Governor Kelly Announces Reorganization of Energy Office

Division to be moved out of the Kansas Corporation Commission

Governor Laura Kelly today announced her intent to submit an executive reorganization order (ERO) to the Kansas Legislature, moving the Energy Office out of the Kansas Corporation Commission (KCC) and into a separate, independent entity. This reorganization will preserve the Energy Office’s existing programs in the KCC, while expanding its scope to include energy planning, policy development and stakeholder outreach.

“The first step toward a comprehensive state energy plan is building an infrastructure for energy policy discussions. That means building an independent Energy Office that is focused on implementing an inclusive, data-driven vision for the energy future of our State,” Kelly said. “I am excited to announce this important step in building an energy market that is affordable, efficient and meets the needs of our businesses and communities.”

Governor Kelly is committed to unlocking the potential of Kansas’ diverse energy landscape. This reorganization order will build on Kansas’ nation-leading successes in renewable energy development and energy efficiency, while charting the path for a sustainable and balanced energy future.

Governor Kelly’s office will release more details on the Energy Office in the coming months.

Governor Kelly will submit the ERO to the Legislature within the first 30 days of session. The ERO will become effective on July 1, following its transmittal to the Legislature, unless either the Senate or the House take action on the ERO within 60 calendar days of submission.

The Governor’s Council on Tax Reform has released its interim report for consideration by the Kansas Legislature, following months of meetings by the Council.

Last year, Governor Laura Kelly issued Executive Order No. 19-11 establishing the bipartisan Governor’s Council on Tax Reform.

Governor Kelly directed the Council to assess the state’s tax system, explore strategies to increase both effectiveness and fairness, receive input from stakeholders across the state, and submit an initial report with assessments and recommendations.

The Council submitted its recommendations in December and has now released the full interim report, which includes details on those proposals.  

Among notable recommendations are a food sales tax rebate targeted toward Kansans who need it most, and a return to implementation of the Local Ad Valorem Tax Reduction Fund (LAVTRF) as a way to help local governments keep their property taxes low.

“I tasked the Council with an in-depth study of our tax structure,” Governor Laura Kelly said. “I am pleased with the diligent work the Council has done to research the current tax and budget situation in Kansas, and make sound recommendations that would return the state to a balanced approach of sales, income and property taxes. There’s a need for tax reform designed with adequacy, equity and stability in mind, and I welcome the Legislature’s consideration of the Council’s recommendations.”

The Council will continue working throughout 2020 and submit its final report prior to the start of the 2021 legislative session.

To access the full report, please visit: https://governor.kansas.gov/governors-council-on-tax-reform-report/

Governor Kelly unveils new KANSASWORKS Mobile Workforce Center

Topeka, Kan. – Governor Laura Kelly today joined Secretary of Commerce David Toland and KANSASWORKS Vice-Chair Carol Perry in unveiling the newest member of the KANSASWORKS Mobile Workforce Center fleet.

“Delivering effective workforce services to Kansas residents is a priority of my administration,” Governor Kelly said. “While there is a broad network of brick-and-mortar Workforce Centers across the state, not all Kansans can easily access those services. This Mobile Workforce Center will deliver those same quality services to individuals who might not otherwise have an opportunity to access them.”

The Mobile Workforce Center allows KANSASWORKS to provide workforce services in regions of the state that lack permanent Workforce Centers or face unusually high demand for workforce assistance. It includes six internet-ready computer stations to assist job seekers and employers, as well as an interactive SMART Board™ for presentations inside the center and a state-of-the-art audio visual system to support presentations outside the center.

In 2019, Mobile Workforce Centers were present at more than 60 job fairs and nearly 30 different community events. They were also dispatched as mobile response units to assist Kansans and Nebraskans impacted by tornadoes and flooding.

“Developing and retaining a strong pipeline of talent is key to the health and sustainability of Kansas’ economy,” Secretary Toland said. “KANSASWORKS plays an integral role in connecting job seekers to businesses, and the new Mobile Workforce Center will extend our reach into areas we may not have reached before.”

“One of our goals as a State Board is to increase accessibility to residents in rural Kansas communities, and I’m excited that we’re able to deploy a new tool to help us achieve that goal,” KANSASWORKS Board Chair David Harwood said. “The Mobile Workforce Center is staffed and equipped with the latest technology to enable our customers to receive the same levels of service they would experience in a physical Workforce Center.”

KANSASWORKS is the state’s public workforce system and provides a number of employment services such as assistance with job searches, resume writing and skills assessments to Kansas residents at no charge. They provide services through a network of 26 Workforce Centers across the state, Mobile Workforce Centers and online at kansasworks.com.

For more information or to request a Mobile Workforce Center in your area, visit kansascommerce.gov/mobileworkforce.

KDHE Secretary Delivers State of Public Health Address

Topeka – Kansas Department of Health and Environment (KDHE) Secretary Lee Norman, MD, delivered “2020: The State of the Health of Kansans” to the Kansas Senate Public Health and Welfare Committee this morning.  Dr. Norman will deliver the same presentation to the Kansas House Health and Human Services Committee Wednesday at 1:30 p.m. This is the first time KDHE has delivered such address to the Kansas Legislature.

“As the State Health Officer, it is my duty to look at the health of our state and provide education on what we as a state can do at an individual level, a community level and a government level,” said Dr. Lee Norman, Secretary of KDHE. “Health isn’t just medical care. It’s our behaviors, our environment, our policies and our outcomes.”

Since 1990, Kansas has seen the greatest decline in its health rankings according to America’s Health Rankings published December 6, 2019.

• Behaviors – Kansas ranks #38 in the survey for obesity rates and #30 for smoking.
• Environment – Kansas ranks #21 in the U.S. for the number of children living in poverty. Kansas’ chlamydia numbers are twice the healthiest state, at 465 per 100,000.
• Policy – Kansas ranks #49 in U.S. for females receiving the HPV vaccine and #34 for males. Kansas ranks #32 for children 19-35 months receiving completed vaccines at 69 percent. Kansas ranks 40^th for the amount of dollars in public health funding at $60/person. This is 4.5 times less than the top state at $281/per person.
• Medical Care – There is low access to dentists, particularly in rural Kansas. Kansas ranks #38 with 50 dentists per 100,000. Kansas also ranks #35 for mental health providers.
• Outcomes – Kansas ranks in the bottom half on cancer, cardiovascular and diabetes deaths; frequent mental distress; infant mortality; and premature deaths in years lost before age 75.

“What this data suggests is that Kansas needs to improve access to care – addressing the shortage of medical professionals, financial impediments and geographic maldistribution among others,” said Dr. Norman. “It suggests that we have unhealthy behaviors that need to be remedied and that there’s a need for active illness prevention and intervention.”

Dr. Norman continued, “Every Kansan can take steps to improve our state’s health – increase your physical activity, be mindful of proper nutrition and make sure your family is up-to-date on immunizations. It’s also critical that we as a state look beyond ourselves and our families, to our neighbors and community members. It’s time for us to intervene and invest in the health of Kansans.”

And they’re off…  legislators trying to get as much as possible accomplished in 90 days.  Our Kansas Constitution limits the legislature to 90 days in even number years.

Property Taxes.  You have been telling me that increasing appraisals are automatically increasing your property taxes and I have been listening.  This last summer I, with the help of other legislators, have been working on solutions.   To increase taxes should require a vote by the commissioners and not automatically increase by the action of the appraiser.  Being Chairmen of the Senate Tax Committee, I will be working on this as well as improving the process to appeal property taxes.  Bills are being introduced to increase transparency and improve the process.  I will keep you updated.

Kansas government has out-of-control spending.  Last January, 2019, Governor Kelly submitted her large budget to the legislature and the legislature sent it back to her with $182 million dollars more spending then she requested.  She could have line-item vetoed this increase but she didn’t.   I did not support last year’s out of control budget and I will not support any reckless budget that spends more than we are taking in.

The Governor promised she wouldn’t raise taxes. A few days ago in this year’s State-of-the-State speech she said she would submit a budget that would honor her promise to cut taxes.  However, in her budget presented the next day she asked for sales tax to be put on all digital video, audiobooks, pictures, greeting cards, games, and streaming services.  That would increase state revenues by $26.7 million.  Sounds like a tax increase to me.

The Governor also proposed $54 million in property tax relief.  Kansans pay around $5 billion in property taxes.  The $54 million Local Ad Valorem Tax Reduction (LAVTR) the Governor proposed could provide a small temporary cut if local authorities pass the money on to the taxpayer.  For example, a property tax bill of $1,000 could be reduced by $10 if all of the LAVTR was passed on to the taxpayer.    That would not be a solution for the ever-increasing property appraisals that are automatically increasing your taxes.  We need a solution that addresses the heart of the problem and that is what I am bringing forward in the Senate.

What about our President…  He brought back prayer in our public schools last week.

It’s an honor and  privilege serving as your Senator.

Caryn

Citing its importance to Kansas exports and the state’s economy, Governor Laura Kelly and Secretary of Agriculture Mike Beam expressed praise today for Congressional passage of the United States-Mexico-Canada Agreement (USMCA).

“This is an important and welcome development in Kansas, especially as our farmers and ranchers struggle to rebuild after an historic year of natural disasters,” Governor Kelly said. “With more than 95 percent of the world’s consumers living outside the United States, world markets offer tremendous growth opportunities for Kansas agriculture. USMCA will create enhanced export opportunities and help Kansans capitalize on the increased global demand for food and agriculture products.”

Secretary Beam also cited the positive impact for Kansas producers.

“This agreement is great news for Kansas, especially Kansas agriculture,” he said. “Mexico and Canada are consistently in the top three trade partners for Kansas so maintaining these strong relationships is critical for agricultural exports in the state.”

Canada and Mexico are Kansas’ first and third largest export markets for Kansas food and agricultural commodities, totaling nearly $1.58 billion in 2018 or 41.1% of our total trade.

USMCA is a significant development for Kansas farmers and ranchers. With a downturn in commodity prices, the agriculture sector is at a critical crossroads. The passage of USMCA provides Kansas farmers, ranchers and agribusinesses a degree of certainty during some uncertain times. It also instills confidence in the state’s top trade partners and neighbors that the U.S. can be counted on as reliable suppliers of food and agricultural commodities.

According to the office of U.S. Secretary of Agriculture Sonny Perdue, under USMCA all food and agricultural products that have had zero tariffs under the North American Free Trade Agreement (NAFTA) will remain at zero tariffs. Since the original NAFTA did not eliminate all tariffs on agricultural trade between the United States and Canada, the USMCA will create new market access opportunities for United States exports to Canada of dairy, poultry, and eggs, and in exchange the United States will provide new access to Canada for some dairy, peanut, and a limited amount of sugar and sugar-containing products.

Governor Laura Kelley’s plan keeps promises to Kansas schools, expands affordable healthcare, pays over $600 million in debt, provides property, food sales tax relief

Topeka, Kan. — The second budget recommendation offered by Governor Laura Kelly delivers on her continued commitment to rebuilding Kansas after a decade of crisis. It maintains funding for Kansas public schools, includes funding to expand Medicaid, continues to phase out the “Bank of KDOT,” pays over $600 million in debt and provides over $117 million in commonsense tax relief.

“Kansas has made tremendous strides in recovering from the last decade of fiscal chaos,” Kelly said. “This balanced budget builds on that progress and positions Kansas to begin a new decade of shared prosperity and growth. I look forward to input from lawmakers and working with them to enact it.”

Kelly’s budget restores fundamental principles of Kansas fiscal responsibility:

• • Achieves Structural Balance: The Governor’s Budget Recommendation maintains structural balance, ensuring that state expenditures do not exceed revenues. It also meaningfully reduces the state’s irresponsible reliance on one-time funds.

• • Rebuilds State Savings: The Kelly Budget includes a statutorily required ending balance totaling $627.8 million. The 8.0 percent ending balance exceeds the amount required by law, a reflection of Gov. Kelly’s commitment to fiscal discipline.

• • Reduces State Debt: The Kelly budget retires $602.5 million of debt in FY 2020. This includes fully repaying the $264.3 million balance of the loan issued in calendar year 2017 from the Pooled Money Investment Board. It also pays off the $69.8 million balance of IMPACT bonds at the Department of Commerce. Paying $268.4 million will eliminate KPERS layering payments that resulted from skipping normal contributions to the system in FY 2017 and FY 2019. Altogether, paying these debts early saves an estimated $212.6 million in interest, as well as freeing up the related debt payments in future years.

Additionally, the Kelly budget accomplishes critical policy goals:

• • Keeps Funding Promise to Kansas Schools: In June 2019, the Kansas Supreme Court unanimously ruled that Kansas had enacted a plan that fulfills the state’s constitutional obligation to adequately and fairly fund public schools. The Court endorsed the 2019 proposal offered by Governor Kelly and approved by the Legislature, which increases investment in education by roughly $90 million a year, accounting for inflationary increases at the rate of 1.44 percent through FY 2023. The Governor fully funded this plan in the FY 2021 budget, putting Kansas on track to increase school funding by $431.1 million through FY 2023.

• • Medicaid Expansion: The Governor’s recommendation includes $17.5 million to expand KanCare, the state’s Medicaid program. Expanding eligibility for the program will allow 150,000 low-income Kansans to access critical health-care coverage. This will not only improve the health and vitality of Kansas communities, information presented at the Governor’s Council on Medicaid Expansion showed that expanding Medicaid could also create new jobs across the state. 

• • Closing the “Bank of KDOT”: Since taking office, Kelly has restored investment in Kansas roads and bridges by $213 million. This budget reduces State Highway Fund transfers by an additional $73.1 million in FY 2021. Assuming state revenues remain stable, this will keep Kansas on track to fully close the “Bank of KDOT” by the end of the Governor’s first term. This will enable Kansas to fulfill the promises of T-WORKS and also enact a new transportation plan in FY 2021 without a tax increase.

• • Targeted Food Sales Tax Relief: The Governor’s tax policy recommendations provide food sales tax and property tax relief, and level the playing field by modernizing antiquated sales tax laws. Replacing the current non-refundable food sales tax credit with a new refundable food sales tax credit will provide $53.2 million in food sales tax relief beginning in tax year 2020.  Repealing the current non-refundable food sales tax credit after December 31, 2019, will save approximately $10 million in SGF receipts in FY 2021. Under the Governor’s proposal, the Department of Revenue estimates that more than 540,000 tax filers will claim $63.2 million in refundable food sales tax credits beginning in FY 2021.

• • Property Tax Relief: The Governor has also prioritized property tax relief. For the first time since 2003, resuming the State General Fund transfers to the Local Ad Valorem Tax Reduction Fund is included in the Governor’s budget recommendation. This will provide $54.0 million in local property tax relief beginning in FY 2021.

• • Public Safety: To address the growing overpopulation issue in our prisons, the Governor recommends expanding bed capacity and treatment capacity by renovating unoccupied buildings near the Winfield Correctional Facility and the Lansing Correctional Facility. These renovated facilities will add dedicated substance use treatment beds for offenders who need it, as well as adding capacity for geriatric care for aging and seriously ill inmates.

“I appreciate the bipartisan collaboration between the Executive and Legislative branches throughout the last year to rebuild Kansas after a decade of crisis,” Kelly said. “This budget will help ensure our progress. It honors all the funding promises made by the 2019 Legislature, continues to sustainably and fairly re-invest in Kansas communities and provides much-needed tax relief in the form of a food sales tax rebate and property tax cuts. I am confident that if we work together to enact this commonsense agenda, Kansas will undoubtedly begin the new decade strongly positioned to prosper and grow.”

The Governor’s full budget recommendation can be viewed here.