“Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you too can become great. When you are seeking to bring big plans to fruition, it is important with whom you regularly associate. Hang out with friends who are like-minded and who are also designing purpose-filled lives. Similarly, be that kind of a friend for your friends”. Mark Twain.
2009 is but a memory and 2010 is looming ahead and I wonder what the future has in store for us all? One thing for sure if we have no plans, goals or ambitions we most likely will stay exactly where we are today.
I spent an extended lunch this past week with members of the Wichita Area Builders Association where we discussed issues of common interest. We discussed the rules and regulations on working around lead based paint as proposed by our friends at the Kansas Department of Health and Environment.
The department secretary has determined that we need to tighten up the rules about possibly disturbing paint that may contain a quantity of lead. In 1978 the US stopped allowing the manufacture and use of paint that had a lead content. The Federal EPA has had in place for year’s rules that addressed this issue, although enforcement was lacking.
In rolls our own KDHE that has taken the existing EPA guidelines and made them stricter and added many more conditions. The conditions require testing of homes, prior to remodeling projects, training and certifying of technicians and contractors that work in your home that may or may not disturb an area where the paint could be located.
KDHE wants to test and certify everyone working for a licensed contractor, they want everyone to have a license and then require that the license be renewed every 2 years. Passing grade for the new license is 80%. Never mind they have not developed the test or designated who may administer the test, and for sure will not allow anyone from another state to use their test as proof of licensure.
I and my other contractor friends will be looking into this one as something maybe we should get a moratorium placed upon. Oh yes, the expected additional cost for projects in your home could run at least $350.00 or more as the contractor attempts to recover this additional cost of doing business. This is the type of thing that happens after the legislature adjourns in May.
We have been studying the tax policy recently and have come to the conclusion there are perhaps places where could make some adjustments, that is depending on what your favorite tax happens to be.
Some talk is focusing on the raising of cigarette taxes. In 2004 the state received $119,789,000 in cigarette tax revenue, after several increases in 2009 we received $107,216,000. Now if we throw in a ban on smoking in public places, we expect that revenue to continue to decline. When we hike the price and restrict the use, it must follow that the state will receive less money.
In 2004 taxes on new tires brought the state, $727,000 and by 2009 after more tax increases the revenue generated was $677,000. Kansas Tax Facts, www.kslegislature.org/klrd.
There is talk about reducing and or eliminating tax exemptions. The department of revenue says we exempt more taxes than we collect. I think they say this is recorded as an expense. If we are going to do that we need to understand that many exemptions could go away with very little impact statewide. We need to be aware that many exemptions encourage positive economic activity and as a result make us money.
In Kansas City the GM plant encouraged us to pass the exemption for Machinery and Equipment Purchases, (M&E exemption) they responded by a $100 million expansion of plant facilities and are currently running 3 shifts with very stable employment. Had we not given the exemption they could have moved to any number of other states willing to help them.
We do need thorough top to bottom evaluation of current exemptions and after this analysis perhaps we should be able to select some that could be eliminated. Do you have any suggestions?
When we look at the exemption we need to evaluate the income side of the equation too. Some exemptions actually add to the economy by providing goods, services and employment opportunities.
Let’s all pray that the next year is more prosperous for us all and that the international and domestic issues get settled with a little common sense attached to the solutions. I will be completing my compilation of survey results shortly and will post them on my website and legislative update.
I consider it an honor and privilege to serve as your Representative in Topeka and I do want to know what you think. My Topeka office will be operational January 11th, 2010.
Thanks again and Happy New Year. John
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