By Meg Wingerter

Gov. Sam Brownback’s budget proposal would sell the state’s future payments from tobacco companies to plug financial holes for the next two years.

The budget proposal — outlined Wednesday morning — calls for the state to receive $265 million from “securitizing” the tobacco payments in fiscal year 2018, which starts in July, and the same amount in the following year.

What the state actually would get is an open question, however. Budget Director Shawn Sullivan said Wednesday that the state could net anywhere from $480 million to $775 million, depending on how it issues the bonds and how the market moves.

Under a legal settlement, major tobacco companies have compensated states for the societal costs of smoking since the 1990s. Kansas has placed that money in the Children’s Initiatives Fund, which provides money for education and health programs targeting young children.

Lawmakers have repeatedly dipped into the fund over the years, and Sullivan’s budget proposes moving it completely into the state general fund in fiscal year 2019. That would free $35.2 million for other expenses but raise questions about how the state would pay for those children’s programs.

“The supposed protection of the CIF (Kansas Endowment for Youth) Fund hasn’t been able to prevent allotments,” he said.

Under a securitization deal, bonds backed by the state’s tobacco settlement revenue would be sold to generate an immediate infusion of cash. In exchange, the state would be required to give up some or all of its annual tobacco payments for a number of years to compensate the bond holders.

The settlement payments are based on cigarette sales and are expected to decline over time as fewer people smoke, however. Securitizing now will protect the state from lower payments in the future, Sullivan said.

“Securitization would fully offload the risk (of declining tobacco payments) to investors,” he said.

Download Gov. Sam Brownback’s Fiscal Year 2018 Budget Proposal
Lawmakers were cool to the securitization proposal after Wednesday’s budget briefing.

Rep. Dan Hawkins, a Wichita Republican, said he hasn’t heard much support among lawmakers for selling bonds based on the tobacco funds.

“I don’t know if it’s dead on arrival, but I think it really has a tough road,” he said.

Majority Leader Don Hineman, a Dighton Republican, said he wouldn’t give securitization “high odds” of success.

“I sense there is a great level of resistance among legislators to taking that step. We’re probably not going to go there,” he said.

Annie McKay, executive director of Kansas Action for Children, said the argument about declining revenues is intended to cause legislators to “panic.” The state can plan for a future when fewer people smoke, she said.

“I’m disappointed that the governor continues to pursue selling out little kids to plug the state’s budget hole,” she said. “We’ll be getting pennies on the dollar.”

The governor’s budget proposal also would increase the per-pack cigarette tax by $1 — which would make it $2.29 per pack — and the tax on other tobacco products from 10 percent to 20 percent.

Hilary Gee, Kansas government relations director for the American Cancer Society’s Cancer Action Network, said the group supports significant tobacco tax increases but a $1 increase may not be enough to discourage young people from starting to smoke. She said the state should raise the tax on cigarettes by $1.50 per pack and on other tobacco products to 65 percent.

“It’s really about sticker shock,” she said. “When prices change quickly, people really notice.”

Hawkins said not all legislators may be on board with increasing the tobacco tax by more than $1, but he expects hearings on the issue.

“That’s something that’s going to be looked at,” he said. “Now is it going to be an easy one? I don’t think so.”

Meg Wingerter is a reporter for KCUR’s Kansas News Service, a collaboration of kcur.org, Kansas Public Radio and KMUW covering health, education and politics in Kansas. You can reach her on Twitter @MegWingerter.

OLATHE, Kan. (AP) — A settlement reached with the family of a 10-year-old Kansas boy killed last year on a water slide will provide lifetime payments to the boy’s three brothers.

The family of Caleb Schwab reached a settlement Wednesday with the owners of Schlitterbahn Waterparks, and Zebec, the manufacturer of the raft the boy was on when he died Aug. 7 aboard the “Verruckt” slide at the water park in Kansas City, Kansas.

The amount of the settlement has not been released. The Kansas City Star, (https://bit.ly/2itZSsY ) quoting a court transcript, reports that Caleb’s father, Kansas state Rep. Scott Schwab of Olathe, testified at a Wednesday hearing about the settlement negotiations. Caleb’s mother, Michelle, provided written testimony.

Schwab’s attorney said earlier this week additional claims will be sought against other parties.

SHAWNEE COUNTY – Law enforcement authorities in Shawnee County are investigating a burglary and asking for help to identify a suspect.

Between 8:30 p.m. Wednesday and 6:45 a.m. Thursday, a suspect entered the property of Valley Self storage 4101 SW Twilight Drive, Topeka and broke into several storage units stealing property from the units, according to a social media report.

Any information on this suspect please Email the TPD Criminal Intelligence Unit ([email protected]

RENO COUNTY — Law enforcement authorities and emergency crews in Reno County worked an accidental shooting.

Just before 12:30pm Friday Deputies with the Reno County Sheriff’s Office and Haven EMS were dispatched to Yoder Meats in Yoder for an accidental gun shot victim, according to a social media report.

When they arrived they found Duane Helms, Moundridge with a gunshot wound to his right calf.

Helms was assisting Justin Roddy, Hutchinson, in trying to shoot a Buffalo so it could be butchered.

Roddy, who is employed by Yoder Meats, was on top of a ladder trying to shoot the buffalo that was confined inside of a trailer.

The Buffalo kept turning away so Helms walked up to tail end of the trailer to try to get the Buffalo to turn.

When the Buffalo did turn he hit the side of the trailer, which jarred the ladder, knocking Roddy off balance and causing the rifle to discharge.

The shot struck Helms in the leg. 
By law you are only allowed to shoot an animal one time, anymore is classified as cruelty to an animal. Weapon was a single shot 223, according to the Sheriff’s Department.

No additional details were released.

TOPEKA, Kan. (AP) — The Kansas Attorney General’s Office is suing a Topeka business, accusing it of violating state law by disposing more than 34,000 documents in public dumpsters.

The Topeka Capital-Journal reports the lawsuit was filed Tuesday. According to the lawsuit, two employees at SearchTec Inc. repeatedly disposed of records containing personal information by leaving them in dumpsters or trash cans in the city without making sure the personal information couldn’t be read.

SearchTec conducts public record searches and legal research for businesses.

Regional vice president Mechelle Pagan says the company has received the lawsuit, and is interested in seeing the evidence on which the lawsuit is based.

The attorney general’s office is seeking restitution for SearchTec customers, as well as $10,000 for two violations of the Kansas Consumer Protection Act.

TOPEKA, Kan. (AP) — The federal National Guard Bureau plans to investigate the Kansas National Guard at the request of the state’s adjutant general after an internal investigation found leadership problems.

The Kansas Guard on Friday released a memo from Maj. Gen. Lee Tafanelli requesting the review. The Guard also said it would not comment further until the review is completed.

The Topeka Capital-Journal reported this week that the internal investigation disclosed problems including instances of racism and enlistment document forgery. The two officers leading the internal probe concluded that the Kansas Guard suffered from “toxic” leadership.

Republican Gov. Sam Brownback is standing by Tafanelli.

The request for a federal review was dated Wednesday but was released after Kansas Senate Democratic Leader Anthony Hensley of Topeka said lawmakers should investigate if Brownback does not.

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TOPEKA, Kan. (AP) — A Kansas Democratic leader says the state needs to investigate its National Guard after an internal investigation uncovered leadership problems that include instances of enlistment document forgery and racism.

Senate Democratic Leader Anthony Hensley of Topeka said Friday that if Republican Gov. Sam Brownback doesn’t look into the Guard, the Legislature should.

His comments came after The Topeka Capital-Journal reported the findings of the investigation. The Air Guard one-star general and Army Guard lieutenant colonel who led the probe separately concluded “toxic” leadership was damaging the Guard.

Brownback said Sunday he would “maintain full support” for Maj. Gen. Lee Tafanelli, whom he appointed in 2011 to lead the Guard. Tafanelli responded in an opinion page column submitted to the newspaper that the Guard works to “thoroughly and impartially investigate” wrongdoing.

WICHITA, Kan. (AP) — Wichita police are searching for two suspects after a man was critically wounded in a shooting near Friends University.

Police were called to a home about three blocks east of the university. A 19-year-old woman told officers that two suspects forced their way into the home and shot the 22-year-old victim.

The woman and a 3-year-old boy at the home were not injured.

Sgt. Nikki Woodrow said one of the suspects shot the man after demanding his personal property and the suspects then fled.

Wichita police say the suspects targeted the person who was shot.

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WICHITA, Kan. (AP) — A man has reportedly been injured in a shooting near Friends University in Wichita.

The Wichita Eagle reports a Sedgwick County dispatcher said the shooting happened Friday morning.

According to the newspaper, the unidentified man was taken to a local hospital in critical condition.

By JIM MCLEAN

It very well might be too late, but some Kansas lawmakers are moving ahead on a plan to expand KanCare, the state’s privatized Medicaid program.

The House Health and Human Services Committee voted Thursday to introduce an expansion bill at the request of Rep. Susan Concannon, a Beloit Republican.

“I just want to talk about it,” said Concannon, whose support of expansion prompted former House Speaker Ray Merrick to remove her from the health committee just before the 2016 session.

Back on the committee as vice chairwoman — courtesy of new Speaker Ron Ryckman, an Olathe Republican — Concannon believes Merrick’s retirement and the ouster of several conservative lawmakers by moderate Republicans and Democrats give expansion supporters the votes they need.

“I believe we can get it on the governor’s desk,” she said. “I believe we can pass it out of the House and Senate. Then, it will be up to him (Gov. Sam Brownback) from there on.”

Concannon’s bill, largely crafted by the Kansas Hospital Association, would expand KanCare coverage to between 100,000 and 150,000 low-income Kansans, mostly adults who make less than $16,243 a year.

At the moment, the Affordable Care Act requires the federal government to pay 95 percent of expansion costs. By 2020 that will gradually decline to 90 percent, where it will remain as long as current rules are in effect.

“It would all go away if the percentages drop below that,” Concannon said, referring to a provision in the bill authorizing the state to terminate expansion if and when Congress repeals or modifies the ACA.

Dedicated funds from a drug rebate program and an assessment on Kansas hospitals would cover the state’s share of the cost under the bill, which also establishes a working group to identify additional sources of state funding if necessary.

Brownback renewed his opposition to expansion earlier this week in his State of the State address, saying it would be reckless to move forward in the face of plans by President-elect Donald Trump and Republican congressional leaders to repeal the ACA.

“It would be foolish to endorse the Obamacare expansion of Medicaid — akin to airlifting onto the Titanic,” Brownback said. “Kansas should stay the course.”

Concannon disagrees. She and other expansion supporters say it would be foolish to miss what could be the state’s last opportunity to provide health coverage to low-income Kansans and claim billions in additional federal dollars.

“The Kansas Hospital Association’s website has a running calculation of the federal dollars that we’ve missed by not expanding,” she said. “It’s at $1.6 billion and adding up as we speak.”

Kansas isn’t the only state racing the clock on expansion. North Carolina Gov. Roy Cooper has notified federal officials of his intention to pursue expansion despite a 2013 law that prevents him from doing so without legislative approval.

To date, 31 states and the District of Columbia have expanded Medicaid. Kansas and North Carolina are among 19 that haven’t.

Rep. Dan Hawkins, the Wichita Republican who chairs the health committee, said hearings on the expansion bill likely will be scheduled for early February.

Jim McLean is managing director of kcur.org‘s Kansas News Service, a collaboration of KCUR, Kansas Public Radio and KMUW covering health, education and politics in Kansas. You can reach him on Twitter @jmcleanks. 

SAN DIEGO COUNTY, CA – The Kansas Bureau of Investigation (KBI) announced Friday that arrests were made in connection to three homicides which occurred October 30th in rural Moundridge, Kansas.

Shortly after 7:00 p.m. Thursday evening, January 12th, Mexican authorities arrested 35-year-old Jereme Lee Nelson and 31-year-old Myrta Rangel. The arrest warrants were executed without incident south of the United States border. Nelson and Rangel were then handed over to the U.S. Marshals Service and returned to the U.S. according to a media release.

The initial criminal investigation was conducted by the KBI and the Harvey County Sheriff’s Office. In November, arrest warrants out of Harvey County were issued for Nelson and Rangel for capital murder. The warrants allege the suspects committed the murders of 33-year-old Travis Street and 37-year-old Angela May Graevs, both of Moundridge, and 52-year-old Richard Prouty of Newton. At the scene of the murders, an 18-month-old child, belonging to Street and Graeves, was found unharmed inside the home.

Prior to the arrest warrants being issued, Nelson and Rangel fled Kansas. The KBI’s investigation then shifted its focus to working with Mexican authorities through the U.S. Marshals Service to identify the movements and location of the suspects within Mexico in an effort to apprehend them.

“I’m proud of the hard work our agents undertook to get to this point in the investigation. We are pleased that the suspects will be brought back to Kansas and tried for these crimes,” KBI Director Kirk Thompson said.

The suspects were booked into the San Diego County Jail. Nelson and Rangel are expected to appear at an extradition hearing Friday in San Diego County, California court.

WASHINGTON (AP) — Secretary Tom Vilsack is leaving the Agriculture Department a week before his tenure ends and President-elect Donald Trump takes office.

Trump has not chosen Vilsack’s replacement. Kansas Governor Sam Brownback had been mentioned as a possible candidate for the appointment.

Vilsack told employees in an email that Friday is his final day. He has led USDA for eight years and was President Barack Obama’s longest-serving Cabinet secretary.

The email did not say why Vilsack is leaving or if someone will replace him until Trump is inaugurated next week. Vilsack has said he wants to remain involved with agriculture after leaving government.

Vilsack has criticized the Trump administration for lagging in picking an Agriculture Secretary. It is the only Cabinet position Trump has not filled. In a statement, Vilsack said the new person will be “at a tremendous disadvantage” learning what the department does.

GRAY COUNTY –Law enforcement authorities in Gray County are investigating a residential burglary and asking the public for help.

Deputies are watching for a blue or turquoise over silver Ford pickup with two men in it that was originally seen south of Ingalls, according to the Gray County Sheriff’s Department.

The sheriff’s department received reports of thefts including an ATV Wednesday and a pickup in the same area of rural Gray County and want the public to help them watch for the pickup or any unusual activity.

No additional details were available on Friday morning, according to the sheriff’s department.