Representative Don Hineman's Newsletter
March 30, 2009 Volume 1, Number 8

2010 Budget Bill Passes House and Senate

This past week both the House and the Senate passed a budget bill for FY 2010, and the conference committee has merged those two into a compromise budget that will be voted on by both houses this week. From the first day I arrived in Topeka back in early January it has been evident that the passage of a workable budget would be the most time consuming and difficult issue of this legislative session. Indeed, as the economy continues to slip, state revenues decline with each succeeding monthly report. When will we hit bottom? No one knows. In spite of that fact we must adopt a balanced budget. With declining revenues it was necessary to make very painful cuts to every area of state government. Here are some of the cuts imposed by HB 2373:

· General Government funding reduced by 9.9%
· Funding for Disabled reduced by 4.2%
· Public Safety funding reduced by 9.4%
· Agriculture and Natural Resources funding reduced by 22.7%
· K-12 Education funding reduced by 0.7%

I am a strong proponent of public education in Kansas, and I realize the cuts to education will present serious challenges to the school districts of Northwest Kansas. But these are extraordinary times, and extraordinary steps must be taken. I not only represent the education community and the students of District 118. I also represent those served by Community Mental Health Associations, individuals who are presently frozen out of physically disabled or developmentally disabled waivers, and citizens who would be gravely concerned if prisoners were released from prison prematurely without probation. These are hard choices, and like many other members of the House, I concluded that a reduction in appropriation to K-12 Education was necessary as part of the balancing act. I am pleased that we succeeded in limiting the cut to only 0.7%.

The idea is floating around that by imposing a cut on K-12 Education, Kansas would become ineligible for federal stimulus funds for education. The most current information and interpretation of ARRA indicates that is not so. But one undeniable fact needs to be stated: there is zero interest on the part of the members of the House for leaving stimulus money on the table The amount of money involved is simply too large and the hole in the state budget demands that we put it to use. If we learn between now and the veto session in early May that we must indeed leave education funding at the 2009 level, then we will do so. Please understand, however, that doing so would mean even more severe cuts to other functions of government. I don’t believe any of us can be happy about that. And as I mentioned, the budget we just adopted already shows a deficit, and it is very likely that by the time we return in early May we will be looking at even lower revenue receipts and searching for more places to cut.

The state of Kansas has come to be in this predicament for two reasons. The first, obviously, is the sick economy, which is leading to shrinking tax receipts for the state. But another part of the equation is that for the past few years the state general fund budget has been out of balance. Those of you who have received earlier newsletters may remember my pointing this out a few weeks back. You know how it works with your personal budget; for a short while you can live beyond your means, but eventually it catches up with you. That’s the fix the state is in. Even with the federal stimulus money added in, budget projections looking forward into 2011 and 2012 show an even greater deficit looming ahead. What many of us consider the most likely future scenario shows a deficit of $527 million in 2011 and $1.23 billion in 2012. And yet, as we debated the budget bill last week we saw amendment after amendment offered to increase funding for various functions of government. Each addressed a legitimate and pressing need, and yet each amendment was proposed without providing for a source of funding. That is not responsible government, and it cannot continue indefinitely. I have constructed my own state budget profiles, and even when I plug in very optimistic estimates for future revenue growth the deficit does not go away. The simple fact that few want to accept at this point is that if we collectively want state government that functions at something approximating the current level, then some form of “revenue enhancement” will be necessary very soon. There is absolutely no talk about that subject in the capitol this year, and very few believe a tax increase would be a good idea during the depths of a recession. But the time is coming when some really hard choices must be made. We should not let that moment sneak up on us, and we should engage in meaningful dialogue about those hard choices now.

I recognize that what the Kansas legislature has done this week will mean real hardship for many school districts, cities, counties, community mental health associations, community developmental disabilities organizations, institutions of higher education, and every citizen of the State of Kansas. I regret that, and I wish it could be different. It simply cannot be. I only hope the situation is not bleaker when we come back for the veto session in May.


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Community Carnival Bill Advances

The Kansas House of Representatives has now passed out a bill that that would simplify regulations regarding community owned and operated carnivals. The 2008 Kansas Legislature had passed a law requiring stricter training and inspection protocols for all carnivals. It was later learned that these regulations would be completely unworkable for community owned carnivals, and would effectively shut them down. This is a very important issue in the 118th District. Over time it has become increasingly difficult for local communities to hire a commercial carnival to come to their county fairs. The local solution has been to develop their own carnivals by buying or building rides and attractions over time. The rides are typically operated by local volunteers… the parents, grandparents, and neighbors of the children riding the rides. During last summer’s campaign season I discovered how important they are in the 118th District. Of the eight county fairs I attended, six of them have a community carnival in operation. It is very impressive what these communities have done, and it is a source of great local pride. The bill passed by this year’s legislature would reverse the crippling effects of the 2008 bill and allow community carnivals to continue to operate. The measure has passed both houses and now awaits the governor’s signature.

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Interesting Websites

The Future An interesting look at the progression of technology, put together by Karl Fisch, a teacher at Arapahoe High School in Littleton, Colorado. The times they are a’changin…

Kansas Geology A site with maps of the geology of most counties in Kansas. This is one section of the website of the Kansas Geological Survey. By exploring the site you will also uncover a wealth of information about the water, energy, and geophysics of Kansas.

Kansas Wildscape Website of a private, nonprofit organization dedicated to conserving and perpetuating the land, the wild species, and the rich beauty of Kansas for the use and enjoyment of all. Take special note of their Cabins Project, a very successful private/public collaborative effort to construct public cabins at Kansas State Parks and public lands.

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You May be a Western Kansas Farmer if:

An overnight, out-of-state trip for equipment parts is a vacation.

You wear specific hats to farm sales, livestock auctions, customer appreciation suppers, and vacations.

You drive off the road while examining your neighbor's crops.

You have buried a dog and cried like a baby.

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Quote of the Week: “Income tax returns are the most imaginative fiction being written today.” --Herman Wouk

FROM THE CAPITOL
News for the 118th District
By Representative Don Hineman
March 13, 2009 Volume 1, Number 7

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Proposition K
One of the hot topics in Topeka these days is Proposition K. It is contained in HB 2150, which is now under consideration by the House Tax Committee. It would change how homes are valued in Kansas. Instead of using our current fair market valuation method, the state would set January 1, 2010 property values as the baseline value and then increase all property values 2% each year from then on. Proponents claim that dramatically increasing property values currently allow local elected officials to expand budgets without having to raise the mill levy. They promote Proposition K as a way to achieve predictability in tax bills and gain transparency in local government budgets.

The problem is that properties do not all change value at the same rate. Properties in upscale, rapidly growing neighborhoods typically gain value at a faster rate than properties in depressed inner-city areas or rural communities. That is why the present system of periodically reappraising property is in place…to insure fairness in property taxation. To institute an artificial rate of increase, as Proposition K would do, leads to a subtle shift in tax burden from upscale properties to depressed neighborhoods and the surrounding countryside. Not only is there a serious constitutional question, but the idea is simply wrong. The artificial factor of a 2% increase for everyone changes the notion of "fair".

There would be a similar effect in regard to school finance. Because a substantial portion of K-12 education in Kansas is financed by a statewide mill levy, an artificial 2% growth rate would shift tax burden over time from fast growing school districts to districts with stable or declining valuations. Additionally, the high growth districts would appear artificially less wealthy over time, and thereby receive a larger share of state aid for schools. This would have major negative effects for Northwest Kansas and the 118th District.

Prop K proponents are spending a great deal of money on advertising to push their agenda. One has to wonder why, and who is financing the campaign. The problem is the valuation method won't change the taxes raised, it only affects who pays the taxes and in what proportion. Governmental units set the amount of taxes raised, and that should be the focus for lower taxes, not the way we value property.

I understand our present system is not perfect; that is why our appraisers constantly aim to maintain fairness of property valuation, and their performance is monitored by the Property Valuation Division of the Kansas Department of Revenue. The 2% artificial method may make determining home "values" easy, but over time it will create vast disparity in who pays the tax. The little guy will lose; the areas of Kansas that are not prosperous will lose. It appears the proponents of Proposition K are buying in to the old adage about taxes: “the fairest tax is the one the other guy pays.” I believe Proposition K is a bad idea, dangerous for Kansans, and unfair. If the measure reaches the floor of the house I will be voting no.

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Annexation Bill Advances
The Kansas House of Representatives has now passed out a bill, HB 2029, which would place more restrictions on cities wishing to annex surrounding rural property. The need for the bill was triggered by a recent move by Overland Park to annex fifteen square miles of property in southern Johnson County. Many representatives of Johnson County, Topeka, and Wichita joined with rural legislators to pass the bill and rein in the expansionist “manifest destiny” ambitions of a few municipalities. I was happy to vote yes.

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Progress is Slow
Seasoned legislators are telling us freshmen that this year’s session is the slowest paced they can ever recall. Very little legislation has moved through either house, and only one bill, the FY 2009 budget recission bill, has cleared both houses and been presented to the governor for signature. Many folks would view this as a good thing… less action by government means less imposition in our personal lives. But of course there is much activity at the committee level, and this year much of that activity is related to constructing a budget for fiscal year 2010. The economic crisis makes that very difficult, and the slow pace of activity this year is directly related to the fact that any proposed legislation that would increase governmental expenditure is greeted with a great deal of resistance.

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Websites of Interest
Kansas Legislature Official website of the Kansas Legislature

Geography of a Recession A map of the counties in the U.S. showing unemployment rates. A rate of 4% is typically considered to be full employment. This map is a graphic illustration of how the economic crisis has hit the coasts harder than the heartland.

1100 Torches A call to community action in memory of a young Hays native who lost her life much too soon.

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Cowboy Logic: "A wise man does not test the depth of a river with both feet.”

Quote of the Week: “Happiness is in the heart, not in the circumstances” --Unknown