Slow Week As Lawmakers Consider School Finance Decision

Slow week as lawmakers consider school finance decision

Kansas lawmakers spent the week pondering the meaning of the Kansas Supreme Court’s decision last week on school finance, trying to figure out how much it will cost the state and how to find the money.

The Court ruled unanimously that Kansas’ block grant system is unconstitutional and it retained jurisdiction of the case, giving lawmakers until June 30 to pass something constitutional.

The Court gave lawmakers clues about what it would take. For example, they pointed out that testing indicates about a fourth of public school students are not getting an adequate education. That’s telling legislators where to concentrate some attention.

One big concern is the Court did not name a dollar amount. However, the decision did make note of a lower court ruling last year that a constitutional formula might cost over $500 million next year while saying, “Total spending is not dispositive of adequacy.”

That’s got everybody scratching their collective legislative heads.

Now, the committees go to work on the problem.

In the Senate, President Susan Wagle (R-Wichita) appointed a Senate Select Committee on Education Finance. The Chair is Majority Leader Jim Denning (R-Overland Park) and the Vice Chair is Ways and Means Chair Carolyn McGinn (R-Sedgwick).

Other members

• Senator Anthony Hensley (D-Topeka) will be the ranking minority
• Senator Molly Baumgardner (R-Louisburg), the Senate Education Chair
• Senator Barbara Bollier (R-Mission Hills)
• Senator Bud Estes (R-Dodge City)
• Senator Dan Goddard (R-Goddard)
• Senator Dan Kerschen (R-Garden Plain)
• Senator Pat Petty (D-Kansas City)

Work has been underway in the House where the K-12 Education Budget Committee will continue meeting, likely using a proposal by Representative Melissa Rooker (R-Fairway) as a base, although many are concerned about its cost right now.

Senate Tax will look at income tax bill next week

Having successfully passed an income tax increase and overturned a veto by Governor Sam Brownback, the House of Representatives will wait to see what the Senate comes up with. The Senate also passed the bill, but fell three votes short of overriding the Brownback veto.

It seems very clear from discussions with Senators that changing the effective date from January 1, 2017 to January 1, 2018 would cause three no votes to shift to the yes column. However, that leaves a bigger hole in the budget until the income tax increases starting flowing to the state treasury.

There’s also thatschool finance decision and balancing the need for unknown funding against the ability to get enough votes.

The Senate Assessment and Taxation Committee will hold a hearing Tuesday on Senate Bill 192.

This bill is a little different from the one vetoed by the Governor.

It keeps the two current income tax brackets at the same rates, but adds a third bracket for single people making $35,000 a year and over; and married people filing jointly who make more than $70,000 a year jointly. That rate would be 6.1 percent.

The bill also eliminates the “March to Zero” trigger mechanism that automatically lowers rates in the future and it allows a 100 percent itemized deduction for medical expenses.

The bill would raise an estimated $578.5 million for FY 2018.

This bill, like the one vetoed by Brownback, is retroactive to January 1, 2017.

Hearing cancelled on bill that would increase funds for private schools

A controversial program that provides tuition tax credits for businesses to send students to private schools would be expanded under a bill that had been scheduled for a hearing Thursday, but was cancelled. It’s unclear if the hearing will be rescheduled.

House Bill 2374 expands the program created by previous, more conservative legislators. It is opposed by education organizations like the KNEA.

Retirement issues will be discussed in Senate Committee

A series of retirement issues of interest to educators will be discussed in the Kansas Senate Financial Institutions and Insurance Committee on Tuesday.

Senate Bill 138 exempts certain KPERS licensed school retirements from working after retirement earnings limitations.

House Bill 2268 extends the date on exemptions for certain KPERS retirees who work after retirement. This bill passed the Kansas House 116 to 9. As I’ve said before, this is a complicated issue. Here’s a link to a description of what the bill does:

Senate will hold hearing on TABOR constitutional amendment

A constitutional amendment to enact a TABOR spending and revenue limitation in Kansas will have a hearing Wednesday in the Senate Assessment and Taxation Committee. The measure is SCR 1602.

If passed, this would make it harder to budget funds for education, as well as the rest of the state budget.

TABOR stands for Taxpayer Bill of Rights. Colorado enacted TABOR in 1992, but voters approved suspending many of its requirements in 2005 due to problems it caused.

The latest problem in Colorado is a conflict with the state’s legalized marijuana legislation. The money raised for government by marijuana is supposed to go to schools, police, and drug education. However, the TABOR constitutional amendment is in conflict with that intent and the pot money is prevented from being used for those purposes.

Meanwhile, a long-standing lawsuit challenging TABOR continues in a federal appeals court. Those bringing the lawsuit include current and former legislators, educators, and parents of school children. In 2011 they filed suit, claiming TABOR stripped them of legislative powers regarding taxation, which violates the guarantee clause of the U.S. Constitution.

Colorado’s TABOR is also in conflict with another portion of that state’s constitution, which requires a certain level of spending on public education.

Meanwhile, local Colorado chambers of commerce and economic development organizations are telling lawmakers there’s a $9 billion gap in funding roads that needs to be addressed. That gap is hindered by Colorado’s TABOR.

Here’s what’s in the Kansas TABOR constitutional amendment.

• State tax increases or extensions would require a 2/3 supermajority of the House and Senate
• State spending and revenue limits would be imposed
• The legislature could only exceed the spending limit if approved by a vote of the people at a general election
• Excess state revenues would be reserved for economic downturns and reducing state debt (or to be refunded to taxpayers)
• State borrowing would be limited

A constitutional amendment takes a 2/3rds vote of the Kansas House and Kansas Senate before it is put to Kansas voters in an election.

Find your legislator

Want to contact your legislator to let them know what you think of any issue?

Here’s a quick and easy way to do it. Just go to:

Enter your full address, click on the magnifying glass icon. A map of your legislative district and the names and pictures of your state senator and representative will appear.

Click on their name to get contact information.

Bill tracker

Below is a listing of the bills we are tracking for the educator members of the Kansas Counseling Association. You can click on the bill number for more information. It will take you to the Kansas Legislature’s web site, where you can read information on the bill.

Many bills will have a Supplemental Note or Fiscal Note. Click on SN or FN to get information in layman’s terms.

Bill Number
and Sponsor / Bill Subject / Current Status / Last Action
SB 138
Senate Ways and Means Committee / Exempting KPERS licensed school retirants from the working after retirement earnings limitation / In Senate Financial Institutions and Insurance / 03/08/2017 - Senate
Scheduled Hearing in Financial Institutions and Insurance: Tuesday, 3/14, 9:30 AM, Rm 546-S
SB 146
Senate Assessment and Taxation Committee / Continuation of 20 mill statewide levy for schools and property tax exemption of certain portion of property used for residential purposes from such levy / In Senate Assessment and Taxation / 03/08/2017 - Senate
Scheduled Hearing in Assessment and Taxation: Tuesday, 3/14, 9:30 AM, Rm 548-S
SB 205
Senate Ways and Means Committee / Allowing certain time away from work or normal duties to be credited as participating service under KPERS and KP&F / In Senate Financial Institutions and Insurance / 03/08/2017 - Senate
Scheduled Hearing in Financial Institutions and Insurance: Thursday, 3/16, 9:30 AM, Rm 546-S
SB 206
Senate Federal and State Affairs Committee / Creating the student privacy and protection act / In Senate Education / 02/23/2017 - Senate
Referred to Education
SB 213
Senate Assessment and Taxation Committee / Providing for state income taxation of retirement contributions by certain employees of the state board of regents / In Senate Assessment and Taxation / 03/06/2017 - Senate
Referred to Assessment and Taxation
HB 2048
House Corrections and Juvenile Justice Committee / School district plan addressing child sexual abuse; establishing Erin's law / In Senate Education / 02/15/2017 - Senate
Referred to Education
HB 2078
House Education Committee / Authorizing the reduction or elimination of property tax exemption by a school district / In House Education / 01/20/2017 - House
Scheduled Hearing in Education: Wednesday, 1/25, 3:30 PM, Rm 546-S
HB 2113
House Appropriations Committee / Permanently exempting postsecondary educational institutions from the public buildings law under the personal and family protection act / In House Appropriations / 01/20/2017 - House
Referred to Appropriations
HB 2138
House Local Government Committee / State fire marshal; school lockdowns; rules and regulations / In House Local Government / 01/25/2017 - House
Referred to Local Government
HB 2142
House K-12 Education Budget Committee / Establishing a unified school district employee health care benefits program / In House K-12 Education Budget / 02/15/2017 - House
Withdrawn from Appropriations; rereferred to K-12 Education Budget
HB 2165
House Education Committee / Development and implementation of ethnic studies in schools / In House Education / 01/26/2017 - House
Referred to Education
HB 2171
House Federal and State Affairs Committee / Student privacy and protection act / In House Federal and State Affairs / 01/27/2017 - House
Referred to Federal and State Affairs
HB 2179
Steven G. Crum, D-98th / Due process for terminating teachers' contracts / In House Education / 02/21/2017 - House
Motion pending to withdraw from Committee and place on General Orders; Motion withdrawn
HB 2186
House Judiciary Committee / Enacting the uniform arbitration act of 2000 / In Senate Judiciary / 02/23/2017 - Senate
Referred to Judiciary
HB 2242
House K-12 Education Budget Committee / Enacting the classroom-based funding act / In House K-12 Education Budget / 02/15/2017 - House
Withdrawn from Appropriations; rereferred to K-12 Education Budget
HB 2243
House Corrections and Juvenile Justice Committee / Authorizing school security officers to use certain types of emergency safety interventions / In House Corrections and Juvenile Justice / 02/02/2017 - House
Scheduled Hearing in Corrections and Juvenile Justice: Monday, 2/6, 1:30 PM, Rm 152-S
HB 2268
House Financial Institutions and Pensions Committee / Extending the sunset date on certain working after retirement exemptions / In Senate Financial Institutions and Insurance / 03/08/2017 - Senate
Scheduled Hearing in Financial Institutions and Insurance: Tuesday, 3/14, 9:30 AM, Rm 546-S
HB 2270
House K-12 Education Budget Committee / Creating the education finance act / In House K-12 Education Budget / 02/15/2017 - House
Withdrawn from Appropriations; rereferred to K-12 Education Budget
HB 2324
House Appropriations Committee / School district finance and quality performance act of 2017 / In House K-12 Education Budget / 02/15/2017 - House
Withdrawn from Appropriations; rereferred to K-12 Education Budget
HB 2360
House Appropriations Committee / Establishing the division of the state employee health benefits plan in the department of administration / In House Appropriations / 02/14/2017 - House
Referred to Appropriations
HB 2374
House Taxation Committee / Expanding the tax credit for low income students scholarship program / In House K-12 Education Budget / 03/06/2017 - House
Referred to K-12 Education Budget
HB 2379
House Appropriations Committee / Requiring school district expenditure reporting under the Kansas uniform financial accounting and reporting act / In House K-12 Education Budget / 03/08/2017 - House
Scheduled Hearing in K-12 Education Budget: Tuesday, 3/14, 1:30 PM, Rm 346-S
HB 2379
House Appropriations Committee / Requiring school district expenditure reporting under the Kansas uniform financial accounting and reporting act / In House K-12 Education Budget / 03/08/2017 - House
Scheduled Hearing in K-12 Education Budget: Tuesday, 3/14, 1:30 PM, Rm 346-S
HR 6017
John Wilson, D-10th / Recognizing after-school programs in Kansas and the increased exposure to Science, Technology, Engineering and Math (STEM) they provide to K-12 youth / Adopted / 03/09/2017 - House
Adopted without roll call

Bernie Koch Government Relations