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Photograph of Charlie RothCharlie Roth - State Representative - 71st District of Kansas - Republican

Legislative Updates

Legislative Update - May 6, 2011


WHAT’S THE HOLD UP?

Some of my constituents are asking, “What’s the hold up? Why are you guys still in session? What’s left to do?” At the risk of being overly wonkish with details that only Kansas political junkies would enjoy, I will attempt to provide specifics on the current wrap-up session. The reason we are still in session is the struggle over the budget and specifically the size of the ending balance.

A LITTLE BACKGROUND:

  1. You may remember that there is a statute that requires the Legislature to have a budgeted ending balance equal to or greater than 7.5% of the state general fund. It was originally enacted to create a “rainy day fund” so the state would have resources to meet obligations at times of economic downturn, like now. The 7.5% fund would compute to about $450M +/-. We have regularly waived that statute during my tenure and for as long as I have followed Kansas state government. You may also recall that the House’s version of the 2012 budget contained an ending balance of $80M and the Senate’s version was $8M. The budgets are in a conference committee where the differences are being reconciled.

  2. The Governor in his Friday news conference of April 30, commented on the budget process saying:

    1. He was embarrassed by his original budget’s small ending balance, $7.5M
    2. He would like the Legislature to budget for as big and ending balance as possible
    3. The Legislature over appropriated the last three years, causing the Governor to make allotments while the Legislature was out of session, “…not the Kansas way."

  3. Two years ago, at the beginning of this Great Recession, Governor Parkinson advised the Legislature to balance the budget and go home. He said that should revenues decline further, and they did, he would shoulder the responsibility of making the cuts and balancing the budget, and he did, to the tune of about $1B in cuts. Parkinson’s method left open the possibility that should revenues increase (they didn’t) we wouldn’t have to harm Kansas families who rely on state services (that’s pretty much all of us when you think about it). You may draw your own conclusions on approaches and leadership styles of these two governors.

    4. The state cannot deficit spend, unlike our big brothers in Washington, D.C. And we cannot create a budget with a negative ending balance. All of us in the legislature, on both sides of the aisle, agree that we cannot leave without balancing the budget.

    Having “as big an ending balance as possible” has its tradeoffs. The House budget conferees reason that it does allow for some financial wiggle room for emergencies that might arise during the year. Emergencies do arise, often in increased Medicaid caseloads and state disaster relief. Further, cutting now will make it easier to sustain those cuts in the following years. The Senate argues that for every nickel in the ending balance, that’s a nickel that could go to education, public safety, the judiciary, or the disabled. It seems unwise to have a “large” ending balance in these difficult times. We are in an emergency right now. There are Kansans that are hurting and need help. There are Kansas school kids that will have only one crack at 4th grade. Our most vulnerable are at risk. Too much money laying in our checking account is irresponsible to those we serve. And it is especially troubling when we see better economic times on the horizon.

    And so the debate continues into the 84th day of a 90 day session. It is estimated that it costs $60K/day while the legislature is in session. We will run out of money for legislators’ salaries and expenses on May 12, and public opinion will turn more negative on the state legislature. After all, we Republicans enjoy a 92-33 majority in the House and a 33-7 advantage in the Senate, plus a Republican governor, “can’t you do anything?”

    So, what is “the Kansas way”? To me, it is all about being fiscally responsible while meeting the needs of our citizens within the resources available. The “Kansas way” is all about making strategic investments, both through tax and spending policies, that will provide a more vibrant economic climate for our children and grandchildren. To do otherwise would be a sharp departure from our state’s long-standing tradition of living within our means, while making sure we’re preparing for tomorrow.


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