1/25/10 Rep. Wetta Legislative Report

  FROM THE STATEHOUSE  - Vince Wetta Report 

Vince Wetta, Representative, 80th District * 1204 N. Poplar * Wellington, KS 67152 * 620-326-5205 (home)

Sumner & Harper Counties

FUTURE NEWSLETTERS

Due to the cost of sending newsletters by mail, this e-mail will continue to be used to communicate with constituents.  Please share this with friends and we will send this to anyone interested.  My address and phone numbers may change.   The e-mail address in Topeka is the same, vince.wetta@house.ks.gov.

I hope you will stop by to visit me if you are ever in Topeka.  However, please be aware that many legislative offices and many committee meeting locations are in the Docking Bldg.  The Senior Citizens from Wellington will visit the Capitol tomorrow.  I am looking forward to showing them around and visiting with them.

Budget Update

The House Appropriations Committee continued to hear briefings from state agencies last week regarding individual agency budgets.  Below is a general update about some issues of interest:

• The Unemployment Trust Fund been severely depleted over the past year.  In 2007, the Legislature approved an unemployment tax break to business owners because the UI Trust Fund was very healthy.  A stipulation of this legislation was that the 2007 tax rates would be triggered in the event that the trust fund dipped to $100 million.  Three years later, after a year of tremendous economic hardship, the trigger has been reached. 

We are fortunate to remain among the 23 other states that do not have outstanding loans from the Federal Unemployment Fund, some owing billions of dollars.  However, Kansas’s unemployment is higher than it has been in 25 years.  When the trust fund is replenished, the reduced tax rate will be restored.

• The Kansas National Guard has chosen to close 18 of its 56 armories in the state. These closures are a result of: budget cuts over the past decade, utility costs increasing by over $500K, and a fundamental change in demographics and key transportation routes from when the facilities were built 50 years ago. 

• The Kansas Department of Revenue has been steadily increasing individual and corporate back tax settlements with those who have gotten behind on their state taxes for one reason or another. These collections have been a steadily increasing source of revenue for our state for a decade.  Last year alone, $140M was raked in through such settlements.  In the first half of this fiscal year, the Kansas Department of Revenue has already captured $40M in unpaid taxes. 

• School fundingcontinues to be a key issue.  Adequately funding our schools and ensuring that students receive a quality education that will prepare them for the work force is important not just to them, but to the economy of Kansas.  While it is imperative to adequately fund our schools, it is also important to see that those funds are allocated wisely.

“InsureNet” would protect drivers, generate revenue

On Wednesday, the House Transportation Committee heard testimony in support of a new, statewide system for tracking uninsured vehicles.  The system, InsureNet, has already been installed in a variety of states, including Nebraska and Pennsylvania.

The intelligent tracking systems (Intellisections) would take pictures of the rear of vehicles and process the license information through a national intranet system within one minute. If the identified vehicle is uninsured, the owner will receive a citation in the mail.   To protect privacy, the information is destroyed 60 seconds after it is processed by the tracking system.  No private data is retained in the system.  This noninvasive approach has made the program popular with many groups and lawmakers.  The technology would be placed alongside major interstates, in areas of high population and near the borders of Kansas. An automatic citation system would mail citations within 24 hours. There is no cost for implementation.  The service, maintenance, and equipment are paid for by a portion of the new revenue InsureNet generates.  It is estimated that $150 million in uninsured motorist fees will be generated for the state of Kansas in the first year.  Barry Switzer, former Oklahoma football coach, represented InsureNet.  He said to tell all his friends in Sumner County “Hello”.

Hearings begin on Governor’s sales tax proposal

Last Thursday, the House Taxation Committee held hearings for House Bill 2475, which is the Governor’s proposed 1% sales tax increase.  Governor Parkinson introduced this proposal in his State of the State address as a means of protecting Kansas schools, essential services, and vulnerable citizens from deeper budget cuts.  The hearings last week were focused on supporters; opponents are scheduled for this Tuesday.  Julie Dollie, Supt. of Argonia schools, testified very well last Thursday.

I am not ready to endorse or reject any revenue proposal.  The opponents will testify Tuesday.  I will consider both sides with a singular focus on what is best for our district and state.  After five rounds of cuts, the funding levels are so low that we risk serious, long-term damage to the future of our state.  Ultimately, state government can’t keep you safe, educate your children, or help you through this difficult economic time unless it has the funds to operate. 

House Democrats proposal to cut spending 

Kansas has endured five rounds of budget cuts in the last year, with another revenue shortfall expected for 2011.  As a result, every state agency has been significantly scaled back except the budget of the Kansas Legislature.  The proposal is

• A five percent cut in legislators’ session pay;

(Saving approximately $66,000)

• A two-year moratorium on legislative pay increases;

(Preventing increased spending)

• The adoption of a nonpartisan redistricting commission;

(Saving approximately $600,000)

• A five percent cut to Legislative Division of Post Audit;

(Saving approximately $128,000)

• A two-year moratorium on any further spending for the legislative computerization process;

(Saving approximately $450,000)

• A 50 percent cut in legislators’ franking privileges.

(Saving approximately $128,000)

If passed, this proposal will save Kansas approximately $1.37 million and reduce legislative spending by approximately nine percent.  These are reasonable, cost-saving measures that will enable the Legislature to be part of the solution to this crisis.

In the Energy Committee, we heard testimony on “SmartGrid”.  This would allow customers to control electric usage and work with the utility company to better control their bill.  Westar is using Lawrence as the town to test this new technology.  SmartGrid technology is a state-of-the-art approach to managing electricity systems.  Customers with smart meters and internet access could monitor their daily electricity usage. 

We worked the expanded 911 bill last week.  There are funding and other questions to be worked out but this is going to happen.  We just have to work out how to do it.  This bill would allow us to use all the new technology available in the wireless industry to update our system.

This is a late edition but I will try to get the future newsletters out on Sunday.