March 12, 2021

Property Tax Liberation

The Senate and House passed Senate Bill (SB) 13 and sent it to the Governor’s desk.  Each year as you pay your taxes, SB 13 will stop automatic property tax increases that are solely due to property valuation increases. It will stop the shell game of who raised your taxes; stop valuation increases as a result of normal maintenance on your property; allow county treasurers the option to setup payment plans on property taxes; and remove that property tax lid that hasn’t worked because of too many exemptions.  I started working on this property tax legislation after hearing from many of you.  It was a major undertaking.  I used methodologies from my management and business experience with some major help from friends across the state.  The results will help reign in out-of-control property tax increases and allow property owners to see why their taxes increased.  It must be good legislation because many legislators are taking credit for it.  That’s always a good sign.  The Governor vetoed it last year.  Surely, she won’t make that mistake two years in a row.

Freeze Property Tax For Some Seniors

The Senate Tax Committee heard a bill last week that would freeze property tax on low-income seniors and disabled veterans.  Currently, the bill would freeze it for anyone over 65 years of age, making less than $50,000 a year, and lives in a house valued less than $350,000 a year.  Kansas is taxing people out of their homes and out of the state.  We have to find ways to stop the madness.

Unemployment

There are only a couple of weeks left of the regular 2021 session but there is much work to be completed.  A major piece of legislation is dealing with the broken unemployment system.  The Senate Commerce Committee will have hearings on this legislation all next week.  It is an attempt to make the Governor fix the system and to shore up the unemployment funds that have been depleted because the Governor shut down businesses and paid hundreds of millions of dollars in fraudulent unemployment claims.

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

Caryn

Governor Laura Kelly Announces American Rescue Plan Programs for Kansas

TOPEKA – On Thursday, March 11^th, President Biden signed the American Rescue Plan (ARP), providing $1.9 trillion in economic stimulus to assist in the long-term recovery from the economic and public health impacts related to the COVID-19 pandemic.

“The American Rescue Plan will provide critical relief to Kansas families and businesses who have struggled during the COVID-19 pandemic,” said Governor Laura Kelly. “While I disagreed on the allocation formula, these funds will allow us to make targeted and strategic investments in childcare, broadband, education, and our business communities to aid our recovery from COVID-19.”

The ARP aims to move beyond the COVID-19 pandemic, return children to school, vaccinate the population, provide direct assistance to families, and stimulate economic growth.

As a part of the American Rescue Plan, the state of Kansas will be eligible for a variety of funding. Below are some of the programs and initiatives available to Kansas; many more will be made available through strategic coordination and investment:  

• Direct aid to Kansans in the form of $1,400 checks per person for incomes up to $75,000
• Extension of unemployment benefits
  • The ARP extends benefits from March 14 to September 6
  • Enhanced benefits will stay at $300/week
• Provide direct housing and nutrition assistance
  • Emergency rental assistance, utility assistance, and homeowners support
  • Key investments in food security, including extending Supplemental Nutrition Assistance Program (SNAP) benefits, Women Infants and Children (WI) benefits, and Pandemic-EBT programs
• Strengthen support for farm communities, growers, and producers
  • Investments in infrastructure that support food safety
  • Debt relief for socially disadvantaged farmers and ranchers
• Expand access to safe and reliable child care through Child Care and Development Block Grant
• Expand the Child Tax Credit and an improved Earned Income Tax Credit

The federal government will release more information and guidance in the coming weeks regarding funding for Kansas.

MANHATTAN, Kansas — The Kansas Department of Agriculture’s Industrial Hemp Advisory Board will meet at 2:00 p.m. on Friday, March 19, 2021, via teleconference. The advisory board will discuss changes and modifications for the Kansas Commercial Industrial Hemp Program rules and regulations based on the U.S. Department of Agriculture’s final rule on the establishment of a Domestic Hemp Production Program.

The meeting is open to the public. Individuals who want to call in to the meeting should contact Braden Hoch, industrial hemp supervisor of the plant protection and weed control program, at [email protected].

Persons who require special accommodations must make their needs known at least two days prior to the meeting.

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WHO:            Industrial Hemp Advisory Board, Kansas Department of Agriculture

WHAT:          Scheduled board meeting

WHEN:          2:00 p.m. on Friday, March 19, 2021

WHERE:       Via teleconference

KDA Industrial Hemp Advisory Board to Meet March 19H

KDADS and Family Service & Guidance Center Team Up to Provide Crisis Treatment for Families

TOPEKA – Kansas Department for Aging and Disability Services (KDADS) Secretary Laura Howard announced today the agency’s Behavioral Health Services (BHS) Commission has entered into an agreement with Family Service & Guidance Center (FSGC) of Topeka, Inc. to provide immediate crisis services to families and youth with emergency mental health issues.

“We are always looking to engage community partners and provide families a more stable, long-term solution to mental health and substance use treatment,” Secretary Howard said. “This agreement raises the bar and allows us to move forward with the goal of providing immediate access to care in a safe, therapeutic environment and we believe our work with Family Service & Guidance Center is significant in reaching the program goals and outcomes we have set.”

KDADS has awarded FSGC $312,500 over the next 15 months with potential for yearly funding extensions using monies from Lottery Vending Machine revenue. FSGC will use the funds to address three identified needs as outlined in the agreement:

• To expand the capacity of FSGC’s Crisis Recovery Program for the stabilization of youth and families throughout the state of Kansas for youth aged 5-17, in a therapeutic environment setting, that require an immediate or intermediate episode of care for a maximum of 28 days for the resolution of psychological and substance use symptoms and impairment and/or until the family rupture involving the youth can be re-stabilized.
• To create a program that is strategically designed for a vulnerable population that incorporates a flexible, yet safe, design scheme that will allow for the ability to scale the program and operations in an effective and cost-efficient manner.
• Recruit and retain a workforce that is cross trained to treat youth and families that may seek our services for a variety of crisis situations, including substance use disorders.

The specific counties served through this grant include Shawnee, Douglas, Jackson, Jefferson, Leavenworth, Lyon, Osage, Pottawatomie, Riley and Wabaunsee. The agreement also provides for services to youth from other counties when warranted, so no exceptions to service are made based only on location.

KDADS and the Kansas Department of Children and Families recognize the need for these crisis services to prevent and mitigate family disruption and the placement of children and youth into residential treatment facilities or foster care due to a behavioral health crisis.

“I’m excited about the opportunity to implement a program we feel will be effective in reducing the demand for admission of children and youth to private psychiatric hospitals or PRTFs by addressing the need for crisis stabilization in this population.” Commissioner Andy Brown said. “Combined with DCF’s initiative for Mobile Crisis Response services, we are expecting positive results for many youths. This program offers a real opportunity to demonstrate a regional solution that broadens the system of care and creates new access points for families in need of help.”

“Our mission at FSGC is to provide high quality behavioral health services to children and families, and we are deeply appreciative of the support from KDADS so we can further our mission,” said Brenda Mills, CEO of Family Service & Guidance Center. “The number of children struggling with mental health and substance use disorders is alarming, and it continues to grow. Expanding our crisis program will help meet this challenge by allowing us to implement a more comprehensive program tailored to meet these pressing needs.”

About Family Service & Guidance Center

Family Service & Guidance Center (FSGC) is a nonprofit community mental health center that specializes in meeting children’s unique needs. For more than 115 years, they have provided direct clinical services, prevention education and outreach to nearly 12,000 children, adolescents and families from 38 Kansas counties annually. Today, FSGC is an innovator and recognized leader in children’s mental health services.

Governor Laura Kelly Announces Expansion of Low-Income Energy Assistance Program

~ DCF to extend LIEAP deadline and expand income limits to help Kansans~

TOPEKA – As part of her continuing efforts to help Kansans navigate high utility bills due to the recent arctic weather, Governor Laura Kelly announced today that she is expanding the Low-Income Energy Assistance Program (LIEAP). The program provides an annual benefit to help qualifying households pay winter heating bills. LIEAP primarily assists persons with disabilities, older adults, and families with children.

“We know that many people face higher than normal energy bills because of the unprecedented winter weather in February,” said Governor Laura Kelly. “Today, I am announcing further steps that will allow more Kansans to take advantage of the LIEAP program to pay their utility bills. My administration will remain in communication with our federal and local partners to protect Kansans from the impacts of extreme cold temperatures.”

Effective immediately, the Kansas Department for Children and Families is extending the application deadline for LIEAP to May 28. Additionally, the agency is expanding the income requirements from 130% of the federal poverty level to 150%. DCF also will review all previously denied applications during the 2021 LIEAP program year. Any cases that now qualify under the new income threshold and meet other eligibility criteria will receive the benefit.

To qualify for the program, applicants must be responsible for direct payment of their heating bills. The level of benefit varies according to household income, number of people living in the home, type of residence, type of heating fuel, and utility rates.

Applicants need to have made payments on their heating bill two out of the last three months. Those payments must be equal to or exceed $80 or the total balance due on their energy bills, whichever is less.

LIEAP applications are available at local DCF offices and through partnering agencies. They can be requested by calling 1-800-432-0043. To apply online, visit https://cssp.kees.ks.gov/apspssp/sspNonMed.portal. For more information, visit http://www.dcf.ks.gov/services/ees/Pages/EnergyAssistance.aspx.

Income eligibility determination:  ​

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Governor Laura Kelly’s Council on Tax Reform Discusses Current Legislation & Federal Recovery Funds

TOPEKA – On March 5, Governor Kelly’s Council on Tax Reform discussed the fiscal implications of tax legislation being debated in the Kansas Statehouse and recommended caution regarding how federal COVID-19 recovery funds are earmarked and spent.

“As we continue to recover from the pandemic, the last thing Kansas needs is another fiscally irresponsible tax experiment,” said Governor Laura Kelly. “My administration continues to prioritize pragmatic, strategic solutions to reinvest in our state’s foundation and strengthen our economy statewide.”

A Division of Budget presentation showed that Governor Laura Kelly’s proposed Fiscal Year 2022 Budget featured a positive ending balance of $600 million. At Senate Minority Leader Sykes’ request, legislative research provided a State General Fund profile that showed what the current “Senate position” would do to the ending balance. This profile includes the significant negative impact of SB 22 as it passed the Senate on February 9th, along with no enactment of Governor Kelly’s recommendations closing sales tax loopholes or Kansas Public Employee Retirement System (KPERS) reamortization. Even without the spending that has been added above what was recommended in the Governor’s Budget Report, SB 22 and these other policies would put Kansas in the red ink by more than $100 million by next year. That type of structurally unbalanced budget is similar to what Kansas lawmakers grappled with during the 2012-2017 legislative sessions.

Council Actions and Recommendations

The Council unanimously voted to urge Governor Kelly and the legislature to consider a more prudent long-term fiscal strategy than that which appears to be emerging from the Kansas Senate. A motion was adopted noting that stability and consistency in the budgetary process (as opposed to wild and volatile boom-and-bust cycles) leaves policymakers not having eventually to consider a smorgasbord of unattractive choices that include painful budget cuts, back-filling tax hikes, and additional penny-wise and pound-foolish options that rob from the future.

The Council also adopted several recommendations made by its property tax subcommittee chaired by former Senate Minority Leader Anthony Hensley, including encouraging local units of government to use federal aid under the American Rescue Plan for one-time capital improvements, infrastructure investments, or for debt reduction; supporting the House Taxation Committee version of SB 13 regarding property tax transparency (as opposed to the House Committee of the Whole version, which added K-12 schools to the bill and removed an exemption for relatively small local units); amending SB 23 to provide tax relief for storm-damaged property through a refundable income tax credit as opposed to an expanded abatement authority of county commissions; and opposing SB 72, which makes unnecessary changes to education requirements and qualifications for becoming a county appraiser.

The Council adopted another motion regarding the usage of one-time federal funds from the American Rescue Plan coming directly to the state, specifically suggesting that such monies not be built into agency budgets or provide for permanent ongoing tax cuts, with the exception of a relatively small amount (approximately $46 million) that would be targeted for residential property tax relief by increasing from $20,000 to $40,000 the “homestead” exemption from the mandatory school district general fund levy. The current exemption of $20,000 was set in 1997.

The Governor’s proposal to utilize revenue from a carefully-controlled medical marijuana program to fund the state’s portion of badly needed Medicaid Expansion also was outlined at the meeting. At the direction of Co-Chairs Janis Lee and Steve Morris, the Council will be receiving additional information at its next meeting about the extent to which Medicaid Expansion can prevent additional rural facility closures and reduce long-term social costs – all of which has important implications for the health of the public sector in the future and the resumption of more equitable tax policy. The Council also plans to receive additional information on the American Rescue Plan and potential long-term budget impacts of one-time pandemic era funding and policies.

Legislation Flood Gates

The Senate worked over 40 bills in three days.  Topics such as emergency powers, energy costs, tax, and others.  There were too many bills to cover in this update.  You can find all of the bills at www.KSLegislature.org.

Emergency Powers

Kansas has laws that allow the legislature to provide the Governor legislative authority in an emergency.  The emergency power laws, passed decades ago, had been invoked during natural disasters but never a state-wide pandemic.  Last year I spoke out against turning over all legislative authority to the Governor.  I was accurate.  The Governor overstepped and it has resulted in a financial crisis for many families.  As a result of the crises and government overreach, the Senate voted to replace existing statute with SB 273.  The bill would establish an emergency legislative oversight committee so there are checks and balances on any Executive Order (EO) issued during an emergency declaration.  The bill passed 27 to 12.  I voted Yes.  The House passed their version so a conference committee made up of six legislators, three from each chamber, are working out differences.  We’ll see what the final product looks like.

Energy Costs Skyrocket

Because of the record freeze a couple of weeks ago, most people will have higher energy costs.  Can you imagine expecting a $200 bill and getting a $2,000 bill or maybe a $6,000 bill?  Humboldt city manager reported their entire gas bill for the year 2020 was $270,139.14 and the estimated bill for just February is $1.5 million!  Many communities throughout the state were impacted.  House Sub for SB 88 was signed into law providing loans to help municipalities and others with extremely high electric and gas costs.  The bill was needed but it is a prime example of how we get poor results.  The bill gave all authority to the State Treasurer in deciding who gets the money so it is first-come first-serve for $100,000 million.  Some of the larger communities could use all of that money with a few loans, leaving out-to-dry small communities like Ottawa, Fort Scott, Garnett, La-Cygne, Lane, Moran, Prescott, and at least 32 other towns in our senate district.  There were reasons to vote No, but any money available in this emergency is needed to be in place so I voted Yes.  The bill passed the senate 39 to 1.  Myself and others asked the Senate President to form a special committee to investigate what happened and why one person is given the power to determine the fate of so many Kansas energy users.  The President said he was thinking along those same lines so this isn’t the last you will hear on this topic.

Tax

Last week, SB 46 exempting your retirement accounts from state income tax passed out of the Senate Tax Committee.  However, it doesn’t look like it will make it to the Senate floor on the grounds that the bill could be amended making it too expensive.  Opponents argue the state cannot afford it.  What they neglect to tell you is the State has collected $190 million over estimates since July 2020 – in 7 months.  As I have said, Kansas can afford removing state income tax on retirement accounts – we just have to make it a priority.

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

Caryn

Governor Laura Kelly Announces Applications Are Open For Community Service Tax Credit Program

~ CSP provides tax credits to donors to help nonprofit organizations and public healthcare entities fund major community improvement campaigns ~

TOPEKA – Today, Governor Laura Kelly announced that applications are currently being accepted for the Community Service Tax Credit Program (CSP).

“The Community Service Tax Program helps local nonprofit and healthcare organizations improve the health and economic wellbeing of their communities by streamlining their fundraising efforts,” said Governor Laura Kelly. “This program will encourage local solutions to local problems and improve the quality of life for Kansans now and into the future. Good luck to all that apply to this exciting initiative.”

CSP assists private nonprofit organizations and public healthcare entities in undertaking major capital campaigns for projects involving:

• Children and family services
• Non-governmental crime prevention
• Youth apprenticeship
• Youth technical training
• Health care

Under this program, the state authorizes nonprofit organizations to offer tax credits to donors making contributions towards approved projects. Organizations are chosen through a competitive selection process. The application window is open through April 30, 2021 at kansascommerce.gov/csp.

Proposed projects should be unique or one-time in nature and create a lasting value for charitable organizations. For example, projects might include a capital campaign, major equipment purchase, major renovation, capacity building, etc.

As was the case in 2020, CSP has earmarked $1 million for childcare and early childhood development projects for services to those under the age of 5.

“These tax credits are an incredible opportunity for our state’s nonprofit organizations to create unique, meaningful changes for the people they serve,” Lieutenant Governor and Commerce Secretary David Toland said. “Tell us about your initiative, and if it’s a good fit for the CSP program, we’ll provide this significant resource to help make it a reality.”

Applicants may request up to $250,000 in tax credits. Applicant organizations in rural areas (less than 15,000 population) are eligible for a 70 percent credit. Applicant organizations in non-rural areas are eligible for a 50 percent credit.

CSP is administered by the Community Development Division in the Department of Commerce. More information on the program, guidelines, and application process may be found online here.

About the Kansas Department of Commerce

As the state’s lead economic development agency, the Kansas Department of Commerce strives to empower individuals, businesses and communities to achieve prosperity in Kansas. Commerce accomplishes its mission by developing relationships with corporations, site location consultants and stakeholders in Kansas, the nation and world. Our strong partnerships allow us to help create an environment for existing Kansas businesses to grow and foster an innovative, competitive landscape for new businesses.

About the Community Development Division

Established in 2019, the Community Development Division at the Kansas Department of Commerce exists to improve quality-of-life in communities across the state through various programs and services. The Kansas Department of Commerce understands the immense role played by strong communities in economic development and prioritizes investments in people and communities as major contributors to the overall strength of the Kansas economy. To learn more, visit the Community Development page at the Kansas Commerce website.

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