Governor launches first Council on Tax Reform meeting

Governor Laura Kelly today lauded the successful start of a bipartisan, in-depth study of the state’s tax system.

The Governor’s Council on Tax Reform, which will make specific statutory recommendations to state lawmakers, met for the first time Tuesday and Wednesday in the Capitol.

The meeting began with an overview of state tax policy changes since 2012 and continued with presentations on the current status of revenue, economic development, transportation and labor in Kansas; sales tax requirements; and an overview of property taxes.

“The information helped establish a solid foundation for Council members as they study strategies for tax reform,” Governor Kelly said. “While Kansas continues to recover from the failed Brownback-Colyer tax experiment – and with economic uncertainty in mind – we need to find balance in tax fairness and stability. I expect the Council to deliver recommendations for reform that benefits all Kansans.

“Even with the fiscal fallout we inherited, I presented a balanced budget this past session without increasing taxes – as promised, and we still were able to start rebuilding our foster-care system, infrastructure and other critical programs,” the governor said. “I’ve assembled a Council with wide-ranging expertise needed to address lingering budgetary challenges and make recommendations on ways to keep moving forward in providing services Kansans need and expect.”

The co-chairs of the bipartisan Council reiterated the importance of keeping the tax burden as low as possible.

“As the governor has said, it’s important to proceed with caution,” co-chair Steve Morris, a Republican and former Senate president, said. “While Kansas continues to recover, we must make sure the tax code can support important public investment in core services such as public safety and infrastructure, but without any undue burden on taxpayers.”

Co-chair Janis Lee, a former state senator who was ranking Democrat on the Senate’s tax committee and a chief hearing officer for the Kansas Court of Tax Appeals, agreed. “Poor policymaking by the previous administration put Kansas in the hole. We cannot repeat the mistakes that led to a self-inflicted budget crisis as we pursue commonsense tax reform beneficial to all Kansans.”

Among issues cited during the initial Council meeting:

• Sales taxes are high and complicated, with a number of inconsistencies.
• High property taxes, a situation worsened by shrinking state support.
• The economic health of the state relies on business and population growth, making it imperative to pursue quality-of-life improvements that require stable revenue.

Future meetings of the Council in 2019 are set for Oct. 15-16, Nov. 14 and Dec. 3-4. An interim report by the Council is planned for December 2019, in advance of the 2020 legislative session. A final report is due in December 2020, in advance of the 2021 legislative session.

For more on Governor Kelly’s executive order establishing the Council and its membership: https://governor.kansas.gov/governor-kelly-issues-executive-order-launching-governors-council-on-tax-reform/

###

Registration for the Governor’s Water Conference on the Future of Water in Kansas is now open.

The Governor’s Water Conference is Thursday, November 7 and Friday, November 8, 2019 at a new location, the Hyatt Regency in Wichita, Kansas.

Conference topics include:

• Sustainability Across the Supply Chain
• Flooding Impacts
• Groundwater Quality
• Reservoir Sediment Management

Conference speakers will include Jill Wheeler, head of Sustainable Productivity for Syngenta in North America along with several other influential policy and decision makers.

Day two will build on the water policy and vision implementation discussions from the previous day with technical presentation posters and talks. Graduate and undergraduate students will present their research. Abstracts proposals for these presentations can be sent to KWO. Professional presentation proposals are due September 18 and student proposals are due October 14.

“We encourage anyone to attend who has an interest in our state’s water resources. Legislators, water managers, state, federal, city and county administrators as well as scientists, organizations and producers are all welcome,” said Earl Lewis, Kansas Water Office Acting Director. “Now being five years into the Kansas Water Vision and considering the state’s current resource conditions as well as dealing with such extreme drought one year and devastating flooding the next, there is no better time to focus attention to Kansas’ water needs and the role water plays in growing our state’s economy.”

The Water Legacy Award and Be the Vision recipients will be presented at the conference and the KWO Photo Contest will be a feature again this year.

Registration is available online at www.kwo.ks.gov. The deadline is October 24. Conference details, tentative agenda, brochure, speakers, sponsors and hotel information can be found online as well.

The Governor’s Conference on the Future of Water in Kansas is hosted by the KWO and K-State /Kansas Water Resource Institute. Major sponsors for the event include Black & Veatch, Burns & McDonnell, Great Lakes Dredge & Dock, 96 Agri Sales, Inc.

# # #

As the state’s water office, KWO conducts water planning, policy coordination and water marketing as well as facilitates public input throughout the state.

The agency prepares the KANSAS WATER PLAN, a plan for water resources development, management and conservation.

Free Resources Help Parents Ensure Children’s Safety
State Partners Highlight Car Seat Safety During Child Passenger Safety Week

TOPEKA – Every day in America, millions of parents and caregivers take to the road with children in their vehicles. While many children are buckled up in the right car seat for their ages and sizes – nearly half (46 percent) are not, and some aren’t buckled up at all. Child Passenger Safety Week is September 15-21, 2019, and Safe Kids Kansas, the Kansas Department of Transportation and Kansas Highway Patrol want to ensure children ride as safely as possible—every trip, every time.

“Every 32 seconds in 2017, a child under 13 was involved in a motor vehicle crash,” said Colonel Herman T. Jones, Kansas Highway Patrol. “Using a car seat that fits your child and your vehicle is the best way to keep your children safe.” According to NHTSA, motor vehicle crashes are a leading killer of children. While fatalities and injuries declined from 2016 to 2017, there is still work to be done to completely eliminate these preventable tragedies. Car seats, booster seats, and seat belts can make all the difference. “In 2017, there were 312 children under the age of 5 saved because they were using restraints,” said Col. Jones. “Car seats matter.”

Too often, parents move their children to the front seat before they should, which increases the risk of injury and death, even if they are buckled up. The safest place for all kids under 13 is in the back seat.

“As parents and caregivers, we have a long list of things we do for our children to show our love. One of the simplest and most important things on the list should be to make sure they are in the right car seat for their age and size,” said Cherie Sage, Safe Kids Kansas. “Get your car seats checked. Make certain they’re installed correctly, and that your kids are in the right seats and are buckled in correctly. Even if you think your child’s car seat is installed correctly, get it checked with a certified Child Passenger Safety Technician, so you can be sure that your child is the safest he or she can be while traveling.” To find a car seat inspection station near you, visit www.kansascarseatcheck.org.

According to a 2018-19 observational survey, if the driver is belted, about 97% of the observed children are belted too. If the driver is not belted, about 30% of the observed children are belted.

“Drivers play an important role in not only getting to a destination safely, but ensuring all passengers are buckled up,” said Julie Lorenz, Kansas Secretary of Transportation. “Seat belts are for everyone because your life and your passenger’s lives depend on it.”

For optimal safety, it is recommended to keep children rear-facing as long as possible, up to the top height or weight allowed by their particular seats. Once a child outgrows the rear-facing-only “infant” car seat, he/she should travel in a rear-facing “convertible,” or all-in-one car seat. Once your child outgrows the rear-facing size limits, the child is ready to travel in a forward-facing car seat with a harness (always use the tether). After outgrowing the forward-facing car seat with harness, children should be placed in booster seats until they’re the right size to use seat belts safely. And if children are under 13 years old, they should always sit in the back seat.

Remember to register your car seat or booster seat with the seat manufacturer so you can be notified in the event of a recall. Parents and caregivers can find more information on how to choose and use car seats safely at www.ultimatecarseatguide.org.

Secretary David Toland Announces Agency Restructuring, Open New Positions

Topeka, Kan. – Secretary of Commerce David Toland has announced agency-wide restructuring as part ongoing rebuilding efforts. These actions include the rebuilding of both the Business Development and International Trade Divisions.

“Much of the structure that exists today at the Department of Commerce came in response to hasty budget cuts and ideologically-driven decisions that simply do not reflect best practices in economic development,” Secretary Toland said. “When you’re in the business of selling the state as a great place to do business, it makes no sense to eliminate much of your sales force, as happened under the previous administration. Governor Kelly and I are determined to do the difficult restructuring work at Commerce that will yield strong economic growth in urban, suburban and rural communities across the state.”

Two new positions will be created to align with the new structure:

• Business Development Division Director – The director will develop and administer programs designed to recruit and retain businesses within the state. They will lead a team of local and regional economic development professionals to grow and diversify the economy, while promoting the state as a desirable location to do business.
• International Trade Division Director – The director will design and lead the international investment and trade development strategy for the state, including opening new export markets for Kansas businesses and recruiting businesses seeking U.S. locations to the state.

Current Director of Business Development Susan NeuPoth Cadoret has announced that she will retire in December 2020. She is transitioning into a new role as special advisor to the Secretary, supporting Secretary Toland’s re-engineering of the Department.

“Susan is a committed and forceful advocate for Kansas communities and businesses, and she stepped up to the plate to hold our Business and Community Development functions together during incredibly difficult times in the agency,” Toland said. “I’m grateful to Susan for 20 years of service at Commerce and for her willingness to work closely with me in this new role as we return this agency to a national leader in economic development.”

Alicia Janesko Hutchings, who was appointed by Secretary Toland in June to lead the Business Recruitment team, will remain in that capacity.

Ryan Brinker

Public Information Officer

[email protected]

Kansas Department of Commerce

Office of the Secretary

1000 SW Jackson St. Ste. 100

Topeka, KS 66612-1354

Phone: (785) 296-4931

Cell: (785) 276-9723

Governor Kelly issues Executive Order launching Governor’s Council on Tax Reform

Governor Laura Kelly today signaled the start of a comprehensive overview of state and local taxes by issuing Executive Order 19-11, which outlines her vision for establishment of a fiscally responsible, fair and sustainable tax structure.

The Governor’s Council on Tax Reform will conduct an 18-month, in-depth study, and make specific statutory recommendations to state lawmakers.

The first meeting of the full Council is set for Sept. 24-25 at the Statehouse.

“While Kansas continues to recover from the tax experiment of the prior administration, there’s a need for tax reform designed with adequacy, equity and stability in mind,” Governor Kelly said. “I expect the bipartisan Council to deliver sound strategies and reforms that reflect my desire to keep the state tax burden as low as possible, benefiting all Kansans.”

The governor recommends a return to the “three-legged stool” approach that relies on a sensible balance of income, sales and property tax revenue.

The Council will review aspects of state and local finances discussed in the 2019 legislative session as they relate to issues such as: how best to respond to federal tax law changes; the taxation of groceries as part of sales tax revenue; and how to best provide targeted property tax relief. The Council also is charged with determining how much room will be available in future budget projections for tax relief.

The governor selected a pair of former legislators she served with in the Kansas Senate to be co-chairs for her bipartisan Council on Tax Reform; Steve Morris, Republican from Hugoton, and Janis Lee, Democrat from Kensington. Morris served 20 years in the Senate, including eight as Senate president. Lee logged 22 years in the Senate, served as ranking Democrat on the Senate’s tax committee and later was a hearing officer for the Kansas Court of Tax Appeals.

“Steve and Janis understand how important it is to ensure that our tax code supports public investment in areas such as education, public safety and infrastructure needed to help Kansas prosper,” Kelly said.

Other members of the Council appointed by the governor include representatives of the business community, agriculture, economic development and governmental entities.

Also invited to participate were the following legislative leaders: Republicans Susan Wagle, Senate president, and Ron Ryckman, House speaker; and Democrats Anthony Hensley, Senate minority leader, and Tom Sawyer, House minority leader.

Following the first meeting of the Council Sept. 24-25, subsequent meetings in 2019 are set for Oct. 15-16, Nov. 14 and Dec. 3-4.

An interim report by the Council is planned for December 2019, in advance of the 2020 legislative session. A final report is due in December 2020, in advance of the 2021 legislative session.

COUNCIL MEMBERSHIP

Kansas County Treasurers Association: Joe Grisolano, Pittsburg; Crawford County treasurer, former county appraiser and school board member.

Kansas Association of School Boards: Shannon Kimball, Lawrence; school board member and president of the Kansas Association of School Boards.

Kansas Association of Counties: Anthony Swartzendruber, Hesston, Harvey County administrator

Kansas League of Municipalities: Susan Sherman, Olathe, assistant city manager of Olathe.

Business, Economic Development or Agricultural Communities (4):

• Dennis Hays, Kansas City, Kan., former county administrator for the Unified Government of Wyandotte County/KCK, currently principal at Hays and Associates, LLC.
• Larry Weians, Lenexa, vice president of finance for Sprint
• Lon Frahm, Colby, CEO of Frahm Farmland, Inc.
• Carl Brewer, Wichita, retired operations manager at Spirit AeroSystems, former mayor of Wichita

Additional members:

• Duane Goossen, Topeka, former state budget director, secretary of administration, member of the Kansas House
• Audrey Langworthy, Prairie Village, former state senator who served as chair of the Senate Tax Committee.
• John Wilson, Lawrence, Kansas Action for Children vice president of advocacy and former Kansas House of Representatives member

Agencies (all ex-officio members):

• Mark Burghart or designee — Secretary of Revenue
• David Toland or designee — Secretary of Commerce
• Larry Campbell or designee — state budget director
• Julie Lorenz or designee — Secretary of Transportation

Legislative leaders (invited):

• Susan Wagle, Wichita, Senate president
• Ron Ryckman, Olathe, House speaker
• Anthony Hensley, Topeka, Senate minority leader
• Tom Sawyer, Wichita, House minority leader

KDOT’s new Cost Share Program now accepting applications

The Kansas Department of Transportation (KDOT) has launched a new program designed to provide state funding for transportation projects while also leveraging local and private funding. The new Cost Share Program will provide funding to local entities for transportation projects that improve safety, support job retention and growth, improve access or mobility, relieve congestion and help areas across the state improve the transportation system.

Up to $50 million will be available in the program for fiscal year 2020. The on-going program, which has at least $11 million available, requires a minimum of 15% non-state cash match.  Additional consideration will be given to project applications that commit more than the minimum required match amount. The funding above the base $11 million comes from a one-time, $50 million State General Fund transfer. A minimum 25% match is required for projects to qualify for the one-time funds.

The Cost Share Program is open to all transportation projects including roadway (on and off the state highway system), rail, airport, bicycle/pedestrian and public transit. Funds from the program can only be used for construction.

“Creating the Cost Share Program allows us to leverage both state and local dollars to help address important transportation needs across Kansas,” said Kansas Secretary Julie Lorenz. “We look forward to working with Kansas communities to build projects that improve safety and keep the Kansas economy moving.”

Funding for the program is part of the $216 million in sales tax authorized by the Legislature and Gov. Laura Kelly to remain in the state highway fund in fiscal year 2020. In addition to the Cost Share Program, those funds are being used to increase highway preservation, help complete delayed T-WORKS projects, improve safety and provide new funding opportunities for cities and counties.

Applications will be accepted on an ongoing basis beginning Sept. 3, 2019, and will be reviewed twice annually, in October and March. To be included in the first review period, applications must be submitted by Oct. 11, 2019. Selection criteria will include consideration of projects that meet program objectives, eligibility categories and requirements. Geographic distribution also will be considered during project selection.

Application and a fact sheet on the Cost Share Program can be found at www.KSDot.org or with the links below:

Application

Fact Sheet