Tuesday, May 18, 2010

Tax battle in the 2010 legislative session

Here is a good summary of the recent legislative session written by Mark Tallman with the Kansas Association of School Boards.

May 18, 2010

Tax increase battle defines 2010 legislative session


Long before the start of the 2010 session, it was clear legislators would face a fundamental choice: whether or not to raise state tax revenue to avoid further deep cuts in state programs such as education, social services, public safety and highways.

In 2009, with the worst economic crisis facing the state since the Great Depression, tax revenues fell sharply and the Legislature reduced general state aid for school districts by nearly $100 million and eliminated $30 million in capital outlay state aid, professional development and special education aid. As revenue continued to fall, Governor Mark Parkinson ordered another $39 million reduction in June, followed by a $37 million cut in November, reducing base state aid to the 2006 level. The state failed to fund $100 million in costs under the school finance formula due to higher enrollment and weightings, and lower revenue from the statewide mill levy; as well as $13 million to keep special education aid at 92 percent of the excess cost formula. The base budget per pupil fell from a statutory commitment of $4,492 to $4,012.

When new revenue estimates were released in November, the state general fund faced a deficit of nearly $400 million for the upcoming Fiscal Year 2010-11, despite cutting almost $1 billion from the budget that was approved for FY 2009. In his message on January 11, the first day of the 2010 session, the Governor told legislators that spending cuts had gone as far as possible without doing permanent damage to state programs and interests. He proposed a one-cent increase in the state sales tax for three years, and increasing the cigarette tax to the national average.

Exactly four months later, early in the morning of May 11, the Kansas House voted 64-61 to concur in a one cent sales tax increase that was expected to raise over $300 million. The bill had been approved five days earlier by the Kansas Senate on a vote of 23-17. Supporters of the tax were generally the same legislators who also passed a budget designed to keep funding for K-12 education at the same level next year as in the current year, restore or minimize cuts to a range of social service programs, and boost funding for the state's transportation system.

Although tax increases are always controversial, this may have been the most contested in recent history. Opposition was led by activists in the state's dominant Republican Party; the State Chamber of Commerce, which threatened political retribution against legislators voting for tax increases; and groups calling for limited government that paid for newspaper, radio and televisions spots denouncing higher taxes and spending. Support for more revenue came from a new coalition of education and social service interests (including KASB) called Kansans for Quality Communities; a group of local chambers of commerce that broke from the state organization over differences in the impact a sales tax increase would have; and Governor Parkinson, a former state Republican chairman who switched parties and inherited the office when Governor Sebelius left to join President Obama's cabinet. (Two other past state G.O.P. chairs, Rochelle Chronister of Neodesha, and Dennis Jones of Lakin, pushed the 2010 Commission to call for a tax increase to maintain K-12 education funding.)

Tax increase opponents first argued cuts to school districts had been minimal and additional cuts could be absorbed by using cash balances or finding greater efficiencies. Then, some legislators proposed allowing school districts to make up for any cuts through higher local taxes, as long as state taxes weren't raised. Finally, proposals were made to avoid cutting school funding by selling off state property. But in both the House and Senate, a coalition of generally more moderate Republicans and most Democrats rejected these options and passed a budget maintaining school funding at current levels, backed by state tax revenue.

The political verdict on the choice for taxes will be made in the August 3 primary and November 3 general elections. For school districts, it means deeper cuts are not inevitable, but they are also not impossible. Even with the tax increase, the Fiscal Year 2011 budget assumes increased federal funding that has not yet passed Congress. With no projected ending balance, further shortfall in state revenues in the next year could force delays in aid payments and more spending cuts to avoid a deficit. The precarious budget situation suggests districts may well want to preserve reasonable cash reserves, despite criticism from some organizations and legislators.

Nor is the picture likely to change in the near future. Current projections show the state will face a budget deficit in FY 2012 even with higher revenues, in part due to expiring federal stimulus funding, and the boost in the state sales tax for the state general fund will expire in FY 2014. School district costs and requirements are projected to increase more rapidly than revenues.

With the battle over the budget and taxes overshadowing most other issues, an unusually small number of education bills were passed. The Legislature made a permanent change in the notice day for teacher and administrator contracts; made some changes in special education funding; extended the potential life of school buses; and removed required State Board of Education approval of school building construction plans. A number of other bills, however, fell by the wayside.

KASB is preparing a complete report on education issues in the 2010 Legislature, which will be released by the end of the month.

Mark Tallman
Assistant Executive Director/Advocacy
Kansas Association of School Boards
mtallman@kasb.org

Tuesday, May 11, 2010

Governor Parkinson's "Call for Civility"

A thank you to Governor Parkinson for his leadership in this budget battle would be in order. Here is a message that he gave yesterday.


A Call for Civility

The following is a message from Governor Mark Parkinson on Monday, May 10:

Two weeks ago, in my letter to legislators welcoming them back for the veto session, I wrote about Kansas’ ability to rise above the partisan bickering seen in Washington and come together to solve real problems.

Today, the 88th day of a 90 day Session, I am disappointed to see that civility slipping away. The political games, divisive debates and entrenched gridlock of Washington have found their way to Topeka. And fanning the flames of partisanship is the Kansas Chamber of Commerce.

This weekend, the president of the Kansas Chamber of Commerce was quoted as saying that by passing a one-cent sales tax to prevent further cuts to schools, Medicaid and safety-net services, the legislature has “catered to the needs of those at the government trough.”

It is heartbreaking to think that somebody would equate the disabled, the elderly, school children, veterans, law enforcement and the poor to pigs at a trough.

Kansans who have been laid off in this recession and are humbly accepting unemployment benefits to put food on the table for their families, are not pigs at the trough.

Kansas mothers, fathers, grandfathers and grandmothers, who depend on Medicaid to receive care in their final years, are not pigs at the trough.

Our children, who are given only one small window to receive a quality education and be productive members of our society, are not pigs at the trough.

Our law enforcement, corrections officers and emergency responders who keep our streets safe and seek justice for crime victims are not pigs at the trough.

The hurtful words of the Chamber are not reflective of the Kansas I know and love, and they are not acceptable in a time of crisis.

In my letter to legislators I wrote that “our days are limited but the possibilities for success are limitless.” I still believe this. Let’s reject the political threats and shameful insults of special interests, and instead, come together for the common good.

That’s the Kansas I know.

Governor Mark Parkinson

State Capitol
300 SW 10th Ave. Room 241-S
Topeka, KS 66612
1-877-KS-WORKS
http://www.governor.ks.gov/

Budget Battle Over

The "Budget Battle" is over! The coalition of Democrats and Moderate Republicans prevailed. This morning after 2:00 a.m. the House concurred with the Senate and passed a 1 cent sales tax increase. Passage of this revenue bill ensures that for Buhler USD 313 we will have enough budget authority to finish this fiscal year and next year without deeper cuts to the budget! I truly believe that it was a grassroots effort that made a difference. Even though we did not change votes with our Reno County delegation, the sentiment in Topeka moved from one of deeper cuts to one of finding revenue sources. Thanks to all of you who became politically active.


Today is a day of celebration and the beginning of a new era with school finance!

Sincerely,
David

Monday, May 10, 2010

The End is Near?

The headline of this Blog entry is not referring to prophecy; but rather, the Kansas legislative session!

I believe that the Kansas Legislature is close to finishing its session in Topeka.  To date, both the House and Senate have passed a budget bill that does not make additional cuts to K-12 Education.  The Senate has also passed a revenue bill that raises the state sales tax by 1% for the next three years.  The House has not passed a revenue bill.  I hear that the House is held up by 12 Johnson County Representatives who won't vote for the revenue bill unless House Sub for SB74 is passed.  House Sub for SB74 is refereed to as the "Johnson County Candy Bill". This bill would flow the KPERS contribution of each district through the General Fund.  By doing so it would artificially increase the General Fund which would then increase each school district's LOB authority.  Local school boards would have the option to increase the LOB authority and pay for it by local property taxes with no state aid.  This bill is very dis-equalizing.  If a wealthy local school district, like those in Johnson County, choose to use this option, they would see very small increases in property taxes. While others, like Buhler would see much greater increases.  (Also, this authority is only good for one year, then it is subject to voters approval).

I certainly hope that this ploy does not derail the final revenue bill which was crafted by Moderate Republicans and Democrats.  I'll keep you posted.

David

Friday, May 7, 2010

Senate approves a sales tax increase

Here is a legislative update written by Mark Tallman of the Kansas Association of School Boards.  There is some compelling testimony in this article.

Hopefully, we are nearing an end to the session that will not cut K-12 funding any deeper.  Things could happen very quickly in the next day or so.  It is still not a sure thing that a revenue bill will make it through both houses.  So please be vigilant to follow the news.

May 7, 2010

Senate approves sales tax increase


The Kansas Senate voted 23-17 Thursday night to increase the state sales tax by 1 percent per dollar, raising over $300 million in each of the next three years to avoid deeper cuts in education, social services and other state programs. Wednesday, Senators approved Senate Sub for HB 2360, which will help finance the budget. Every Senator who voted for the budget voted for the tax bill; every Senator who voted against the tax increase voted against the budget.

Also Thursday, the Kansas House opened debate on a budget substitute developed by a coalition of House Democrats and moderate Republicans. The alternative budget plan was presented after the House rejected the "no tax increase" plan written by Republican leaders on Tuesday. The alternative plan is similar to the budget bill passed by the Senate, and would also require a $300 million tax increase.

The Senate vote on the tax bill, which also includes increased funding for the state highway fund and increases in the state food sales tax rebate and earned income tax credit, was bi-partisan, with 15 of the 31 Republicans joining eight of the nine Democrats in supporting the plan. Here is the roll call vote on final action for Senate Sub for HB 2360:

On roll call, the vote was: Yeas 23, Nays 17, Present and Passing 0, Absent or Not Voting 0.

Yeas: Brungardt, Emler, Faust-Goudeau, Francisco, Haley, Hensley, Holland, Huntington, Kelly, Kultala, Lee, Marshall, McGinn, Morris, Ostmeyer, Owens, Reitz, Schmidt V, Schodorf, Taddiken, Teichman, Umbarger, Vratil.

Nays: Abrams, Apple, Barnett, Brownlee, Bruce, Colyer, Donovan, Huelskamp, Kelsey, Lynn, Masterson, Petersen, Pilcher-Cook, Pyle, Schmidt D, Steineger, Wagle.

The vote capped hours of debate and amendments, including speeches from opponents, who argued raising taxes will damage the state's economic recovery and impose a new burden on struggling families, and supporters who said it is needed to maintain the state's long-term investment in education and infrastructure, and to preserve a safety net of social programs for those same families.

Perhaps the most passionate speech of the night was an explanation of the vote by perhaps the most surprising "yes," vote: Sen. Ralph Ostmeyer, R-Grinnell. He said he was breaking his long-standing opposition to any tax increase and disappointing his conservative colleagues because increased state revenue is the only way to maintain schools in his rural district, and because long-time supporters urged his support of increasing taxes. Despite saying the vote could be his "political death warrant" and ensure an opponent in the next election, he asked for permission to add his vote as a "yes" after the roll was initially closed and his vote was not necessary to pass the bill. Another somewhat surprising vote was Sen. David Haley, D-Kansas City, who said he was casting the first tax increase vote of his Senate career.

The dramatic Senate vote does not guarantee a quick end to the session, however. The House must first determine whether it has the votes to pass a bill requiring revenue and the tax plan to fund it. Those votes could come as early as today, and are expected to be extremely close. Because the Senate placed its tax package in a House bill, the House could simply vote to concur in Senate amendments. If the House passes a budget, the normal procedure would be to resolve differences in a conference committee. However, if the two budgets are "close enough," either chamber could agree to the bill passed by the other without a conference. Last year, the House concurred in the final budget and revenue bills passed by the Senate.

What You Can Do:

The most important thing school leaders can do today is to send a message of thanks to Senators who voted for the tax increase for education and other programs in the face of strong, well-financed opposition. Second, please continue to urge House members to pass a budget that keeps school funding at least at current levels, and pass a revenue bill similar to the Senate plan that provides on-going, dependable funding for that budget. A link to your legislator is available here.

However, both the Senate budget and House alternative contain revenue assumptions that may not materialize, and leave no ending balances or reserves. Even under these proposals, further reductions in state aid for schools are possible. School leaders should keep that in mind when adopting their own budget plans and determining how much money to keep in reserves or cash balances.

Mark Tallman

Thursday, May 6, 2010

Senate approves budget with no further cuts to K-12 education

More positive news -- The Senate budget was approved yesterday, without the support of Senator Bruce. It maintains current K-12 funding. Today the Senate will vote on a plan to fund their budget which will require a tax increase. Senator Bruce is now accepting his email (at least my last one to him did not bounce back). Please let him know that we need to preserve K-12 funding and ask him to support a revenue plan to meet the Senate's budget.


Here is a excerpt for the Kansas Association of School Board's Legislative Update that I received this morning.

Senate approves budget without K-12 cuts

The Senate passed a budget for next year, Fiscal Year 2011, that keeps K-12 education funding at the current year's level, but leaves a $300 million deficit. Senators are expected to take up a proposal to fill that hole today with a one cent increase in the state sales tax. The proposal also includes a small increase in business taxes by disallowing a federal tax deduction for Kansas income tax, worth about $17 million. The revenue plan also includes increased funding for a state highway plan.

Although Senate Ways and Means Committee Chairman Jay Emler, R-Lindsborg, warned the body it was irresponsible to vote in favor of the budget without also being willing to support a tax increase, it remains unclear if there will be enough votes to pass the tax plan. Here is the final action roll call on the Senate budget plan:

Yeas 23, Nays 17, Present and Passing 0, Absent or Not Voting 0.

Yeas: Brungardt, Emler, Faust-Goudeau, Francisco, Haley, Hensley, Holland, Huntington, Kelly, Kultala, Lee, Marshall, McGinn, Morris, Ostmeyer, Owens, Reitz, Schmidt V, Schodorf, Taddiken, Teichman, Umbarger, Vratil.

Nays: Abrams, Apple, Barnett, Brownlee, Bruce, Colyer, Donovan, Huelskamp, Kelsey, Lynn, Masterson, Petersen, Pilcher-Cook, Pyle, Schmidt D, Steineger, Wagle.
On the House side, after soundly defeating a budget offered by House Republican leadership to avoid a tax increase Tuesday night, Representatives spent Wednesday waiting for an alternative plan developed by Democrats and a group of moderate Republicans. Although the details were ready by mid-evening, the final bill draft was not expected until late evening, and the House adjourned until 8 a.m. today, when further consideration of the budget is expected. The proposed budget alternative closely matches the plan approved by the Senate, but likewise requires $300 million in new tax revenue. The Senate revenue plan has been placed in Senate Sub for HB 2360 which would allow the House to quickly consider that proposal if approved by the Senate.

House rejects budget that cuts K-12 Ed. deeper

Great News! Last night (Tuesday) the House rejected a budget bill that required no new taxes by a vote of 45 to pass and 74 opposed! This was accomplished by a coalition of Democrats and moderate Republicans. The next debate on a House bill will probably be this afternoon.

The Senate will debate its budget bill also this afternoon. It hold K-12 funding harmless.

We must keep our voices heard. I encourage all of us to drop an email or make a phone call to our local legislators encouraging them to not cut K-12 funding any deeper. (Terry Bruce is now accepting email!) I believe we are making a difference, but we must continue to have our voices heard for a few more days.

Time for Action

Now is the time to contact legislators about the need for increased funding for K-12 schools. Both Senate and House will be debating school finance bills today. I have heard that the State Chamber of Commerce has targeted many legislators with their anti-tax telephone calls. Legislators need to hear from us about devastation that will be caused by more cuts. To date the Buhler USD 313 Board has made 4 rounds of cuts in the past 18 months that total over $2,000,000!

Please ask them to support the Senate plan to raise revenue through "Senate Sub for HB 2631". This bill raises revenue mainly through a one cent sales tax.

The House is debating a bills that would slash school funding by an additional $131 million. In addition, to make up for some of that shortfall it would give local boards of education the right to raise property taxes through an increase in the LOB. So the bottom line is the House bills would cut our funding by $359,777 and raise local property taxes.

Please contact them ASAP.

Friday, April 23, 2010

Tax increase less harmful than deeper cuts

Here is an article from the Wichita Eagle.  Please reference this study when you contact our legislators.  The full legislature reconvenes on Wednesday, April 28.

WSU study indicates tax increase less harmful than more budget cuts


BY TIM CARPENTER

Created April 19, 2010 at 3:33pm

Updated April 20, 2010 at 12:16am



The battle over Kansas economic projections intensified Monday with release of a Wichita State University study indicating closure of a state budget deficit with a $350 million tax increase would be less harmful to general economic vitality than an equivalent reduction in government spending.

The report adds to political debate raging in the 2010 Legislature on whether the state's financial deficit ought to be resolved by slicing at the edges of government spending or by imposing new taxes.

WSU's Center for Urban Studies and Kansas Public Finance Center outlined the influence on employment and economic output of a 1 percent increase in the state's retail sales tax. It follows a January report generated by a researcher at The University of Kansas' Center for Applied Economics.

"We decided to seek a second opinion," said Bernie Koch, executive director of the Kansas Economic Progress Council, which financed the WSU project. "This study shows there are no easy choices, but the solution that causes the least economic damage is a revenue enhancement."

The study coordinated by WSU economist John Wong started with the assumption a 1 percent hike in the sales tax would produce $350 million annually in new revenue. That is the amount of new tax revenue sought by Sen. Jay Emler, a Lindsborg Republican and chairman of the Senate budget committee.

According to the WSU analysis, adoption of the higher tax would reduce Kansas economic output by $363 million and curtail employment by 3,231 across the state. If the $350 million were realized by curtailing state expenditures, the WSU report says, there would be a loss of $420 million in output and force elimination 5,177 jobs.

Art Hall, of the KU Center for Applied Economics, said in testimony to a House committee a 1 percent sales tax increase would cost the state 19,000 jobs.

Democratic Gov. Mark Parkinson proposed to elevate the sales tax to 6.3 percent from 5.3 percent from July 1 to July 2013. It would generate an estimated $351 million per year.

Wong's analysis indicated the average Kansas household would pay an additional $266 in retail sales tax annually with a 1 percent hike. The most significant elements would be housing, $78; food, $69; and transportation, $43.

He said several factors argued in favor of the sales tax option.The new tax would be spread geographically across all Kansas consumers, while budget cuts would fall unevenly in regions and on individuals. The new revenue would be invested directly into the Kansas economy, he said. In addition, he said, people traveling in Kansas would pay a portion of the higher sales tax.

The Kansas Economic Progress Council, a not-for-profit group of businesses and organizations, sent a copy of the WSU report to Kansas legislators.

Monday, April 19, 2010

Revenue Estimates are down again

Here is an article from the Topeka Daily Capital published on Saturday, April 17. Revenue estimates are again down.  But maybe, the recession has bottomed out.
Revenue outlook: a $70M shortfall

New forecast for Kansas budget is a downward change; gap could still grow.
By John Milburn - Associated Press Writer

TOPEKA -- A new revenue forecast issued Friday estimated a $70 million shortfall in the state budget year that ends June 30, meaning lawmakers and the governor will have to enact deeper spending cuts, delay payments or use additional federal stimulus money to balance the budget.

"The downward revision only makes the budget hole we have been working with larger," said state budget director Duane Goossen. "It's still a situation that can hopefully be managed."

The projected gap for the 2011 budget, which begins July 1, is now $450 million, but could grow to $510 million depending on how state officials solve the current year problem.

The figures released Friday reflect a downward revision in current year tax collections of $104.4 million from the November estimate. Leading that decline is further erosion in Kansas individual income tax collections, a reflection of the state's 6.9 percent unemployment rate for March.

Alan Conroy, head of the Kansas Legislative Research Department and member of the group that issued the revenue forecast, said labor officials predict the Kansas jobless rate will remain near the current level for the next year. That's well above the historical average of 4 percent unemployment for the state.

"There are flickers of hope. At best, the economic recovery is anemic," Conroy said.

Goossen said the new figures suggest Kansas revenue declines have bottomed out after three years of reductions. The new estimate is for tax collections to grow in 2011 by 3 percent, or some $154.3 million.

Democratic Gov. Mark Parkinson issued a statement saying the gap is too large to close with spending cuts alone without harming schools, public safety and social programs.

"Instead, we must implement a temporary solution so that we can create lasting economic recovery," Parkinson said. "That's why I reiterate my call for the Legislature to return to Topeka at the end of the month prepared to raise the revenue we need to prevent permanent damage to the foundation of our state."

The Republican-controlled Legislature returns April 28 to finish its work for the year. Neither the House nor Senate has approved a budget for 2011, nor any plan for new revenues to make it balance.

Parkinson has proposed $380 million in tax increases, including raising the state sales tax rate, but the plan has found little Statehouse support. His budget plan also includes small increases in K-12 education funding and the state receiving additional federal dollars.

Senate Majority Leader Derek Schmidt said finding a solution will require a bipartisan compromise among legislators and Parkinson.

"Balancing this budget will be a daunting task of historic proportions. There is no good or popular option that will get the job done," said Schmidt, an Independence Republican.

The Senate Ways and Means Committee will start working on its budget Monday and then turn to tax proposals.
Revenue outlook: a $70M shortfall
New forecast for Kansas budget is a downward change; gap could still grow.

By John Milburn - Associated Press Writer

Friday, April 16, 2010

Possible Federal Help to Schools

Here is an article from the Washington Post giving a national perspective on school finance and possible federal help.

Sen. Harkin proposes $23 billion bailout for schools

By Nick Anderson
Washington Post Staff Writer

Wednesday, April 14, 2010; 4:55 PM

As public schools nationwide face larger class sizes and cuts in programs, the Senate's leading Democrat on education issues proposed a $23 billion bailout Wednesday to help avert layoffs of tens of thousands of teachers and other school personnel in the coming academic year.

The bill sponsored by Sen. Tom Harkin (Iowa), a potential sequel to the economic stimulus law enacted last year, joins the mix of spending initiatives the Democratic-led Congress will consider this spring on issues such as aid to small business and appropriations for the war in Afghanistan.

Educators nationwide are warning that their finances have been stretched to the breaking point. The Prince George's County school board has approved a budget that slashes 800 positions. The Fairfax County school board has approved a salary freeze and cut of more than 200 positions. Los Angeles schools have notified 5,200 teachers, principals and other staff members that their jobs may be cut.

"You name it -- teachers, administrators, counselors, school nurses, cafeteria workers, support personnel are part of an exodus forced by financial realities," Ramon C. Cortines, Los Angeles schools superintendent, told senators in an appropriations hearing.

Education Secretary Arne Duncan estimated that school layoffs could total from 100,000 to 300,000 unless Congress acts.

"It is brutal out there, really scary," Duncan told reporters on Capitol Hill. "This is a real emergency. What we're trying to avert is an education catastrophe."

Duncan stopped just short of endorsing Harkin's bill. But he said efforts to improve schools will suffer if class sizes rise, summer school is cut and other programs are jettisoned.

Harkin, chairman of the Appropriations Committee's panel on education and of the Committee on Health, Education, Labor and Pensions, said time is running out because states are starting to issue layoff notices. "We must act soon," he said. "This is not something we can fix in August. We have to fix it now."

Whether his bill will gain traction remains to be seen. As of Wednesday afternoon, the bill had at least 13 Democratic co-sponsors, including Sen. Barbara A. Mikulski (Md.), but no Republican endorsements. Bipartisan support would help the spending bill sidestep a potential filibuster.

Sen. Richard C. Shelby (R-Ala.) said after the hearing that he was considering Harkin's proposal. "We cannot get ahead by underfunding education," he said.

Sen. Lamar Alexander (R-Tenn.) said he worried about where the government would find $23 billion for a bailout in a time of growing federal budget deficits. "I wonder from whose schoolchildren we are going to borrow this money, because we have a looming debt crisis in this country and we'll need to debate this," he said. "We all want to help our children and our schools, but that is a deep concern."

In December, the House approved a spending bill of similar scope to help save education jobs. But that measure stalled in the Senate.

The economic stimulus law enacted in February 2009 provided nearly $100 billion for education, much of it to help states avoid layoffs following the deepest economic recession in decades. But that source of aid will soon run out. Even though the economy appears to be recovering, state and local tax revenues remain stagnant. As a result, educators face what experts call a "funding cliff."

Last week the American Association of School Administrators reported that two-thirds of members surveyed cut positions for this school year and 90 percent expect to do so for the coming year. The survey of 453 administrators also found that 62 percent anticipated raising the average class size, 34 percent were considering the elimination of summer school and 13 percent were weighing the possibility of a four-day school week.

In California, the budget situation is so bleak that more than 20,000 educators have been given notice they might not be rehired in the next school year. Actress Megan Fox was moved to produce a nearly four-minute video that dramatizes the school budget crisis. In the video, circulating on the Internet this month, a clueless Fox wanders into a classroom stuffed with several dozen students who assume she has become their instructor.

"Wait, you guys don't have a teacher?" she asks.

"She was laid off," replies one girl.

"And then they combined art class with another teacher's class," says another.

Fox concluded the video with an appeal targeting California Gov. Arnold Schwarzenegger (R): "Make your voice heard. Call, write and annoy the governor until he cries for his mommy."

Message from Kansas House Democratic Leader

Here is a message from Representative Paul Davis. Representative Davis is the Democratic Leader in the Kansas House.  Later today, the official revenue estimates will be released.  Hopefully they will be positive.
David

April 16, 2010


Dear Concerned Educator,
The Kansas Legislature has completed the 2010 Regular Session. We will reconvene on April 28th for the annual Wrap-Up Session. I know many of you are anxiously waiting to find out what will happen with the FY 2011 budget and this seemed an appropriate time to provide an update.

Every legislative session since 1996, the budget has been divided in two parts: a “Mega Appropriations Bill” and an “Omnibus Budget Bill.” The Mega Appropriations Bill is voted on prior to First Adjournment and includes the bulk of funding for state agencies. During the annual Wrap-Up Session, the Legislature takes up the Omnibus Budget Bill, which makes adjustments based on updated revenue estimates (updated estimates become available after taxes are filed on April 15th. The next round of estimates are actually being released this afternoon).

We had expected to debate the Mega Appropriations bill before First Adjournment as usual, but the vote was postponed until Wrap-Up session. As much as I regret to prolong the suspense, this was probably the right decision. The appropriations process is always challenging- even when there are surpluses. During economic downfalls when there are no “good” choices, it becomes next to impossible. The revenue gap was projected at $400 million when the last estimates were made in November 2009 and that gap has grown steadily each month. Additionally, some pending federal proposals would significantly decrease the size of the shortfall if approved. After six rounds of cuts, there is a big difference between a $400 million and a $500 million hole. It is best to wait to make the most difficult (and important) decisions of the session until the most accurate numbers are available.

In February, we encouraged you and your community to voice your concerns about additional cuts to public education in the next fiscal year. I want to personally thank you for answering that call. In addition to your letters and phone calls, approximately 1,000 teachers, students and parents from across the state (as far west as Colby) took advantage of Spring Break by marching to the Capitol.

We can’t stop now. Before First Adjournment, House Republican Leaders proposed an additional $200 million cut public education. As you well know, such a cut would be detrimental to local districts, as well as local economies. The House Republican Leadership’s plan clearly indicates their lack of commitment to our schoolchildren and will result in passing the buck onto local communities in the form of higher property taxes. The attached handout shows the effect that the House Republican plan would have on your local school district.

Despite the fact that the Legislature has a constitutional obligation to fund quality public schools, deeper cuts to education would be terribly short-sighted. The economy of Kansas will not grow if we are unable to provide a highly trained, educated workforce to the business community. You may have read in the newspaper recently about how fourteen local chambers of commerce came out in support of revenue increases. They clearly recognize the importance of funding education as it relates to economic growth.

It will take years to recover from the damage schools have already endured, and I know you understand this better than anyone. I hope you will continue to be direct and clear with your patrons in telling them what services/programs/positions will be eliminated if the proposed cuts go through in the next fiscal year. Keep encouraging them to contact legislators. If your local legislators refuse to listen, I urge you and your community to keep that in mind next November.

House Democrats, some moderate House Republicans (along with our counterparts in the Senate) and Governor Parkinson are working together to do all we can to protect K-12 education amid this economic crisis. We believe that the quality of our education system is directly tied to our state’s economic security and we will stand by that principle as we cast the final votes of the 2010 session.

We look forward to hearing from you and we will be in touch again soon.

Sincerely,
Representative Paul Davis,
Kansas House Democratic Leader
300 S.W. 10th Avenue, Ste. 359-W
Topeka, KS 66612
(W) 785.296.7630
(F) 785.296.0251
http://www.kshousedems.com/

Friday, April 2, 2010

Hutch/Reno Co. Chamber of Commerce supports "rational revenue enhancements"

Here is an editorial from John Montgomery, Hutch News Editor, about the State Chamber of Commerce's agenda and how our local chamber and other influential chambers differ.

Narrow agenda


Hutch News
April 2, 2010

As the Kansas Chamber of Commerce has become increasingly active politically in recent years, it also has isolated itself from Main Street businesses. The organization's narrow political agenda now is alienating even local chambers of commerce.

Fourteen local chamber of commerce executives last month signed a letter to the governor and legislative leadership in the Statehouse urging a balanced approach to the state budget crisis, specifically "rational revenue enhancements" if necessary to avoid draconian cuts to education, transportation and state spending that affects quality of life.

That front-line chambers of commerce felt the need to speak up is not surprising. The state chamber doesn't reflect the viewpoint expressed in the letter.

The state chamber's legislative agenda mentions nothing about critical business issues such as education and transportation. Its message, rather, is don't raise taxes - cut them more - and cut government spending. The state chamber's political position reflects the narrow-minded view of many lawmakers who believe that any tax increase will hurt economic recovery when in reality some taxes have no impact on economic growth. And by taking this simplistic view, the chamber forgets that doing business isn't just about the tax environment. Savvy business leaders know when to invest: They invest in their workers, and they invest in their physical plant.

From a statewide perspective, that is why a quality education system is important. So is a quality transportation system. And, as the local chamber leaders' letter points out, so is quality of life for the working population.

The letter says nothing about the state chamber, and it wasn't meant to suggest a split between state and local chambers, said Hutchinson-Reno County chamber president Dave Kerr, who was "totally astonished by the state board's reaction and mischaracterization of it."

The purpose of the letter also was not to request a tax increase, Kerr said. "It was simply an effort to show we were willing to back legislators and show some flexibility knowing they have a tough situation. ... We're saying you might have to use a balanced approach."

Kerr is right. And the sentiment expressed by the local chambers should not be dismissed by the state chamber - or by legislators. These chambers are on the front lines, and they know what it takes to recruit and grow businesses. A favorable tax environment is helpful, but it isn't the only factor.

Kent Eckles, a Kansas chamber vice president, told the Associated Press that the letter wasn't from a majority of local chambers of commerce, making statements that confirm the state chamber's tunnel vision.

But these are big chambers of commerce, combined likely representing a majority of the state's population. To wit: Overland Park, Olathe, Northeast Johnson County, Greater Kansas City, Kansas City Kansas, Topeka, Salina, Hutchinson, Manhattan, Hays, Emporia, Dodge City, Arkansas City and Grant County.

One would think that a list of sizable chambers like that might get the attention of the state chamber. If not, this attitude probably explains why most businesses don't belong to the state chamber.

By John D. Montgomery/Hutchinson News editorial board

Thursday, April 1, 2010

Governor's support for K-12 Education remains strong

There are many different views on how to handle the 2010 budget deficit.  However, the Governor stays committed to K-12 Education.  Here is an article from the Topeka Capital-Journal on-line.

Gov renews call for tax increases


Parkinson believes most legislators 'reluctantly' agree not much left to trim from budget

By Barbara Hollingsworth
Topeka Capital-Journal
Created March 31, 2010 at 2:38pm
Updated April 1, 2010 at 12:11am

A four-week break at home will give Kansas lawmakers plenty of time to hear from constituents.

They most likely will hear about tax increases and government spending, as well as budget cuts to schools, Medicaid and transportation. And in the end, Gov. Mark Parkinson reasserted on Wednesday that lawmakers must work toward a tax increase in order to avoid cuts that would devastate the state's economy. Lawmakers will return April 28 after leaving in the early morning hours Wednesday.

"As the legislators head home for their April recess, they will be given a chance to hear how their constituents want them to balance the budget when they return at the end of the month," Parkinson said. "Do Kansans want them to continue cutting schools, highways maintenance, and aid to the elderly and disabled? Or, do Kansans want the Legislature to raise the revenue needed to protect these critical assets?"

Parkinson noted that Kansas is showing signs of an improving economy. In numbers announced Wednesday afternoon, tax collections topped expectations by $12 million in March. It is a welcome sign but doesn't erase the first nine months of the year when state revenues fell behind forecasts by $93 million. Nor does that bump lessen the budget gap exceeding $400 million for next fiscal year.

Parkinson, who has made cuts and reallocations amounting to about $1 billion, has repeatedly said he doesn't believe there is room to cut further. Most lawmakers, he said, "reluctantly" agree with him after three months of discussing the budget.

"Legislators that are traditionally considered as conservative have confided in me and some have spoken openly about the fact that we simply cannot cut any more," Parkinson said.

Parkinson renewed calls for raising the cigarette tax and increasing the state sales tax by 1 cent. Lawmakers left this week without passing a budget bill. The final budget work is traditionally done during the veto session, which will begin April 28, but even longtime lawmakers couldn't remember a session in which they left for their first break without having approved an initial budget bill.

House Speaker Mike O'Neal said leaving without a budget is a disappointment — a situation he blamed on the Senate's inability to get a tax package approved in committee work, though some leaders in the Senate pointed to doubts the House had enough votes to pass its budget bill. Leaders in the House, O'Neal said, remain determined to proceed without a tax increase.

"We're not going to simply look at a number for deficits and revenues and fill it with taxes," said O'Neal, R-Hutchinson. "That's silly."

Parkinson on Tuesday dismissed the House budget plan as "irresponsible." He rejected any attempts to cut funding for K-12 education, but indicated he might be willing to accept some modest budget cuts.

"I do understand at the end of the day there may need to be some compromises," he said.

In the Senate, work has focused on a mix of tax increases and more limited tax cuts. So far, sales tax, liquor taxes and cigarette taxes have been heavily discussed, said Senate President Steve Morris, R-Hugoton.

"Nothing," he said, "is off the table."

The Senate Ways and Means Committee will return a week before the rest of lawmakers to resume work on the budget bill. By that time, lawmakers will have the latest revenue projections.

The committee's chairman, Sen. Jay Emler, R-Lindsborg, said the tasks will include producing a tax proposal after several attempts at developing a tax package failed in the Senate's tax committee. Emler said there are too many lawmakers who see too many cuts as being off the table to balance the budget with reductions alone.

"You have to take a look at what lines have been drawn in the sand," he said.

Wednesday, March 31, 2010

March 31 Legislative update

This posting has three important updates:

  • The Kansas Legislature budget proposals and timeline
  •  A change in dates in the continuing contract law
  •  Polling information on budget cuts and taxes
If you have any questions about these topics, please contact me.

KANSAS BUDGET WORK DELAYED

Here is a news article from the Topeka Daily Capital on March 31, 2010.

Kansas Legislature adjourns regular session; budget work put off until April 28

Budget work, other issues left for wrap-up session next month

March 31, 2010, 12:52 a.m.

Topeka — Despite a looming budget crisis, the Kansas Legislature early today adjourned the major part of the 2010 session without having approved a spending plan for the next fiscal year.

The final gavel came down on the regular session at 12:50 a.m.

After having used up 75 days of a 90-day session, legislative leaders decided it would be best to wait until they have more up-to-date revenue projections before attempting to fashion a spending plan.

On April 16, state fiscal experts will put together a revised revenue estimate. Legislators will return for the wrap-up session on April 28 and try to write a budget with the new estimate.

Legislators face a nearly $500 million revenue shortfall on top of budget cuts over the past year of nearly $1 billion from a $6.4 billion budget.

At the start of the session in January, Gov. Mark Parkinson proposed a three-year, 1 cent increase in the state sales tax and 55-cent per pack increase in the cigarette tax to help close the budget gap.

But tax increase proposals have not gained much traction.

On the other side of the ledger, more budget cuts have also been rejected. House Republican leaders proposed a budget that would cut school funding $172 million, but that has gotten little support from other legislators.

CONTINUING CONTRACT LAW CHANGES

Here is a summary of Senate Bill 362 from Dale Dennis, Associate Commissioner of Education/School Finance on March 31.

The Kansas Legislature approved the conference committee report on Senate Bill 362 last night. This bill changed the date when local boards of education must notify teachers and administrators that they do not plan to renew their contract for the next school year. This date changed from May 1 to the third Friday in May. That date will be May 21 this year.

Teachers and administrators that do not receive a nonrenewal notice must notify the local board of education 14 days following the third Friday in May of their intentions to not renew their contract. That date will be June 4 this year.

POLLING RESULTS ON BUDGET ISSUES

A recent poll conducted on March 17 and 18 by the polling/research firm of Public Opinion Strategies found that only 12% of the 500 respondents favored deeper cuts to K-12 education. However, they also found that there is not much support to raise taxes.

Pollsters told respondents the state faces a $400 million budget shortfall. Listed are their responses by percentage.

• Increase cigarette taxes by $1 a pack: 69% yes, 31% no

• Increase liquor taxes: 70% yes, 29% no.

• Sugary drink tax: 43% yes, 54% no.

• Increase sales tax: 43% yes, 56% no.

• Furlough state employees: 33% yes, 55% no.

• Sales tax on churches, nonprofits: 29% yes, 68% no.

• Reduce highway maintenance: 26% yes, 72% no.

• Increase income tax: 26% yes, 71% no.

• Reduce college funding: 22% yes, 76% no.

• Reduce health/Medicaid programs: 16% yes, 81% no.

• Sales tax on residential utilities: 14% yes, 86% no.

• Reduce social service funding: 13% yes, 85% no.

• Reduce K-12 funding: 12% yes, 87% no.

The polling had a 4.38% margin of error.

NEXT STEPS

When the legislature returns it will be very important that we quickly contact legislators about favorable and unfavorable legislation. Bills will move at a much faster pace and we must be ready to respond.

Thanks go to all of you who have contacted our legislators and the Governor on K-12 budget issues. I believe that we are making a difference with many legislators.

I hope each of you have a Joyous Easter!

Monday, March 22, 2010

Devastating effects of House Bill 2739

The Kansas House is considering House Bill 2739 that would greatly harm schools and significantly raise property taxes.  It would have dire consequences for Buhler USD 313 and all of the Reno County schools. The bottom line for Buhler USD 313, is that this bill would further reduce funding in the General Fund and LOB by $882,454 for next fiscal year! In addition, it would raise our local mill rate by 7.23 mills!  Here is a summary of the bill as described by the Kansas Association of School Boards.

March 22, 2010

Information Released on School Finance Impact; Contact Your Legislators!


The Kansas State Department of Education has released a summary of HB 2739 , the school finance bill recommended by the House Education Budget committee, and computer print-outs showing the impact of that bill and the $172 million reduction in the school finance bill approved by the House Appropriations Committee.

The House may be debating these two measures tomorrow or Wednesday. It is vital for school leaders to understand the impact of these proposals on their district and contact their Representatives immediately.

The KSDE information is available as follows. Computer printout SF0145 provides detailed effects of this bill and computer printout SF0146 is a summary of SF0145. The detailed summary and the two printouts can be accessed on the School Finance Web site under “Recent Updates.” The Web site is: www.ksde.org/default.aspx?tabid=119

While the final version of HB 2739 was being drafted this weekend, KASB opposes the following provisions of the bill.

It cuts all districts by $85.9 million, equal to approximately $131 base budget per pupil, or 3.2 percent. This will lead to further reductions in staff and services to students at a time when educational standards and expectations continue to increase.

It cuts a further $85.9 million from local option budget state aid, which will impact some districts far more severely than others, based solely on the property wealth of the districts. Districts will either have to cut their budgets MORE than the $131, or raise local property taxes.

Although House leaders say taxes should not be increased, this bill would result in an $85.9 million property tax increase if districts seek to replace lost state LOB aid, with local increases varying from under one mill to nearly 50 districts with double-digit mill levy increases.

Although school districts have been criticized for not directing more dollars to the classroom, the bill creates a new fund to allow districts to spend more on local activities and sports, while cutting the general fund that supports instruction.


The bill authorizes two new property tax-based funds, the Local Activities Budget and the Equity Budget, neither of which receives state equalization aid. The result will likely be both higher property taxes in certain districts and further disparity in mill levies for districts seeking to use them.

The bill eliminates high enrollment weighting and reduces other school finance weightings.

HB 2739 will require all districts have at least a 10 percent local option budget as a “local foundation budget,” in addition to the 20-mill statewide levy and general state aid. The result will be different mill levies to fund the “foundation” requirement of the state.

KASB will continue to provide information on the impact of these measures.

Mark Tallman
Assistant Executive Director/Advocacy
mtallman@kasb.org

Wednesday, March 17, 2010

Governor Parkinson calls on Legislative leaders to join in the solution

Here are comments from the Governor last week after he took actions to balance this year's fiscal budget.  He is asking the legislature to step up and find ways to raise revenue for next year's budget that starts July 1.

“In the meantime, we cannot balance the next budget or protect our schools, public safety and safety net services without new revenue. I look forward to the Legislature to coming to the table, putting politics aside, and raising the revenue we need to get Kansas back on track.”

It will be a fragile coalition, but I think the legislature will find ways to raise revenue.  A sales tax increase, an alcohol tax, a cigarette tax, a soda pop tax have been introduced.  Also, there is talk about closing tax exemptions.  What do you believe will be in the mix for revenue enhancements?

Tuesday, March 16, 2010

Senate Bill 516

The legislature is beginning to consider revenue enhancements to stop the cutting for schools.  Senate Bill 516 would increase the state sales tax by 1%.  Here is a summary of the bill and its status.

SB 516 would increase the statewide sales tax rate by one-percent, taking it from 5.3 percent to 6.3 percent, and decreasing it to 5.5 percent after three years. This is part of a revenue package proposed by the governor at the beginning of the session, which he recommended to bridge the FY 2011 budget shortfall and provide a modest BSAPP of $50 for K-12 education.
Seaman USD 345 Superintendent Mike Mathes presented direct and compelling testimony to the Senate Assessment and Taxation Committee hearing the bill. He outlined the efficiencies and budget-cutting measures enacted in his district, noting most districts were acting similarly, but said meetings with district patrons have made it clear that they’re calling on the Legislature to make no more cuts. Special thanks to Mike for his willingness to stand before both this committee and the House Taxation Committee, earlier in the year, and call for the legislature to provide adequate revenue, so budgets wouldn’t have to be cut even more in the next school year.

Status: The Senate Assessment and Taxation Committee acted earlier in the week to remove the cigarette and tobacco tax portion out of this bill and put it into a separate bill, HB 2388.

I think it is a very fair way to raise revenue.  What are your thoughts?

Monday, March 15, 2010

Hutch News Guest Editorial

Here is an editorial in the March 15 Hutchinson News by Tom Arnhold.  Great article on taxes and tax exemptions.  The only area where I disagree is when he mentions sports in Buhler and Hutchinson.  We have cut over $80,000 in sports programing in Buhler.

It's time to consider repealing tax cuts, exemptions


By Tom Arnhold - Community columnist
Political courage is sadly lacking in our elected officials these days. It took guts for President Eisenhower to send federal troops to Arkansas to enforce laws allowing blacks to attend public schools. President Kennedy showed fortitude when forcing the former Soviet Union to remove missiles from Cuba.

Now our politicians want to accomplish only three goals: 1. Get elected, 2. Get re-elected, 3. Gain power and/or wealth. Members of Congress such as John Murtha and Ted Kennedy died in office. Kansas' own Sen. Pat Roberts seems intent to do the same. Unfortunately, current election laws tend to keep incumbents in office indefinitely.

Kansas schools are suffering because our Legislature caters to anti-tax groups and the Kansas Chamber of Commerce. It began with the faulty thinking of President Reagan that if the government gave tax breaks to large corporations and the wealthy, they would use the tax savings to create more jobs that would benefit the rest of us peons. This is commonly known as the "trickle-down effect."

Instead, we have seen what wealthy companies do with their money. The top executives of large companies have paid their executives disgustingly large wages. Our Kansas legislators have passed laws that give tens of millions of dollars worth of tax breaks to companies who want to relocate to Kansas. Eaton threatened to leave Hutchinson and got tax breaks to stay.

A few years back, the Kansas Chamber of Commerce convinced legislators to phase out personal property taxes in equipment. Just four years ago, I paid $400 a year in personal property taxes on my equipment, but now pay nothing. I have not hired any new employees or reinvested the money in my business. Instead, I saved the money.

Think about all the businesses across Kansas who no longer pays personal property taxes. That money has been taken out of the Kansas budget. Our legislators would rather see our schools become second rate instead of having the political courage to do away with tax exemptions. Over the past 20 years, our elected officials have granted numerous exemptions to aid various groups. Those exemptions should be repealed now that our schools are in need.

Rep. Jan Pauls won't increase cigarette taxes. Rep. Joe Seiwert wants to cut all state agencies in an equal amount across the board. Rep. Mike O'Neal will not restore previous tax cuts granted to corporations. Sen. Terry Bruce recently noted school districts should be consolidated, but it was likely not politically doable. Have some courage, Sen. Bruce, and introduce a bill to consolidate small school districts. And when we consolidate them, reduce the number of administrators and not the number of teachers.

Either our legislators do not comprehend the damage they are doing to Kansas students or they do but feel they have to kowtow to those calling for no tax increase. Underfunding our schools is shortsighted and will damage tax revenues in the long run. Those teachers who are laid off because of budget cuts will never go back to teaching. Students won't become teachers if they face the possibility of losing their jobs or having their salaries cut every time Kansas has a budget crisis.

Firing teachers and other education personnel is only going to lead to more jobless Kansans. These folks will be on unemployment, costing the government more tax dollars. Many of those laid off won't afford health insurance, causing more stress on them and the system. The Kansas Legislature should cut back to four days a week like some school districts are doing. We can consolidate the number of legislative districts to cut back on the number of legislators we have to pay. Also, the Legislature should cut legislator salaries and staff by 10 percent.

Kansas politicians cut taxes for a wide variety of persons and businesses when the economy was good. Now that our tax revenues have decreased dramatically, those taxes need to be reinstated for the greater good of all Kansans. I am not asking for new taxes, just that the taxes we reduced in the last 10 years and the exemptions that were passed be repealed.

Our schools need to do a better job of budgeting. Since I moved to here, Hutchinson and Buhler high schools have added boys and girls bowling, girls softball, and boys baseball and soccer. It's time to reduce some of the sports programs or redesign them to impact more students at a lower cost. My niece's junior high school girls basketball team recently hosted Emporia. At the same time, her junior high boys basketball team traveled to Emporia to play. That makes no sense whatsoever.

There is no doubt that Kansas is facing a shortfall of tax revenue and some programs will have to be cut. However, we should not cut the budget of all state agencies equally. If my income is down, I do not cut my food budget and my discretionary spending equally. The Kansas Legislature should cut programs that are not essential and leave education and other vital services intact.

Sen. Bruce, Rep. O'Neal, Rep. Pauls and Rep. Seiwert: Do the right thing and fund education properly, even if it means repealing the tax exemptions you passed a few years ago.

Tom Arnhold is a longtime Hutchinson resident and attorney. E-mail: TArnhold@kslawyer.net.

I believe that the momentum for revenue enhancements instead of deeper cuts by the legislature is gaining momentum.  Your thought or observations?