutes and there was not debate at all; no amendments offered.

This is quite unusual since tax bills generally generate a vigorous debate and more than their fair share of amendments.

KNEA supports this bill. We do believe it could be improved but it is a good first step in the move to reverse the reckless and irresponsible tax cuts of 2012-13.

The bill repeals the LLC income tax loophole beginning with tax year 2017, ends the glide path to zero income taxes, and sets three income tax brackets at 2.70 percent, 5.25 percent, and 5.45 percent.

This was our first chance to see how the moderate Republicans and Democrats would cooperate and they did not disappoint. 46 Republicans and 37 Democrats vote for the bill while 36 Republicans and 3 Democrats voted NO. The bill was advanced to final action on a vote of 83 to 39.

We’ll see tomorrow how the final action vote goes!

Here’s how they voted (Democrats in bold italics):

Voting AYE were Alcala, Alford, Baker, Ballard, Becker, Bishop, Blex, Brim, Campbell, Carlin, Carmichael, Clark, Clayton, Concannon, Cox, Crum, Curtis, Deere, Dierks, Dietrich, Dove, Elliott, Eplee, Finney, Francis, Frownfelter, Gallagher, Gartner, Good, Helgerson, Henderson, Hibbard, Highberger, Hineman, Holscher, Jennings, Johnson, Judd-Jenkins, Karleskint, Kelly, Kessinger, Koesten, Kuether, Lakin, Lewis, Lusk, Lusker, Markley, Mason, Miller, Murnan, Neighbor, Ohaebosim, Orr, Ousley, Parker, Patton, Phelps, Phillips, Pittman, Proehl, Rahjes, Ralph, Rooker, Ruiz, Sawyer, Schreiber, Schroeder, Sloan, A. Smith, Stogsdill, Swanson, Tarwater, Terrell, Thompson, Trimmer, Victors, Ward, Weigel, Wheeler, Wilson, Winn, and Wolfe Moore.

Voting NO were Arnberger, Aurand, Awerkamp, Barker, Burroughs, Carpenter, Claeys, Corbet, Davis, Delperdang, Ellis, Esau, Finch, Garber, Hawkins, Highland, Hodge, Hoffman, Houser, Huebert, Humphries, Jacobs, Jones, Landwehr, Osterman, Powell, Rafie, Ryckman, Schwab, Seiwert, E. Smith, Sutton, Thimesch, Vickrey, Waymaster, Weber, Whipple, Whitmer, and Williams.

DeGraaf, Kiegerl, and Mastroni were absent.


What’s Happening with Due Process?

After yesterday’s frustrating hearing, Democrats and moderate Republicans who support teacher due process rights immediately began regrouping to find a way bring the bill, HB 2179, back for a vote.

There were some moments of difficulty – Republicans were frustrated by the attempt to force an immediate vote and Democrats angry that one man, Clay Aurand, could simply close down the committee to stop any further discussion. Aurand’s announcement that he did not plan to work the bill at all angered not only the proponents who testified in the hearing but also the majority of committee members who are ready and willing to pass the bill.

KNEA & AFTKS leaders called their KASB counterparts and invited them to come to KNEA at noon today to talk about what issues KASB had with due process for teachers. That meeting happened and it became clear that some issues could probably be easily resolved but KNEA continues to insist that due process is defined by a binding third-party review.

Prior to 1992 when hearings were held before a three-officer panel but the panel’s decision was advisory to the Board of Education, boards simply ignored the hearing panel’s decision even when that decision was unanimous. It was this that made the legislature create the binding decision that was part of the process from 1992 until repeal in 2014.

We know that today moderate Republican committee members have met with Aurand, KNEA lobbyist Mark Desetti met with Aurand, and KASB representatives also met with Aurand. Aurand has scheduled a committee meeting for Monday afternoon for the purpose of “considering bills already heard.” There are only three bills that this could apply to and one of them is HB 2179.

KNEA and AFT want the bill to be worked and passed out of committee. We have committed to working with KASB, KSSA, and USA to try to find common ground but we are not interested in setting the issue aside for another year or years while teachers continue to be non-renewed with no ability short of suing a school district to challenge the decision.

We urge our members and friends to continue to let Chairman Aurand know that this bill needs a fair hearing and a vote. You can email Chairman Aurand at clay.aurand@house.ks.gov.

And by the way, Rep. Willie Dove said in committee that no teacher ever told him that they wanted due process protections. You can let him know that you are a teacher that does by emailing him at willie.dove@house.ks.gov.


[EDITORIAL] When Tempers Flare 

Sometimes, under the dome, people get a tad cheesed off. We know we do! When that happens things can be said that might be regrettable later and much of that is expressed in hyper-partisanship.

Such has been the case over the last couple of days. Things are heating up in the capitol and tempers do flare.

We are counting on a bipartisan coalition of level-headed, common sense Kansas legislators to get Kansas through this current fiscal crisis and put us back on a path to prosperity. We at KNEA also look to those legislators to restore respect and honor to the educators of Kansas.

Today, in the vote on House Sub for HB 2178, we saw what can happen when partisan wrangling is set aside for the good of Kansas. And we need more of that, not less.

That’s why we are frustrated to see messages on social media that attack Democrats for not being more “in your face” with Republicans or attack moderate Republicans for not automatically supporting every idea that comes from a Democrat.

We believe that if the due process bill gets a vote in the House – both in Committee and on the floor – it will pass. We are confident of this because of the list of co-sponsors and because of conversations we have had with members of both parties who are not signed on as co-sponsors.

We also know that those two groups, working together, can save Kansas.

The problem we face today is not the Democrats. It is not the moderate Republicans. It is leadership that puts their own ideological agenda ahead of the wishes of the legislative majority. A perfect example is Aurand’s unilateral decision to not work HB 2179 when the majority of his committee clearly wants to. This was done in the past when the speaker of the House refused to allow a bill to come to the floor for debate. We have yet to see this happen with Speaker Ryckman but it is a possibility.

KNEA has many friends in the Democratic Party and in the Republican Party. We are confident that those friends will stand up for teachers. If they don’t; if they vote for bills that do not support schools and educators, then we will challenge them. If they vote against bills that would help our schools or support our teachers, then we will challenge them.

But until then, we will work with all of them, Democrat and Republican, to ensure success for our students, our schools, and our educators. And as the votes come in, you will know who supports public schools and public school educators, and who doesn’t. Because we will tell you.

Until then, continue to support our friends. Let them know that you are following the actions of this legislature and that you fully expect them to honor the commitments they made in their campaigns to support our schools. We stand ready to embrace those who value our schools. Democrat or Republican.

 

 

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House Crafts Its Tax Plan

Feb 10, 2017 by

House Tax Bill Comes Out of Committee

The Senate on Thursday abandoned debate on their tax bill when it was clear that it would not get the votes necessary to pass. That bill, SB 147, would have raised about $280 million by raising income taxes on all Kansans. While it repealed the LLC tax loophole, it did not end the Brownback glide path to zero. The money raised in the bill would have resulted in the need to once again raise taxes later this year or immediately in 2018 and the continuation of the glide path would have put Kansas in the same budget crisis in the future.

Also on Thursday, moderate Republican and Democratic Senators handed leadership yet another defeat when they announced that they would not vote for SB 27, the cuts bill that would have reduced education funding by $154 million dollars in the current year.

Senate president Susan Wagle has been insisting that cuts were needed and that support for increased taxes must be concurrent with budget cuts the largest of which would be applied to K-12 public schools.

Over in the House, they are taking a radically different approach. Late yesterday the House Taxation Committee assembled and passed a comprehensive tax restructuring bill that goes a long way to restoring stability to the state’s revenue system.

Under the House plan, House Substitute for HB 2178, the glide path to zero income tax would be repealed as would the LLC loophole. The loophole would be repealed retroactively to all of 2017.

The House would restore the third income tax bracket set at 5.45% for those with an adjusted gross income of $50,000 or more filing as an individual and $100,000 for married couples filing jointly.

Income rates under the House plan for those married filing jointly would change as follows:

Taxable income (AGI) 1992-2012 Current law (2017) Sub for HB 2178 (2018)
$0-$30,000 3.5% 2.7% 2.7%
$30,001-$60,000 6.25% 4.6% 5.25%
$60,001-$100,000 6.25% 4.6% 5.25%
$100,0001 + 6.45% 4.6% 5.45%

 

The full deduction for medical expenses which was repealed in 2013 would be restored effective 2017.

This tax bill is estimated to raise an additional $590.2 million in fiscal year 2018.

The bill is a major step forward in the debate over tax policy under the dome.

Next week, the House Appropriations Committee will hold a hearing on HB 2161, a bill that would liquidate the pooled money investment portfolio putting about $317 million in the treasury. The portfolio would then be paid back at about $45 million per year for seven years. This action would likely create enough one-time money to plug the hole in the current year budget. It would, however create a seven year obligation. KNEA believes that this is the best way to get out of 2017 without cutting state services but must be done in conjunction with a comprehensive tax fix that provides for state services and allows the new obligation to be paid.

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Kansas Day Under the Dome

Jan 30, 2017 by

Post Highlights

  • Kansas Day celebrated in the statehouse.
  • Budget cuts- possibly to education- are being discussed as part of a strategy to deal with a $350 million shortfall.
  • Cuts to KPERS not included in House Appropriations committee report.
  • Consolidation of district purchases and health care plans will be heard in committee later in the week.
  • Hearing in House committee this week on bill allowing colleges to restrict guns on campus (identical to Senate bill from last week).
  • A comprehensive, sensible, long-term plan for dealing with Governor Brownback’s revenue disaster introduced as a bill in House Tax committee.  Plan known as “Rise Up Kansas!” has support from several organizations including KNEA.
  • New concerns have been raised regarding the new rules for Working After Retirement from both employers, employees and retirees.
  • To see a complete explanation of the rules and exceptions please see https://www.kpers.org/pdf/WARschools.pdf

Today is the day for legislators to celebrate Kansas Day. This includes showing a film about the writing of “Home on the Range” and a performance of the song by Michael Martin Murphey on the Senate floor.


Budget Talks Happening; Rumors Still Abound

There were few committee meetings today but that does not mean things are not moving. Committees are moving toward presenting a solution to the $350 million shortfall in the FY 2017 budget. There are still moving parts and some still believe there might be some level of across the board cuts which would include the possibility of cuts to education.

The education report before the House Appropriations committee does not include the Governor’s irresponsible cuts to KPERS funding. The full committee will take up the issue later this week.

Also up this week will be hearings on a bill to consolidate school district purchases on a state level and another to consolidate school district health care plans. Both were part of the Alvarez and Marsal efficiency study and both were included in the Governor’s budget plan. Some people believe the discussion of the health care consolidation will be canceled while the await an upcoming report on the issue by the Legislative Post Audit Division. While both of these bills were introduced as a courtesy to the Governor and to spur discussion, neither seems to have much popular support at this time.

Meanwhile, the tax committees continue to examine various tax solutions with an eye to reversing the damage that is being done to Kansas by the reckless 2012 tax cuts touted by Governor Brownback as just the thing to provide “a shot of adrenaline to the heart of the Kansas economy.” This week the House Taxation Committee will be looking at sales tax exemptions; income tax brackets and the glide path to zero income tax; taxes on cigarettes, liquor, and motor fuel; and how retirement benefits are taxed.

Also up this week will be a hearing on the House version of the bill to allow colleges to determine whether or not firearms may be carried on campus. The hearing in the Senate last week found lots of support for repealing the current law which requires colleges to allow guns after July 1, 2017 unless they provide security at all entrances to every building. The Senate hearing happened on the same day it was revealed that Rep. Willie Dove (R-Bonner Springs) left a loaded handgun in a committee room. Thankfully it was found and turned in to police by a responsible adult and not picked up by one of the hundreds of school children that tour the Capitol every day.


Rise Up Tax Plan Introduced

With an eye to fixing the damage done by the disastrous 2012 tax plans, a new comprehensive proposal was introduced today in the House Tax Committee.

The RISE UP plan as it is called was put together after lots of research and examination of what changes would provide for a restored Kansas. Among the components of the plan are the repeal of the LLC exemption, ending the glide path to zero income tax, adding a new higher income tax bracket, reducing the sales tax on food, and adding an increase in the motor fuels tax. KNEA is among the organizations supporting RISE UP along with Kansas Action for Children, AFT/KOSE, the Kansas Contractors Association, and the Kansas Center for Economic Growth.

Read more about the Rise Up plan at www.riseupkansas.org.

Also introduced today was a bill by the Kansas chapter of the American Cancer Society that would raise the cigarette tax by $1.50/pack and the tobacco products tax by an equivalent amount. This would be a greater tax increase on cigarettes and tobacco than the Govenor’s proposal. Brownback has sought a cigarette tax increase of $1.50 and was given a $0.50/pack increase in an earlier session. He has recommended an additional $1.00/pack this year.


Working After Retirement- WAR

The topic of Working After Retirement is again the subject of study for a subcommittee of the House Financial Institutions and Pension Committee. The subcommittee is Co-Chaired by Representatives Jim Kelly and Representative Dan Hawkins.  New concerns have been raised regarding the new rules for Working After Retirement from both employers, employees and retirees. The subcommittee met on Monday to hear and review the concerns from school districts, local governments, and KNEA.

At the center of the concerns are the number of exemptions to the rules for WAR. Currently, anyone who retirees from an employer with employees covered by the KPERS system has a $25,000 annual earnings cap. For example, if an employee retires and returns to work they have a $25,000 earnings cap in a calendar year. Once that cap is reached then the employee must stop working or basically “Unretire”. There are exceptions to the rule including those retirees who are “grandfathered” in under the previous rules that reached sunset on July 1, 2016.

To see a complete explanation of the rules and exceptions please see https://www.kpers.org/pdf/WARschools.pdf  Pages 2-3 offer an explanation to exceptions for K-12. For Community College and Tech College employees and retirees see https://www.kpers.org/pdf/WARcommtech.pdf which has the explanations of exceptions for Community College and Tech College employees.

KNEA’s position is that the new rules are complicated and need to be simplified for all those involved with Working After Retirement. There are times that intelligent and well-meaning people sometimes over complicate a problem while working to solve that very problem. If there is an unfilled teaching position, no matter what the cause of the opening, it is important to find a qualified and willing person to fill that position. The new rules seem to be a hindrance to the hiring of a willing and qualified applicant based solely on the fact that they had previously worked for a KPERS employer. Working towards simplifying the rules for both employers and employees is a goal that KNEA would recommend.

The subcommittee will most likely meet again on Wednesday after the regular meeting of the House Financial Institutions and Pensions Committee.

 

 

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We’ve Grown Accustomed to this Pace…

May 2, 2016 by

Pothole

In Now Typical Fashion, Session Ends in the Wee Hours with Minimum of Votes Needed

In these days of a legislature and Governor who seem to be determined to run Kansas into the ground – or simply shrink it to a size that can be drown in a bathtub – the 2016 legislative session came to an end in the wee hours of this morning with the Senate on a vote of 22 to18 passed a budget conference committee report that the House had earlier passed on a vote of 63 to 59.

In both chambers it took a call of the body to persuade the last few people to move to the YES column in order to pass the bill. In the House it takes 63 votes to pass, 21 in the Senate.

smugmuch

Governor Sam Brownback

The budget bill contained in the conference committee report on SB 249, marks the second year running that the legislature failed to balance the budget, instead punting to the Governor to make cuts of his choosing.

Here’s what the bill does:

Gives the Governor permission to take most of the sales tax dedicated to the highway program and move it into the state general fund (aka “robbing the bank of KDOT”).

Gives the Governor permission to delay KPERS contributions and then indefinitely delay paying KPERS back. In an earlier version, the legislature had directed that delayed KPERS payments would have to be paid back in the first quarter of the next fiscal year with 8% interest. Under this bill, KPERS gets paid back with any revenue that comes in above estimates and any tobacco settlement money that comes in above what has already been allocated for children’s programs. Bear in mind that revenue has exceeded estimates only one time in the last 12 months. There is also a proviso that says the revenue from the sale of state properties will go to the agency that owns the property and not to KPERS as was under current law.

Gives the Governor permission to cut most state agencies by 3 to 5%. It specifically directs that he may not cut K-12 education.

Gives the Governor permission to cut universities by another $17 million but kindly repeals the cap on tuition increases passed last year so that students and their families can make up the difference in higher tuition and increased student debt.

Gives the Governor permission to issue an RFP for the privatization of Osawatomie and Larned State Hospitals. Reverses permission to actually privatize with the legislature.

Contains provisos to protect Juvenile Justice Reform funding and Domestic Violence program funding.

Contains a proviso that the Docking State Office Building cannot be demolished without legislative permission.

There are a number of other provisos as well covering everything from Parks and Wildlife to K-State land sales.

NO votes for the bill, based on the statements made during discussion, include the belief by some extreme conservatives that K-12 education should not be spared from further cuts. Others argued that they could not support the bill because it could have a potentially devastating impact on KPERS. Still others argued that it was the equivalent of “dereliction of duty” in that the one task given to the legislature each year is to pass a balanced budget – it’s not balanced if it is dependent on the Governor making cuts to budgets at his discretion.

House Speaker Ray Merrick

House Speaker Ray Merrick

And the YES votes? We’re not sure about those. Maybe it was the late hour and the belief that things would only get worse if they stuck around town. Whatever the reason, the bill in the House was initially at 61 to 60. Rep. Suellentrop (R-Wichita), who was out of the chamber when the vote was initially taken, came in and voted YES, making it 62 to 60. That’s when Rep. Todd (R-Overland Park) changed his vote from NO to YES, securing the 63rd vote for leadership and passing the bill.  The final vote follows.

 

Final Vote Roster

 

In the House:

YES: Alford, Anthimides, Barker, Barton, Boldra, Bradford, Campbell, B. Carpenter, W. Carpenter, Claeys, Corbet, Davis, Dove, Esau, Estes, Goico, Gonzalez, Grosserode, Hawkins, Hedke, Hemsley, Highland, Hildabrand, Hoffman, Houser, Huebert, Hutchins, Jennings, D. Jones, K. Jones, Kahrs, Helley, Kelly KIegerl, Kleeb, Lunn, Macheers, Mason, Mast, McPherson, Merrick, O’Brien, Osterman, Pauls, Powell, Proehl, Rahnes, Read, Rhoades, Ryckman, Ryckman Sr, Scapa, Schwab, Schwartz, Seiwert, Smith, Suellentrop, Sutton, Todd, Vickrey, Waymaster, Weber, and Whitmer

NO: Alcala, Ballard, Becker, Billinger, Bollier, Bruchman, Burroughs, Carlin, Carmichael, Clark, Clayton, Concannon, Curtis, DeGraaf, Dierks, Doll, Finch, Finney, Francis, Frownfelter, Gallagher, Garber, Helgerson, Henderson, Henry, Hibbard, Highberger, Hill, Hineman, Houston, Hutton, Johnson, Kuether, Lewis, Lusk, Lusker, Moxley, Ousley, Patton, Peck, Phillips, Rooker, Rubin, Ruiz, Sawyer, Scott, Sloan, Swanson, Thimesch, Thompson, Tietze, Trimmer, Victors, Ward, Whipple, Williams, Wilson, Winn, Wolfe Moore

Absent and not voting: Edmonds, Ewy, Schroeder

In the Senate:

YES: Abrams, Arpke, Bruce, Denning, Donovan, Fitzgerald, Holmes, Kerschen, LaTurner, Longbine, Love, Lynn, Masterson, Melcher, O’Donnell, Olson, Ostmeyer, Petersen, Pilcher-Cook, Powell, Wagle, Wilborn

NO: Baumgardner, Bowers, Faust-Goudeau, Francisco, Haley, Hawk, Hensley, Holland, Kelly, King, Knox, McGinn, Pettey, Pyle, Schmidt, Smith, Tyson, Wolf


Please Explain the Business Income Tax Exemption Mess

Everybody knows (well, everybody except the Kansas Chamber, the Kansas Policy Institute, and Americans for Prosperity) that the income tax exemption for LLCs which has resulted in more than 330,000 Kansas business owners paying no income tax whatsoever in both unfair and bad fiscal policy. KNEA has been one of the many voices calling for the repeal of this exemption.

Yet, the repeal bill failed. And frankly we think that’s a not a bad outcome. Here’s why.

The LLC exemption is just one small part of the state’s revenue collapse. If the exemption is the only part of the 2012-13 tax plan to be repealed, it will not bring nearly enough revenue to solve the revenue crisis. In fact, this bill (SB 63) would have brought in no new money now, a very small amount next year and would only fully kick in in 2018.

The repeal of the LLC exemption is important but needs to be part of a complete repeal or comprehensive reform of the tax system such that revenue stability and adequacy is returned. We know that the Chamber, AFP and KPI would call a yes vote on this bill a tax increase and use the vote in the next election to attack moderate Republicans and Democrats.

What moderates and Democrats all want is to fix our tax system so that we can once again fund our highways, schools, public safety, and other vital state services. They know that if this bill passed, it would solve almost nothing and reduce the willingness of all legislators to consider more tax reform in the future. Think of it like pulling a bandaid off your arm – especially if you’ve got a hairy arm! Most of us would rather rip it off and get the pain over with rather than take incremental equally painful little tugs.

What the state needs – and what moderate Republican and Democrats understand – is fiscal responsibility. We are all better served if we bite the bullet, admit the “experiment” is a failure, and take real action to reverse course.


Last Few Days Were Conference Committee Reports

What we were watching over the last few days were not amendable bills being debated but conference committee reports.

There is a big difference between bills and conference committee reports. Conference committee reports are agreements worked out by small teams to get deals on the various versions of bills passed. This is important in the process because if a bill has not passed either chamber, it cannot be taken up in conference. While bills that have only passed one chamber can be added to a conference committee report, it is not often done because legislators like to have had their own hearing on the bill and a chance to amend it.

In the education realm, several bills were rolled together in conference committee reports.

In CCR SB 323, three K-12 bills were rolled together. The first bill, the Jason Flatt Act, requires 1 hour of annual suicide prevention training for school employees. The second bill establishes a program to track the language development of deaf and hearing impaired students. The third bill changes the rules for capital improvement state aid, establishing a 6 year rolling average cap on expenditures and allowing the State Board of Education to prioritize projects based on certain criteria. This CCR was adopted unanimously in both chambers.

A post-secondary CCR, HB 2622, holds four items:

  • The degree prospectus program under which institutions would provide prospective students with data on graduation rates and performance,
  • The CLEP provision that standardizes the use of CLEP examines for earning college credit,
  • The performance based funding incentives for career and technical education, and
  • Adjustments to some fees charged by the Board of Regents.

This CCR was adopted in the Senate on a vote of 34 to 6 and in the House 109 to 8.

Some other bills we were following this session did not move forward during the veto session. They were not put into conference committee reports and, since conference committee reports cannot be amended, they were not added in as floor amendments.

These include, SB 56, the repeal of the affirmative defense for K-12 teachers; HB 2199, the opt-in human sexuality education bill; HB 2531/SB 136, the repeal of due process for post-secondary instructors; and SB 469, the recertification of representative organizations for teachers.


The Waiting Game

Now everyone who lives under the dome goes into a waiting game. At issue is the Supreme Court ruling on whether or not the school funding equity bill passed by the legislature will meet constitutional muster. Arguments are scheduled for May 10.

The Court has suggested that if the legislature does not meet its constitutional obligation by June 30, schools will not open in August. People on the plaintiff’s side think the bill will not satisfy the court while those who wrote the bill believe just as strongly that it will.

With Sine Die (the largely ceremonial last day of the legislative session) scheduled for June 1, it would be a stretch for the court to rule prior to then. If the court rules early in June and rules against the state, we would expect a special session to be called in order to resolve the issue before the scheduled opening of schools in August.

Whatever we find out, we will report right here!

With the session over, Under the Dome will go into sporadic hibernation. Rather than daily updates, you will receive occasional updates as the need arises.

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Slow Going on Solutions to Budget Problems

May 11, 2015 by

No solution in sight yet

It’s another quiet day under the dome. We are in a holding pattern while legislators grapple with the every-increasing budget hole they have to fill.

While there have been some proposals to raise revenue, there hasn’t yet been enough done to overcome the drops experienced thanks to Governor Brownback’s reckless income tax cuts of 2012 and 2013.

Talk continues about changing the income tax cuts given to LLC’s under which 330,000 Kansas businesses have been allowed to pay no income tax at all. There is a proposal to limit this provision to those businesses that hire people. This has the potential to close about half of the hole in this year’s budget.

Other proposals focus on “consumption taxes” including one proposal to raise the state sales tax from the current 6.15% to 6.5%. The governor has suggested raising taxes on tobacco and liquor and instituting a tax amnesty program for those who owe back taxes, letting them pay without penalty.

So far though, the biggest push-back to these proposals has come from those who backed the anti-tax conservatives in their elections. Americans for Prosperity, the Kansas Chamber of Commerce, the Kansas Policy Institute, and the National Federation of Independent Businesses have been vocal opponents to any tax increases.

The situation in Kansas continues to make national headlines. Most recently a Washington Post editorial has been appearing in newspapers around the nation. Calling Kansas an “instructive educational mess,” the editorial focuses on the damage being done to public education citing it as a reason to be wary of proposals to go down the same path as our state. We’ve found it so far in North Carolina and Illinois newspapers. Read it by clicking here.

KPERS “spiking” bill has hearing

HB 2426, a bill that would limit accumulated leave for KPERS covered employees, had a hearing today in the House Commerce Committee.

At issue is what some legislators refer to as “spiking” for the purposes of increasing the retirement benefit. They allege it happens when employees accumulate large amounts of leave time which is paid to them upon retirement thus raising the final average salary for the calculation of benefits. By limiting the amount of accumulated leave, legislators would limit the chances that this could happen.

Limiting leave accumulation however creates other unintended consequences such as leaving employees without sufficient sick leave should they experience a significant health issue.

Testifying in favor of the bill were Rep. Jerry Lunn (R-Overland Park), Dave Trabert of the Kansas Policy Institute, and the Kansas Chamber of Commerce. There were numerous opponents.

Perhaps realizing the potential negative impacts of the bill – unintended or not – Chairman Mark Hutton (R-Wichita) announced at the end of meeting that he would not be working the bill this session and instead would ask for an interim study of the issue.

 

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