Local legislators may need a crystal ball to guide them through the next legislative session.
The State of the State address Monday night by Gov. Kathleen Sebelius provided only general remarks on how the state might survive a current $180 million deficit that could extend to $1.1 billion by the next fiscal year, according to figures provided by State Sen. Jim Barnett of Emporia.
Reps. Peggy Mast and Don Hill joined Barnett in wishing that the governor had provided solid figures and a budget to accompany her address.
“There’s a level of anxiety that shouldn’t surprise anyone and I think we’re just kind of ready to get on with it,” Hill said. “There was a real appetite to get some leadership and guidance and details and of course that wasn’t part of what she did last night, and that will come soon enough.”
Sebelius identified six priorities for the legislature to consider over the next 90 days:
F educate Kansas children
F provide for public safety
F protect health services for neediest citizens
F spur economic recovery and job growth
F build the infrastructure to move goods and workers
F encourage “innovation and research as the core elements of a knowledge economy”
The budget will dominate the session, once it is provided to the legislators by the governor.
“There’s not a question of whether we’re going to get through this difficult time, it’s a question of how quickly we’ll get through it,” Hill said.
Until work can begin on the budget, likely in February, Mast said that she expects other bills will be heard, including some she will write.
“And one is the small community, Americus, to help with their energy rates,” Master said. “Hopefully, have a hearing with utilities, maybe as early as next week.”
Natural gas rates in Americus were running approximately twice as great as those paid by gas users in Emporia and the surrounding area.
All of the local legislators believe that no department or program is immune from cuts that could be necessitated by the state’s statute requiring Kansas to operate on a cash basis, rather than go into debt. Governor’s staff, however, has intimated that funds pledged to education — Kindergarten through 12th grade, as well as higher education — should remain intact.
“I have a feeling that even though the governor seems to be willing to hold the education harmless, when you consider that that’s well over 50 percent of the budget, that would just be too drastic for the rest of our programs,” Mast said. “... The choice is basically, do we hold education harmless and cut every other budget across the board 15 percent, or do we have to address cuts in every area so that some of the important budgets on aging and social services and corrections don’t have to have a significant cut that is definitely going to impact our society in a negative way.”
Hill said he thought there was a chance that cutbacks could come in payments that were anticipated by school, city, and local governmental units.
“The governor’s indicated, and all of us have, I believe, that everything needs to be on the table,” Hill said.
One of the difficulties lies in the uncertainties of the U.S. economy, with no one knowing what its condition will be within the next 90 or 120 days that span the legislative session.
“The economy could be worse than it is today, and it may be substantially worse,” Hill said. “Or it could be turning around, and yesterday was a classic example of that.”
The state got what Hill termed “probably the best news that we’ve had in years” when the Department of Homeland Security named Manhattan as the site of a new National Bio- and Agro-Defense Facility to replace an aging laboratory at Plum Island, N.Y. Sites in Athens, Ga., Mississippi, North Carolina and Texas were considered as potential sites before Kansas was chosen.
Sebelius said in her speech Monday that the state also has an opportunity to create a “Comprehensive Cancer Center” that could parallel bringing the NBAF to Kansas. The deadline to apply for National Cancer Institute designation is two years away, in 2011. Sebelius predicted that if the designation application were successful, such a cancer center could generate $1.3 billion annually and create 10,000 new jobs within 10 years.
The same day as the NBAF announcement, however, Cessna announced it would lay off 2,000 workers.
“That just perfectly illustrates the uncertainty and the possibility that we’re going to be getting this turned around sooner rather than later,” Hill said.
Hill said that, depending on what happens the next few months, legislators may have to consider cuts in education and social services, in addition to the possibility of increasing taxes to generate revenue.
Increasing Department of Corrections collections from late-paying or non-paying individuals and businesses may not be a viable answer.
“I know that when times are difficult, by definition businesses are struggling, how much more pressure do you want to apply to businesses when they’re trying to maintain their business or employees are trying to maintain their jobs?” Barnett asked. “I think it is reasonable to continue with the current route. I would not recommend any more pressure.”
Mast said that the state already initiated a hiring freeze to slow the budget’s sinking further into deficit, and that improvements on the Capitol building also have been frozen, though 92 legislators currently are housed in the Docking Building as a result of the renovations.
Hill predicted deep budget cuts that already are being factored in.
“For example, at Emporia State, which is our largest state agency, that hiring freeze is one of those things that can be done early, can be done with some pretty substantial effects on the budget,” Hill said. “Then the other kind of low-hanging fruit is the opportunity to defer projects and capital expenses, delay their implementation, and I’m sure that’s another part of what we’re going to see.”
Barnett said that he believed recommendations from the Kansas Department of Health and Environment would cause significant reductions in spending for safety net clinics.
“I think just the opposite is going to be needed, with more people out of work, and we are seeing more and more middle-income families going to safety net clinics for medical care,” Barnett said. “That is the result of reduced benefits from employers with higher co-pays and higher deductibles.”
Mast said that she believes the safety net clinics, community health centers, departments of aging, and mental health centers will be among the areas where cuts will be made, though “many of those are going to be more in demand than ever before.
“And yet we’ve been told by leadership that we cannot add more dollars unless we can find the funding source, and that’s a legitimate request,” she said.
Hill said that the clinics have proven their value to the state and its citizens.
“There are a number of good ones, but there are few if any that are better than the one in Emporia,” Hill said. “... (T)hat’s absolutely one of the best ways, if not the best way, to improve access and affordability, regardless of the difficult economic times.”
Hill predicted the state would not be able to enhance the clinics and their numbers, but he wants to “preserve what’s there and to be sure that the money in that area’s being spent most effectively.”
It will be important, Hill said, to take advantage of initiatives identified by the Health Policy Authority, to promote emphasis on disease prevention and wellness promotion.
“The emphasis on decreasing smoking is one that I support and I expect there’ll be discussion of a smoking ban, as well as tobacco taxes,” Hill said. “And I’m supportive of those initiatives.”
Workforce development and transportation are among a “jumble of other” issues that will need to be resolved.
Economic development, which involves workforce and transportation as well, will be significant. Energy bills, including some involving wind and other renewable energy sources, will play a major role during this session.
Unity among the branches of government and their political parties, and looking past special interests to address state needs, will be essential for the legislature to succeed this year; the “wants” of Kansas will need to be postponed until they can be afforded, Mast said.
Legislative life would be simpler, Mast said, if a fairy godmother could hand out glass slippers and they all could go to a nice ball.
“But you know, this is the hour that we’ve come to and I do know that Kansas people are very resourceful and we just need to make sure that we are all working together, not to meet our own needs but look at the big picture,” she said.
admireed (anonymous) says...
Since education is where most of the taxes go, that is the major place cuts cuts have to me made. Like it or not.
January 13, 2009 at 2:27 p.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
I, for one don't want to hear 1 word out of Barnetts or Masts mouth about a smoking ban until they fix the states budget.
Our wellness is clearly not their main concern.
Steve
January 13, 2009 at 2:37 p.m. ( permalink | suggest removal )
bobhornet (anonymous) says...
Leadership? Not from this governor!
January 13, 2009 at 3:47 p.m. ( permalink | suggest removal )