FROM THE CAPITOL
News for the 118th District
By Representative Don Hineman

February 27, 2009 Volume 1, Number 6

Energy Bill passes the House
This week the Kansas House of Representatives passed HB 2014, our comprehensive energy bill. It represents months of work by our energy and utilities committee and is one of the more advanced policies in the nation. The bill encourages renewable energy technology, includes true “net metering”, and most importantly establishes reasonable permitting guidelines which will encourage economic development throughout the state. It insures that Kansas will have a dependable source of energy in the years ahead, and will keep energy rates reasonable for all Kansans.

The bill would remove the bureaucratic roadblock that has stymied the proposed expansion of the coal-fired power plant owned and operated by Sunflower Electric in Holcomb. This is critical to the future of Western Kansas. I have provided more detail in the email I sent a few days ago, and that information is also on my blog. The actual bill can be viewed here. The Senate will now consider the bill and the next steps would be conference committee, final consideration by both houses, then presentation to the governor for signature.

Other Interesting Websites
The main website for the Kansas legislature is http://www.kslegislature.org/ From there you can access any number of items, including the text of bills, House and Senate calendars, legislator contact information, and much more.

During committee hearings we hear presentations from many different groups, and occasionally they present information that is available via the internet. Here are a few that caught my attention:

Applied Science and Technology for Reservoir Assessment. Click on the data link or pin for information on Cedar Bluff reservoir.

Kansas Graphic Information Systems for a wealth of map-based information about the state and its resources.

Ventria about a company that is growing genetically modified rice in Junction City, Kansas and using the product to produce human pharmaceuticals.

Kansas DOT - American Recovery and Investment Act, information about the Kansas road projects to be built this year with stimulus money. See page seven for information on the upgrade of Highway K23 in Gove County.

Kansas Bioscience Authority, home page of the authority, which grew out of the visionary Kansas Economic Growth Act of 2004. One of its many success stories has been acting as lead agency and catalyst for attracting the National Bio and Agro-Defense Facility (NBAF) to Manhattan, Kansas.

NBAF, information (obviously) about this $650 million project.

Smoking Ban Advances
The Kansas Senate has passed SB 25, which would institute a statewide ban on smoking in public places. Though there are certain exceptions, this is a very aggressive bill. There can be no doubt that smoking is a detriment to public health, and second-hand smoke appears to negatively impact people who are not smokers themselves. However passage of SB 25 would represent a loss of local control, and there is widespread concern with the broad reach of this bill. The fact is that communities all across Kansas are proceeding to craft public smoking bans that truly fit circumstances in their local communities. I favor that approach, and I am skeptical that SB 25 is the best solution to this problem.

Cowboy Logic: When you drive through a gate, if you have plenty of time you can leave it down. If you’re in a hurry, take the time to shut it.
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Quote of the Week: “If past history was all there was to the game, the richest people would be librarians" - Warren Buffett

The Energy Bill

The Kansas House of Representatives will take up debate this week on HB 2014, commonly referred to as the Energy Bill. The bill is a far-reaching initiative, and represents many hours of testimony, debate, and compromise in the House Energy Committee. The bill addresses issues surrounding development of renewable energy sources and expansion of energy conservation efforts. It also addresses the recurring issue of whether the Sunflower Holcomb power plant should be allowed to expand. I have some thoughts that I would like to share regarding the proposed Sunflower Holcomb expansion:

The coal vs. renewables debate. Although we all recognize the value in moving toward greater use of renewable energy sources, for the foreseeable future the only reliable and cost effective alternative for baseload (24/7) generation is coal. It has been estimated that a million wind generators would address only 1/7 of our nation's future energy needs, and would require completely covering an area larger than all of West Virginia, Pennsylvania and Ohio with wind generators. Wind is available less than 40% of the time, and is usually absent when it is really needed on hot summer days. No reliable methods of storing wind energy for later use have yet been commercialized. The feasibility of future development of wind energy in Kansas will depend on an expanded transmission network to move this energy output to the end user. Development of that network is dependent on the construction of the Holcomb expansion.

It would be incorrect to infer that Sunflower Electric Coop is not dedicated to the development of renewable energy. Sunflower receives a greater percentage of its total generation capacity from renewable sources than any other power company in Kansas. In addition, the bioenergy center which is proposed as a component of the Holcomb project would represent a far-reaching and innovative advance in bioenergy production. Please note that contrary to recent rumors, the bioenergy center is still planned as an integral part of the expansion, as confirmed to me today by a high ranking official at Sunflower.

Wouldn't allowing the Holcomb expansion set Kansas apart as unwilling to address the problem of global warming? China is building 71 power plants per year the size of the proposed Sunflower plants. Closer to home, our neighbors are proceeding with constructing the following coal-fired electric generating plants:

Texas, seven plants, 4165 MW total capacity
Missouri, two plants, 1150 MW total capacity
Nebraska, two plants, 883 MW total capacity
Colorado, one plant, 750 MW total capacity
Arkansas, one plant, 665 MW total capacity
Wyoming, two plants, 522 MW total capacity
Iowa, two plants, 167 MW total capacity, and finally
Illinois, home of President Barack Obama, one plant, 250 MW total capacity.

It is apparent that denying construction of the Holcomb expansion would set Kansas apart on a fool's errand of trying to solve the problem of global warming all by itself, to the detriment of Kansas residents and energy consumers.

Why not size the Holcomb expansion to only meet the needs of Kansas consumers? There are economies of scale, and in the construction of coal fired plants it is important to size the plant for optimum construction and operational efficiency. The immediate needs of Holcomb customers can be met with a 200 MW expansion, but that size plant could not be constructed as cost-effectively nor operated as efficiently as a 750 MW plant. In addition, the construction of additional transmission lines to access both the Eastern and Western grids would not be as feasible with smaller plants. The construction of two 750 MW plants meets the needs of all three partners in the construction, and the development fees paid by Golden Spread and Tri-State to Sunflower provides Sunflower the capital needed to finance its portion of the project.

In other industries the production of product for export is viewed as a good thing. Kansas regularly exports a substantial portion of many of the products it produces, including Garmin GPS, airplanes, beef, wheat, and milk. Why should export of energy be viewed any different?

Isn't the economic benefit only the short-term effect of the construction? The benefit of the power plant construction will indeed be substantial, representing more than 2400 jobs created, annual payroll of more than $78 million, and increased tax collections of more than $9.3 million. Certainly this should be important at a time when new construction housing permits in Overland Park have dropped from 120 in January 2008 to one in January 2009. But the real economic benefit from the expansion will be the long-term presence of the expanded plant, bringing with it more than 300 full-time jobs, an annual payroll of more than $16 million, and most importantly, assured competitive energy costs for Sunflower consumers for the foreseeable future. The economy of rural Kansas continues to struggle, and I ask you to reflect on the effect that dramatically higher energy costs would have on a region that presently struggles with property tax mill levies that are unheard of in Kansas' urban centers. Here are some examples: Leoti, 215.0 mills; LaCrosse, 202.1 mills; Dighton, 188.7 mills. Far too often, discussions about economic development for rural Kansas produce little more than rhetoric. The vote on HB 2014 represents an opportunity to get serious about addressing a portion of the problem. The Holcomb expansion is as important to the economy of Western Kansas as the National Bio Agro Defense Facility, Ft. Riley expansion, or Kansas Speedway/Legends are to Eastern Kansas. Western Kansas must not be denied its chance to prosper.

Economic benefit to Kansas will also be enhanced by addressing the problem of regulatory uncertainty created by Secretary Bremby's denial of Sunflower's permit. Kansas has already lost out on billions in new development over and above the Sunflower expansion as a result of his denial, and Bremby's recent pronouncement that his denial is only targeted at new energy plant construction only illustrates the arbitrary nature of his original decision. This makes the task of attracting new business to Kansas exceeding difficult and will only be resolved by enacting HB 2014.

We are embarking on a new path to meet Kansas' future energy needs, and HB 2014 represents a balanced, responsible approach to meet that need. HB 2014 recognizes that the solution cannot be one-dimensional, and that a headlong push to renewables too rapidly would be counter-productive by raising rates too high too fast, thereby disadvantaging Kansas electric consumers. I will be voting Yes on HB 2014, and encouraging my colleagues in the House to join me in that vote.

FROM THE CAPITOL
News for the 118th District
By Representative Don Hineman

February 20, 2009 Volume 1, Number 5

Political Standoff
The state of Kansas made national news recently when an impasse developed between our Democrat governor and the Republican leadership of the House and Senate regarding the legality of issuing additional certificates of indebtedness without a balanced FY 2009 budget in place. Issuance was needed to allow the state to pay its bills during a temporary cash flow shortage. This was an unfortunate incident, and it created a great deal of anxiety among state employees who feared they might not get their paycheck as scheduled on Friday, February 20. The national news had a field day with the situation for a while. The truth is January and February are traditionally short months for the state from a cash-flow standpoint. It is common for the state to issue certificates of indebtedness during these months prior to the large tax-receipt months of March and April. However the number and amount of certificates issued this year is unprecedented, and the total now stands at $775 million. These are internal obligations between state agencies, but they are indicative of a larger problem. For the last few years expenditures from the State General Fund have been larger than receipts into the fund. The just-completed FY 2009 budget, although technically balanced, shows State General Fund expenditures exceeding receipts by $438.6 million. “Balance” has been achieved by depleting fund balances, juggling funds and delaying debt obligations. Clearly the state of Kansas is living beyond its means, as are some Kansas families. This cannot continue indefinitely, and the day of reckoning approaches. Constructing a structurally balanced budget for FY 2010 will be extremely difficult and will force all of us in the legislature to take an honest look at how we are financing state government. Can we do it all with cuts in expenditures? That will certainly be the first approach. Can we or the citizens of the state live with the final result? That remains to be seen.

Energy Bill
A “mega” energy bill is currently being crafted in the House Energy and Utilities Committee. Although many regard renewable energy sources such as wind and solar as contributors to our future energy needs, the fact is the immediate energy needs of the entire state must be met with affordable and reliable options . Wind and solar are simply not positioned to fill the void. For the foreseeable future there will be a need for dependable baseload generation capacity from sources that are available 24/7. The most affordable of those options is coal, and the plant proposed to be built in Holcomb would be the cleanest, most technologically advanced coal plant in the state. Rod Bremby, Secretary of Kansas Department of Health and Environment originally denied the permit to the Holcomb expansion in October 2007, citing concerns over greenhouse gas emissions even though Kansas statute does not give him authority to regulate them. Recently he issued a “clarification” stating that his denial of permits based on greenhouse gas emissions would extend only to new electric power plants and would not apply to re-permitting of existing plants or to other industries that emit greenhouse gases. To many of us, this clarification merely points out the arbitrary nature of his action. The issue will be addressed this year by the legislature, and it is the hope and intent of many that we pass a veto-proof bill that limits the powers of the secretary and provides regulatory certainty for all Kansans.

Federal Stimulus?
The federal stimulus bill has now been signed, and folks are scrambling to decipher what that $787 billion means for different sectors of the economy and society. It is reported that the amount of stimulus funds to come to Kansas state government will be $1.7 billion. Obviously that amount would be quite helpful in addressing the expected $1 billion shortfall in the FY 2010 budget. However it isn’t quite that simple. State Treasurer McKinney will not find a check for $1.7 billion in the mailbox next week with a note that reads “Spend it as you wish”. The funds will be earmarked for different purposes and will come with strings attached. It appears that about $400 million of the stimulus package will be available to help meet the state’s Medicaid obligations. There may be another $100 million going to public education. We must first learn the details, but $500 million of short-term budgetary help would be a tremendous boost to the state. Other funds will be earmarked for infrastructure projects, and the state may receive assistance for transportation projects and deferred maintenance projects on colleges and universities. Emphasis is being placed on “shovel-ready” projects with an objective of immediate stimulus to the economy. Several points need to be made with regard to the stimulus package:

1. The incredible amount of money the federal government is pumping into the economy represents a large increase in federal debt that must eventually be paid.

2. Though it is hard to believe right now, there are many who expect that the infusion of so many dollars into the economy will eventually lead to tremendous inflationary pressure.

3. Whatever stimulus money that comes to Kansas represents one-time money. Though it may be helpful in the short run, it does nothing to address the continuing structural imbalance between receipts and expenditures in the State General Fund.


Flash: Stimulus Money for K23 Highway in Gove County
I composed the preceding article on Thursday afternoon, and have just now (Friday morning) received word that Kansas Secretary of Transportation Deb Miller has announced highway projects that will use $206 million of federal stimulus funds and could be under construction as early as June. Her statement included the following:

“$11 million for K-23 in Gove County to enhance safety on 16 miles of a narrow, 50-year-old road that lacks shoulders and has steep side slopes, which creates a hazard for trucks hauling agricultural commodities and implements.”

This is tremendously good news for many residents of District 118, where the unsafe nature of K23 through Gove and Sheridan counties is well known. I testified before a KDOT field hearing in September on this subject and I know that a number of you have voiced your concerns as well. I also followed up with personal communication to KDOT personnel. The feedback we received was the problem was recognized but any possible project was at least several years off. The announcement that a portion of this section of highway is now scheduled for rapid upgrade is very gratifying. It proves that we really can make a difference when we communicate our concerns effectively.

Old Farmer’s Advice: You only live once, but if you work it right, once is enough.
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Quote of the Week: “When we ask for advice, we are usually looking for an accomplice.”
--Marquis de la Grange

February 13, 2009 Volume 1, Number 4

News for the 118th District
By Representative Don Hineman
February 13, 2009 Volume 1, Number 4

Budget Agreement
On Thursday February 12 the House and Senate both passed a revised Fiscal Year 2009 budget. This was a painful and time consuming process, but the plan addresses the projected budgetary shortfall and insures that the state will end the year with a positive ending balance. The bill is a compromise in the truest sense of the word, as no member can be truly happy with every aspect of the accord. A real effort was made to distribute the painful cuts as evenly as possible. As you might expect, the bill contains victories and defeats for District 118. Funding for K-12 education was cut by $66 base state aid per pupil; however this is a less severe cut than the total 4.5% reduction imposed on most other recipients of state general fund monies. I am disappointed that the cities and counties in District 118 will not receive the scheduled payment from the Special City/County Highway fund. And the funds we allocated in the House to remove the Governor’s freeze on developmental disabilities waivers were removed in conference committee. However the bill does include additional funding for physical disabilities waivers and implements a rolling waiting list. And it is encouraging that the Children’s Initiative Fund, which funds early childhood education and intervention programs, was not cut. Ditto for the Local Environmental Protection Program and the Western Kansas Weather Modification program. And local units of government were shielded from even more draconian cuts to their funding that had been proposed in the Governor’s proposal and the original Senate bill. This was a difficult vote for me, but I sided with 69 other members in the House in voting yes. It is said that politics is the art of the possible, and this bill is an example of that. It is hard to vote for something that you know will impose real hardship on school districts, cities, counties, and the physically and developmentally disabled back home. But I believe this bill represents the best we could do, and to do nothing would be irresponsible. It is now up to the Governor to accept or reject the bill. It is my hope that she will sign it so we can quickly turn our attention to the even larger problem of crafting a FY 2010 budget.

Do We Have Too Many Units of Government?
Speaker of the House Mike O’Neal, who grew up in Scott City and now represents Hutchinson, in January pointed out that Kansas has many more units of local government than our neighboring states and he asserted this represents a degree of governmental inefficiency that should be examined closely. More recently Senator Chris Steineger of Kansas City made news when he circulated a map of Kansas with new county boundaries established. Here is a link to his editorial in the Wichita Eagle, http://www.kansas.com/781/v-print/story/688510.html and here is a look at the map: http://www.sunpublications.com/images/stories/Feb11Photos/consolidation.map.jpg His proposal would reduce the number of Kansas counties from 125 to 36. The proposal has generated a lot of talk and no small amount of scoffing and derision. A bill was introduced in the House Education Committee recently that would reduce state funding to school districts that are “small by choice” according to the bill’s author. He defined “small by choice” as those districts with fewer than 200 total enrollment and fewer than 200 square miles in the district. None of the districts in Northwest Kansas would be affected, though several would be perilously close. Odds are that neither Senator Steineger’s proposal nor the education bill will pass this year, but all of this commotion indicates one thing: people are taking a fresh look at how we govern in the state of Kansas and questioning whether there might be a better and more efficient way of delivering governmental services. Very few in Topeka would be in favor of forced consolidation of government, but there are many who would like to “assist” the process of voluntary consolidation or coordination. Out in the country this process is already happening on its own.

Here are a few examples:
1. Greely County and the cities of Tribune and Horace recently consolidated into a Unified Government structure.
2. Lane, Ness, and Rush counties merged their Extension districts several years ago.
3. Utica, Ransom, and Bazine school districts have consolidated into a single district.
4. Lane County and the City of Dighton have operated a joint police and sheriff’s department for years.

These examples indicate that folks in Western Kansas understand that there can be value in combining efforts to better provide services and reduce cost. I encourage this attitude, and I believe state government can put programs in place to assist this process while still leaving the decisions up to the local citizens. I believe there are three pertinent facts:

1. Local citizens know better than Topeka or Washington D.C. how their local government should function and what it should look like.
2. Achieving greater governmental efficiency should be the goal of us all.
3. The current economic crisis is an excellent time for everyone in government to take a fresh look at what we are doing and how we are doing it.


Old Farmer’s Advice: The best sermons are lived, not preached.

Quote of the Week: “Many attempts to communicate are nullified by saying too much”. –Robert Greenleaf

February 2, 2009 Volume 1, Number 3

News for the 118th District
By Representative Don Hineman
February 2, 2009 Volume 1, Number 3

How Does a Spending Cut Become a Tax Increase?
The deepening recession is making it difficult for state government to make ends meet, because sales and income tax receipts continue to decline. As I write this, Governor Sebelius, the Kansas Senate, and the Kansas House Appropriations Committee have all floated proposals to meet the fiscal year 2009 shortfall with a combination of spending cuts and “revenue enhancements”. The objective in all three proposals is to balance the budget without raising taxes. However several of the spending cuts would be direct reductions in scheduled payments to the cities, counties, and school districts of Kansas:

1. Reduce transfers to Special City-County Highway Fund
2. Suspend scheduled resumption of payments to Local Ad Valorum Tax Relief Fund
3. Divert all Liquor Tax receipts to State General Fund, instead of distributing to cities and counties
4. Reduce Base State Aid per Pupil payment to Kansas public school districts
5. Cut state contribution to school district bond and interest and capital improvement funds
6. Reduce or eliminate the business machinery and equipment “slider” payment to cities and counties
7. Cut appropriation to Western Kansas Weather Modification program

The ability of Kansas cities, counties and school districts to absorb these cuts will vary, but the cumulative effect of the state’s proposed actions could lead to tax increases for many, many local units of government. We are looking at a situation where a spending cut at the state level causes an increase in taxes at the local level. If those of us in state government feel we are forced to make such cuts, I would take issue with anyone who claims that we balanced the budget without raising taxes.

These cuts are proposed in reaction to a shortfall in state tax receipts (sales and income tax) and would produce an increase in another form of tax… local property tax. It has been said that governmental functions in the state of Kansas are primarily funded with the “three-legged stool” of sales, income, and property tax. To maintain a favorable business climate and to be fair to all taxpayers it is important that the “stool” remain balanced. Subtle shifts of the type being proposed this year lengthen the property tax “leg” of the stool while shortening the income and sale tax “legs”. In fact a case could be made that increasing reliance on property tax has long been a problem in overall Kansas tax philosophy. The use of property tax as a governmental funding source goes back centuries, to the days when real estate was owned exclusively by a wealthy landed gentry. However the ownership of real property is no longer an accurate measure of wealth or ability to pay. Real estate is typically purchased by taking out a mortgage. The new owner of a home or a quarter of farmland may only have equity equal to 25% or 30% of the value of the property. So a struggling young farmer must pay taxes on both his equity and the liability that goes with it. And then, when he reaches retirement age and sells the land and invests the proceeds in mutual funds, he no longer pays any property tax because intangibles are exempt.

Property tax burdens fall unequally throughout the state, and regions with a higher level of economic activity and/or mineral wealth have much lower mill levies than other areas. In the eight cities of the 118th District that provide the full range of municipal services, the average total mill levy in 2008 was 192.4. In Wichita the total mill levy was 120.2, in Olathe it was 122.4, in Lawrence it was 116.0, and in Overland Park it was 105.2. Clearly, the communities of the 118th District and much of Northwest Kansas are disadvantaged compared to the urban areas of the state, and total mill levies approaching or exceeding 200 mills are a burden on the taxpayer and a powerful disincentive to any kind of economic growth.

I communicated with many of you during last year’s campaign that I would strive to prevent unfunded mandates being placed on local government by the actions of state government. I consider the proposed tax shifts to be another form of unfunded mandate, and I will be diligent in working to reduce or eliminate their impact.

District 118 Factoid: For the fourteen school districts in the 118th District, a one mill property tax increase would raise amounts varying from $7,100 (Weskan) to $41,150 (Dighton). Blue Valley School District would raise $2,400,462 with one mill; Wichita would raise $2,655,142, and Shawnee Mission would raise $3,224,445.

Old Farmer’s Advice: Sometimes silence is the best answer.

Quote of the Week: “If the human mind was simple enough to understand, we’d be too simple to understand it”. –Emerson Pugh

January 26, 2009 Volume 1, Number 2

News for the 118th District
By Representative Don Hineman
January 26, 2009 Volume 1, Number 2

Progress toward a Budget?
The week of January 19-23 was marked by intense meetings by Senate Ways and Means and House Appropriations Committees, as both groups searched for the best way to craft a revised budget for Fiscal Year 2009. These official meetings were only the tip of the iceberg, however, as nearly every conversation in and around the Capitol touched on the budget, whether it was party caucuses, informal conversations among legislators, communications with constituents, or input from stakeholders. Stay tuned…

We Get What We Pay For… and Maybe More
Kansas public schools got an infusion of $1.5 billion in additional funding over the past three years, and a report recently released by the Legislative Division of Post Audit reveals that seventy percent of that funding was spent on instruction. “In general”, said Sen. Derek Schmidt, an Independence Republican, “the audit suggests the money is going where it was intended.” An earlier Post Audit report found “a strong association between the amounts districts spend and the outcomes they achieve”. What’s more, Director Alexa Posny, head of the Kansas Department of Education told the House Education Committee that student achievement has risen dramatically in recent years, even though Kansas teacher salaries rank 38th in the U.S.

Building Boom at Fort Riley
As a member of the House Committee on Veterans, Military, and Homeland Security I was recently privileged to take part in a legislator’s tour of Ft. Riley. This historic fort, first established in 1853, has been home to the First Infantry Division, better known as the Big Red One, since 1917. The Big Red One has had a long and distinguished combat history, playing key roles in World War I, World War II, the Vietnam War, Operation Desert Storm, and most recently in Operation Iraqi Freedom. All six of the Big Red One’s brigades, the First, Second, Third, and Fourth Brigade Combat Teams, the 1st Combat Aviation Brigade, and the 1st Sustainment Brigade, have all deployed to Iraq at various times from 2003 until the present. The 3rd Brigade is currently deployed to Afghanistan and the 2nd Brigade is serving in Iraq. At the present time there are 16,000 soldiers assigned to Ft. Riley, and the fort is currently home to approximately 8,000 soldiers and their family members. This number is expected to soon grow to 18,500, and an ambitious building program is underway at the fort to accommodate these personnel. Now under construction or recently completed are a new headquarters facility, a new airfield and support installation, a new $400 million hospital, and over $500 million in new soldier housing. By 2015 the U.S. government will have spent over $3.2 billion on new facilities at the fort. The expansion of activities at the fort has a major impact on the local economy and the economy of the state. In fiscal year 2007 total payroll at the fort was over $1 billion, and total economic impact to the region was $1.433 billion.

What’s Vision 2020?
One of the committees I serve on is titled Vision 2020, and it is a new committee this year. Its purpose is to examine issues that have a longer time horizon than legislative committees typically concern themselves with, and to make recommendations and possibly propose legislation regarding these issues. The issue we have focused on recently is the silting-in of Kansas reservoirs and the problems this causes. Most of the reservoirs in Kansas were constructed in the 1950’s or 1960’s and nearly of all of them were designed for a 100-year life. In other words, since a reservoir is an artificial structure, it was known and expected that these structures would fill with silt over time. We are now approaching the 50-year “half-life” of these reservoirs, and the bad news is that many of the reservoirs, especially those in the eastern half of the state, are silting in at a faster rate than originally calculated. Solutions are difficult and expensive, but the alternative of building new reservoirs is even more prohibitive. Current estimates are that construction of new reservoirs equivalent to our largest state reservoirs today would cost $1.5 billion each.

District 118 Factoid: Our district is the most rural of all 125 house districts in Kansas. It contains 7 ½ counties, 8% of the land area of the state, and is home to fourteen school districts.

Old Farmer’s Advice: Words that soak into your ears are whispered...not yelled.

Quote of the Week: Experience is a hard teacher because she gives the test first, the lesson afterwards. – Vernon Sanders Law

2009 Session Begins

News for the 118th District
By Representative Don Hineman
January 19, 2009 Volume 1, Number 1

Swearing-In, and another Kalo Hineman in the House
Don Hineman was sworn in as a member of the 2009 Kansas House of Representatives on Monday, January 12. Many family members were on hand for the ceremony, including his three-year-old grandson, Kalo Andrew Hineman. The photo shows Don and Kalo walking the halls of the Capitol building, where Don's father and Kalo's namesake, Kalo Albert Hineman, served as a member of the legislature from 1974 to 1981.

It’s all about the budget
When the 2009 Kansas Legislative Session began last Monday it was immediately apparent that the key issue and concern during this session will be the state’s budgetary shortfall and how to address the problem. Current projections are that if no action is taken, the state will have a deficit of $180 million by the end of the current 2009 fiscal year, which ends on June 30. And projections for the 2010 fiscal year are even more grim, indicating the state could be $1 billion in the red by June 30, 2010. In reality this cannot happen, as the state is statutorily prevented from running a deficit. Given the current difficult economic environment, there is little enthusiasm for raising taxes as a way to make up the shortfall. That means it will be up to the legislature and the governor to devise cuts in state spending that keep expenditures in line with expected revenues. To give you an idea of the magnitude of the problem, the projected 2010 deficit of $1 billion represents 15 % of the current state general fund budget.

The Governor’s Proposed Budget
Governor Sebelius proposes making up the shortfall with selective cuts to certain programs while holding others harmless. There are a number of problems with her budget, including:
1. There is a basic inequity in selective cuts that lead to deep cuts in some areas, such as higher education and social services while not asking other governmental sectors to “share the pain”.
2. Her budget denies scheduled fund transfers to local government, which will increase the burden on our city and county budgets and would likely lead to higher property taxes.
3. She proposes sweeping existing excess balances out of special fee funds, leaving those entities with the very real possibility of needing increased fees as a result. This amounts to “breaking everyone’s piggy bank and checking under the cushions of the couch” in an attempt to finance state government. I would hope we could find a more responsible way to do our business.
4. State statutes require a State General Fund ending balance of 7.5 percent. The governor’s budget ignores this requirement and would basically leave the state with an ending balance of less than 0.1% on June 30, 2010.
5. She proposes transferring all expanded gaming revenues to the State General Fund instead of using them for the three areas required by law.

Crisis Equals Opportunity
The process of devising a balanced budget for the state will be a painful one, and I ask for your input, support, and prayers as we look for solutions. The economic downturn will not last forever, and this great state of Kansas can rebound quickly if we craft the budget correctly. It will require compassion for those who must look to the state for assistance, while keeping a keen eye toward not making damaging cuts that would undermine the ability of the Kansas economy to grow again as we come out of the downturn. A time of introspection and self-examination is always good for individuals and businesses, and the current situation will force a closer look at all areas of state government and how we conduct the business of the state. That can be and will be a healthy process in the long run.

Thank You
My wife Betsy’s recent surgery and difficult recovery reminded me of my many blessings, and I want to thank all who supported us during that time. Your calls, cards, support, and prayers meant the world to both of us. Thanks also to those who helped in my campaign last summer and fall, and to all who voted in the elections. I am proud to be your representative, and I want to hear from you with your questions or concerns.