April 3, 2017
2017 State Budget: Committee Consensus
On Tuesday, March 28th, the House Appropriations and Senate Ways and Means Conference Committee just built consensus on the Senate’s substitute for House Bill 2052. The Senators and Representatives present came to agreement on four different and important sections of the bill. First, the House of Representatives agreed to Senate recommendations for deleting funds to KPERS for the last quarter of FY 2017. The Senate agreed to the House recommended position of allocating $40.3 million for Medicaid Home and Community Based Services in FY 2017. The third area, in which the House agreed to the Senate recommendations, creates a layered repayment option plan to payback the proposed delay of the fourth quarter payment to KPERS for the current fiscal year. A mechanism was discussed to repay the $115.5 million from State General Fund to the KPERS Trust Fund for the delayed payment in FY 2016, repaid with interest, that statutorily is to be repaid in FY 2018. The last important area of consensus was one in which Representatives conceded to a modified version from the Senate which orders the Director of the Division of Budget, consulting with the Director of Legislative Research to transfer 10 percent of the State General Fund to the budget stabilization fund, otherwise commonly referred to as the “Rainy Day” Fund, on or before August 15, 2020.
K-12 Education Budget
Tuesday, March 21st, the House K-12 Education Budget Committee was briefed on the Kansas Equity and Enhancement Act, House Bill 2410. This bill, which relates to the finances and instructions for education in FY 2018 and FY 2019, represents the work product of an entire session of public input derived through a fair and open committee process. The bill encompasses components of several plans and ideas that were presented and is closely connected to the recommendations from the cost study prepared by the Kansas Legislative Post Audit. Hearings on the bill were held Thursday the Friday of last week and concluded on Monday, March the 27th. The committee will continue to work on the bill to find a formula that provides our students with the best possible opportunity for excellence.
Medicaid Expansion Fails: House Bill 2044
The vote to override Governor Brownback’s veto on House Bill 2044, Medicaid Expansion, failed in the House of Representatives on Monday, April 3rd, by a vote of 81 to 44. The motion to override the veto from the Governor was made just within minutes of the Governor vetoing the bill. Although it was debated considerably, a motion was made to table the veto reconsideration and for discussion to resume later. Although I did vote against House Bill 2044, I did vote in favor of overriding the veto because I have received additional information on how the implementation of the bill would benefit our local hospitals in our area of the state.
The 2018 & 2019 Mega Budget Bill
The House Appropriations Committee passed out favorably, Substitute for House Bill 2364 last Thursday, March 30th. The bill contains the deliberative work of the Budget Committees and Appropriations Committee on the FY 2018 and FY 2019 budget. Initial estimates have an ending balance of approximately $100 million for FY 2017, ($248.6) million for FY 2018, and ($237) million for FY 2019. Kansas Legislative Research Department will provide an explainer and various budget documents on the bill. Once these documents are finalized, they can be found at: https://www.kslegresearch.org/KLRDweb/Appropriations&Revenue.html. The bill will be updated online, once the Committee Report is read in. Expect to see floor action on the bill next week.
Tax Committee
On Tuesday, the Committee began its work on House Bill 2395, a bill containing what is referred to as a “flat tax.” The Committee recommended the bill favorably on Wednesday. The bill collapses the current two income tax brackets into a single bracket of 5.0 percent, starting in Tax Year 2018. The bill also repeals the non-wage business income tax, effective for Tax Year 2017. A key component of the bill is the reduction of the food sales tax rate from 6.5 to 5.0 percent, beginning on January 1, 2019. Medical expenses would also be allowed to be itemized deductions in Tax Year 2018. Standard deductions would also be increased. The bill also repeals the formulaic component of 2012 tax law, commonly referred to as the “glide path to zero.” The Department of Revenue estimates an increase of SGF receipts of $373.7 million for FY 2018 and $472.7 million for FY 2019.
On Tuesday, the Tax Committee worked two bills related to collection of internet sales taxation. The Committee passed out favorably two bills, following adoption of technical amendments from the Revisor’s Office. HB 2400 is based on South Dakota law. HB 2235 reflects Colorado law. The 10th Circuit Court of Appeals ruled in Colorado’s favor and that ruling was upheld by the U.S. Supreme Court in late 2016. This coming week, the Tax Committee will have hearings on: HB 2399, tax credit for child and dependent care services and HB 2406, repealing property tax exemption for certain pipeline property.
Simon’s Law
On Thursday, Senate Bill 85, also known as “Simon’s Law,” overwhelmingly passed the House with a vote count of 121-3. The bill would prohibit a hospital from withholding, withdrawing, or restricting life-sustaining measures for any child, without written parental consent. Senate Bill 85 would also prohibit do-not-resuscitate orders from being issued without parental consent. The Crosier family lost their son, Simon, after a DNR was issued and life-sustaining treatment was withheld, without their consent or knowledge. Simon’s Law ensures that parents, families, and providers are included in difficult medical decisions concerning the child. Kansas is the first state in the nation to approve of this pro-life legislation. The bill will advance to the Governor for his consideration.
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.
Troy L. Waymaster, (R-Bunker Hill) is the 109th Dist. State Representative and chairman of the House Appropriations Committee.