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Matt Grange, Treasurer
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LEGISLATIVE UPDATE #23 -- June 10, 2009
We are not alone as a state and having to make budget cuts. I have friends in the Oregon Legislature that tell me they have a $17 billion budget and they have found they will have $12 billion in revenue. They proposed a 35% across the board cut and at this writing are still trying to crawl out of their hole.

In California a legislative budget committee voted unanimously Wednesday, June 3rd to eliminate state agencies altogether, taking dead aim at an administrative layer of gubernatorial bureaucracy that oversees most state departments. The 10-member panel- six Democrats and 4 Republicans also voted to eliminate the Office of the Secretary of Education, which lawmakers said is unnecessary because the state already has an elected superintendent of public instruction and the State Board of Education.

All told, agency eliminations would save less than $25 million from the state’s general fund budget, according to Michael Cohen, deputy legislative analyst from the nonpartisan Legislative Analyst’s Office.

Governor Arnold Schwarzenegger recommended last month that lawmakers consolidate more than a dozen boards and commissions to save $50 million. He also began laying off 5,000 rank-and-file state workers.

The governor would not support eliminating the education secretary’s office unless lawmakers give the governor more say over state education policy. The state superintendent of public instruction, as an elected official, oversees the Department of Education. The secretary of education largely plays an advisory role to the governor and has little authority over education policy; it costs the state nearly $2 million for 17.5 positions.

In California education takes up over 40 percent of the budget, while in Kansas K-12 is over 60% and if you throw in Higher Ed, it is closer to 70 percent.

In New York there are more than 10,000 taxing entities within the state, ranging from special districts that provide volunteer fire departments to those responsible for disposing of duck waste or maintaining fallout shelters. Special districts are especially plentiful on Long Island, where they generate half the special district tax revenue in the state. Many districts are considered by critics to be little more than patronage mills.

In the State of Kansas we are obviously better off than many of our fellow states. I have suggested before that we have a spending problem along with the fact of not having any money in the bank. We are entering times within this state when we will decide what is really important and what is nice to have.

I suggest all agencies; programs, entitlement agencies, boards and commissions need a thorough evaluation. While I was in Topeka last week several of us met to discuss the possibility of a BRAC type commission to evaluate the necessity of our state agencies and programs. The consensus is that we simply cannot continue business as usual. We will be working on this next year

Some constituents asked me about the possibility of raising the State of Kansas sales tax. This seems to be a pretty easy choice as it is consumer driven and could be partially funded by those passing through our state. According to our financial experts, we expect $1.7 billion in sales tax revenue. A one-cent sales tax increase could potentially raise $340 million. Not bad work for a single penny multiplied.

Many would support this if accompanied by a $340 million agency budget cut. We could possibly net about $680 million cash in a year that would help us heal. I would like to know what you think on this as a possibility. As always I want to know what you think, and please offer an alternative if you do not like this one.

I do not like to be all doom and gloom, but sugar coating only will go so far. In Kansas our legislature only meets for 90 days, while in California they are there full-time. Maybe that is why there is such a problem out on the West coast.

As you read this I am coming off of a week long vacation and I hope you get a chance to travel and see our great state and country. We are blessed with freedoms and opportunities that many would, and have died for. I consider it an honor and privilege to serve as your representative in Topeka and I want to know what you think.

My Topeka office is closed and the e-mail and phones are shutdown. Please contact me at my El Dorado home. Thanks again, John

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