By: Governor Sam Brownback and U.S. Senator Jerry Moran

The increasing cost of conducting business in the United States threatens innovation and investment in new technologies. In today’s unstable business environment, American industries are understandably reluctant to invest the time and resources necessary to grow their businesses. This is especially true for domestic energy production.

Energy production is one of the most highly regulated markets in the United States today. Government policies are hurting our country’s ability to compete within the global economy, limiting our domestic energy supply and driving up the cost of energy for consumers. To ensure Kansans have access to a reliable and affordable supply of energy, we must develop more of our nation’s natural resources.

One resource that is plentiful in Kansas is wind. Our state has the second highest wind resource potential in our country and leads the nation in wind production capacity currently under construction. If we expect the wind energy industry to provide for our country’s future energy needs and make long-term investments in their businesses, Congress must reauthorize the wind production tax credit (PTC) that expires this year. By extending the wind PTC, Congress will allow the wind industry to complete its transformation from being a high tech startup to becoming cost competitive in the energy marketplace. Failure to do so will result in a tax hike on wind energy companies and will only further delay this industry’s ability to compete.

There are those who view government intervention in the energy sector as picking winners and losers. But the wind PTC is a winning solution because it allows companies to keep more of their own dollars in exchange for the production of energy. These are not cash handouts; they are reductions in taxes that help cover the cost of doing business. Unlike President Obama’s failed stimulus plan that rewards individual, unproven companies like Solyndra with cash handouts, the wind PTC is an industry tax credit that has led to $20 billion in annual private investment in our energy infrastructure.

Today, the American wind industry includes more than 400 manufacturing facilities in 43 states. In 2005, just 25 percent of the value of a wind turbine was produced in the United States compared to more than 60 percent today. Because of their close proximity to wind farms, American workers can produce the critical components at a lower cost than their European and Asian counterparts. As more components are manufactured in the United States and not overseas, the cost to produce electricity from wind farms will be further driven down.

If the wind PTC is allowed to expire, local economies across our state will suffer. Kansas counties will lose $3.7 million in annual payments from wind companies. Kansas landowners will lose nearly $4 million annually in additional income they earn from leasing or selling their land for wind farms. And every Kansan will ultimately be affected because the power generated by these wind facilities contributes to our supply of electricity. By eliminating additional sources of electricity, utility rates will climb.

To meet our country’s energy needs and remain competitive in the global market, Congress must develop a national energy policy. Recent events in the Middle East have demonstrated once again the importance of having access to an ample domestic energy supply so we are less dependent on foreign sources. If Congress fails, Kansans will soon be paying much higher energy prices – for the gas to fill up our cars, for the fuel to power our farm equipment, and for the electricity to turn on our lights.

Temporarily extending the wind PTC is not about picking winners and losers – it is about preparing our country to meet our growing energy demand. Rather than make it more difficult for the private sector to develop energy sources, we should lower taxes, reduce regulations, and allow the private sector to succeed in the free market. In turn, the wind industry will grow and become fully competitive – no longer needing the wind PTC. By strengthening American energy production, our country’s future will be stronger and more secure.

Governor Brownback;

 Are you listening? Can you hear the collective plea coming from the community of disabled Kansans and their families? Can you feel the primal passion? Do you know what it is like to be different? To be disabled?

 Your insistence upon including long-term care services for the disabled in your privatization of the Kansas Medicaid system is insensitive, ill-informed and disturbing. Your form letters and your repeated mantra “we have heard no compelling reason to carve out” our services are only serving to stimulate and galvanize our community into action. In the end, we are determined to convince you that this revenue neutral request is in the best interest of both government and client.

The current Kansas model for serving the disabled is efficient both structurally and financially; and effective in serving clients’ needs. The “proposed new model” KanCare is fraught with peril and risk. $2.9 billion is being transferred to insurance companies. The primary but unspoken objective is $850,000,000 in cost savings. Mr. Sullivan has stated that cddo’s and case managers will be retained, according to the current model. Unfortunately, under the management of insurance companies, the priorities will drastically change! The effects will be: additional complexity of administration (adding a layer of management), a new layer of cost (insurance company profits), leading to decreased supports and services for those who need them most.

Can you imagine the effect of profit incentives for the insurance companies to reduce spending? The administration points to improving health outcomes via manages care, but you fail to mention the underlying but central driving force behind this initiative: cost savings. FACT: the annul spending per dd client served has actually declined from $49M in 1993, to $41M currently. This is a population that is actually underfunded as witnessed by the 5,000 qualified but unfunded persons on the waiting list. For decades, Kansas has been a national leader in serving the DD community. In structure and in efficiency of spending. Dismantling this model and transferring responsibility to the insurance industry would represent a massive step backwards and in the wrong direction.

Have you evaluated what is happening in Kentucky under their new system of managed care? Are you prepared for the potential complexity, confusion, legal actions, dissatisfaction among your constituents both providers and patients and other implications, all of which are being experienced in Kentucky?

 Do you know what it is like to have a person of special needs living in your home? Have you ever visited a group home or day center workplace? Please consider; you may attain great perspective by investing a small amount of time.

In summary, the informed people within the community of the disabled are simply seeking to exclude long-term care services from this potential fiasco. This “carve out” would be revenue neutral, but would have tremendous benefit to the DD community.

Are we seeking to fix something that is not broken?

Respectfully;

Ray Rollins

Overland Park, KS

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