2/14/10 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
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From The Statehouse: Week 5
I am happy to report that the pace picked up significantly in the Statehouse last week. Committees had a full schedule all week on a variety of high profile issues, including: the FY 2010 rescission bill, tax policy, school funding lawsuits, health care, smoking bans, and liquor sales. The budget situation remains precarious, but I am still hopeful that we can pass some productive policy this year despite our fiscal limitations. The halfway point of the session is next Saturday, “Turnaround”. House bills go to the Senate and vice versa.
Budget Update: Rescission bill passes, attention turns to FY 2011
Because state revenues have been consistently lower than expected, it was necessary to make additional cuts to the FY 2010 budget that will ensure we end the fiscal year with a positive ending balance (referred to as a rescission bill). Most of the necessary cuts were made in November by the Governor but some required statutory action. The Appropriations Committee voted the rescission bill out of committee last week and we took it up on the House floor on Wednesday.
For the most part, the Legislature accepted Governor Parkinson’s proposal, with only a few amendments. Specifically, a floor amendment was adopted that will reduce the salary of every elected official by 5 percent (this includes all public officials who are paid with state monies: statewide offices, state legislators, district judges, etc). Some Medicaid cuts were also shifted that will enable health care providers to receive more in matching funds. The total state cut remains 10 percent, but by making a few changes we were able to lessen the loss of federal dollars.
We probably aren’t finished with FY 2010 budget. Revenues were lower than expected again in January, and the state will likely be short approximately $40 million by July even with the additional cuts we approved this week. I expect we will revisit this again in April when the most updated round of revenue estimates are released and we have a more accurate picture of the shortfall. In the interest of the legislative calendar, it is best to turn our attention to FY 2011 for now.
House Bill 2544 expands beer sales
The House Federal and State Affairs Committee is considering a bill that would allow convenience and grocery stores to sell beer with 4 percent alcohol rather than the 3.2 percent beer that they sell now. The weaker beer was created to circumvent Prohibition regulations in the 1930s; the law was never changed to allow grocery and convenience stores to sell full-strength beer. If the bill passes, it will not allow convenience and grocery stores to sell other types of liquor. Also, Alcoholic Beverage Control would be in charge of cereal malt beverage vendors.
Opposition to this proposal comes primarily from local liquor stores, who are currently the only distributers of full-strength beer, (there really isn’t that much difference). They argued that it is easier for liquor stores to ensure underage citizens are not sold alcohol because it is required by law that liquor store workers be at least 21-years-old. They also voiced concern that this change would just be the first step in expanding alcohol sales to grocery and convenience stores, followed by wine and other hard liquors. Because grocery and convenience stores offer a wider selection of products, this could ultimately put liquor stores out of business.
Proponents- mainly owners of convenience and grocery stores- have been advocating for this law change for several years. They argue that liquor stores profit from their ability to set the price of alcohol and have little competition. They believe this bill would not only increase competition, it would also increase choice and convenience. Convenience store owners contend that they do not have the room to carry the selection of beers a liquor store would carry and therefore would not put the liquor stores out of business.
House Tax Committee begins series of hearings
After five rounds of budget cuts- and a $400 million budget deficit still looming- revenue proposals have been a major component of the budget debate. On Monday, the House Committee on Taxation began a two-week series on various proposals, which will continue next week.
HCR 5028 would establish a three-year moratorium on the granting of new tax exemptions, tax credits or economic development incentive programs involving employer withholding taxes. This idea- in addition to rolling back some tax exemptions- has been widely floated throughout the year as an alternative to a sales tax increase.
This proposal is a nonbinding resolution and would not affect exemptions already in place (a repeal of any tax exemptions already on the books would require additional legislation). The Kansas Advisory Council on Intergovernmental Relations (KACIR) testified that the number of tax credits has increased exponentially in recent years, putting a significant dent in the state’s revenue stream. As we work through massive cuts in Medicaid and public schools, it is critical to protect what revenue we have. Opponents of the proposal came primarily from the business community, who testified that a moratorium would prevent Kansas from being open to new business investment. For years, the Legislature has arbitrarily granted or denied tax exemptions with no set criteria on which to base its decision. If nothing else, this proposal highlights the need for clearly defined and consistent guidelines for granting exemptions in the future.
Smoking Ban Bills
In an effort to protect Kansans from harmful secondhand smoke, the Governor encouraged the Legislature to produce a strong statewide public smoking ban in 2010. In his State of the State Address, Parkinson requested legislation that was not “full of loopholes” and that would satisfy the 75% of Kansans that want a “real public smoking ban.” We have two proposals. House Bill 2642 doesn’t really ban anything. It would allow businesses to decide whether to allow smoking within their building just as they do in most places now. Businesses would be allowed to have smoking indoors by paying an exemption fee of $1 per square foot of the designated smoking area. The bill does call for, “physically separate smoking areas,” but smoke cannot be contained and studies have shown that separate ventilation does not work to control exposure to secondhand smoke. This legislation would also repeal the smoking ordinances that have already been put in place in cities across the state of Kansas.
The effects of second hand smoke include respiratory problems such as asthma, as well as ear infections, sudden infant death syndrome and cancers. Strong smoking bans have the ability to reduce heart attack rates by as much as 25% according to a report from the Institute of Medicine.
In contrast, House Bill 2221 makes a serious effort to protect the health of Kansans. This bill prohibits smoking in places of employment and restaurants and bars with no option of paying a fee to “opt out.” It also helps to protect our workforce from involuntary inhalation of carcinogens as well as helps to discourage our youth from becoming regular smokers. Currently, one in five high school students living in Kansas use some form of tobacco. If this trend continues, 54,000 Kansas youth are projected to die from smoking. It is in our best interest to protect our families from the detrimental effects of someone else’s smoke. Aside from health benefits, it is simply good economic policy to enact a strong statewide clean indoor air act. Our state spends $196 million on Medicaid expenses related to tobacco use. The vast majority of feedback I am getting is for a smoking ban. If I am going to take the heat for voting for it, I want it to accomplish something.
Supreme Court denies petition to reopen school finance case
On Friday, the Kansas Supreme Court announced its decision to deny a petition by public school districts to reopen the 2006 Montoy school finance lawsuit. Friday's ruling from the court means that any new challenge to the state's school finance system must start over at the district court level.
Attorneys for a coalition of 74 districts argued that the state is failing to comply with the court's earlier ruling that state aid to schools was unconstitutionally low. The Court opinion says that the July 28, 2006, decision found the Legislature to be in "substantial compliance" with the remedial orders made by the court in that case by passing bills in the 2005 session and special session and the 2006 session. The Court also said that the 2006 decision and closing the case was "limited to determining compliance" with the Court's orders in the specific case before the Court.
There were several problems with continuing the case originally filed in 1996. Ryan Montoy probably is no longer in public school and, therefore, does not have standing to sue under the new formula. Also, the situation of the original school districts has changed over time. And, the opinion pointed out, the case on remand would have to go through essentially the same process as a new case and "there is nothing the plaintiffs are seeking that they cannot accomplish by filing a new lawsuit. I will do all I can to prevent further cuts to public schools in FY 2011 and will advocate to restore the devastating cuts of FY 2010 once the economic climate of the state improves. However, my upcoming tough votes on the budget will not be influenced by court decisions or campaign rhetoric. We are in too much trouble right now to worry about elections and such. We have to get through this.
First Town Hall Meeting
We had our first breakfast meeting Saturday at the Donut Shop in Wellington. There was a good turnout and Senator Abrams and I answered many questions. I want to thank Shelley and Dena from the Chamber for planning it. Also, thanks go to the Sumner County Farm Bureau and Penny’s Diner for helping with expenses. Also Wendell and Elaine for letting us use the Donut Shop and interrupt their Saturday morning. Marilyn and I hurried home Friday to attend the Ernie Barrett gathering at Kelly Edgar’s. It turned out well. This is a great community when everyone pulls together.
Keep in Touch
It is a special honor to serve as your state representative. I value and need your input on the various issues facing state government. Please feel free to contact me with your comments and questions. My office address is Room L 8, Docking State Office Building, Topeka, KS 66612. You can reach me at (785) 296-7665 or call the legislative hotline at 1-800-432-3924 to leave a message for me. Additionally, you can e-mail me at vince.wetta@house.ks.gov. You can also follow the legislative session online at www.kslegislature.org.
