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Matt Grange, Treasurer
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LEGISLATIVE UPDATE #27 -- July 1, 2008
Here it is July and one-half of 2008 is already behind us, I think time really does fly. The older I get the faster the pace becomes, that seems backwards to me.

This time of year we receive budget updates and reports on the economy and of course tax receipts. We have a group of budget experts from the State and Regent Schools that quarterly provide us with forecasted revenues that the individual departments and agencies use to prepare their budgets.

In May the numbers were off downward by $50 million, while this past June the tax-only revenues were about $5.2 Million below their estimates. The Department of revenue just reported we have received about $61 million less than was forecasted 2 months ago.

The biggest drop is in individual income taxes in that we received $10.3 million or 3.4% below estimates made in mid-April. Other substantial drop: use taxes (essentially sales tax paid when things bought out-of-state are brought back to Kansas) down $15.5 million. Corporate income taxes were $13 million over estimates.

Sales taxes for June were up slightly over estimates at $146 million but still below last years $151 million for the same month. This information required the Governor to ask all agencies and the schools to find cuts of around 1-2 percent. We all would be well advised to find additional ways to cut expenses unless of course you can raise your income to offset any shortfall.

What does the State of Kansas of Kansas do to offset the losses? They have options as well; budget cuts, or raising taxes and purchasing bonds of indebtedness requires legislative approval so that is not a given. The agencies have the rules and regulations option where they can impose additional fees for services. The fees increase can often slip in under the “radar”.

An example of this is the State Fire Marshall (SFM) attempting to impose certification fees on contractors that service anything in the propane industry. This sounded innocent enough until we saw where it was actually a duplication of efforts between the SFM and the local code enforcement.

The $50.00 per contractor and $25.00 per technician would have been a windfall for the SFM and all without enforcement capability. This collection would have brought many thousands of dollars to the agency for a certification that is already monitored. The legislature unanimously opposed this effort.

The most recent comes from the Banking Commissioner’s office that is looking for individuals that may loan personal funds for home purchases. Even if an individual extends credit primarily for personal, family, or household purposes, K.S.A. 16a-6-201 requires you to file notification and pay the prescribed fee ($18.00 per $100,000) within 30 days and ($25.00) annually thereafter.

The rules and regulations are silent on interest rates, just because you have the wherewithal to loan some of your personal funds, the State of Kansas wants a piece of the action.

The revenues from extended gaming are not here yet and already there are many hands reaching for a piece of that pie. Casinos may provide some short-term relief but that money, by statute can only be spent on property tax relief, debt reduction and infrastructure maintenance. The privilege fee, which is a one-time $25 million payment by a casino operator to allow them to build in Kansas, has already been committed to pay for a one-time $300.00 COLA for state employee retirees.

HB 2620 creates four new statutes that are a part of and supplemental to the Kansas Healing Arts Act and amends three statutes that are part of the Act. In addition, the bill creates a new statute that concerns applicants for the licenses to practice as nurse or mental health technicians.

The bill creates a new statute that allows the Board of Healing Arts to enter into a written agreement with a licensee for a professional development plan, to make written recommendations to a licensee, or to issue a letter of concern if the Board, a committee of the Board, or a peer review committee determines the licensee:

Seeks to meet requirements for license renewal by means other than completion of continued education requirements; or has been absent from clinical practice for an extended period of time and seeks to resume such practice;

or has failed to adhere to the applicable standard of care, but not to a degree that constitutes inability to practice the healing arts with reasonable skill and safety to patients;

or has engaged in a practice that, if continued, is reasonably be expected to result in future violations of the Healing Arts Act.

I hope you all had a safe Independence day celebration. We all offer our appreciation to the men and women who serve in uniform for defending our ability to celebrate freedom. Thanks for all you do.

I consider it an honor and privilege to serve you and I want to know what you think, contact me at home 1115 Rim Rock Road, El Dorado 67042, or call 321-2087, johng@carlisleinc.net, www.johngrange.net, grange@house.state.ks.us

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