Hello from Topeka!  This is the final week of the first “half” of the 2018 session, the two-minute warning if you will.   This is the week when bills need to be passed out of their original house of origin and then they will go to the other for further consideration.

One of the most asked questions around the dome has been who will be the new Lieutenant Governor?  Well, we learned on Tuesday evening that Tracey Mann was announced as Kansas’ 50th Lieutenant Governor at the Kansas Livestock Association Legislative Social & Dinner event at the Capitol Plaza Hotel.  Lt. Governor Mann is a fifth-generation Kansan from Quinter, Kansas, and earned a degree in Agricultural Economics from Kansas State University in 2000.  He currently serves as the managing director and principal of Newmark Grubb Zimmer, a full service real estate company headquartered in Kansas City and is a board member of the City Teen Center in Salina.  Previously he served on the boards of directors for the Kansas Agriculture and Rural Leadership program and the Kansas Chamber of Commerce.  Mann, his wife, Audrey and their four children live in Salina.

Over the weekend, the Kansas Republican Party Convention took place in Wichita. The highlight was the Inaugural Gubernatorial Debate late Saturday evening.  The debate panel included: Wink Hartman, Mark Hutton, Secretary of State Kris Kobach, and Insurance Commissioner Ken Selzer.  Unfortunately, Governor Jeff Colyer became ill on Saturday and was unable to participate. Overall, I thought they all did well, and I am looking forward to the remaining debates before the August primary.

Some of the highlights as committees wrapped up their work for now included: The Corrections and Juvenile Justice Committee heard a several bills, most notably HB 2581, which would institute harsher penalties for those who engage in “swatting.”  Swatting takes place when an individual makes a call to law enforcement, SWAT, or other authorities requesting emergency assistance, when there is no assistance needed whatsoever.  Specifically, those who make these false calls typically request assistance at an address other than their own (could be completely random as well).  Recently in Wichita, Kansas, a prank call led to the deployment of law enforcement at a residence, which ultimately led to the fatality of the home owner, who had nothing to do with the call or the individual who made that prank call.  Another instance occurred in Overland Park, Kansas, in January; however, no one was injured at that time.  The bill outlines various sentencing levels, should an injury or fatality occur, as a result of the emergency response of such false alarms and prank calls.

The House Taxation and Senate Assessment and Taxation Committee met jointly to hear about the impact of the Federal Tax Cuts and Jobs Act, which was signed on December 22, 2017.  The Committee heard from Kathleen Smith and Michael Austin from the Department of Revenue and Jay Langley, on behalf of the Kansas Society of CPAs.  The Department of Revenue estimates that there will be a positive fiscal impact to the State, with additional taxes paid by taxpayers: $137.8 million for FY ’19; $179.9 million for FY ’20; and $187.7 million for FY ’21.  The Department and Langley summarized the changes affecting individual and business tax provisions and the effect on taxpayer liability.  They noted that the information provided is preliminary and for informational purposes.  According to Chairman Steven Johnson, “This (briefing) identifies the magnitude of issues we have to review regarding the tax changes. There is no free money.  We need to confirm if we wish to have these changes (which is effectively a tax increase) continue into effect on our taxpayers.”

There will be a series or townhall meetings coming on Friday, check out kenforkansas.com for full details. Please feel free to reach out with concerns and questions, I will do my best to respond it a timely manner. My phone number is (785) 296-7463 and email is: [email protected], my cell number is (785) 302-8416.   You can also check out kenforkansas.com.

It is my honor to be your representative.

By JOHN P. TRETBAR

Baker Hughes reported an increase of seven active oil rigs, and a decrease of seven gas rigs, so the total rig count for Friday was unchanged at 975. There were 318 rigs drilling across Canada, down seven. Independent Oil & Gas Service reported 27 active drilling rigs in western Kansas, up two for the week. The total in eastern Kansas was unchanged at eleven. Operators report drilling underway on leases in Barton and Ellis counties, and drilling ahead at other sites in Ellis and Stafford counties. They were moving in completion tools at one site in Barton County, two in Ellis and Russell counties, and at one lease in Stafford County.

The state of Kansas recorded 46 permits last week for drilling at new locations, 17 in eastern Kansas, 29 west of Wichita, including two each in Barton and Ellis counties.

Independent Oil & Gas Service reported 48 new well completions for the week, 227 so far this year. (There were 23 in eastern Kansas and 25 west of Wichita.) There were two newly completed wells in Barton County and three in Ellis County.

A committee in the Kansas House of Representatives last week rejected a bill that would have broadened the scope of saltwater disposal limitations, in an effort to prevent earthquakes. Current regulations limit only those disposal wells in earthquake zones in Harper and Barber County, but House Bill 2641 would have imposed the same restrictions on another 430 wells across Kansas. Edward Cross of KIOGA was among industry lobbyists arguing against the measure, saying the bill was based on a number of false assumptions and was an effort by “activists trying to disrupt the oil and gas industry.” The bill died in committee, but supporters say it could be referred to an interim study committee later on.

Colorado oil and gas regulators are raising taxes on energy developers to help pay for the environmental impacts of drilling. The Colorado Oil and Gas Conservation Commission approved a plan to raise $4.8 million more in taxes by charging 0.11 cents on every dollar’s worth of oil and gas produced. The industry supported this increase, after local governments and environmentalists urged a much bigger tax increase.

For the first time, a supertanker laden with US crude oil is on its way overseas. Bloomberg reports the ship is on its way to China from the Louisiana Offshore Oil Port, or LOOP, currently the only deep-water port in the US able to handle the huge ships. The Saudi-owned tanker Shaden was the first so-called very large crude carrier to load oil at the LOOP rather than unload oil there.

Preliminary numbers from the North Dakota regulators show December oil production fell for the first monthly drop since June. The state produced 1.18 million barrels per day in December. November’s final numbers were about about 46-thousand barrels shy of the state’s all time record set back in 2014. Director Lynn Helms said Thursday the number of well completions in North Dakota spiked from 77 in November to 93 in December.

A shortage of rail cars in Canada is leaving oil shipments and grain harvests stranded, sending crude prices plummeting and leaving farmers in a cash crunch. Bloomberg reports the nation’s biggest railways haven’t been able to deliver enough cars after harsh winter conditions and increased demand from the energy industry. Some farmers have been waiting for months to deliver wheat and canola to elevators before they can get paid. The squeeze also means that crude supplies are piling up in Alberta, pushing prices to the biggest discount relative to New York futures in more than four years.

The Philippines and China have agreed to set up a special panel to work out how and if they can jointly explore for oil and gas in offshore waters both sides claim without having to address the explosive issue of sovereignty. Forming an agreement for a joint project would be complex and sensitive as both countries claim jurisdiction of the site, so sharing the oil and gas reserves could be deemed legitimizing the other side’s claim, or even ceding sovereign territory. A senior Philippine official also told Reuters that several Southeast Asian countries and China would begin negotiations next month on a long-awaited maritime code of conduct.

Oh, there are of course the technical and philosophical complaints about the new federal income tax cuts that took effect just in time to lower your federal income tax bill this year. Don’t last long enough, the rich do better, can’t claim the dog as a dependent because you couldn’t get it a Social Security number…

You know how all that goes.

But one place that it mostly goes well is the Kansas budget.

There are dozens of little changes in federal taxes that jiggle the top line of your Kansas income tax form, but on a mass basis, that number—what you have left after paying your federal income taxes—yields for most purposes the income on which you’ll pay Kansas income taxes this year.

And the big news is that the federal tax cuts leave more Kansas-taxable income for the state to levy against.

Result: Kansas is likely to receive $138 million more than expected in the fiscal year that starts July 1. And it just gets better… Estimates are that the next year, Kansas will take in $180 million more and the year after $188 million. That additional state income doesn’t require any icky tax increases here; there’s really nothing to blame the Legislature about because it has no fingerprints on the federal tax cuts that yield more money for the State General Fund which lawmakers will spend.

That federal trickle-down could brighten the amount available to spend in the upcoming budget year which lawmakers are now assembling, or, rather, just touching up what they planned last year to spend in the new fiscal year.

So, what happens? Well, things probably brightened for state employees looking for raises. It could mean less sales tax money pulled out of the budget of the Kansas Department of Transportation, which has canceled more than 20 highway and bridge projects in the last year. It could mean more money for health care for the poor and their children and lots of nice things.

But it will undoubtedly become just another stick to use in the fight over increasing state support of public schools demanded by the Kansas Supreme Court which says the state isn’t making suitable provision for school operations statewide.

The first scrap, remember, is coming up with a new school finance formula this legislative session and financing it and then proving to the court that the problem is solved…that children in every public school from border to border are receiving a good education.

Ironically, the new state income tax money is probably about the right amount over the next few years to meet the roughly $600 million in new K-12 spending that most of the Legislature believes is the magic amount that will see the court decide that if divvied up right, it meets constitutional requirements.

That’s if the estimate is right and if all of it, and probably a little more, is spent on schools and almost nothing else.

Expect that the additional money is already being sized-up by legislators—especially House members who all stand for reelection this year—for spending on other stuff, like raises for state workers, health care, assistance for the elderly and poor and nearly every other task of state government.

And, remember that there are conservative lawmakers—especially in the Senate which doesn’t stand for reelection this year—who believe the Supreme Court is wrong, that maybe some changes in school spending patterns are needed, but that the state is spending all it needs to for K-12. That makes the millions of increased state revenue just money in the bank.

That spare cash will get interesting…

Syndicated by Hawver News Company LLC of Topeka; Martin Hawver is publisher of Hawver’s Capitol Report—to learn more about this nonpartisan statewide political news service, visit the website at www.hawvernews.com

February 16, 2018

Bills Passed In the House

This week was a busy one in the Kansas House of Representatives as we started to debate numerous bills as we near the point in the session that we refer to as “Turnaround.”

House Bill 2455 is a bill that requires the juvenile justice oversight committee to calculate and reduce expenditures with out-of-home placements.  This bill passed, 118-2.

House Bill 2444 is in regards to the investments made by the Kansas Public Employees Retirement System (KPERS).  This bill specifically prohibits the Board of Trustees with KPERS from investing any money in companies with certain business operations in Sudan.  This passed, 111-9.

House Bill 2505 relates to a mayor’s position in local government.  The bill makes a change that has mayors considered as part of the city governing body in all manners when the cities have a format of commission or commission-manager form of government.  This bill passed the House, 122-0.

House Bill 2506 is in regards to the rehabilitation of abandoned property by a city.  This bill makes changes to what is considered blighted which is highly relevant in eminent domain cases.  For example, inadequate drainage would no longer constitute a property as being blighted.  The bill also changes what is considered as “abandoned” property.  This bill passed, 90-32.  I voted “yes” on all.

House Bill 2533:  Horse and Dog Tracks

On Tuesday, the Federal and State Affairs Committee heard testimony regarding the Horse and Greyhound tracks in the state.  The main point of contention from those that own the racetracks is that since the passage of the Expanded Gaming Act of 2007, the allowable slot machines are taxed differently depending on the facility.  The owners of the racetracks would like to reduce their slot machine tax from 40%, which is current law, to the same tax rate as that of state-owned casinos at 22%.  During discussions with the racetracks and the casino managers, there has been this impending threat of a lawsuit by the casino managers if there are changes made to the existing law.

Appropriations Committee- Budget Work

This week was a busy one for the House Appropriations committee.  We had a full week with the budget chairs reporting the reviewed budgets in their respective committees to the full committee.

On Monday, we had the budgets of the Department of Administration, Attorney General, and the office of the Governor.  Tuesday, the budgets of the Commission on Peace Officers Standards and Training, Office of the State Fire Marshall, Kansas Bureau of Investigation, and the Board of Indigents’ Defense Services were reported out.

Then on Wednesday, we reviewed the budgets of the departments of Wildlife, Parks and Tourism and Agriculture, and the Kansas Commission on Veteran’s Affairs Office.  On Thursday, we ended the week with reports on the budgets regarding the Board of Regents, Emporia State University, Wichita State University, and the University of Kansas Medical Center.  This is the first full week of budget reports that will be included in the supplemental budget bill.

Contact Information

As always, if you have any concerns, feel free to contact me (785) 296-7672, visit www.troywaymaster.com or email me at [email protected].  Also, if you happen to visit the statehouse, please let my office know.

It is a distinct honor to serve as your representative for the 109th Kansas House District and the state of Kansas. Please do not hesitate to contact me with your thoughts, concerns, and questions.  I always appreciate hearing from the residents of the 109th House District and others from the state of Kansas, as well.