School Finance Bill to Senate Floor

Mar 6, 2019 by

The Senate Select Committee on School Finance held a hearing and then worked Senate Bill 142, a school finance bill to address the Gannon inflation fix.

The Governor’s school finance bill, SB 44, was split into two bills – SB 142 and SB 147 – with SB 142 referred to the Senate Select Committee on School Finance and SB 147 to the Ways and Means Committee. Together, these two bills match exactly what was in SB 44.

Complicating the discussion this week was the discovery by Schools for Fair Funding (SFFF) that both SB 44 and SB 142 were not written in a way that reflected the plaintiff districts’ interpretation of the Gannon decision. Their interprertation is that the state needed to provide an additional inflation factor above any new money in the out-years of the prior passed law. KNEA has held the same interpretation.

The State Board of Education, however, adopted a position that the requirement was to provide the inflation factor one time and then simply carry it forward. There is a large difference in funding between these two positions.

Today, SFFF presented testimony in opposition to SB 142 while KASB testified in favor saying they supported the State Board. Also in opposition was the Kansas Policy Institute essentially because they believe the Court can’t tell the legislature what to do.

KNEA testified as neutral, telling the committee that we had the same interpretation of the Gannon decision as SFFF and noting that there were two interpretations in the room. The only ones to say what the actual meaning in the Court’s decision are the justices of the Kansas Supreme Court. We noted that, under our interpretation, this bill will not end the litigation.

Said KNEA lobbyist Mark Desetti, “If you send this over to the Court, SFFF will argue against it while the AG will defend it. In the end the Court will decide if this is enough or not.”

KNEA put our position this way:

We ask that the Legislature do two things.

First, leave the finance formula alone. It has been determined to meet constitutionality in terms of equity. Any alterations to the formula, any efforts to have additional funds directed in new or specific ways will simply raise the possibility of once again harming equity. The best thing to do is to put new money on base aid as this not only helps students generally but impacts other aspects of the formula such as at-risk and bilingual funding.

Secondly, provide the inflation fix in each of the out years in a way that gets us to the Montoy “harbor” accounting for inflation.

We firmly believe that if you do these two things, you will resolve the Gannon case and end this cycle of litigation.


After the hearing, the bill was brought to the table for discussion and passed out of committee favorable for passage by the full Senate. It will now go to the Senate for debate and possible action.

In the meantime, we await a hearing in the Ways and Means Committee on SB 147, the rest of the education budget.

Big tax bill – SB 22 – up on the House floor tomorrow!

This year’s big tax cut bill is up for a vote tomorrow on the House floor. The bill includes a huge cut in taxes on multi-national corporations, permission for a few higher-income Kansans to continue itemization on state income taxes, a one cent reduction in the food sales tax, and a new provision allowing for collection of state and local sales tax on internet purchases.

KNEA opposes this bill as it strips over $200 million out of the state treasury before the budget has been passed and before school finance is resolved. The state is still digging out of the Brownback tax disaster; to start cutting taxes of this magnitude at this time is irresponsible.

We urge you to contact you Representative using the link below. Say, “PLEASE VOTE NO ON SB 22!”

Stop a Dangerous New Tax Plan

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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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Due Process, Health Care and EDUCATION CUTS!

Feb 8, 2017 by

Hearing Set on Due Process Bill

Rep. Clay Aurand, Chair of the House Education Committee, has announced that a hearing has been scheduled for HB 2179 which would restore due process protections for Kansas teachers who have completed a probationary period. The bill re-enacts the law as it was prior to repeal in 2014.

Due process was repealed in 2014 without ever having been introduced as a bill and without any public announcement or hearing. The repeal was enacted after midnight as a floor amendment to a must-pass school funding bill. With it attached to the finance bill, the bill was unable to receive the needed 63 votes to pass until House leadership enacted a call of the House under which members are locked in the chamber indefinitely. Eventually – about 4:00 am as we recall – a 63rd vote was gained through pressure and exhaustion.

HB 2179 has 45 legislative co-sponsors from both parties. We look forward to a fair hearing and having a vote on the bill in committee next week.


LPA Study on Health Benefit Consolidation

The Division of Legislative Post Audit today released their study on the feasibility of consolidating school district health benefit plans into one mega-plan similar to the State Employee Health Plan (SEHP). The idea was raised as a possible cost saver in the Alvarez and Marsal efficiency study. They suggested a savings of about $80 million per year. Finding himself short of cash in setting a budget, Governor Brownback leapt on the idea and called for this to happen by January 1, 2018.

Unfortunately for the Governor, the LPA indicates that even if they decided to move forward, it could not be done so as to gain any savings in 2018.

Beyond that, the savings are lower in the LPA study. They suggest perhaps $38 million in efficiency savings and another $25 million by shifting costs onto employees. What they did was look at what happens if you put school employees in a plan modeled on the SEHP. Doing this would significantly reduce benefits for school employees by raising deductibles, increasing co-pays, and increasing the out-of-pocket maximum per year. The state would then “claw back” those savings leaving school districts with less budget authority. The savings garnered by reducing benefits would not go to the employees as pay raises but to the state general fund presumably to shore up Brownback’s reckless tax cut program.

Passage of a plan to make this consolidation happen is basically a cut to school employee compensation across Kansas by $25 million.

There will be a hearing on a bill to enact the consolidation on Monday. KNEA will be there to oppose the bill.

CLICK HERE to read the full LPA report.

CLICK HERE to read the healthcare report highlights.


Senate Voting Tomorrow to Cut Education, Pass Inadequate Tax plan

The full Senate will convene tomorrow to vote on two bills. Senate Bill 27 would cut education funding by $154 million – $128 million from K-12 and another $23 million from higher education.

Their tax bill, SB 147, would raise income tax rates for all Kansans, repeal the low-income tax exemption for those earning less than $12,000/year, and repeal the LLC loophole but does nothing to end the glide path to zero which is the root of future revenue declines. There is much debate about what it would raise – perhaps $280 million in 2018.

The problem with this bill is that it does not go nearly far enough in solving the revenue crisis facing Kansas. The budget holes Kansas now faces in 2017 and beyond are enormous. Most analysts believe the state will need to raise at least $580 million just to break even and not accounting for any pending decision in the Gannon school finance lawsuit.

Kansas NEA has released a statement along with USA/KS, KASB, KSSA, and others calling on the Senate to vote NO on SB 27 and to send SB 147 back to committee for more work.

CLICK HERE to email your Senator.

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