Representatives Marc Rhoades (center, R-Newton) with
Richard Carlson (right, R-St. Marys) and Bill Feuerborn
(D-Garnett) during the afternoon budget conference committee
meeting Thursday. (Photo by Phil Cauthon for KHI News Service)
TOPEKA — After 13 bargaining sessions, House and Senate negotiators ended the week deadlocked over how much cash reserves the state should have by the end of the coming budget year.
The stalemate sent lawmakers home for the Mother’s Day weekend with small likelihood that they will be able to complete the legislative session in its allotted 90 days.
They are scheduled to return to the Capitol on Monday, and Thursday is the 90th day.
Ending balance disputed
House Speaker Mike O’Neal, R-Hutchinson, said there wouldn’t be enough votes in the lower chamber to pass a budget bill — the big remaining chore for legislators — unless the Senate agrees to an ending balance of at least $50 million for the 2012 fiscal year, which starts July 1.
But senate negotiators and advocates for imperiled social services said they saw no reason the state would need a cash surplus significantly larger than that asked for by Gov. Sam Brownback in the budget plan he presented to the Legislature in January.
"We would all like to see a healthy ending balance in this budget," said Senate President Steve Morris, R-Hugoton. "But, we’d also like to make sure our local schools stay open, our senior citizens are cared for, and our economy remains on track for recovery. We have the ability to do both."
The governor in January proposed a $7.5 million ending balance though he subsequently called that, "embarrassingly low," and urged legislators to leave as much contingency money as possible in the bank.
Spend to zero
But O’Neal said $50 million was far below the $100 million that is the threshold in state law allowing the governor to cut as he sees fit once the session ends should the Legislature fail to leave enough surplus.
He said a "healthy" ending balance was politically necessary to win passage in the House but also vital to the state’s cash-flow needs.
"You can’t have a state government run on a shoe string, based on the theory that every dollar that comes in has to be spent," O’Neal said. "It is a balancing act. You need to have enough money in the bank for cash flow (because) your revenues may not come in as estimated and everybody will face cuts. I absolutely disagree with those people who say 'spend to zero.'"
From left, senators John Vratil (R-Leawood), Carolyn McGinn
(R-Wichita) and Laura Kelly (D-Topeka) during the afternoon
budget conference committee meeting Thursday.
(Photo by Phil Cauthon for KHI News Service)
The ending balance question wasn’t the only one unresolved at the end of the week. Among other issues in dispute:
Safety net clinics
Representatives of the state’s safety net clinics were closely watching what would become of the budget for the Kansas Department of Health and Environment.
The House spending plan deleted $2.2 million from the general fund budget from the agency, which would have meant fewer dollars for the state’s safety net clinics. The Senate’s budget left that money intact.
During the later negotiating rounds, the House countered with a proposal to cut $1.2 million from KDHE, but earmarking for the clinics the other $1 million it had originally proposed cutting from KDHE.
Mental Health
Rainbow Mental Health Facility
Both chambers agreed to fund the facility but not restore money to reopen 14 beds closed at the 50-bed state hospital in Kansas City after federal inspectors declared it was understaffed. At one point during the bargaining, officials at the Kansas Department of Social and Rehabilitation Services said they would consider closing the entire hospital, if directed to cut the agency’s budget an additional 5 percent as the House proposed.
Mental health grants/state aid
The governor recommended eliminating funding of $10.2 million in state grants to community mental health centers. But the Senate restored the full sum and the House recommended $7.2 million.
Negotiators ended the week undecided on the issue.
Kan-ed
The House proposed eliminating the $10 million that supports Kan-ed, a digital broadband network that links the state’s hospitals, libraries and schools. The network is managed by the Kansas Board of Regents. The Senate supported keeping Kan-ed and its funding.
Negotiators at week’s seemed no closer to agreement on the item despite multiple offers and counter-offers.
Photo by Phil Cauthon for KHI News Service
SRS
The House proposed cutting $1 million in administrative spending at Kansas Department of Social and Rehabilitation Services, the state welfare agency. The Senate plan was to cut $1.2 million with the stipulation it come from administrative salaries and another $250,000 from agency operating costs.
State employee health insurance
The House proposed a 5 percent surcharge be imposed on state employees’ health insurance premiums with the estimated proceeds of $3.1 million to be spent on general government services. The Senate budget plan did not include the surcharge. House negotiators offered to reduce the surcharge to 3.5 percent, but Senate negotiators at week’s end still were saying no.
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