TOPEKA — Gov. Sam Brownback's budget plan would fold the Kansas Health Policy Authority into the Kansas Department of Health and Environment, merging the two agencies' health-related functions. The move is part of a broader reorganization plan that would eliminate or consolidate eight state agencies.
Details of the governor's recommendations are being described this morning to House and Senate budget committees. The budget documents are available online here.
Among the proposed reorganizations:
Kansas, Inc., an economic development agency, would be abolished and replaced with the Governor's Economic Council within the Department of Administration. In his State of the State speech Wednesday night, Brownback said he would chair the council, which will draw on the expertise of the state's business community. In the budget plan presented today, it was further stated that the council will become the state's lead economic development agency, responsible for policy research, strategic planning and program evaluation.
The Kansas Technology Enterprise Corporation (KTEC) would be merged with the Department of Commerce. The EPSCoR program currently administered by KTEC would transfer to the Kansas Board of Regents.
The Human Rights Commission would become part of the Attorney General's Office.
The Kansas Parole Board would be abolished with its functions moved to the Department of Corrections.
The Animal Health Department, State Conservation Commission and the Agriculture Marketing Program at the Department of Commerce would be merged into the Department of Agriculture.
The Travel and Tourism Program at the commerce department would be transferred to the Department of Wildlife and Parks.
Dr. Robert Moser (KHI News file photo)
The eliminations and consolidation's would save an estimated $9.2 million a year, according to budget documents provided by the Governor's Office.
According to the documents, "the goal of finding ways to reduce the cost of providing health services," was the impetus for merging KHPA with KDHE. KHPA oversees the state's Medicaid program and the State Employee's Health Benefit Plan, which together account for about $2.2 billion a year in state health spending.
KDHE's Division of Health has overseen a variety of programs generally related to public health programs predominantly funded by the federal government. KDHE oversees bureaus of health statistics, rural health, etc.
Dr. Robert Moser, a family physician from Tribune more recently affiliated with the University of Kansas School of Medicine in Wichita was named KDHE secretary by the new governor.
According to the budget documents, each KHPA program will become KHPA programs except for the agency's central administration, which will fold into the existing administrative offices at KDHE.
"It is expected that the merger will produce administrative savings of $1 million, as well as produce new models for providing services that also produce savings," according to a briefing document given legislators by Brownback policy director Landon Fulmer.
Pilot programs planned
Fulmer said putting KHPA's Medicaid program at KDHE would allow it to "dovetail" better with some of KDHE's public health programs.
He also said the new administration believes the combination will allow for new approaches, including more managed care, that will lead to a reduction or leveling of Medicaid spending.
On the drawing boards, he said, was a managed care pilot program in Wichita for the disabled. Services for the disabled have been one of the fastest growing portions of the Medicaid budget.
Fulmer said Medicaid caseloads have jumped "even during good years and our Medicaid rolls continue to grow. This is cause for alarm. The need for Medicaid reform is very pertinent."
Landon Fulmer, policy director for
Gov. Sam Brownback
Sen. Jean Schodorf, R-Wichita, raised a point about the proposed agency merger. KHPA was created in 2005 as the result of a Republican-led legislative initiative. Most of the state's Medicaid programs and their administration were then moved in 2006 from the Kansas Department of Social and Rehabilitation Services to the new agency.
"Medicaid was at SRS then there was a Republican plan to come up with the KHPA. It's not five years old and now we're going to change again? I hope that's well thought out," Schodorf said.
KDHE currently has about 1,000 employees in its health, environment and laboratories divisions. It has an annual budget of about $260 million but only about $30 million of that comes from the state general fund.
KHPA currently has has about 285 employees and an annual budget of about $2 billion.
According to the Brownback budget documents, the combined agencies would have a fiscal 2012 budget of about $1.8 billion and 1,200 employees.
Rescission bill introduced
The administration on Thursday also introduced bills that would cut base state aid to public schools for the remainder of the current fiscal year, which ends June 30.
Fulmer said the $85 million in cuts to schools would allow for full funding of social service caseloads which have grown due to the weakened economy.
Among other details in Brownback's proposed budget:
- State operational funding for public broadcasting would cease, though the state would continue to back bonds that have been issued to pay for public broadcasting infrastructure improvements.
- Funding would be eliminated for the Coordinated School Health program at KDHE.
- Closing would begin for the Kansas Neurological Institute, a state hospital in Topeka for the developmentally disabled. The closure would take an estimated 24 months to complete.
Governor's Budget Report, FY 2012
- Governor's Budget Report, FY 2012 (Vo. 1)
- Governor's Budget Report, FY 2012 (Vo. 2)
- Governor's Budget Testimony, FY 2012
For more on Brownback's proposed budget read, Brownback proposes closure of KNI.