This is my 4th session in the Senate, and as I see it, there are 6 relatively big issues, any one of which might have the opportunity to “suck all the oxygen out of the room.” I thought I would send a newsletter just as the 2012 session of the Kansas Legislature gets started in order to alert you to some of the presumed bigger issues.

First is the budget:

Every year, the legislature must pass a budget. It is typically the last bill of the year that is passed. Kansas has a statute requiring a 7-1/2% ending balance when the budget is adopted. Unfortunately, most years, the legislature passes a bill that allows the ending balance requirement to be ignored. My guess is that the governor will actually propose a budget at the State of the State address that has the required 7-1/2% ending balance.

Concerning last year’s budget, Governor Brownback, by his own admission, said that it was not very good in terms of fiscal responsibility, but it was the best that could be done in the short time that he had to work with it. Most businesses and individuals want a budget with a little (7-1/2%) surplus in order to cover those times when money coming into the bank account is not enough to cover the checks going out.

I am hopeful that the State Senate will wholeheartedly support the governor’s budget with the (assumed) 7-1/2% ending balance.

Second is a tax bill:

The Governor is likely to propose a tax bill that will lower the income tax for both individuals and for businesses. This is an effort to increase jobs.

As we know, businesses need a couple things in order to expand. First, they need people spending money for their product. Second, they need capital with which to expand. There are other important factors, such as regulatory certainty and a skilled employable work force. But the first two items (money spent on their product and capital to expand) can be helped by a state tax policy that leaves more money in the hands of people and businesses that can spend it.

This is a great step towards creating an environment for jobs to be created here in Kansas.

Third is an education finance bill:

This may sound like a stretch, but I truly believe it; this education bill is more than just finding a way to determine the amount of money that will go to public schools. Now that is important, and a worthy goal. But this education bill changes the paradigm of public education in Kansas.

We, in Kansas, have only about 20-22% of our jobs that require a Bachelors, Masters or PhD degree. Most of the rest of the jobs require training, but they don’t require a 4 year degree or higher. Welders, auto mechanics, machinists, EMTs, dental technicians are examples. But the list goes on, and it is long. Many of these jobs pay very well, and indeed, a person can be very successful in owning a home and raising a family with these types of job skills.

It is important that our high school students have an opportunity to pursue a career in which they have the skills, aptitude and natural ability to be successful. The governor is likely to propose an education bill that provides for a fair, equitable distribution of money, AND at the same time will encourage students to move forward towards career skills that allow them to be successful.

I am really anticipating this bill moving forward. This is another step towards statewide economic success. As mentioned earlier, businesses want to expand in areas where employees are available and have the proper skills. This education bill would help accomplish this goal…getting more jobs in Kansas.

Fourth is KPERS:

KPERS is the public employees retirement fund, and it is about $8 billion (yes, that is billion with a “B”) underfunded.

KPERS must be changed. We cannot continue to aimlessly wander about looking for the proverbial silver bullet that will fix everything.

Many retirees are concerned that changes to KPERS will be disastrous for them. I would like to put them at ease. I don’t believe that any changes will occur for current retirees. In fact, I don’t believe that anything will be done to the retirement plan for any current employee that has 5 years or more employment. Their current retirement plan contract will be honored.

However, for new hires, I think the retirement plan will be substantially different from the current plan. It remains to be seen what will be the end result that is ultimately adopted, but I am satisfied that it will be different than the current plan.

We will know more as the session proceeds.

Fifth is Medicaid:

Medicaid is funded jointly by the state and the federal government. Kansas recently received notice that the Federal government is going to cut the Medicaid funding to the state by about a $100 million per year over the next 8 years. There are only certain things that can be done in order to plug that hole. First is cut some of the Medicaid programs. Second is to increase taxes on Kansans to make up the difference in funding. Third is to cut participant eligibility requirements. Fourth is to increase efficiency.

None of the first three options are particularly attractive. No one wants these options. The fourth option is noble, but coming up with $100 million worth of efficiencies sounds like a difficult task….particularly to do it every year for 8 years.

This is one of those bills that I don’t think anyone knows what the final result will look like. We will know more as the session proceeds.

Sixth is the every decade requirement of redistricting:

Every 10 years, we do a census. One of the outcomes of that census is to redraw the various (State Representative, State Senator, and Congressional) district maps. This is the year that we have to redraw the maps. Some districts are 20% (and more) low in population, while others are 20% (and more) high in population. For the most part, the rural areas lost population, while the urban areas gained population.

Since Kansas achieved statehood, our legislature has had a legislature that was primarily from rural areas. This could be the year that a majority of legislators in the House and also in the Senate come from 4 urban counties. It is possible that a majority of each chamber might reside in Wyandotte County (i.e., Kansas City), Johnson County (i.e., Olathe & Overland Park), Shawnee County (i.e., Topeka), and Sedgwick County (i.e., Wichita).

There will be a lot of angst as we go through the process of redrawing the maps.

If you want to contact me, my address is sabrams@hit.net and my office is room 541E in the State Capitol. I look forward to seeing you.

Sincerely,
Steve Abrams