EDUCATION FUNDS
Over the past two years, Kansas has experienced a large number of financial management reviews by the Centers for Medicare and Medicaid Services (CMS) and the Office of the Inspector General audits. These studies revealed a number of administrative and payment issues, and suggested corrective actions to bring the State into full compliance with all Federal regulations and State Plan provisions. The reviews fit the three categories of Local Education Agencies, targeted case management, and mental health and child welfare. The issues identified under the category of Local Education Agencies will cost Kansas almost $38 million for the corrective actions. The problem was created when schools neglected getting the proper documentation for students who signed up for special services which brought down more federal dollars. We also had to face reductions in federal funding which will cost Kansas around $8 million. The category of Mental Health and Child Welfare will cost Kansas $10 million. With these changes, the CMS offices have agreed Kansas has resolved all outstanding payment and administrative issues, and, contingent upon successful implementation in July 2007, the State of Kansas is released from further liabilities on these issues.

LACK OF EDUCATION OVERSIGHT
A recent audit reviewed by the Legislative Post Audit Committee revealed a lack of oversight by the Kansas Department of Education over the state’s virtual schools. Under Kansas law a virtual school has two components: K-12 courses offered through distance learning technologies, mainly using Internet-based instruction methods, and those teachers and students who are separated by time and location (courses are available on an anytime, anyplace basis). Kansas has 26 school districts and service centers operating 28 virtual schools. These schools can be very valuable to the public if they are run properly; however, without proper oversight, there is no way to ensure these schools are being used to actually educate individuals or just gain more money from the state. While the Kansas oversight policies were considered one of the strongest among states with these schools, the policies are often not carried out. Recently some of the requirements used to provide guidance to the virtual schools have been relaxed or eliminated such as testing, attendance, training, and availability of teachers. Funding for these schools is done on a per student basis and the cost to educate them is often much less than the money the schools receive from the state, so there are some schools making a significant amount of money off these programs. The virtual school in Mullinville is a good example of this type of school. In fact Mullinville was making so much money it had some of its students enroll in nearby schools so it could transfer some of the money it was making on this venture. Most of the schools make money off of these schools, but this is not really the issue. It is whether the money is being spent to fund and properly run these schools. The Emporia district was the only one audited that showed more expense to the program than revenue brought in.

HEALTH CARE
SB 11, the health bill I have been working on all session, finally passed out of the conference committee and is waiting for the governor’s signature. This bill will strengthen community health care, create more accountability, and give individuals more control over their health care. I am excited about the positive affects this bill will have on the future of health care.

CONCEAL AND CARRY
I have received many phone calls and emails about HB 2528, which would prevent cities and counties from passing measures that would interfere with the state conceal and carry law. The bill passed both the House and Senate but was vetoed by the governor. There was a vote in the House on Thursday to override the veto and the measure passed by a 98/26 vote. The Senate voted today to override the veto by a 30/10 vote which is successful in passing the bill into law.

FINAL WORDS OF SESSION
As this veto session comes to a close, I once again thank you for the privilege of serving you and I thank you for your letters, your calls, and most of all for your prayers.