TODAY, MONDAY JANUARY 8, MARKS THE START OF THE 2007 KANSAS LEGISLATIVE SESSION, HELLO AGAIN, AND THIS IS THE FIRST OF MY WEEKLY LEGISLATIVE UPDATES FOR THE 2007 SESSION. THE 2007 SESSION KICKS OFF WITH THE TRADITIONAL SWEARING-IN CEREMONY AT 2:00 FOR ALL 125 HOUSE MEMBERS. NEARLY 20% OF THE KANSAS HOUSE TURNED OVER IN NOV., WITH 24 NEW MEMBERS TAKING OFFICE TODAY. (One veteran legislator resigned after the election) THE 2006 ELECTIONS SAW THE HOUSE REPUBLICAN MAJORITY DROP FROM 83 TO 78 MEMBERS. DEMOCRAT MEMBERSHIP WENT FROM 42 TO 47.
MY ASSIGNMENTS REMAIN NEARLY THE SAME AS LAST TERM. I CONTINUE TO SERVE AS CHAIRMAN OF THE HOUSE JUDICIARY COMMITTEE. THE SELECT COMMITTEE ON SCHOOL FINANCE I VICE-CHAIRED LAST TERM HAS BEEN ELIMINATED BUT I NOW VICE-CHAIR THE EDUCATION BUDGET SUB-COMMITTEE AND SO WILL STILL HAVE A SUBSTANTIAL ROLE IN DETERMINING SCHOOL FINANCE ISSUES, WHICH WILL NOW INCLUDE HIGHER EDUCATION BUDGETING AS WELL.
THE GOOD NEWS FOR 2007 IS THAT OUR REVENUES HAVE GREATLY EXCEEDED ESTIMATES AND IT NOW APPEARS LIKELY WE WILL BE ABLE TO FUND THE SECOND AND THIRD YEARS OF THE 3-YEAR K-12 SCHOOL FINANCE PLAN WE PASSED LAST SESSION WITHOUT A TAX INCREASE OF ANY SORT. WE ACTUALLY START THE SESSION WITH A BUDGET SURPLUS AND MANY OF MY COLLEAGUES AND I ARE INTERESTED IN BANKING THAT SURPLUS TO GUARANTEE PAYMENT OF THE SCHOOL FINANCE PLAN AND ELIMINATE THE TEMPTATION FOR SOME TO SPEND THE MONEY ON NEW GOVERNMENT PROGRAMS.
KANSAS LEADS THE COUNTRY IN THE RATE OF GOVERNMENT JOB GROWTH AND IS NEARLY DEAD LAST IN PRIVATE SECTOR JOB GROWTH. WE HOPE TO BE ABLE TO ACCOMPLISH THINGS IN 2007 THAT WILL STIMULATE PRIVATE SECTOR JOB GROWTH AND INVESTMENT, REDUCE THE LEVEL OF BUREAUCRACY AND REVERSE THE TREND OF ADDING GOVERNMENT JOBS AT TAXPAYER EXPENSE.
AS OF YEAR-END, TAX-ONLY REVENUES WERE UP $61.3 M OVER ESTIMATES. BIG GAINERS WERE CORPORATE INCOME TAXES ($26.1m OVER ESTIMATES) AND INDIVIDUAL INCOME TAX PAYMENTS ($34M OVER ESTIMATES) SALES TAXES WERE UP SLIGHTLY. YEAR-TO-DATE TAX-ONLY RECEIPTS ARE UP 9.2% OVER LAST YEAR, SPURRED IN LARGE PART BY ENERGY-RELATED RECEIPTS WHICH WILL LIKELY DECLINE IN 2007. STILL, THE REVENUE NEWS IS GOOD AND WE’RE LIKELY TO BE ABLE TO GRANT BUSINESS TAX BREAKS IN THE 2007 SESSION, INCLUDING A MORATORIUM OR MAJOR REDUCTIONS IN UNEMPLOYMENT TAXES. WE EXPECT THE GOVERNOR TO AGREE AND INCLUDE THIS TAX BREAK IN HER STATE OF THE STATE MESSAGE WEDNESDAY.
2007 LEGISLATIVE PRIORITIES FOR HBUTCHINSON/RENO COUNTY WILL INCLUDE FUNDING OF THE STATE’S PORTION OF THE EATON, CORP. JOB RETENTION INITIATIVE AND CONTINUED FUNDING OF THE FINAL COMPONENT OF THE 1999 COMPREHENSIVE STATE HIGHWAY PROGRAM – THE 4-LANE HIGHWAY BETWEEN HUTCHINSON AND MCPHERSON.