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Matt Grange, Treasurer
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Legislative Update -- February 7, 2007

This week we finished hearings on the Post Audit Report concerning the Departments of Labor and Commerce. The Department of Labor has the nations highest reported incidence of fraudulent payments on unemployment compensation in the entire country. Total; $115 million. Kansas rate is around 45% and in the US the national average was just under 10%.

Simply stated if someone files for unemployment at the DOL, he is then required to apply for workforce training at the Dept of Commerce. In the old days these two offices were located in the same building. Following the Governor’s Executive Reorganization Order a couple of years ago these functions were split between the two departments and offices were geographically separated. Remember all the paper clips we saved?.

Starting in 1998, unemployed were allowed to file for benefits by telephone and in 2002 the use of the internet was added. More reorganization and less reporting between the departments has allowed our fraudulent rate to shoot off the chart. So in an effort to drop the fraudulent rate the Secretary of Labor has issued new rules and regulations, which makes fewer less people apply for workforce training. The committee is still not sure this action solves the problem.

The numbers look like this: For the quarter ending June 30, 2006; 9,251 unemployed workers were required by statute to register for job services. 1,924 were identified to most likely “exhaust” their benefits, i.e. no more money. The Department scheduled 729 for an appointment at a workforce development center, 687 kept the appointments, 11 were excused, and 31 benefits were terminated for failing to show up.

Last night the Kansas Chamber of Commerce held its annual meeting and banquet in Topeka. I was the guest of The Butler County delegation, who were represented by Commissioner Will Carpenter, Administrator Will Johnson, Economic Development Director David Alfaro, and Lou Clennan. Also attending were; John Prather from Groendyke Trucking, Rep. David Crum Augusta, Don Duncan Augusta Inc., Teresa Taylor from Douglas, Marci Brewer, Beaumont.

The 1500 or so attending were honored to have as speakers, Retired Senator Bob Dole, and J.C. Watts. J.C is a former quarterback for the National Champions, University of Oklahoma and a 4 term US Congressman.

I am interested in the issue of the retirement of water rights in western Kansas. HB 2184, known as conservation reserve enhancement program, (CREP). This is a Federal and State program that will pay farmers and ranchers to turn off the pumps to conserve the water. Questions arise as to who is selected, as only 600 out of 6,000 rights are eligible. Are we really going to save the water at the risk of damaging the economy in these areas? The retired rights do not allow even dry farming for 15 years, what do these people do and where do they go? Some owners do not live in Kansas. $200 million divided by 600 people, mmm, what do you think?

We had a rare joint session with the Senate in which Senator Pat Roberts introduced the possibility of Kansas becoming the site of the National Bio Sciences Laboratory under the direction of the Department of Homeland Security. This is a multi-$Billion deal that we hope will come to Manhattan or Leavenworth. The US Government is wanting to consolidate the efforts against Bio-terrorism and this laboratory will be state of the art facility employing top level scientist as they continue the fight against those that wish to do us harm by destroying our ability to feed ourselves and the world. A decision is to be made this year, lets hope for the best.

What an opportunity to see and hear some great Americans this week. I just visited the Leadership Butler group, I and the other legislators always look forward to visiting with these aspiring leaders from our county. I have some appointments later this week and next week set up with teacher representatives from El Dorado and a couple of you have offered to come and shadow me, I look forward to showing you around.

Remember you can check on any legislation, track bills, check votes, and listen to testimony and floor debate by going to http://www.kslegislature.org, and navigate the web. Call me at 785-296-7655 or visit at room 411-S, State Capitol, Topeka, 66612. Want to know how I voted and why, just ask. I consider it an honor to serve you. Let me know what you think, Thanks, Rep. Grange.

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