Stormy state session looming: Legislators split on proposed deficit solutions

Tuesday, January 27, 2009

From Tribune Staff and Ap Wire Reports

Monday's endorsement of a $302 million proposal to eliminate Kansas' budget deficit by the Ways and Means Committee was met with mixed results Monday.

The bill, presented by committee Chairman Jay Emler, R-Lindsborg, proposes an across-the-board funding cut of 3.4 percent. This plan, which passed on an 8-5 vote, would include a major cut to the state's education system.

About $100 million in promised state aid would be eliminated from schools' revenues in the current fiscal year, ending June 30. Democrats predicted many of Kansas' 295 districts will be forced to borrow money to cover expenses and impose property taxes to pay off the debt.

This proposal comes in response to Gov. Kathleen Sebelius' plan to alleviate about $186 million of debt by June 30. The bill includes most of Sebelius suggested cuts.

Legislative researchers project a budget deficit of $186 million on June 30. But GOP leaders believe the shortfall will grow larger as revenues continue to fall short of expectations, leading them to seek larger changes in the budget.

Sebelius proposed a grab-bag of targeted spending cuts and accounting changes to close the shortfall. Emler's plan rejects most of the proposed accounting changes in favor of spending cuts.

The committee's vote sent the bill to the Senate, which is likely to debate it Wednesday, according to Republican leaders.

Kansas District 13 Senator Bob Marshall, R-Fort Scott, said his knowledge of the proposal was limited Monday as it was not formally introduced to the Senate. However, he believes Democratic and Republican representatives will likely have to make several compromises before the budget amendment is cleared.

"From what I understand -- and this is nothing official -- the cuts are going to be very drastic," said Marshall. "I think it's going to be a struggle to get it through Senate and I think it will be a struggle again to get it through the House."

Kansas House District 2 Representative Robert Grant, D-Cherokee, said he also has not been formally introduced to the bill, but, would oppose any across-the-board cuts.

"I don't agree with it (3.4 percent cut) at all," said Grant. "You've got to be selective. There are a lot of people you can really hurt and education is one of them."

Grant's concern for the education system spawns from the knowledge that they operate on employment contracts.

"Most schools rely on contracts," he said. "So if we are talking about cuts, we are talking about janitors, maintenance workers, teacher's aids. Everyone else is under contract and the school cannot not fulfill those contracts."

When asked if Grant favored Sebelius' proposal over that of Emler, he said "absolutely I do. Definitely."

Marshall contends that Sebelius' plan is a short term fix to a long term problem, but said he will likely choose a middle ground in Senate's debate.

"Her (Sebelius) plan in my opinion is more about one-time cuts that will save you money in 2009, but nothing in 2010," said Marshall. "So we're still looking at pretty much a $1 billion deficit by the end of twenty-ten."

Marshall continued by saying he was "probably going to be somewhere in between the two (proposals)."

"That's kind of the way it is supposed to work," said Marshall. "You put something out there and then starting cutting on it."

Sebelius proposed protecting public schools from a cut in their overall state aid of about $3.78 billion, though her plan would force the state to reallocate $22 per student among the districts. Emler's plan cuts general state aid and aid for special education programs.

Most Republicans argue such cuts can't be avoided because aid to schools consumes half of the state's general tax revenues.

"What we're trying to do is get the process going," said Sen. Carolyn McGinn, R-Sedgwick, who supported Emler's plan.

But Sen. Janis Lee, D-Kensington, called the proposal "a sucker punch in the gut" for school districts that passed budgets based on the state's promises of aid.

"The school districts were just beginning to believe they could trust us," Lee said. "Now, they know we won't love them in the morning."