This week concluded the general session of the Kansas Legislature. I will return to Topeka with the budget committee on April 27 to review the budget in light of the revenue estimates which are completed late in April. The full legislature will reconvene on May 3 for the veto session.

The Kansas House took action on 47 different bills and conference committee reports this week ahead of the first adjournment of the legislature. Among the items was

Among the items was House Bill 2007, which is our preliminary budget bill. It is a good starting point, although there will be adjustments after our reviews starting on April 27.

The bill addresses many needs, especially in areas relating to mental health and social services. However, it does spend quite a bit more than we are projected to raise in revenue.

Spending increases for next year are $500 million over this year. The expenses total $8.16 billion. With over $100 million in tax cuts passed by the legislature so far, next year’s budget erodes our $650 million ending balance to just $10 million at the end of fiscal year 2022.

While I considered voting “no”, I did vote for the budget. This is the one constitutional item we must pass each year. While cutting spending

While cutting spending often sounds like a good idea, the reality is more challenging. I believe on the budget issue I have to offer another solution rather than just say “no”. That solution needs to be similarly vetted and able to pass the House and Senate.

One item that will help the budget is the plan to issue a bond for KPERS. The House passed a measure to bond up to $1 billion if rates remain low enough.

However, leaders in the Senate did not want to consider more than $500 million. We held conference committee meetings until 10:30 p.m. on our last night, agreeing to the Senate’s $500 million position.

While the amount of debt remains the same with bonding, the interest cost is different. The KPERS liability is paid at 7.75 percent. Rates in the bond market are currently 3.75 percent. The interest savings with the transaction would be about $20 million per year.

There are a few measures we still need to pass for the insurance department. One of our senate leaders did not want to sign the conference committee report this week, hoping to use that leverage to get some movement on another issue. This kept the bill from moving across the finish line and added a bit of drama to our closing days. We will figure out a solution for our May session.

The last bill we considered was House Bill 2143. This bill contained four tax exemptions. It also adjusted the levels and frequency which determine how retail sellers have to remit sales tax.

Adding tax exemptions often proves popular. While the bill passed, I voted “no” as I have suggested we determine criteria we use to grant or deny tax exemptions.

We were informed the department of revenue is changing the sales tax form so that retailers do not have to prepay sales tax. This change is the right thing to do for our retailers. However, it will result in a delay of sales taxes remitted. The fiscal note is uncertain and will further erode the ending balance.

I will continue to follow up with unemployment issues with the Department of Labor and plan to spend some time with them in Topeka over the break. Otherwise, I am looking forward to catching up at home over the next few weeks.

Have a good remainder of April!