Governor Prepares Kansas for Economic Recovery with Legislation
Press Release
To keep the state moving forward out of the economic recession, Governor Mark Parkinson signed House Substitute for SB 572, providing appropriations for Fiscal Year 2010 through FY 2015 for various state agencies.
"I could not be more proud of Kansas. After rounds of budget cuts to our state's schools, public safety programs and aid to the elderly and disabled, we were faced with a critical decision -- either keep cutting and do permanent damage to the foundation of our state, or pass a temporary one-cent sales tax to move our state forward," said Parkinson. "We have seized the opportunity to put Kansas ahead of the curve in attracting jobs and stimulating the economy while other states continue to struggle. While challenges may still lie ahead, our biggest obstacle has been conquered. Now, Kansas is poised for the economic recovery that it deserves."
Governor Parkinson put forth his vision of how to solve the challenging state budget crisis in his State of the State address, calling on the legislature to uphold its commitment to Kansas education, public safety and aid to vulnerable citizens. After cutting the budget more than any governor in Kansas' history, Governor Parkinson urged lawmakers to pass a temporary, one-cent sales tax increase to help fund the critical services that make Kansas strong and strengthen the economy.
House Substitute for SB 572 also includes the Omnibus Appropriation Act and the Omnibus Reconciliation Spending Limit Bill for the 2010 regular session providing the State's Fiscal Year 2011 budget bill. The bill takes effect upon its publication in the Kansas Register.
Governor Parkinson also signed Senate Sub for HB 2360, the necessary revenue package to fund the budget. The legislation enacts a state sales tax increase, amends the Kansas Taxpayer Transparency Act, expands the food sales tax rebate program, and expands the state earned income tax credit program (EITC).
First, the bill increases the state sales tax rate from 5.3 to 6.3 percent. The rate will be reduced to 5.7 percent on July 1, 2013 with the remaining .4 percent provided to the State Highway Fund. The bill also raises the eligibility ceiling for the food sales tax rebate program from $31,900 to $35,000, and provides that the Kansas EITC be increased from the current level of 17 percent of the federal EITC to 18 percent for tax years 2010-2012.
Finally, the bill amends the Kansas Taxpayer Transparency Act so the Secretary of Administration is required to include tax expenditure information provided by the Department of Revenue on a searchable website. The bill takes effect upon its publication in the Kansas Statute Book.
Governor Parkinson submitted his signature for House Substitute for SB 572 except for certain sections that were line-item vetoed. His message to the legislature regarding the vetoes is as follows:
Division of Post Audit--Financial Compliance Audit
That portion of Section 46(b) that reads as follows has been line-item vetoed:
"And provided further, That the division of post audit is hereby authorized to fix, charge and collect fees for the costs of financial-compliance audits under K.S.A. 46-1106, and amendments thereto: And provided further, That such fees shall be fixed to recover the expenses incurred for financial-compliance audits under K.S.A. 46-1106, and amendments thereto:"
This FY 2011 appropriation language for Legislative Post Audit was offered as an alternative to providing the Division with a State General Fund appropriation. Because the Legislature's budget was enhanced by $639,522 beyond what was intended, I hereby line-item veto this appropriation language as an unnecessary assessment on the other state agencies that cannot afford to finance the statewide audit. From within the Legislature's appropriation, funds could be transferred to Post Audit in order to finance this audit, once the actual costs are known.
Kansas Commission on Veterans Affairs--Transfer from Public Broadcasting to Veterans Affairs
Section 72(c) has been line-item vetoed in its entirety.
This section constitutes a 50 percent reduction in the operating grants for public broadcasting stations throughout Kansas. This type of drastic reduction would be particularly damaging to stations in rural Kansas, likely silencing an important voice for our rural communities. Despite this line-item veto, the budget for veteran services programs will increase 30 percent, including an additional $534,309 for veteran services programs.
Kansas Health Policy Authority--KHPA Study
Section 76(h) has been line-item vetoed in its entirety.
This provision would require the Kansas Health Policy Authority (KHPA) to conduct a study on the topic of requiring insurance companies to reimburse specified mental health professionals for certain proactive mental health care treatments. This study includes several parameters and requires analysis of a considerable amount of data. No funding was provided for the study, although the imposed deadline for the study's completion is December 31, 2010. KHPA does not currently have adequate resources to complete this assigned task. 2010 House Bill 2546, which would have mandated insurance coverage for these services, was the subject of a hearing in the House Committee on Insurance on February 4, 2010. This bill never made it out of committee, and so has not been thoroughly vetted by the Kansas Legislature. Mandating the use of scarce state resources to study a topic absent thorough legislative scrutiny is not a good policy decision in this budgetary climate. Therefore, I must veto this section.
Department of Education--Uniform Chart of Accounts
Section 79(l) has been line-item vetoed in its entirety.
At a time when school boards are making difficult budget decisions, including increasing class sizes, closing buildings, eliminating course offerings and imposing instructional and professional staff layoffs, the policy to require additional financial reporting causes a costly and unnecessary administrative burden. The Department of Education already requires a uniform chart of accounts for school district budgets. In fact, the State Department of Education already provides on its website a copy of the uniform chart of accounts, the complete budget for each school district, as well as the "Budget at a Glance" and a budget profile for each district in Kansas. As a result, I find it necessary to veto this section of the budget bill.
University of Kansas--Water Data Repository Fund
That portion of Section 91(a) that reads as follows has been line-item vetoed:
"Standardized water data repository fund .. $300,000
Provided, That expenditures may be made from this account or any special revenue fund of the above named agency for the purposes of bathymetic mapping, sediment surveys and lake assessments and the development of a standardized water quality and quantity data repository relating to public water supply sources."
The Standardized Water Data Repository Fund at the University of Kansas was inadvertently appropriated as a State General Fund appropriation in the bill, when it should have been established as a special revenue fund. This veto eliminates the State General Fund appropriation, but does not eliminate the new fund, that is financed with a $300,000 transfer from the Clean Drinking Water Fee Fund.
Board of Regents--Postsecondary Operating Grant Adjustment
Section 94(j) has been line-item vetoed in its entirety.
Legislative intent for the Regents system was to lapse $2.3 million from the State General Fund; however, the amendment to alter the lapse incorrectly took $9.5 million. I veto this section in order to restore the funding, and instruct the Regents to submit a revised budget this fall with the $2.3 million reduction. This veto also ensures our state's compliance with requirements in accepting federal American Reinvestment and Recovery Act funding.
Kansas State Fair--Workers Compensation Insurance
Section 107(c) has been line-item vetoed in its entirety.
Allowing the State Fair to acquire private workers compensation insurance would set a bad precedent and has the potential to increase rates for all other state agencies that will continue to participate in the State Self Insurance Fund (SSIF). The SSIF would be responsible for the expense of medical and disability payments from ongoing claims by State Fair employees prior to the new private insurance becoming effective and the SSIF would have to pass these expenses to all other state agencies. Furthermore, it was recently announced that workers comp rates for the SSIF, including the State Fair, will decrease over the next year, making this proviso all the more unwarranted.
State Officers' Pay
Section 163 has been line-item vetoed in its entirety.
Eighty percent of this reduction would be absorbed by the Judicial Branch which has already reduced its spending to the point of furloughing staff. Already, Kansas' Circuit Court salaries rank 40th in the nation for pay; this makes it difficult to attract and retain quality individuals to these critical posts. Therefore, I believe that additional cuts in this area would further harm Kansas' justice system. Additionally, for those state officers who might retire at this time of administrative transition, a cut will adversely impact retirement benefits. I would also remind Legislators and any other state officer that they may accept a voluntary pay reduction of any amount on their own accord without this provision. Toward that end, I and Lieutenant Governor Findley will continue the reduction in our pay until the end of our term.
Out of State Travel
Section 165 has been line-item vetoed in its entirety.
This provision requires additional layers of approval for every state employee's out-of-state travel and creates an unnecessary level of government bureaucracy. Agency budgets have been significantly reduced in the past two years. One of the major areas of reduction has been travel. In fact, from the beginning of FY 2008 to date, total travel expenditures within executive branch agencies have been reduced over 50 percent. Within their budgetary authority, agency heads should have the flexibility to prioritize expenditures to allow travel as necessary to carry out essential functions of state government. Accordingly, I have instructed agency heads to continue to limit travel to only that which is essential to carrying out their mission. Creating additional layers of bureaucracy does not improve government. Therefore, I veto this section of the budget bill.
Department of Health & Environment--Title X Family Planning Services
Section 167 has been line-item vetoed in its entirety.
This proviso is nearly identical to the one I vetoed in 2009, S. Sub. for House Bill 2373. Therefore, I find it appropriate to repeat many of the same points I made last year regarding this issue:
"Regardless of one's views on whether abortion should be allowed in this country, hopefully we can all agree that we should make every effort to prevent unplanned pregnancies. Access to affordable family planning services and contraceptives is critical if we are to continue reducing the number of abortions that occur in this state. This section would prohibit distribution of Title X moneys to private family planning providers unless they are either a hospital or provide comprehensive primary and preventative care in addition to family planning services. This proviso would prevent funding for two facilities of other eligible family planning providers. These facilities do not perform abortions, and by law, Title X funding cannot be used for abortion services.
"Both of these facilities provide affordable access to contraceptives and family planning services for women who are significantly below the poverty level. These women are most at risk for unplanned pregnancies. The family planning services provided by these facilities help lower the likelihood of unplanned pregnancy, and thus reduce abortions. Eliminating funding for programs intended to reduce the number of unplanned pregnancies does nothing to help reduce abortions in Kansas. I therefore find it necessary to line-item veto this proviso."
Clean Air Act Rules and Regulations
Section 168 has been line-item vetoed in its entirety.
Kansas has a proud history of being an energy producing state and an exciting future in the area of renewables.
As we look ahead to opportunities on the horizon, we must also uphold those bedrock industries, such as oil and gas, which provide prosperity to so many Kansans. Yet in doing so, we must ensure that we do not unintentionally harm the very sector of our economy we wish to protect.
This proviso has unintended consequences bringing forth regulatory uncertainty which would hinder Kansas' ability to serve our citizens, homes, farms and businesses. By abandoning productive progress with state agencies, sources would be required to work directly with the federal government to implement these programs which is considerably less expeditious.
Most importantly, this proviso is simply poor economic policy for Kansas. It would restrict the state's capacity to provide information and technical assistance to Kansas businesses and industries regarding federal standards, resulting in adverse impacts to local entities that need air quality permits to conduct business.
If there is a new federal law that will harm our state, it should be addressed and action should be taken through policy changes, not annual budget provisions. Decisions such as this are best made when they are developed through the proper legislative process, where expert testimony can be presented and debated in a transparent fashion. I therefore find it necessary to veto this section.
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Governor Parkinson also signed an additional seven bills today, bringing the total number of bills signed during the 2010 Legislative Session to 165.
Primary Seat Belt Law
HB 2130 amends current law to require that every occupant in a passenger car manufactured with a safety belt must wear a safety belt. The bill allows a law enforcement officer to stop a car for a violation of safety belt requirements by anyone in the front seat and by anyone under the age of 18. Current law would continue to require that a citation for failure to wear a safety belt in the back seat only be issued if another law has been violated.
The bill makes exception for mail carriers, newspaper delivery persons, and persons possessing a written statement from a licensed physician stating that the person is unable due to medical reasons. From June 30, 2010 until July 1, 2011 the fine for a violation is set at $5, and starting July 1, 2011 $10. The bill takes effect upon its publication in the Kansas Register.
Concerning retirement and pensions; relating to KPERS
S Sub for HB 2219 suspends all employer contributions to the Kansas Public Employees Retirement System (KPERS) Group Insurance Fund, or Death and Disability Fund for the three month periods, beginning April 1, 2010 until June 30, 2010 and then from April 1, 2011 to June 30, 2011. The bill takes effect upon its publication in the Kansas Register.
Providing assessments on certain nursing facilities
S Sub for S Sub for Sub HB 2320 creates an annual provider assessment on all licensed beds within skilled nursing care facilities in the State of Kansas. The Kansas Health Policy Authority is charged with implementing the assessment, establishing a Quality Care Fund where all assessments and penalties collected would be deposited, and establishing a Quality Care Improvement Panel.
The assessment would amount to $1,950 per bed per year. This revenue would be deposited in the Quality Care Fund. Up to 1.0 percent of the revenue could be used for administrative purposes. In addition the fund must be used for reimbursement for the FY 2010 Medicaid ten percent provider rate reduction. All remaining moneys would be first used to increase the direct heal care costs center limitations up to 150 percent of the case mix adjusted median, and then the remaining amount would be used to finance initiatives to maintain or improve the quality of care and quantity of skilled nursing care in Kansas.
The Kansas Soldiers' Home and Kansas Veteran's Home are excluded from the assessment. The bill takes effect upon its publication in the Kansas Register.
Lexie's Law
S Sub for HB 2356 creates Lexie's Law and amends current law so that supervision, licensing and inspection requirements for specified child care facilities falls under a single licensure category. The bill eliminates the category of registered "family day care home" and creates the transition process for those homes to be licensed.
The bill also permanently prohibits a child care provider from applying for a new license or from seeking employment under another licensee if the care provider has had his or her license revoked or refused due to being a repeat violator of statutory requirements or has been found to have contributed to the death or serious bodily harm of a child under his or her care.
Inspections will be required when a complaint is received or an application for a new license is received. The Secretary of Health and Environment may inspect a facility more often if the facility has a history of frequent complaints or violations. The bill also requires the establishment of an online information system that would make available to the public the names of licensees, applicants, and the history of citations and substantiated findings.
Under the bill, all individuals that maintain child care facilities would be required to be a high school graduate or equivalent. The Kansas Department of Health and Environment (KDHE) would establish all additional rules and regulations for child care facilities and staff.
Finally, the bill establishes the Maternity Centers and Child Care Facilities Licensing Fee Fund and the proceeds of the Fund could be used only to pay for licensure activities. The bill takes effect upon its publication in the Kansas Statute Book.
Prairie Spirit Rail Trail
HB 2434 designates the Prairie Spirit Rail Trail as the 25th state park. The current trail has been maintained by the Department of Wildlife and Parks for nearly 20 years. State park designation will make the trail eligible for certain grants and hopefully increase its public use. The bill takes effect upon its publication in the Kansas Statute Book.
Concerning juvenile offenders
S Sub for HB 2506 amends the Juvenile Justice Code. First, the bill clarifies that the court has the discretion to revoke the jurisdiction of a juvenile offender and order the imposition of the adult sentence if the court finds that a juvenile committed a new offense or violated one or more conditions of the juvenile's sentence. The bill also specifies that the burden of proof is a preponderance of the evidence if the juvenile offender on extended jurisdiction challenges the reasons for revocation of extended jurisdiction.
The bill also requires the Commissioner of the Juvenile Justice Authority to notify the juvenile's attorney or the juvenile's parent, in writing, of the initial placement of the juvenile offender. The bill takes effect upon its publication in the Kansas Statute Book.
Concerning vehicle registration
HB 2660 makes several changes to law regarding vehicle registration. First, the bill authorizes three new licenses plates to be issued starting January 1, 2012, including a Boy Scouts of America license plate, a Vietnam War Veteran license plate, and an "I'm Pet Friendly" license plate.
The bill also defines a new type of vehicle, a "recreational off-highway vehicle," as a motor vehicle 64 inches or less in width, weighing no more than 2,000 pounds, having four non-highway tires, a non-straddle seat, and a steering wheel. An owner of a recreational off-highway vehicle would be required to obtain a non-highway title.
Finally, the bill clarifies the type of facility at which a county treasurer would be allowed to charge up to $5 for any motor vehicle registered at that facility. The bill requires that a county have at least one facility where a fee is not charged and that a fee not be charged at a facility within the county courthouse or office used as the primary location for the county treasurer's operations. The bill takes effect upon its publication in the Kansas Statute Book.
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