Kansas, like many other states, is facing a $186 million gap for fiscal year 2009 and according to early estimates approximately $1 billion deficit for fiscal year 2010. However, more recent estimates place FY 2010's shortfall at $654 million.
Governor Kathleen Sebelius recommended $600 million in budget cuts for FY 2010 which includes eliminating programs, closing facilities, freezing new hires, and reducing spending. However, in light of the federal economic stimulus package Sebelius amended her recommended budget to "prevent harm" to the state. "Budget cuts deeper than what I have already recommended are not necessary, and would in fact do great harm to our state’s economy and employment levels," said Sebelius. However, state officials said their target for reductions in fiscal 2010 is greater than the Governor's recommendations - $625 million. According to the Governor's recommended budget, the proposed cuts could reduce the projected FY2010 shortfall $103 million, however that estimate depends on $57 million in revenue from state-owned casinos that haven’t yet been built.
Contents
- Impact of budget woes
- Budget background
- Budget figures
- Ideas about why the crisis exists
- Governor Kathleen Sebelius
- Republicans
- Democrats
- Economic stimulus package
- Budget transparency
- Legislation
- Economic stimulus transparency
- Government tools
- Limitations and suggestions
- Support for creation of the database
- Public employee salary information
- References
However, Sebelius' 2009 appointment by President Barack Obama as United States Secretary of Health and Human Services had some state legislators that the nomination is a "distraction" from the state's budget crisis. "The state budget remains substantially out of balance, and she will leave behind no consensus on how to balance it," said Senate majority leader Derek Schmidt. House minority leader Paul Davis said that he expected nothing but a smooth transition when Sebelius left office. Lieutenant Governor Former Republican Party leader turned Democrat Mark Parkinson assumed Sebelius' role as governor.
Impact of budget woes
Budget background
The Kansas state fiscal year begins July 1 and ends June 30. On October 1 all of the state's agencies submit their budget requests to the governor and the legislature. Kansas has 20 state agencies which operate on a biennial system but are authorized to file budget adjustment requests every other year. The governor presents the proposed budget to both the House and the Senate for consideration. From February through April state officials deliberate on the proposed budget. By early June the governor evaluates any and all changes before a final decision is approved.
The FY 2009 budget totaled $13.5 billion, a $334.2 million or a 2.5 percent increase from FY 2008. The general fund for FY 2009 totaled $6.4 billion, a $266.8 million or 4.3 percent increase from FY 2008.
Budget figures
The following table provides a history of Kansas' expenditures and gross domestic product (GDP).
Ideas about why the crisis exists
Governor Kathleen Sebelius
In light of the state's current budget crisis the former Governor recommended $600 million in budget cuts and had not recommended an increase in taxes, however in late February 2009 the Sebelius administration recommended dedicating $909 million of the federal stimulus package to providing a cushion for the current budget, preventing a deficit in fiscal 2010. Sebelius also proposed to use another $384 million in stimulus funds for public schools, split between fiscal 2010 and fiscal 2011. The Governor suggested in February 2009 that the state move $225 million into the state's main bank account from other state government accounts however, in late February Republicans in both the House and the Senate prevented the move. Those legislators said that first the Governor must sign a bill balancing the budget for the fiscal year ending June 30, 2009. Additionally the Governor's recent proposal kept kindergarten through high school funding at 2009 levels because of the anticipated influx of money that the state would receive from the federal economic stimulus package. Her plan calls for $367 million in recovery funds from the stimulus bill to stabilize K-12 funding and to restore higher education funding to the previous year's level. In February 2009 Sebelius signed off on a $300 million deficit reduction package to address shortfalls in the state budget this year.
Republicans
In January Senate committee chairman Jay Emler proposed a 3.4 percent across-the-board cut in the current state budget. According to his plan it would adjust the current state budget by $302 million by June 30. Republicans said that they expect the deficit to grow more than the projected amount and that said Emler is the reason behind his aggressive plan. The governor proposed targeted spending cuts and accounting changes to eliminate a projected $186 million budget deficit, less aggressive than Emler's proposal. The Senate's Republican leaders fashioned a proposal to make $266 million worth of cuts, with a total of $302 million in adjustments to the current budget. The reductions included a $99 million cut in aid to public schools - compared with $7 million in the bipartisan Senate bill. Rep. Lee Tafanelli said, ""All we're doing is basically kicking the can down the road just a little bit farther."
In February the Governor recommended moving $225 million into the state's main budget account from other individual state accounts, Republicans in the House and the Senate prevented the move until the Governor signs a bill balancing the FY 2009 budget.
Democrats
Democrats urged Gov. Sebelius to veto recommended school budget cuts, $28 million in funding for public schools and $4.5 million for special education, by legislators. They said they worried the reductions could bankrupt small, rural districts that don’t have large reserves. Senate Minority Leader Anthony Hensley and House Minority Leader Paul Davis said Friday they believe the legislation cuts education far too deep. In an effort to increase the state's minimum wage Hensley proposed a bill would require the Kansas Department of Labor to adjust the caps on workers’ comp benefits to an amount equal to the Midwest cost of living adjustment. The bill failed to pass the Senate but did pass the House. Even so, Hensley said that he proposed a change to his bill that would phase in the increases. The bill raises Kansas' wage from $2.65 to $7.25 on Jan. 1, so it will match the federal minimum.
Economic stimulus package
Kansas is expected to receive approximately $1.7 billion from the $787 billion economic stimulus package. According to White House officials the stimulus bill is estimated to create or save 33,000 jobs.
According to preliminary reports Kansas is expected to receive:
Budget transparency
KanView is the name of Kansas's publicly available online spending database. As a result of the Kansas Legislative House Committee on Government Efficiency and Technology, the legislature and governor passed legislation in 2007 and 2008 that mandates greater financial transparency for Kansas state government.
Legislation
Economic stimulus transparency
Government tools
KanView provides a searchable database of state financial information, organized by expenditures and revenues for the five categories of Agency, Fund, Program, Object and Vendor. Annual expenditures and revenues are updated soon after the close of Kansas's fiscal year, which runs from July 1 to June 30.
The following table is helpful in evaluating the level of transparency provided by KanView:
Limitations and suggestions
KanView was supposed to contain information on salaries and wages, including compensation paid to individual state employees. This requirement is clearly specified in the language of the Kansas Taxpayer Transparency law. But the powers-that-be have kept detailed public employee salary information OFF the Web site. KanView only lists summary data on salaries, not the individual information required by law. You can call the Kansas Department of Administration at (785) 296-3011 and demand that the letter of the law be followed by putting specific wage and salary information online.
Support for creation of the database
KanView stemmed from the Kansas Taxpayer Transparency Program of 2007, and was authorized when governor Kathleen Sebelius signed the Kansas Taxpayer Transparency Act in 2008.
Americans for Tax Reform applauded Kansas's level of transparency, as did the National Taxpayers Union.
Public employee salary information
The Kansas City Star maintains a searchable database of state employee information for the year 2007. Access it here.
Kanview is by law required to include "salaries and wages including, but not limited to, compensation paid to individual employees of state agencies," but the state has yet to post this information. Kansas residents can call the Kansas Department of Administration and complain about this omission at (785) 296-3011.