THE 2008 SESSION OF THE KANSAS LEGISLATURE GOT UNDERWAY LAST MONDAY IN TOPEKA. GOV. SEBELIUS GAVE THE TRADITIONAL STATE OF THE STATE MESSAGE THAT EVENING, ANNOUNCING HER PROPOSED BUDGET FOR THE UPCOMING FISCAL YEAR. AFTER TWO PRECEDING YEARS WHERE HER PROPOSED SPENDING OUTSTRIPPED INFLATION MORE THAN 3-FOLD, SHE PROPOSES A MORE MODEST GOVERNMENT SPENDING INCREASE OF AROUND 5%. HOWEVER, EVEN THAT PROPOSAL HAS US SPENDING MORE THIS YEAR THAN WE TAKE IN, REDUCING OUR ENDING BALANCES FROM 8.8% AT THE END OF LAST SESSION TO JUST 5% THIS YEAR. STATE LAW REQUIRES A 7 ½ % ENDING BALANCE. TO MEET THE 7 ½ % LAW WOULD REQUIRE HER TO REDUCE SPENDING BY SOME $147M. TO SELL HER 5% ENDING BALANCE PROPOSAL, SHE SUGGESTS IN HER STATUTORY BUDGET CUTS OF $147M IN EDUCATION FUNDING, SOMETHING SHE KNOWS THE LEGISLATURE WILL ABSOLUTELY NOT DO.
ANOTHER TROUBLING ASPECT OF THE GOVERNOR’S PROPOSED BUDGET IS HER USE OF PROJECTED GAMING REVENUE TO FUND PAYMENT OF STATE OBLIGATIONS AND NEW PROPOSALS. SHE WANTS TO SPEND $57M TO DISPLACE STATE GENERAL FUND MONEY NOW USED FOR CAPITAL IMPROVEMENTS AND BOND PAYMENTS AND PROPOSES TO SPEND ANOTHER $24M ON NEW PROGRAMS. FIRST OF ALL, LAST YEAR’S CASINO LAW IS BEING CHALLENGED IN STATE COURT AND THERE IS ABSOLUTELY NO ASSURANCE THAT IT WILL BE UPHELD, OR IF UPHELD, THAT IT WILL RESULT IN ANYTHING NEAR $81M IN REVENUES NEXT FISCAL YEAR. THE CHALLENGE TO THE LAW IS A STRONG ONE. THE STATE CONSTITUTION BANS ALL GAMBLING EXCEPT THE STATE OWNED AND OPERATED LOTTERY. LAST YEAR’S CASINO BILL TRIES TO DRESS VEGAS STYLE CASINOS IN A SUIT OF LOTTERY CLOTHING AND PASS IT OFF AS STATE OWNED AND OPERATED. A REVIEW OF THE LAW SUGGESTS THAT THE STATE WOULD NEITHER OWN NOR OPERATE THE CASINOS OR SLOTS AT THE TRACKS. IF ANYTHING, THE LAW WOULD HAVE THE STATE REGULATING PRIVATELY OPERATED GAMING, SOMETHING CLEARLY BANNED BY THE STATE’S CONSTITUTION. IT WILL BE INTERESTING TO SEE IF THE STATE COURT, AND ULTIMATELY THE STATE SUPREME COURT, RULES BASED ON THE CONSTITUTION AND THE LAW OR BASED ON WHAT THE GOVERNOR WANTS AND WHAT REVENUE MAY COME IN. IN ADDITION, EVEN IF THE LAW IS UPHELD AND CASINOS ARE BUILT, THE LAW PROVIDES THAT THE REVENUE IS TO BE USED PRIMARILY FOR DEBT REDUCTION AND IT’S QUESTIONABLE WHETHER THE GOVERNOR’S PROPOSED USE OF GAMING DOLLARS COMPLIES.
PART OF THE PROPOSED FY 2009 BUDGET INCLUDES STATUTORY SPENDING MANDATES, SUCH AS THE $167M TO FUND THE 3RD YEAR OF THE SCHOOL FINANCE PLAN THE SUPREME COURT FORCED US TO PASS IN 2005. THERE IS ALSO $57M IN REQUIRED INCREASED SPENDING FOR MEDICAID CASES AND ANOTHER $10M TO FUND PAYMENTS ON PENSION BONDS WE AUTHORIZED IN AN EFFORT TO SHORE UP THE UNFUNDED LIABILITY IN THE STATE EMPLOYEES PENSION PLAN.
THE GOVERNOR’S BUDGET APPEARS TO CONTAIN NO TAX RELIEF, BUT THE LEGISLATURE IS EXPECTED TO LOOK AT FURTHER TAX RELIEF FOR KANSAS TAXPAYERS THIS SESSION. ALSO LOOK FOR EFFORTS TO REDUCE THE NUMBER OF UNINSURED KANSANS IN THE AREA OF HEALTH CARE AND EFFORTS TO GET A HANDLE ON THE ILLEGAL IMMIGRATION SITUATION IN THE STATE. FINALLY, DEVELOPMENT OF A STATE ENERGY POLICY WILL BE A HIGH PRIORITY, GOING HAND-IN-HAND WITH RURAL ECONOMIC DEVELOPMENT. THE DECISION BY THE SECRETARY OF HEALTH & ENVIRONMENT TO DENY SUNFLOWER’S APPLICATION TO BUILD A COAL-FIRED ENERGY PLANT AFTER SUNFLOWER COMPLIED WITH ALL STATE AND FEDERAL REGULATIONS AND GOT THE GREEN LIGHT FROM KDH&E STAFF HAS BEEN VERY UNPOPULAR AMONG BOTH REPUBLICANS AND DEMOCRATS AND BOTH URBAN AND RURAL LAWMAKERS. LOOK FOR THE LEGISLATURE TO TAKE ACTION TO PRODUCE A WIN-WIN SCENARIO FOR THE STATE BEFORE ADJOURNMENT.