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