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.
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First School Finance Bill Passes; Four Day Weekend

May 25, 2017 by

The House this morning passed Sub for HB 2410 on final action on a vote of 84 to 39, moving it on to the Senate.

The Senate meanwhile has crafted their own school finance bill which was originally in SB 251 but on moving it out of committee, it was put into HB 2186.

We now know what’s in HB 2410 and can report that we believe the policy in the bill makes for a good school finance plan and will likely be found to be constitutional. The bad news is that the funding in the bill remains low and we expect the Court to call it inadequate.

Sub for HB 2410 contains many important policy pieces including:

  • Full funding of All Day Kindergarten and funding for 4-year-old at-risk,
  • A higher level of at-risk funding and a floor of 10% for districts with fewer than 10% free lunch students,
  • High-density at-risk weighting, low enrollment, and high enrollment weightings,
  • Enrollment count provisions to protect districts impacted by military deployments/transfers, and
  • Funding for mentor teacher and professional development programs.

The bill contains many provisions that re-enact elements of the school finance formula that was in place before its repeal and replacement by the unconstitutional block grant system.

The bill also makes changes to the corporate tuition tax credit scholarship program. The bill would require that private schools receiving students under the program be accredited by the State Board of Education. Eligible students would have to be in one of the 100 lowest performing schools as determined by the Kansas State Department of Education and be free lunch eligible. 50% of those students would also have to be directly certified by the Department of Children and Families. While KNEA still opposes the payment of state monies either directly or indirectly to private schools, HB 2410 makes significant improvements to the program.

The Senate Bill, contained in Sub for HB 2186, is perhaps a different animal altogether.

While it started out similar to HB 2410, there are a number of significant differences including an even lower funding level.

In crafting the bill, while legislators had a copy of SB 251 as drawn up for Senator Denning, very few amendments were submitted in written form. They were offered and debated as “conceptual” amendments all of which were further amended by more conceptual amendments. With nothing in writing it was very difficult to determine the impact of most of the amendments ultimately adopted.

As of today, the amended bill was not available for review. So we apologize, but we will have to wait to report to you on the specifics of the bill until we have had the chance to read it. The word under the dome is that the Senate will caucus on HB 2186 on Tuesday with a vote to follow on Wednesday. If this bill passes, it is possible that the two chambers will go directly to conference with their two versions of school finance as the guides.

And just remember – we have a long way to go before this is done. The Senate must deal with a school finance bill and then a House/Senate Conference Committee will need to hammer out the differences before a final bill can be submitted to the Governor and ultimately the Supreme Court.

It Still Has to be Funded

Yes, funding is needed. Something the state does not have right now.

A tax plan that restores revenue to the state and allows for an increase in school funding has yet to be passed.

On Monday, the House defeated a tax conference committee report in SB 30 that would have restored three income tax brackets, repealed the glide path to zero, and ended the LLC tax loophole. The no votes came from conservatives who don’t believe there is a revenue problem or that schools need more money and from Democrats who pointed out that the bill was not big enough to fund the current budget and increase school funding.

Like HB 2410, KNEA believes that SB 30 (the Monday version) was the right policy but we agreed that more would need to be done to fund schools. We supported the bill because it would have put the income tax system back on firm ground but we agreed that a second bill would be necessary to cover school funding increases.

The House put SB 30 back in committee and the next version to come out was a smaller, more anemic bill. This time we opposed SB 30. And apparently, a lot of legislators did as well because it was pulled before it hit the floor.

Okay, so here’s the problem in following along – SB 30 is the tax bill. It is the tax bill over and over (Groundhog Day?) and each time it emerges out of its hole, it’s different. Sometimes it’s good; sometimes it’s bad. The next tax bill is likely to be SB 30 and we don’t know if it will be a good SB 30 or a bad SB 30. But look for it on Tuesday or Wednesday of next week.

Should We Be Mad That There is a Four-Day Weekend?

We know, it seems somehow wrong that as soon as they hit 101 days, they decided to take a four-day weekend.

But this has been an extraordinary week under the dome. They have been building tax plans, debating them, arguing about them. The House has finally passed a school finance plan that was the result of a lot of hard work and long hours. This week they’ve been meeting late into the evening and it has been trying.

We know we are exhausted and we also know that they are exhausted. And knowing that good work is seldom done by the unrested, we hope that they will use the long weekend to relax and refresh. That’s what we will do.

But here’s the big thing – we are fully expecting them to come back on Tuesday rested and ready to roll up their sleeves. There’s still a lot to be done and we’re about out of time. There will be long days and night work ahead.

 

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House Pulls Tax Bill; Advances School Finance

May 24, 2017 by

The House was expected to debate a new tax plan today that had been put together in a conference committee last night. After convening this morning, the full House recessed until 1:00 to allow the tax conference committee to meet yet again to make some tweaks to said bill (SB 30). Those tweaks were agreed to and the report was set to go but when the House returned, it seems that a decision had been made to pull it yet again. It was perhaps clear that there were not enough votes to pass it and so it was unceremoniously set aside.

The House did, however, take up Sub for HB 2410, the school finance bill. It was rumored that there were more than 80 amendments prepared for the debate so we settled in for a long night.

Here’s a run-down of amendments:

  • An Aurand amendment to remove the Autism ABA therapy mandate was adopted. (KNEA supported),
  • A Trimmer amendment to strip out the local enrichment budget, transfer the money budgeted for that to a fund for schools losing money with the end of the block grants, and reinstate the cost of living levy was adopted. (KNEA supported),
  • A Trimmer amendment to change the name of the local foundation budget (LFB) back to the local option budget (LOB) was adopted. (KNEA supported)
  • A Trimmer amendment to strike the 10% at-risk floor and put the savings on the base ($2/student) failed. (KNEA did not support striking the 10% floor),
  • A Trimmer amendment to count all-day K enrollment for funding purposes in the current year for the first year of the new law was adopted (KNEA supported),
  • A Trimmer amendment to increase the funding in the bill to provide for $200 million new dollars per year for three years failed (KNEA supported),
  • A Highland amendment to put in a number of very bad policy pieces including high deductible health care plans for school employees, grading schools, merit pay, and more failed (KNEA opposed),
  • A Trevor Jacobs amendment on “bathroom privacy” – mandating use of bathrooms in schools according to the gender on one’s birth certificate – was ruled not germane and so was not voted on (KNEA opposed the amendment),
  • A Sutton amendment to end funding for out-of-state children (most of these are employee’s children, children whose parents work in Kansas, or children whose families own property that spans both sides of the border) failed (KNEA opposed the amendment),
  • A Clark amendment to stabilize funding in school districts impacted by military deployments and transfers was adopted (KNEA supported),
  • A Stogsdill amendment to restore due process for Kansas teachers was ruled non-germane and so was not voted on (KNEA supported the amendment),
  • A Whitmer amendment to have firearms safety training in schools based on the NRA “Eddie Eagle” program was ruled non-germane and so was not voted on (KNEA has never testified on this issue), and
  • An Ousley amendment to phase out the corporate tuition tax credit program failed (KNEA supported the amendment).

At this point Rep. Campbell was called upon to close on the bill. Apparently a lot of amendments were either duplicates or were pulled because the Rules Committee was strictly ruling any amendment that was policy alone as non-germane. According to the rules, there must be two points of nexus between the bill and an amendment. In the case of the three ruled non-germane, they were education policy only and did not touch on the second part of the bill, school finance.

While we are disappointed in the failure to get due process attached to the bill, the Rules Committee did interpret the rules correctly and applied their rulings fairly.

The bill was advanced to final action on a vote of 81 to 40. There will be a final action vote tomorrow morning.

 

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Not Much to Show…

May 9, 2017 by

After a brief period on the House floor, the Chamber broke and the K-12 Education Budget Committee gathered for another meeting dedicated to “considering technical amendments and amendments designed to help the bill with constitutionality.”

Several amendments were taken up today including the following:

  • An amendment by Melissa Rooker (R-Fairway) that would eliminate the LPA study of Career and Tech Ed (CTE) Programs and replace it with an LPA study of how other states handle virtual education. The SBOE will be reviewing CTE funding in another section of the bill. The amendment was adopted.
  • An amendment by Scott Schwab (R-Olathe) would require that if parents of a child with autism had a medical opinion that the child should have ABA (Applied Behavioral Analysis) therapy, then the district would provide ABA therapy. The amendment was adopted but not until Rep. Schwab asserted that schools were sending children “to pet shops to pet puppies” as therapy. I wonder what our special education professionals think about that statement? CLICK HERE to contact Rep. Schwab.
  • An amendment by Clay Aurand (R-Belleville) would phase in a requirement that districts transfer a certain percentage from their local foundation budgets (the renamed LOB)  into at-risk and bilingual programs. This amendment met with some resistance which resulted in a division vote and an eight to eight tie. Chairman Larry Campbell (R-Olathe) broke the tie by casting an AYE vote. The amendment was adopted.
  • An additional amendment by Aurand clarified the language for calculating low and high enrollment weighting was adopted.
  • Aurand also offered an amendment that would strip out language requiring exceptional student achievement measured by either post-secondary performance or ACT scores from the definition of eligible schools under the corporate tuition tax credit law (VOUCHERS). His rationale was that many of the private schools were elementary schools and  could not demonstrate such performance. The amendment was withdrawn to allow the revisor time to craft language that would preserve the performance measures for secondary schools while removing them for elementary schools.
  • An amendment by Jim Karleskint (R-Tonganoxie) would also change the corporate tuition tax credit law by stipulating that students receiving such scholarships come from the lowest performing 100 schools as determined by the SBOE. In its current form, the bill uses schools in the lowest quartile of student performance which is about 400 schools. Karleskint sought to modernize the language in the law which references Title 1 focus and priority schools which no longer exist while keeping the number of schools the same. The amendment was adopted.

The committee had to break to disentangle from an  “in-the-weeds” discussion of an amendment to provisions regarding Communities in Schools. They will return to that topic tomorrow.

So there you have it! No final bill yet!

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K-12 Committee Finishes Finance Plan Bill

Apr 5, 2017 by

The House K-12 Education Budget Committee met this afternoon to finish their amendments to HB 2410. They began with opening comments by Chairman Larry Campbell (R-Olathe). Campbell said it was his intention to finish the amendment/debate work today but not to pass the bill out of committee. Instead, he hopes that the three-week legislative break in April will allow stakeholder groups, other legislators, legislative counsel, and the revisor’s office to thoroughly digest the bill. The Committee will then meet at the start of the veto session in May and “kick it out” of committee.

The first amendment to be taken up was Rep. Adam Smith’s (R-Weskan) amendment on transportation that was on hold since last week. Working with the Department of Education, Smith adjusted his amendment such that an algebra issue is fixed but he added a hold harmless provision so no districts lose money. About 25 districts will gain. The amendment was adopted. KNEA supports a hold harmless provision.

The next amendment adopted was from Rep. Jim Karleskint (R-Tonganoxie). It changed the corporate tuition tax credit program so that eligible students would have to be from one of the schools in the lowest quartile of student achievement as determined by the KSDE. This would triple the number of schools from which eligible students may be chosen. With other amendments adopted last week, the program would limit eligible students to those direct certified by DCF as in poverty and limit receiving private schools to accredited schools that outperform the state average on either post-secondary success or ACT composite scores. KNEA opposes expansion of eligible schools and supports limiting schools to SBOE accredited schools; KNEA supports repeal of the program in its entirety.

Next were a series of amendments offered by Clay Aurand (R-Belleville). The first would disallow virtual students from out of district to be counted for the calculation of assessed valuation per pupil. This would reduce capital outlay and LOB aid (more on that in a minute) because only resident students would count in the calculation and would save the state about $3.8 million. This amendment was adopted.

Next Aurand moved to distribute the $3.8 million in savings over to career and technical education programs. This amendment failed.

Aurand’s next amendment, which passed, changes the name of the LOB from “Local Option Budget” to “Local Foundation Budget.” He asserted that this more accurately represents the fact that the LOB morphed from extra money to de facto base aid. So the LOB (mentioned above) will now be called the LFB if the bill passes.

A subsequent amendment by Aurand to require an election for any LFB funding above 30% (the last 3%) failed on a vote of 7 to 9.

With all of these amendments now disposed of, they got on to the big issue – the setting of the base state aid per pupil.

Rep. Melissa Rooker (R-Fairway) moved to set the base at $4040/pupil in the first year at a cost of $172 million. The base would be increased by $200 per pupil in each of the succeeding 4 years at a cost of $150 million per year. This would be a total increase of $772 million over five years. There was an 8 to 8 tie vote which was broken by the Chairman who voted no. The motion failed.

Rooker then moved to set the base at $4006/pupil in the first year at a cost of $150 million. The base would be increased by $200/pupil in each of the succeeding 4 years at a cost of $150 million per year. This would be a total increase of $750 million over five years. This motion was adopted by a vote of 9 to 6.

With the bill finished, Campbell announced that the final written product would be available sometime over the next couple of days and posted on the KSDE website along with cost runs developed by the Department.


Governor Inserting Himself in Tax Debate

The news out today on the tax reform debate is that the Governor – who created the disastrous tax experiment that has left Kansas on the brink of bankruptcy – has decided to create a new tax plan.

Word was that this plan would include keeping two brackets and mixing in a little cigarette and liquor taxes. No word on his intentions on the LLC loophole or the glide path to zero but we assume he would not dare to reverse his signature tax policies. His plan was to skirt the full Senate and House and send his plan straight to a tax conference committee, letting only six legislators have any real say in the plan.

That did not go over well with any members of the Republican caucus. Senators on the conservative and moderate sides of the caucus both blasted the idea of cutting them out of the discussion.

Now the Governor has announced that he would sign a flat tax bill should the legislature send him one. Of course, a flat tax punishes middle and low-income Kansans for the benefit of the wealthy (MORE HERE) and would do nothing to solve the disaster brought on by the Governor’s last tax plan.

Kansas needs tax reform that will reverse the Governor’s failed experiment. End the glide path to zero, repeal the LLC loophole, re-establish the third tax bracket for upper-income Kansans. Kansas desperately needs revenue to put highway maintenance back on track, to hire correctional officers and highway patrol officers, to fund the social service safety net, and to respond appropriately to the Supreme Court decision on school finance. No plan proposed yet this session would do this.

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