This has been an extremely busy time for many of us legislators because we field questions from constituents on a wide variety of topics. My number one issue is getting citizens in contact with the Kansas Department of Labor. So far the contacts have been completed and the necessary information compiled and payments are staring to come.
My suggestion to anyone contacting any government agency is to keep good notes on what was discussed. As a minimum you need the subject, date and time, agency person you talked with, any requested information, and when you can expect a resolution to your inquiry. Be cordial, remember some on the other end of the line may have had several cases just like yours and may have been chewed out and they deserve respect too.
As we work through the interim period several questions have come up in regards to KPERS. This is the state run retirement plan for state employees. Currently the computation of retirement benefits is based on your final pay levels. The benefit is based on a number certain and whether the fund has made any money or not, the “defined benefit” is still paid. You are given a known amount, and that will be your benefit amount for life.
This is a sweet deal as opposed to a defined contribution retirement system, in where your payout at retirement and beyond is based on investment history and on how well your nest egg has grown. Recent events have seen some people getting far less from their retirement accounts than they had hoped for.
Rumors that the Governor and Legislators were going to eliminate or reduce the retirement benefit have been popping up all around. This has certainly been discussed from time to time and always with the desire to “hold harmless’’ those currently in the system. This would be the right and fair thing to do. Remember though the state is critically short of funds and everyone department and agency head is looking for savings.
The Governor said last week, he is willing to consider changes in eligibility requirements for current participants. House Appropriations Chairman Kevin Yoder has indicated it would not be legal to make reductions to those already in the program. One thing for certain is that we must do something in 2010. Stay tuned for developments.
Glenn Deck of the KPERS reported; last year the investment return on the KPERS fund was a negative 19.2 percent. The unfunded liability grew $2.7 billion in one year, Depending on which funding ratio is used, KPERS Fund has a funded ratio of 59 percent or 49 percent. That means KPERS would not have enough assets to provide all the benefits already earned by members and to pay off the unfunded liability by 2033.
Given this shortfall, better investment returns alone will not fix the problem. It is a serious financial problem, but one that can be fixed over time through increased contributions or other adjustments. Kansas should explore a complete shift to a defined contribution arrangement, similar to the one used by the Regents system (and most private employers)
School finance always comes up and there is always someone willing to discuss paying for and several options to insure our children’s education. I am working to schedule meetings on this topic with various groups and the elected school boards within the 75th District. If you would like to be included please give me a call.
After increasing steadily over the last 10 years the Kansas Department of Education reports the per pupil funding for Kansas K-12 education will likely face more reductions as the economy slows and the federal stimulus dollars run out in the next 2 years. http://www.ksde.org/Default.aspx?tabid=3347.
You can access the above website and find out how each school district did in relation to funding and enrollment growth. The affect on each school is handled differently; the school board has the final say in how the funds are spent with the exception of specific dedicated funds. This dedicated funds policy probably needs changed so the local control could best distribute their revenue.
The Court has placed a burden on the State of Kansas and required an additional $200 million or so each year be added over the last 4 years. The cumulative affect of this action was an additional $1.2 billion from the taxpayers of Kansas. Some school superintendents and school lobby groups are once again saying it is time to sue the state again for further increases in school funding. I hope not.
The 13% or so reduction within the Department of Corrections, has led to the closing of prison facilities in Toronto and the El Dorado North Unit. The Highway Patrol has reduced the number of trainees for State Troopers. Many suggest public safety is just important as providing education for our children.
Thanks to all of you who send in comments or request assistance in working with the different agencies. I try to report what I am hearing in the halls, around town, from my colleagues, around the State of Kansas and I really want to know your opinion. If you have a suggestion of how we should address the many issues I bring to light, please contact me.
You can reach me personally, at home 316-321-2087, 1115 Rim Rock Road 67042, johng@carlisleinc.net,
www.johngrange.net. My Topeka office location is changing and will be open on January 11th. I consider it an honor and privilege to be your Representative in Topeka and I do want to know what you think. Thanks, John
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