By Tim Carpenter, Topeka Capital-Journal, April 26, 2011
Weighty financial decisions required of the 2011 Legislature — and the accompanying political feuding — await lawmakers returning Wednesday from a spring holiday.
Legislators in the final leg of the session must come to terms with a shrinking $14 billion state budget. The debate on downsizing includes proposals to make deep cuts in state aid to K-12 public schools, mental health programs and services to the elderly.
Of concern to Topekans, the House and Senate have yet to resolve disagreement over a bill slashing half of Washburn University's state operating grant and legislation that could trigger the gradual closure of Kansas Neurological Institute.
"The budget is the top priority," said House Majority Leader Arlen Siegfreid, R-Olathe. "That's the only thing we can't go home without doing."
The House favors a version of the new $14 billion budget establishing an $85 million cushion, but the Senate prefers a thinner ending balance to allow more money for preservation of public services.
"That is the stark difference between the House approach and the Senate approach," said House Minority Leader Paul Davis, D-Lawrence.
House and Senate negotiators tentatively resolved about 60 issues from among more than 250 points of contention written into bills passed by the opposing chambers.
For example, the sides agreed to a 1.1 percent across-the-board cut to state agencies. That generates $23 million to remove from consideration a 7.5 percent pay cut for state employees, elected officials, judges and agency heads.
Sen. John Vratil, a Leawood Republican and Senate budget negotiator, said the easy decisions had been made.
"We'll get an agreement," he said. "It's likely to be a long, sometimes difficult process."
Senate President Steve Morris, R-Hugoton, said the Legislature would strive for consensus on a plan to address the $7.7 billion shortfall between anticipated revenues and promised benefits in the state retirement system for teachers and government workers.
"It's good public policy to move forward," Morris said. "When people look at our financials, they need to see we're going down the right path."
He said establishing a framework for correcting the imbalance would give state workers and retirees peace of mind.
Senate conferees are pushing a bill requiring employers and members of the Kansas Public Employees Retirement System to contribute more into the system's coffer. Workers making higher contributions would receive a greater retirement benefit.
However, the House supports development of a 401(k)-style plan for public workers hired after June 2013. The House seeks to trim retirement payments tied to KPERS' existing "defined benefit" program, a move that raises legal questions among critics.
Senate Minority Leader Anthony Hensley, D-Topeka, said he opposes the House plan because the burden of fixing the system would fall too heavily on employees. The Senate's outline would more responsibly share the obligation, he said.
"We need to do everything we can to try to shore up the system and begin the incremental steps to reducing the unfunded liability," Hensley said.
Meanwhile, Hensley said he would seek introduction today of a bill to "decouple" the state tax system from adjustments to federal tax code. Without separating the state from those federal provisions, he said, the state will lose an estimated $53 million annually.
"Such a decoupling bill should be put on the table for consideration as a way of addressing our budget deficit," the senator said.
The Legislature's session will continue for days, and possibly, weeks before winding down. While debate continues on the budget and KPERS, there will be interest in other legislation.
The embattled Kansas Bioscience Authority, which handles $580 million to be invested in this upstart industry, lost its executive director during the Legislature's adjournment. Senate critics of KBA are interested in modifying the authority's board to expand the executive branch's oversight of the agency, but passage of a reform bill is in doubt.
There will be debate in the House about an abortion regulation bill placing clinics under greater scrutiny by the Kansas Department of Health and Environment. Some lawmakers are interested in restricting basic health insurance plans to covering abortions necessary to save a woman's life. Insurance companies would be able to offer stand-alone policies for "elective" procedures.
The House also is likely to consider a bill imposing new state regulations on adult entertainment businesses in Kansas. Restrictions would apply to strip clubs and other venues. New adult businesses wouldn't be able to locate within 1,000 feet of a church, child care facility or library.
House members riding anti-tax sentiment to victory in November continue to call for phasing out the state's personal income tax and reducing the corporate income tax rate. So far, the Senate has resisted such large tax cuts.
Tim Carpenter can be reached at (785) 296-3005 or timothy.carpenter@cjonline.com.