Well, the Governor vetoed the “Economic Stimulus Package and it appears there will be no veto override attempt when the legislature reconvenes for “Sine Die” on the 29th of this month. It is painfully obvious that you just cannot predict the future and this veto represents many missed opportunity for economic development in other areas of the state. Perhaps we will try again next year.
SB 586 would enact new law authorizing electric utilities to recover certain costs relating to planning for new nuclear generation capacity and regarding depreciation of nuclear facilities. Existing law would be amended regarding rate recovery of certain nuclear facility construction costs. Passed 101-22.
Subject to review by the KCC, companies could increase their utility rates to pay for preliminary engineering, study feasibility, prepayments for major equipment, and permitting. This issue came to light when it was thought there may be some resistance to the coal fired electric plants and to address the fact there has not been a nuclear plant built in the US since our own Wolf Creek was completed June 4th, 1985.
The Westinghouse Electric Corporation provided the nuclear equipment for this plant and the operating license is scheduled to expire on March 11, 2025. Today the only place to acquire the steel vessel required for the reactor is in China and the delivery time with current backlog is over 3 years.
Senate Sub. For HB 2434 (passed 109-14) would make a number of changes in property tax, income tax, and sales tax law. The bill would clarify that the property tax exemption for farm machinery and equipment would include certain beds, bodies, and boxes attached to motor vehicles actually and regularly used for farming and ranching operations.
The bill further would prevent counties from changing classification of certain property from commercial and industrial machinery and equipment to commercial real property for purposes of receiving certain increased state aid payments.
Additional language in the bill would require county appraisers to notify county clerks when property tax exemptions applications have been filed to help insure that the clerks do not utilize the valuation of property in question when computing mill levies.
The bill also would amend KSA 79-201b by adding a section to exempt certain real and personal property that is used for housing low-income single-parent families.
Another provision would exclude from the definition of “income” for homestead property tax refunds those Social Security payments received by individuals who have been receiving Social Security disability payments prior to attaining the age of retirement. This language would effectively implement a grandfather clause to assure that disabled individuals would not see their Homestead refunds reduced by virtue of having reached retirement age.
The top corporation income tax rate, which is effective for taxable income above $50,000, would be reduced from 7.35 percent to 7.10 percent, effective for tax year 2008; 7.05 percent for 209 and 2010; and 7.0 percent for tax year 2011 and thereafter.
One e-filing provision would reduce from $100,000 to $45,000 the minimum annual level of sales and withholding tax remittances beyond which electronic filing may be mandated. A second stipulation requires those paid preparers submitting 50 or more returns must file at least 90 percent of them electronically. This is an effort to save money at the department of revenue by not having so much paperwork to handle and store.
And finally in the sales tax provisions the sales taxes are exempt relative to certain purchases incurred in the construction, reconstruction, enlarging, or remodeling of business facilities located in counties declared disaster areas pursuant to Presidential Disaster Declaration DR 1711, providing the facilities were damaged by flood or other severe weather. (i.e., Greensburg, Coffeyville, and etc.)
The budget picture still looks bleak. We will end FY 2008 with expenditures over revenue of roughly
$401 million for an ending balance of $533.4 million or 8.7% of expenditures. The projection for FY 2009 we expect to spend an additional $414.5 million more than we take in and leaves us with $118.9 million or 1.9% of expenditures. This will put the State of Kansas in violation of the 7% required balance of cash to begin operations.
How did we get here? Remember the downturn in the economy? Remember all those groups that wanted more funding? Remember all the wants from the many agencies that provide services? Remember the school finance package of 4 years ago?
The school finance package made some significant changes across the State of Kansas.
In the 2004-2006 school year until the 2006-2007 school year the state-aid paid to schools changed. In addition to this money there is the local and federal amounts as well.
State of Kansas funding:
Statewide $2,362,223,172 increased to $2657,971,383 in 05-06 and to $2,888,960,769 in 06-07
El Dorado (490) $10,716,790 increased to $12,795,459 in 05-06 and to $13,712,655 in 06-07
Remington (206) $3,504,270 increased to $3,926,359 in 05-06 and to $4,202,969 in 06-07
Circle (375) $6,479,001 increased to $6,715,194 in 05-06 and to $7,187,773 in 06-07
The figures for this year 07-08 are not in as yet. Source: www.ksde.org/Default.aspx?tabid=1810, this is the Kansas Department of Education official web site. When you add the cumulative totals across the state and add in this year’s appropriation the total is close to over $850 million in additional funding. Of course many of us supported the increase in school funding and now it is time to evaluate the wisdom of that move.
I have been quite busy meeting with constituent groups the past couple of weeks and presenting some face-to-face discussion on the past legislative session. If you would like for me to come speak to your group give me a call 316-321-2087 or drop me a note at 1115 Rim Rock Road, El Dorado or email johng@carlisleinc.net. Past updates are available at www.johngrange.net.
I consider it an honor and privilege to be your State Representative in Topeka. I want to know what you think. Thanks, John
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