Governor Laura Kelly Signs Bipartisan Bill, Strengthening Economic Development Toolkit

~Legislation Could Help Kansas Land Biggest Private Sector Investment in State’s History~

TOPEKA – Governor Laura Kelly today signed the bipartisan bill known as Attracting Powerful Economic Expansion Act (APEX). The bipartisan bill creates a new tool in Kansas’ toolbox that allows the state to compete on a national and global scale for large economic development projects.

Governor Laura Kelly Announces Medicaid Expansion Bill to Boost Kansas’ Economy, Increase Access to Care

TOPEKA – Governor Laura Kelly announced legislation to expand Medicaid (KanCare), a law that would provide more than 150,000 hard-working Kansans access to affordable healthcare and create more than 23,000 new jobs, bolstering the Kansas economy.

“Expanding Medicaid so that thousands of hard-working Kansans have access to affordable health care would boost the Kansas economy,” Governor Laura Kelly said. “Expansion would inject billions of dollars into our state, create thousands of jobs, help retain our healthcare workers in Kansas –and help rural hospitals’ bottom lines. It’s time to work together to deliver for Kansans and get this done once and for all.”

Under the proposed legislation introduced on February 9, Medicaid will be expanded to cover Kansans earning up to the full 138 percent of the Federal Poverty Level, 90 percent of which would be paid by the federal government, starting on January 1, 2023. Furthermore, if Medicaid is expanded, the state is poised to receive an additional $370 million over the next eight fiscal quarters for the current Medicaid population. That’s a total of $68.5 million in State General Fund savings in Fiscal Year 2023 alone, which will be reallocated for one-time strategic investments on housing, childcare, and workforce development.

A 2022 statewide survey finds that almost 8 in 10 Kansans – 78 percent – support expanding Medicaid to allow more Kansans to qualify for health care coverage. This is not only the right thing to do for our state, but it’s incredibly popular among Democrats, Independents, and Republicans alike.

Expanding Medicaid in Kansas would boost the economy by:

• Providing affordable health insurance to hundreds of thousands of Kansans
• Stimulate the economy for rural, suburban, and urban communities alike
• Create tens of thousands of new jobs
• Inject billions of dollars in increased economic output
• Retain health care jobs in Kansas

The bill requires the Secretary of Health and Environment to collect information from applicants regarding their employment history through the Medicaid application and refer unemployed or underemployed individuals to the Department of Commerce or Department for Children and Families to assist with locating job opportunities through work referral programs.

Here’s what Kansas leaders are saying:

“After pushing to continue the federal match for states that expand Medicaid—and fighting to increase it twice—I’m glad to join Governor Kelly and hundreds of thousands of Kansans in a renewed effort to deliver this much-needed expansion. We cannot continue to leave Kansans out in the cold. It’s time to bring these federal dollars back to our state, expand Medicaid, and boost our state economy along with it.” – United States Representative Sharice Davids (KS-03)

“The list of reasons to expand Medicaid grows with every year we refuse to do so. This wildly popular policy will ensure we have a healthy workforce, create jobs, and attract businesses. More importantly, it will allow our fellow Kansans to flourish and participate fully in our state, which brings prosperity for all of us. The first best time to expand Medicaid was in 2014. The next best time is now.” – Senate Democratic Leader Dinah Sykes

“Expanding Medicaid is enormously popular among Kansas and addresses many issues facing the state. First and foremost, it is a pro-business, pro-growth policy. Throughout the legislative session, people repeatedly ask what we can do to keep our college graduates in the state and bring in outside business investment. Medicaid expansion is a clear solution with bipartisan voter support. It’s past time to embrace this common-sense policy.” – House Democratic Leader Tom Sawyer

“Medicaid expansion would benefit an estimated additional 120,000 to 165,000 Kansans, some of which are people living with disabilities. What facts tell us is that folks living with disabilities are more likely to be employed in states where there is expanded Medicaid coverage. Having access to health insurance is one tool that allows Kansans living with disabilities to be lifted out of poverty, because it relieves the very real stress of worrying about when the next healthcare bill will hit. Those living with disabilities are often confined to poverty because earnings have been too high to be deemed eligible for Medicaid, yet those who surpass income limitations still cannot afford health insurance on their own. This is a Kansan issue, not a partisan issue.” -Lynn Rogers, Kansas State Treasurer

“The Greater Kansas City Chamber of Commerce has long advocated for Medicaid Expansion in the State of Kansas. It is too important to our businesses, our hospitals, and every taxpayer in Kansas. New data shows Medicaid Expansion will bring more than 2,800 jobs in the Greater Kansas City region alone, and an estimated economic impact of nearly $125 million. The State of Kansas has an opportunity to recapture federal funds that can help create jobs, advance economic growth, and most importantly improve the health of all Kansans.” –Joe Reardon, President & CEO, The Greater Kansas City Chamber of Commerce

“Rising healthcare costs are impacting businesses and individual Kansans alike; adding to the burden is that the costs of uninsured, low-income Kansans are being passed on to companies and everyone else in the system. Therefore, we must implement solutions that expand affordable coverage to all Kansans to improve the health of our families and control the cost of care for our employees, families, and businesses.” – Tracey Osborne Oltjen, President & CEO, Overland Park Chamber of Commerce

“Kansas hospitals continue to strive to maintain a dedicated and innovative workforce. As surrounding states implement expansion, Kansas could experience a disadvantage as our neighboring states may have additional resources to recruit health care staff away from our state. This would exacerbate an already challenging problem for Kansas hospitals and health care providers. KanCare expansion is a critical issue to level the playing field for the Kansas health care industry.” — Chad Austin, President and CEO of the Kansas Hospital Association

“The Alliance for a Healthy Kansas commends the introduction of legislation enacting KanCare expansion. We know that Kansans are feeling the rising costs of everyday life, and health care is no exception. Expansion helps low-wage parents stay healthy and reduces health care costs for everyone.  It protects Kansans from medical debt by fixing eligibility limits for KanCare that are currently too low.  It preserves and strengthens rural health care and makes Kansas more economically competitive with our neighboring states that have all expanded their Medicaid programs. Kansans are tired of waiting for a long-term solution for the health care coverage gap. It is time to enact KanCare expansion or we will all keep paying the price.” – April Holman, Executive Director, Alliance for a Healthy Kansas

“A sustainable health system is crucial to the future of rural Kansas communities. High uninsured rates and hospitals facing high levels of uncompensated care threaten the future of health care. Expanding KanCare would help protect the 70 rural hospitals currently at risk of closing across our state. Expanding KanCare would strengthen the rural health care system and help ensure rural Kansans get the health care they need while giving a boost to their economies. The time to expand is now.” – David Jordan, President and CEO of United Methodist Health Ministry Fund

“New Kansas-specific economic data indicate our health care costs are outstripping those in other states, including other non-expansion states. A recent voter survey showed 8 in 10 Kansans are concerned about the costs of health care – and want a long-term solution. They also understand current income eligibility is too low – less than $4 an hour for a family of three, or $8,350 a year. Kansas voters want lawmakers to expand Medicaid and leverage this fiscally responsible option now.” – Brenda Sharpe, President and CEO, REACH Healthcare Foundation

“Health Forward is dedicated to ensuring equitable access to high-quality health care. We fully support Gov. Kelly’s plan to expand KanCare so people living on lower incomes live healthier and more economically secure lives. ” Expanding KanCare will bring the cost of health care down for everyone.  The inability of Kansans to afford health coverage means more in ER bills, increased uncompensated care for hospitals, and untreated mental and physical health needs. This means individuals, families, and businesses all end up paying more for health care. – McClain Bryant Macklin, Director of Policy and Strategic Initiatives, Health Forward

 “We’re encouraged to see the introduction of Medicaid Expansion bills, especially as data indicates that Communities of Color are far more likely to be uninsured – and expansion narrows racial disparities in health care coverage and improves health outcomes and access to preventable services for diseases that disproportionately impact People of Color.” – Teresa Miller, President and CEO, Kansas Health Foundation

February 3, 2022

John Wayne was asked in one of his movies if he was having a “day off” and his response was “off day”.  That definitely applied to the fourth week of session.  Because of the winter storm, most meetings and session were canceled Wednesday and Thursday.  One would think it would mean a few days off, however, that was not the case.  There were hundreds of emails and phone calls, plus work to be completed on legislation.

Last year the legislature passed property tax transparency almost unanimously (after the Governor vetoed it the previous year).  It has been reported that as a result of passing Senate Bill (SB) 13, over 50% of local governments didn’t increase property taxes last year.  It is a major win for Kansas taxpayers.  I was humbled to receive Legislator of the Year from a national organization for my leadership in passing this legislation and my work in the Senate.  There is a website that lists local governments and if they collected more in property taxes than the previous year or remained revenue neutral. The information can be found at www.KansasOpenGov.org.  Click on the ‘County’ button and select ‘2022 Property Tax Increase/Decrease’ in the Report drop-down.  SB 13 provides government transparency, which is critical for a government of “We the people”.

It is an honor and a privilege to serve as your 12^th District State Senator.

Caryn

Governor Laura Kelly Vetoes Congressional Redistricting Map, Senate Bill 355

~Calls for a redistricting map that empowers all people of Kansas~

TOPEKA – The following is attributable to Governor Kelly regarding Senate Bill 355:

“The process of drawing districts each decade is the core to ensuring that all Kansans have the opportunity to participate in their government and have their voices heard. The courts and the Legislature have established case law and criteria on how to draw Kansas districts fairly and constitutionally.

“Those guidelines call for ensuring that districts are nearly equal to 734,470 in population as practicable while ensuring that plans have neither the purpose nor effect of diluting minority communities’ voting strength. The guidelines call for protecting communities of interest, preserving the core of existing congressional districts, and ensuring that whole counties are in the same congressional district if possible. The Legislature’s guidelines further state that ‘to a considerable degree most counties in Kansas are economic, social, and cultural units, or parts of a larger socioeconomic unit. These communities of interest should be considered during the creation of congressional districts.’

“Senate Bill 355, known as Ad Astra 2, does not follow these guidelines and provides no justification for deviation from those guidelines. Wyandotte County is carved into two separate congressional districts. Without explanation, this map shifts 46% of the Black population and 33% of the Hispanic population out of the third congressional district by dividing the Hispanic neighborhoods of Quindaro Bluffs, Bethel-Welborn, Strawberry Hill, Armourdale and others from Argentine, Turner and the rest of Kansas City, Kansas south of I-70. To replace lost population in the third district, this map adds in counties that are more rural to the south and west of the core of the Kansas City metropolitan area.

“Ad Astra 2 also separates the city of Lawrence from Douglas County and inserts urban precincts of Lawrence into the largely rural Big First Congressional District, reducing the strength of communities of interest in Western Kansas and unnecessarily dividing communities of interest in Eastern Kansas.

“Several alternatives would allow for the same deviation as Ad Astra 2 while protecting the core of the existing congressional districts and without diluting minority communities’ voting strength. I am ready to work with the Legislature in a bipartisan fashion to pass a new congressional map that addresses the constitutional issues in Senate Bill 355. Together, we can come to a consensus and pass a compromise that empowers all people of Kansas.

“For those reasons, under Article 2, Section 14(a) of the Constitution, I hereby veto Senate Bill 355.”

Governor Laura Kelly Announces January Total Tax Collections Continue to Exceed Estimates

TOPEKA – Governor Laura Kelly announced that total tax collections for January were $944.5 million. That is $119.6 million, or 14.5%, more than the monthly estimate. This is also an 18.7% growth over January 2021.

“Over the past three years my administration has taken steps to restore the Kansas economy, and that fiscal responsibility has paved the way to provide direct tax relief to Kansas taxpayers,” Governor Laura Kelly said. “That relief will come specifically through proposals like axing the state’s sales tax on food. I urge the Legislature to send a clean bill to my desk quickly, so we can get this done for Kansas families.”

Individual income tax collections were $542.2 million. That is $82.2 million, or 17.9%, more than the estimate and 18.4% more than the previous January. Wage withholding remains strong going into 2022 reflecting both improved statewide employment and accompanying wage growth.

Retail sales tax collections were $258.2 million for January. This is $18.2 million, or 7.6%, more than the estimate and 14.9% more than January 2021. Compensating use tax collections also exceeded estimates by 5.2%. Those collections are also 30.2% more than the previous January. Both retailer’s sales tax and compensating use tax collections established new monthly collection records in January 2022.

“Individual income tax, corporate income tax, retailer’s sales tax, and compensating use tax all continue to perform well as the state’s primary revenue sources,” Secretary of Revenue Mark Burghart said. “Increased holiday spending in December accounts in large part for the record sales and compensating use tax collections in January.”

View the tax receipts here.

January 28, 2022

The journey of a bill  After a bill is introduced. it is assigned to a committee so that the legislation can be properly vetted.  The chairman can schedule a hearing, allowing people, conferees, to testify.  Legislators can ask questions of conferees, evaluate and propose changes to legislation.  If a majority of committee members vote to advance the legislation, it will then be assigned to the Committee of the Whole.  Committee of the Whole is all of the members of that chamber.  The Majority Leader schedules debate for the Committee of the Whole.  After debate and possible amendments, the Committee of the Whole votes whether to pass the legislation and advance it to final action.  If a bill passes a final action vote, it will advance to the other chamber or it goes to the Governor if it has passed both chambers.  At that point the Governor can sign the bill into law, veto the bill, or do nothing and after 10 days the bill becomes law.

The Senate Tax Committee had hearings on two bills where the conferee was a Kansas resident who would like to have sales tax removed on manufacture coupons, Senate Bill (SB) 354, and sales tax removed on delivery charges, shipping and postage, SB 327.  Most people are not aware they pay sales tax on these items.

SB 347 is on the fast track to who knows where.  There was a major rush to pass SB 347 out of the Senate Commerce Committee and across the Senate floor.  SB 347 would allow the Secretary of Commerce to give sales, income, and property tax incentives, estimated to be over $1 billion to entice a company, very possibly a foreign company, to come to Kansas.  Proponents say it will bring 4,000 jobs to Kansas.  Good, but what company and what Kansas industries will be impacted by the “new” jobs.  When Kansas was trying to entice NASCAR to come to Kansas everything was up front, legislators knew the business and made the decision eyes-wide-open.  With SB 347, only a few legislators know what company the Governor and Secretary of Commerce are willing to give over $1 billion of taxpayer money.  I was able to get an amendment on that would at least stop the company from getting back more income tax than they paid to the state of Kansas.  I could not support this legislation.  With SB 347, the Secretary of Commerce has the authority to give away billions of dollars and there are no caps or restrictions on the number of companies to receive the tax incentives in the bill.  Disappointingly, the bill passed the Senate 32 to 7.  The House will push the bill through the process in an attempt to put it on the Governor’s desk the first week in February.  Hopefully, the House will be able to kill the current bill or make major changes so that it will be a win for Kansas taxpayers.

It is an honor and a privilege to serve as your 12^th District State Senator.

Caryn