March 18, 2011
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JOBS, JOBS, JOBS
This week we finally began working bills that would help impact the financial footing in Kansas in the future. It seemed like a long time coming but Governor Brownback’s bill SB1 finally made it out of tax committee and onto the House floor. It kept the sales tax in for perpetuity and began reduction of individual and corporation income taxes. This bill came as a result of studies done in other states where income tax reduction had proven to be an incentive to attracting business to locate and prosper. The bill showed a lot of promise, but initially failed to pass because it did not allow the one cent sales tax increase from 2010 to expire in 2013. The bill laid over for a day and passed the House with an amendment that will let the sales tax increase expire as it has originally planned.

This brings us to the topic of the sales tax which was increased last year to 6.3%. I voted against the legislation last year because it was unnecessary if we had chosen to cut the spending levels that were needed to put us on sound financial footing. I did not vote for the repeal this year because we have still not made the necessary cuts in spending to allow us to live without the tax and indeed our spending has gone up. My vote was the financially responsible thing to do.

We also passed out a PEAK bill SB196 which stimulates job growth by rewarding businesses that create new jobs; pay ½ of the employees health insurance premium, and have pay rates at least the count median wage. This bill was supported by the National Federation of Independent Business and is predicted to also raise State General Fund revenues by several million dollars by elimination of tax credit reductions. SB 61 was supported by several businesses in the state. It is known as High Performance Incentive Program or HPIP. It expands the refundable income tax credit. The benefits of this bill cannot be taken along with the measures of SB1, but rather the business has a choice of which incentive to take.

SB 193 is a simple bill that simply requires a social security number to be included on tax returns and for certain tax credits. It was brought by two new members of the legislature to ensure integrity in the claiming of certain tax advantages and credits. This little bill is expected to save the State of Kansas over $15 million for 2012.

Another freshman bill required the State Fire Marshall be more flexible with school districts. His action resulted in a meeting with the Governor and the Fire Marshall and action by them in resolving to back off of the stringent regulations and penalties during this time of economic stress. I am very proud of the brave individuals who joined the ranks of the Kansas House at such a time as this. They are coming up with fresh ideas and the energy it takes to make them happen.

AVERAGE?
The average classified state employee in Kansas in the year 2010 was 47 years old; with 14 years of service, and an average annual salary of $38,049.

The average unclassified employee for the state was 47 years old; with 12 years of service and average annual salary of $61,830. Statewide salaries and wages in FY 2012 will account for $2.6 billion with $1.1 billion being state dollars or nearly 20 percent of the state general fund.

How many employees does the state have? The Governor recommends 39,142 for 2012 plus 1,543 non-full-time unclassified positions. That is down considerably from 2011.

I hated missing Mrs. Romine’s class on Thursday. Only made it into my office once the whole day. So sorry.

Quote of the Week
“We are perpetually being told that what is wanted is a strong man who will do things. What is really wanted is a strong man who will undo things; and that will be the real test of strength.” G. K Chesterton, 1874-1936