We’ve seen the first out-and-out defeat of a key piece of a Democrat Gov. Laura Kelly budget initiative by the Legislature. There was considerable pride among Republicans that they did it.

It was the House that rejected the governor’s plan to essentially refinance the debt — or more precisely, actuarial shortfall — of the Kanas Public Employees Retirement System, or KPERS.

Her bill would have taken that shortfall and reamortized it over 30 years, cutting the state’s payment toward making the fund for more than 300,000 Kansans actuarially sound…which means it has the money in hand to make the pension payments that those state and school district employees expect.

The Republican victory? It was refusing to refinance that debt to free up maybe $200 million a year for other purposes. Which means, essentially, that there will be less of that money from lower annual payments which can be spent on nearly everything else the state spends your taxpayer money on.

It comes down practically to “pay now or pay more later” and Republicans figure that the refinancing would cost the state billions of dollars in additional interest payments over the next three decades.

It’s a principle thing. The Republicans say they believe–but haven’t always voted for–the state paying its bills on time and saving that interest penalty which will undoubtedly present the next generation of House and Senate members money they would probably like to spend on something sexier for most voters than actuarially determined pension obligations.

But for the House Republicans, nixing the governor’s plan is a major victory, which also has the effect of reducing the state’s bank balance. But it is something they can campaign on. Don’t look back several years when GOP lawmakers and their GOP governor repeatedly didn’t make the pension appropriations they should have under state law, just look with them at saving money for Kansas income taxpayers who haven’t been born yet.

Now, there’s always the view that Kelly took the reins of a state in which that Gov. Sam Brownback-era income tax cut experiment is still being shaken off with recent increases in income and sales taxes. But there’s also the view that spreading out the state’s debt to its pensioners and pension program participants frees up money for other uses. And…the pensioners still get paid.

There’s also the chance that the refinancing of pension debt makes possible expanded funding for education, roads and care for the state’s children. Oh, and though she’s not a fan right now, it also means there’s a chance for some income and maybe sales tax on food cuts.

The refinancing would hand Kelly and the Legislature more money to spend on politically attractive items, or at least more money to fight over how to spend or give back to taxpayers.

So, is the fight over? Has this first major defeat for the governor handed control of the state back to the Republican-dominated Legislature? Or does it ring the bell for the start of the fight between conservative Republicans who control the Legislature and its moderate Republican/Democratic faction?

That’s the key to that one House vote. What does it end and what does it start?

That start? It might just be the fight for who gets to sit in the governor’s chair…four years from now. Which means the battle this year could determine whether Kelly gets to see enough of her platform enacted to make reelection look likely, or whether she gets so little of her platform enacted that it will appear she’s doing nothing for the state.

It’s a long fight ahead. The first-round bell has just rung.

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

By JACKIE MUNDT
Pratt County farmer and rancher

I have a confession. I am proud to be a millennial.

Admittedly, there are many criticisms of my generation. Some are based in the truth–young people spend more time on their phones and don’t seem to get involved in their communities.

I see these criticisms in a different light. For some it may seem like young people spend too much time on their phones, but in reality, that time is keeping millennials present in the new way of the world. Technology is ingrained as part of our careers, connects and builds our social circles, and keeps us moving at the ever-increasing pace of the world. Smartphones are a constant companion, resource and vehicle for communication. In this same way, it can be easy to look around your community and say young people don’t want to be involved. I challenge that idea. Maybe young people are open to being involved but something is holding them back.

As an adult I regularly volunteer my time and serve on a variety of different boards. My time in these roles has helped me understand my generation desperately needs to get involved.

Over the past two decades, hours of training and many resources have been spent making me into a leader, and I am a confident and outgoing person naturally. It might surprise some to learn that I have rarely sought out leadership roles.

Whether it’s not wanting to seem too ambitious, or not feeling like we have the knowledge or experience to be a good representative, raising a hand for leadership positions is not something young people often feel comfortable doing. It typically takes someone asking and providing the important guidance that we don’t have to be an expert when we come into the position.

Serving on boards is the best way to learn about an organization and its impact. I have learned so much about how the world works and what my community is accomplishing. Each board position has increased my knowledge, made me more comfortable sharing ideas and increased my belief that I can make an impact.

Another hurdle may be time. Millennials value their time differently and want to use it wisely on their passions. Try easing them into a position by setting term-limits or making it clear that one election doesn’t equal a life sentence on a board. If a person doesn’t want to keep the same job for 20 to 30 years, they may not be excited about serving on the same board for decades.

Frequent changes in board structure will mean more fresh perspectives. When you invite a young person to the table, be prepared and excited about the ideas and questions they have. Change is inevitable, but it’s not a bad thing.

Communities of all shapes and sizes need people to get involved. We need young people to raise their hands and learn everything they can. We need established community members to seek out new people and work to make leading something that is fulfilling and meaningful. No matter how much the world changes, there will always be value in bringing a new perspective to boards and everyone can play their part in making our communities stronger.

“Insight” is a weekly column published by Kansas Farm Bureau, the state’s largest farm organization whose mission is to strengthen agriculture and the lives of Kansans through advocacy, education and service.

By JOHN P. TRETBAR

Kansas producers in November pumped more than 2.7 million barrels out of the ground, according to the latest figures from the Kansas Geological Survey. So far this year, we’ve produced just 31.95 million barrels. Unless we picked up the pace in December, 2018 will become the worst year for crude production in more than a decade. Barton County production in November was nearly 129-thousand barrels. Ellis County kicked in 208-thousand barrels. In Russell County the total for November was 117-thousand, and Stafford County produced 81-thousand barrels.

Independent Oil & Gas Service reports a slight increase in Kansas drilling activity over the last week. There were three rigs actively drilling in eastern Kansas, which was unchanged. West of Wichita there are 30 active rigs, up one. Operators were about to spud wells on one lease in Barton County and one in Russell County.

Baker Hughes report 1,051 active drilling rigs across the U.S. on Friday, up three oil rigs and down one gas rig from last week. New Mexico and Texas were each down two rigs. Oklahoma was down one. In Canada there are 224 active rigs, down 16.

Independent Oil & Gas Service reports four new completed wells in Barton County over the last week, including one dry hole. There was one new completion in Ellis County and two in Stafford County. Statewide there were 38 newly-completed wells last week, with 18 of those in eastern Kansas and 20 west of Wichita.

Regulators approved 11 permits for drilling at new locations last week, two east of Wichita and nine in Western Kansas.

The U.S. Energy Information Administration reports January crude production in the U.S. reached 12 million barrels per day, an increase of 90-thousand barrels over December and the highest monthly total ever reported. EIA predicts production will average 12.4 million barrels per day this year and 13.2 million barrels per day next year. Weekly production figures were unchanged from last week: 11.898 million barrels per day.

The government now predicts U.S. crude prices will average just under $55 per barrel this year and $58 next year.

EIA reported another increase in American crude oil stockpiles. Inventories last week jumped 3.6 million barrels from the week before to 450.8 million barrels. Inventories are about six percent above the five year seasonal average.

U.S. crude oil imports averaged 6.2 million barrels per day last week, down by 936,000 barrels per day from the previous week. The four-week average is 11.2% less than the same four-week period last year.

A pair of Republican lawmakers in Texas is proposing the state’s “rainy day fund” be tapped to finance a border wall. As President Trump campaigned for border wall funding in El Paso, Representatives Briscoe Cain and Kyle Biedermann proposed spending $2.5 billion dollars to add new technology and coordinate the design and construction of a physical barrier on the Texas border to prevent illegal crossings.

Employment growth is finally catching up to the boom in oil production in Texas. The Texas Independent Producers and Royalty Owners says crude production in Texas totaled a record 1.54 billion barrels in 2018, surpassing a previous record of 1.28 billion bbl set in 1973. Final government numbers have not yet been released. The trade group says the Texas patch added nearly 27-thousand jobs last year to employ more than 352-thousand people. That’s an increase of five-percent year-on-year. Total oil patch payroll in the U.S. reached $99 billion last year.

The oil boom in New Mexico is translating to big tax collections in Santa Fe. Figures released by the New Mexico Oil and Gas Association show revenues, taxes and other fees from the patch reached a high of $2.2 billion for the 2018 fiscal year. That represents an increase of $465 million over the previous fiscal year. Overall, the industry provided more than $1 billion for public schools and the state’s universities during the period. The state has now surpassed California and Oklahoma to become the third-largest producer in the country, while still trailing Texas and North Dakota.

The government’s efforts to promote energy development on public lands is bearing fruit. The Bureau of Land Management logged record lease sales last year. In a statement, acting Interior Secretary David Bernhardt said the federal agency generated $1.1 billion from the lease sales, making 2018 its highest-grossing year ever.

Operators in North Dakota continue to set records for crude oil and natural gas production. Despite a price drop brought on by limited pipeline takeaway capacity, the state pumped 1.4 million barrels per day in December, the latest numbers available from the Department of Mineral Resources.

Weekly oil-by-rail numbers grew 23% over the same week a year ago. According to the Association of American Railroads, we hauled petroleum and petroleum products in more than 12-thousand tanker cars last week. The tally in Canada continues to decline from recent weeks. The total is down seven percent from a year ago.