Kansas’ Total Tax Receipts Up $604.6 Million Over Last May

TOPEKA – The month of May marked one year since Governor Laura Kelly signed Executive Order 20-31 to safely reopen businesses across the state. Since that time, the Kansas economy has rebounding significantly – with May 2021 tax collections totaling $604.6 million, or 134.7% more than May 2020. For the month of May, the state collected $1.1 billion in total taxes; an increase of $509.4 million, or 93.7%, more than the estimate.

“Our May tax receipt numbers are good news and show that our efforts to strengthen Kansas’ economy are paying off,” said Governor Laura Kelly. “We will continue moving forward by prioritizing pro-growth policies that will support Kansas businesses and Kansas families.”

Individual income tax collections were $708.7 million. That is 154.9%, or $430.7 million, above the estimate and $492.8 million, or 228.2%, more than last May. Corporate income tax collections were $29.8 million. That is $33.2 million, or 976.8%, more than last May. Those collections are $24.8 million, or 495.6%, more than the estimate.

“Overall, the economy performed much better during the pandemic than any state had forecasted and the tax receipt trend in Kansas is comparable to that experienced in other states,” Revenue Secretary Mark Burghart said. “Taxpayers who had meaningful positions in the stock market did extremely well during the pandemic. A significant portion of the individual income tax receipts are due to capital gains transactions.”

Retail sales tax collections were up $53.9 million, or 31.0%, over last May with $227.8 million collected. Collections were $32.8 million, or 16.8%, more than the estimate. Compensating use tax collections were $54.4 million which was $14.4 million, or 36.0%, more than estimated. That is a $16.7 million, or 44.5%, gain compared to the same month of the previous fiscal year.Ka

Governor Laura Kelly Announces $42 Million Investment to Support 30 Transportation Projects Statewide

TOPEKA – Governor Laura Kelly and Transportation Secretary Julie Lorenz today announced that more than $42 million will support 30 transportation construction projects across Kansas through an expanded list of recipients of the Kansas Department of Transportation’s Cost Share Program for Spring 2021.

Cost Share is a component of the Kelly administration’s 10-year, bipartisan Eisenhower Legacy Transportation Program, or IKE. Cost Share is designed to help both rural and urban areas advance transportation projects to improve safety, support job retention and growth, relieve congestion and improve access and mobility.

“Infrastructure projects like the ones funded through Cost Share are a perfect example of how government can make smart investments that not only make our economy more dynamic and competitive, but also make Kansas a better place to live, work, and play,” Governor Kelly said. “Through this $42 million investment, 30 communities from every corner of our state will have safer roads, increased access to outdoor recreation, and the opportunity to modernize important historical landmarks.”

KDOT took advantage of 2020 federal coronavirus relief funds by doubling the available Cost Share funding for this round. Selection criteria was adjusted to take into account hardships caused by the pandemic and points were added to communities that endured above-average economic loss.

KDOT is investing $21 million in this cycle of Cost Share with recipients contributing a 50/50 match of $21 million.

Secretary Lorenz said demand for Cost Share transportation dollars remains strong, especially after the “long, tough year we’ve been through.” She said 117 communities requested more than $103 million in funding for this, the fourth round of the Cost Share program.

“Despite that tough year, I couldn’t be more impressed with the record level of local contribution – proving we are stronger when we work together,” Secretary Lorenz said. “Thanks to the KDOT team and our local partners, we are moving quickly to expedite the delivery of projects.”

Today’s announcement was made via video (VIEW HERE) highlighting the wide range of investments made possible under the IKE program.

The entire list of all 30 IKE Cost Share projects announced today available here.

View a map of Cost Share projects here. 

Governor Laura Kelly Directs Flags be Flown at Half-staff for Memorial Day

TOPEKA – In accordance with Executive Order #20-30, Governor Laura Kelly has directed that flags be lowered to half-staff throughout the state effective from sunup until noon on Monday, May 31, 2021, in recognition of Memorial Day.

“On Memorial Day, let us all come together to honor and remember the women and men in the U.S. Armed Forces who lost their lives protecting our freedom and our way of life,” Governor Kelly said. “Today and every day, we owe them our gratitude.”

To receive email alerts when the governor orders flags to half-staff, please visit: https://governor.kansas.gov/newsroom/kansas-flag-honor.

2021 Session winding down

The last day of the 2021 session is scheduled for May 26.  It tends to be ceremonial, but this year there should be an effort to override a couple more of the Governor’s vetoes.  I’ll let you know next week how that goes.

Below Are Several Bills Signed Into Law

House Bill (HB) 2079 transfers the registration of charitable organizations from the Secretary of State to the Attorney General.  It also enacts the Kansas Fights Drug Addiction and requires posting human trafficking awareness notices in certain businesses and public places.  It passed the Senate 39 to 0.  The House vote was 78 to 42.

House Bill (HB) 2026 creates a Certified Drug Abuse Treatment Program for certain drug offenders who have entered into a diversion agreement.  It also amends law to increase penalties for riots in a correctional facility and unlawfully tampering with electronic monitoring devices.  The bill passed both chambers unanimously.

The main focus of House Bill (HB) 2158 establishes a joint committee on child welfare system oversight requiring visual observation of an alleged victim of child abuse or neglect.   The committee will monitor and recommend changes to DCF, KDADS, Corrections, KDHE, law enforcement, and the Judicial Branch on child welfare, especially foster care children.  The foster care system in Kansas has been broken for years.  HB 2158 is an attempt to protect children.  It passed both chambers unanimously.

HB 2187 enacts the First-time Home Buyer Savings Account Act, allowing an account to be opened at a financial institution specifically for saving to purchase a first home.  Up to $3,000 a year can be added to the account for an individual, $6,000 for a married couple.  The money can remain in the account for an unlimited time without interest or income being subject to penalty.  The amount deposited in the account each year would be subtracted from your federal adjusted gross income, possibly lowering your state income tax obligation.  Each account has a $50,000 cap.  The bill passed the Senate 35 to 1.  I voted Yes.  It passed the House 119 to 2.

Senate Bill (SB) 170 enacts an interjurisdictional authorization of psychologists across state boundaries.  Kansas has a shortage of mental health providers and this would allow telecommunication across state lines for therapies.  The bill passed the Senate unanimously.  The House vote was 119 to 4.

HB 2121 increases the penalties for mistreatment of an elderly dependent.  It is sad that we need laws to protect individuals from such abuse, but the reality is we do.  The bill passed both chambers unanimously.

SB 47 extends the Rural Opportunity Zone (ROZ) for two years and adds any county with a population of 50,000 or less to the program. The bill establishes the Tax Payer Protection Act, requiring a paid tax-preparer to sign any return they prepared and include their federal tax id.  The bill makes it clear that a person does not owe income tax on money stolen as a result of identity theft.  The bill passed the Senate unanimously.  It passed the House 107 to 14.

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

Caryn

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Governor Laura Kelly Signs Legislation Fully Funding Education For Third Consecutive Year

TOPEKA – Today, Governor Laura Kelly was joined by education advocates and a bipartisan group of lawmakers to sign legislation fully funding education for the third consecutive year, and guaranteeing funding through FY 2023.

“When I took office, the State of Kansas had failed to fully fund our public schools for nearly a decade,” Governor Kelly said. “That’s why today I’m proud to say that, for the third year in a row, I have signed bipartisan legislation fully funding our schools.

“I want to thank the coalition of legislative colleagues, advocates, teachers, and faculty for their advocacy. With their support, we followed through on our commitment to ensure students, teachers, and schools have the resources they need.”

During the signing ceremony, Governor Kelly said that ensuring kids have access to a quality education is good for Kansas students, and for the state’s economy.

“Ensuring kids have access to a quality education not only helps them succeed. It helps our businesses succeed and promotes economic development by providing employers with a highly-educated, skilled workforce,” Governor Kelly said. 

In addition to fully funding education in Kansas, House Bill 2134 requires an annual report card for children in foster care, authorizes limited remote learning, provides the criteria for identification of students eligible to receive at-risk programs and services, requires boards of education to allocate sufficient school district moneys to improve student academic performance, authorizes school districts to pay tuition and fees for concurrent and dual enrollment programs, expands student eligibility under the tax credit for low income students scholarship program, extends the high-density at-risk weighting, and provides ACT college entrance exams and workkey assessments to certain nonpublic school students.

Governor Kelly also signed House Bill 2313, extending the dedicated statewide mill-levy which funds a portion of the overall K-12 budget.

HB 2313 also provides for reimbursement of property taxes for certain business shutdowns or restrictions, allows Kansas national guard and reservist members who are in good standing to receive a property tax exemption for up to two motor vehicles, authorizes appointment by the governor of a member pro tempore when a vacancy on the state board of tax appeals exists and directs post audit study of the impact of non-profit and governmental entities competing against for-profit businesses.

The below photos from today’s signing ceremony are available for media use:

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Governor Laura Kelly Signs Omnibus Budget, Increases Funding for Disability Services, Criminal Justice System, Mental Health Services, Higher Education

~~SB 159 includes one line-item veto~~

TOPEKA – Governor Laura Kelly today signed SB 159, the state omnibus budget for FY 2021 and FY 2022, which passed with bipartisan support.

“I’m proud of this bipartisan, fiscally-responsible budget that demonstrates what lawmakers can get done when we work together,” Governor Laura Kelly said. “This budget includes increased funding for disability services, the criminal justice system, mental health services, and higher education. These critical services will help provide Kansans, businesses, and local governments with the support and tools they need to continue powering our COVID-19 recovery.”

Highlights from Governor Kelly’s budget:

• Increased the Protected Income Limit for Home and Community Based Services (HCBS) waivers and the Program of All-Inclusive Care for the Elderly (PACE) to 300% of the Federal Poverty Level (this is an addition to the 150% increase Governor Kelly championed as a state senator when she served on the Robert G. (Bob) Bethell KanCare Oversight Committee and signed into law as Governor in 2019). This increase gives individuals utilizing waiver services additional flexibility to earn income and use more of their money to pay for essential needs like rent, food, and more.
• Added $3 million for costs associated with the 988 Crisis Hotline, the FCC’s new, nationwide 3-digit phone number for Americans in crisis to connect with suicide prevention and mental health crisis counselors.
• Increased funding for 4-year and 2-year public and private colleges and technical schools totaling $53 million, including funding for need-based aid and other student scholarships, economic development, staff recruitment and retention, and other priorities.
• Increased salary and operations funding for our Judicial system by $17 million, which will help improve our criminal justice system through recruitment and retention.
• Added $3.6 million to the Board of Indigents’ Defense Services to fund the assigned counsel rate increase up to $100 per hour for FY 2022 providing a well-earned boost to our public defenders in a system that has been historically underfunded.
• Funding to advance innovative mental health treatment in our communities through the adoption of the certified community behavioral health center model to increase access to mental health and substance use treatment and improve and expand partnerships between mental health centers, law enforcement, schools, and hospitals.
• Restored $259,000 funding for the Commission on Veterans Affairs to allow staff to reinstate visiting veterans in the communities where they reside. This will help veterans in the rural parts of the state, and allows us to offer the full complement of services to these veterans as we meet them at home.

Below please find the message from the Governor regarding Senate Bill 159:

“Senate Bill 159, this session’s omnibus budget bill, makes many important investments in our state. But as with many omnibus budget bills, not every appropriation included is necessary or appropriate. Therefore, pursuant to Article 2, Section 14(b) of the Constitution of the State of Kansas, I hereby return Senate Bill 159 with my signature approving the bill, except for the item enumerated below.”

$500,000 from the State General Fund to the University of Kansas Medical Center for clinical trials on a COVID-19 treatment using MSCTC-0010 cells developed at the Midwest Stem Cell Therapy Center

Section 46(a) has been line-item vetoed in its entirety.

This section provides $500,000 to the University of Kansas Medical Center to conduct clinical trials for a COVID-19 treatment using MSCTC-0010 cells developed at the Midwest Stem Cell Therapy Center. During debate on the Senate’s original budget, contained in Substitute for Senate Bill 267, an amendment to add this funding was wisely withdrawn. The medical experts who lead the research associated with this proviso have clearly and plainly communicated to the Legislature that such a clinical trial would not be realistic or even feasible given the timeframe and funding provided. A 2018 article in the Journal of the American Medical Association found that the average cost of a clinical trial is $19 million, with the total cost of developing a new drug closer to $2 to $3 billion. Given those realities and the proven effectiveness of COVID-19 vaccines and treatments that are now widely available, we should focus our efforts on increasing the number of Kansans who are vaccinated so that we can prevent infections, severe illnesses, and deaths. We should listen to those with knowledge of how clinical trials work when they tell us that the proposal outlined in this proviso is unrealistic and unneeded, and we should focus on saving lives by expediting vaccinations for as many Kansans as possible throughout the state.

~ Remains committed to bipartisan, transparent, federally compliant distribution of federal stimulus funds ~

TOPEKA – The following is attributable to Governor Laura Kelly regarding Senate Bill 273:

“The COVID-19 pandemic has presented many challenges for Kansas businesses over the last year, and my administration has been committed to doing all we can to support their continued pandemic recovery efforts through the Strengthening People and Revitalizing Kansas (“SPARK”) Taskforce. The SPARK process brings together business, legislative, and community leaders from across the state to collaborate on data-driven, innovative investments using federal relief dollars. All recovery initiatives should go through the transparent, federally compliant, bipartisan, and efficient process we have already established through the SPARK Taskforce.

“SB 273 is well-intentioned, but it violates federal rules for the use of American Rescue Plan Act (“ARPA”) funds that prevent the state from placing conditions or requirements on local governments’ use of ARPA funds. SB 273 also fails to comply with federal rules that prohibit using ARPA funds to resolve potential legal claims against state or local governments.

“I am committed to working with the SPARK Taskforce to develop relief programs that comply with federal requirements to ensure that our economy emerges from this pandemic stronger and more agile than ever.

“Therefore, under Article 2, Section 14(a) of the Constitution, I hereby veto Senate Bill 273.”