Legislative Updates

January 23, 2012

The 2012 legislation is in full swing. Undoubtedly, it is going to be a very heavy workload session. With the proposed legistlative agenda, it appears every citizen could be affected this year. Some changes will be uneventful, while others will be very personal and important.

Before I start discussing specifics, I will begin with a overall assessment going forward. The governor and the legislature, especially the Republicans along with some Democrats, focused on jobs,jobs, jobs in 2011 and will remain focused on jobs in 2012. As a result of our focus, the state's economy has stabilized and is beginning to improve. We are taking care of Kansas without relying on much help from the Federal Government. We all know of the debt and dysfunctional issues at the federal level. I think it is important for all citizens to understand that everyone serving in the Kansas legislature knows that borrowed federal funds coming back to the states have peaked and will decrease for the foreseeable future. With Kansans' improving the state economy we we have a positive ending budget balance to start the fiscal new year on July 1, 2012. It is clear that we will not have to borrow to balance the budget for next year.

Last year we borrowed $200 million in order to be able to pay our bills on time and did not significantly reduce funding to schools and services to the truly poor. Kansas has a $6 billion dollar budget. Just like your home budget, the state needs money in its checking account in order pay its bills on time. With a $6 billion dollar budget about $450 million in ending balance funds is necessary to pay our bills, especially to our schools that consume 60% of the budget. The bad news is we will not be able to achieve the $450 million statutory ending balance amount again this year. The good news is we will get closer and have enough to avoid borrowing any money to balance the budget. We should have a sufficient balance to pay our schools on time and allow them to spend down some of their unencumbered reserves they have been holding. The schools built up their reserves to be able to pay their bills in the event they did not receive timely payments from the state.

The most important pieces of legislative work this year are:

1. SCHOOL FINANCE FORMULA REFORM -- The main objective of School Finance reform is to make the funding fairer to Johnson County schools and taxpayers.

2. TRANSFERRING MEDICAID INTO MANAGED CARE PLANS -- The main objective of transferring Medicaid into managed care is to save money while improving healthcare outcomes.

3. KPERS REFORM -- The main short term objective of KPERS reform is to transition into a 4O1-K type of retirement plan for new state employee hires. The long term objective is to pay down the $8 billion shortfall that is putting the entire plan at risk, as well as Kansas' credit rating.

4. TAX REFORM -- The main short term objective of tax reform is to move to a flatter, broader, simpler tax. The long term end objective of tax reform is to have no personal income taxes in Kansas.

I have not seen anything in writing in yet. Once the bills are presented, I will work hard on doing my diligence to understand the effects of the proposed changes. I will report back to you as the session unfolds. I will keep you apprised on these important matters. It appears, right now, that the next session update will cover the current knowledge base on school finance reform.

Redistricting is also occurring this year following the census. Johnson County should gain three House seats and one Senate seat. The gain in legislative representation is the result of the continual population growth in Johnson County and the population loss in the remaining majority counties in Kansas. The total number of House seats will remain at 125 and the total Senate seats will remain at 40. Johnson County's House seats will increase from 22 to 25 and the Senate seats will increase from 7 to 8.

The challenges are before us and I will meet them with hard work and studied consideration.

Please feel free to contact me or stop in anytime. My office phone number is (785) 296-7665, E-mail is Jim.Denning@house.ks.gov. My website is www.jimdenning4kansas.com.

As always, I welcome your thoughts and feedback regarding the Kansas budget, health care and other pertinent issues we face here as Kansans and citizens of the United States.

All the best,

Jim Denning
Kansas House Representative, District 19