Revenue news is good
The legislature returned on May 3 for our final week. While the week was long and intense, we were able to handle several issues and wrap up the session in a relatively short amount of time.
The appropriations committee met at the end of April to review the updated revenue and budget profiles. We had good news on both the revenue and expenses sides. Revenue was increased by over $300 million for the current fiscal year over the November estimate. In May, we learned the month of April also came in an additional $95 million stronger than anticipated.
On the expense side, funds allocated by the legislature but not used are added back to the general fund. This reduction in expenses added another $100 million for this year, mostly due to human service caseloads being lower than expected.
While negative budget surprises also came, they were much smaller. One such surprise was a requirement from the federal government that we add another $100 million to higher education. We are working with them to adjust that number much lower without putting the federal funds we receive for education at all levels at risk.
K-12 education funding was one of the larger issues that had not been passed during the general session. Their budget was fully funded in a compromise between legislative leaders and the governor. The more controversial policy provisions from earlier in the session were removed. An expansion of the existing Tax Credit for Low Income Students Scholarship Program to include students who qualify not only for free but also reduced lunch did remain in the bill. I voted yes and the bill passed the House with 107 votes.
The rest of the budget had been passed during the general session. We made several small adjustments. Larger adjustments included a portion of the higher education funding noted above and an increase in judicial salaries.
We finished legislation needed in several committees. In insurance we completed work on reinsurance issues, the Healthcare Stabilization Fund and some smaller items needed for the insurance department. Pension legislation was completed during the general session.
Veto over-rides did generate a fair amount of discussion across the state. Voter registration and taxes were hot issues for both sides. The legislature did over-ride on these items.
Voter registration specified that voters need a physical address within a district, not only a P.O. Box, to register. A second bill dealt with ballot harvesting, specifying that elected officials cannot return ballots for anyone outside of their family and no one can collect more than 10 ballots. The tax cut bill had
The tax cut bill had several provisions. None were as far-reaching as the Brownback tax experiment. Restoring itemized deductions generated the largest fiscal note and initially had bipartisan support.
Collecting taxes on internet sales by marketplace facilitators is something I have tried to accomplish for several years. While the corporate items make sense in relation to other states, I would generally suggest caution when we pick and choose where our state tax code follows the federal code. On net operating losses, we re-joined (coupled) with the federal code while on global intangible low taxed income we severed (decoupled) from the code. While I disagreed with this last item, I did vote for the bill and the over-ride as I found the majority of the items to be a step in the right direction.
There was a fair amount of rhetoric going into the veto session and some drama related to negotiations between the House and Senate in several committees. However, in the end there was more agreement on large issues than I have observed during other sessions.
We were fortunate to have Bob Vander Plaats come from Iowa to talk to members of the legislature on civil discourse on May 4. He did a tremendous job sharing with us and responding to questions. Unfortunately, the turnout was low with only two dozen legislators attending. Those who made it really appreciated his insight and experience. However, at this time legislators may not be inclined to participate in discussions on this topic.
Thank you for your calls and emails during the session. I will be away from the office phone for the rest of the year, but will still have access to the steven.johnson@house.ks.gov email. I look forward to continuing to hear from you and to events over the summer.