Governor Kelly announces the Federal Paycheck Protection Program Reopens Applications for Forgivable Loans

TOPEKA – With the launch of 2021 Coronavirus relief programs, Governor Kelly today announced Kansans can begin submitting applications to the 2021 Federal Paycheck Protection Program (PPP) for forgivable loans to small businesses.

“Kansas small businesses have been among those hardest hit by COVID-19,” Governor Laura Kelly said. “The Paycheck Protection Program is integral to keeping our state on the path to recovery. This is a good step forward, but we know the need for relief is great – and I will continue to push for additional stimulus funding to support Kansas’ economic recovery.”

Led by the Small Business Administration (SBA) and the Treasury Department, the PPP is a federally administered program providing loans to small businesses to cover payroll expenses. The SBA began accepting applications through Community Financial Institutions on January 11 and through all other financial institutions on January 19, with applications accepted through March 31.

“In the past year, the Paycheck Protection Program offered federal support to tens of thousands of Kansas small businesses, but we understand that the need is still great,” Lieutenant Governor and Commerce Secretary David Toland said. “This program exists to put federal dollars in the hands of small business owners who need them most. I would encourage Kansas small business owners to apply for this program to get more resources as our state continues to grow and recover from this enormous challenge.”

During the 2020 distribution of PPP money, 54,000 small businesses in Kansas received $5 billion in funding. The 2021 PPP aims to make the program more attractive for small businesses and target the worst impacted industries through the following changes:

• Forgiveness has been simplified for borrowers of $150 thousand or less, with self-certification option to attest funds are spent appropriately
• Hospitality businesses, including hotels and restaurants, are eligible for an increased loan total (3.5x monthly payroll)
• Eligible expenses paid for with forgiven PPP loans may now be deducted on taxes for 2020 and 2021 & employers are now eligible for the Employee Retention Tax Credit even after taking PPP funds (reverses earlier guidance from IRS)
• Employers no longer must deduct Economic Injury Disaster Loans from their PPP loan total (EIDL program was refunded with an additional $40B too)
• Additional categories are now eligible as non-payroll expenses (up to 40% of total loan amount), with operational expenses (including software, cloud services, accounting services, etc.), supplier costs, damage from social unrest, and worker protection expenses
• Additional groups are eligible for loans, including 501(c)(6)s, housing cooperatives, and direct marketing organizations

Under the new program, $234 billion are available with $12 billion earmarked for businesses in low-income & minority communities, as well as $15 billion in grants dedicated to live entertainment venues. Through Community Financial Institutions, the SBA hopes to encourage greater access to PPP funds. Businesses that have not received PPP funds previously are eligible for loans up to $10 million if they have 500 or fewer employees. Businesses that received PPP funds during the first round are eligible for up to $2 million in funding if they have 300 or fewer employees.

Information on where and how to apply can be found here.

Additional Resources:

• Information on Community Financial Institutions can be found here.
• Further general information on loans can be found here.
• Further questions can be directed to the Kansas Department of Commerce here.

Governor Laura Kelly Directs Flags be Flown at Half-staff to Honor 4,101 Kansans Who Lost their Lives to COVID-19

TOPEKA – Kansas surpassed 4,000 Kansas deaths due to COVID-19. In honor of the lives lost and the families they left behind, Governor Laura Kelly has directed that flags be lowered to half-staff throughout the state Saturday, February 6, 2021, from sunup to sundown.

“It is with great sadness that I am once again ordering flags to be lowered to half-staff in honor of the Kansans who have lost their lives to COVID-19,” Governor Laura Kelly said. “My administration remains committed to slowing the spread of COVID-19 and vaccinating Kansans as quickly and efficiently as possible. In the meantime, I know Kansans will do their part to protect their loved ones by following the public health guidance.”

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

Governor Laura Kelly Announces Comprehensive ‘Framework for Growth’ Economic Development Strategy

~Framework for Growth is the first comprehensive economic development strategy produced by the State of Kansas in over 30 years~

TOPEKA – Governor Laura Kelly today unveiled Kansas’ new, comprehensive economic development strategic plan, the first of its kind in more than 30 years. The Kansas Framework for Growth is an aggressive strategy to align our state’s strengths with emerging trends across the global economy, while guiding economic development at state and local levels into the future.

“Our economic development progress over the past two years has been significant, but an effective strategy does more than focus on the here and now – we must plan for the future and set the stage for sustained growth and prosperity,” Governor Kelly said. “The Framework for Growth is a bold plan to address current and future trends in our state, while we continue to promote job growth and new capital investment in communities of every size all across Kansas.”

The Framework for Growth was created through data analysis and with input from Kansans statewide. Business and community leaders were engaged to offer suggestions and determine priorities for the Kansas economy, and through a virtual survey and town hall meetings across the state, thousands of Kansans came together to help create the final plan.

“At the end of the day, the Framework for Growth is about keeping our kids and families in Kansas,” Lieutenant Governor and Commerce Secretary David Toland said. “For too long we’ve exported our greatest asset – our educated young people – at a loss, sending them to states where they can find better economic opportunities. That’s unacceptable, and we can and must do better. The Framework for Growth provides a path forward, leveraging our assets – high-quality workers, top-notch K-12 and higher ed, excellent infrastructure and a business-friendly climate – to dramatically accelerate our rate of economic growth in this decade. Ultimately that’s how we make sure our grandchildren can grow, prosper and raise their own kids in Kansas.”

The Framework for Growth outlines specific approaches to help develop the state’s number one asset – its people. By focusing on talent and innovation, the Framework aims to build resiliency in the Kansas workforce and unlock the potential for new ideas to cultivate and develop into tomorrow’s prosperous businesses.

Some key initiatives outlined within Framework for Growth include a renewed emphasis on the following, among many others:

• Talent development and retention
• Harnessing the state’s colleges and universities for job and business creation
• Innovation as a driver of new business opportunity
• Community assets and regional approaches to economic development
• Policies to support long-term growth.

“I know from my experiences as Governor, and later as Archivist of the United States – leading the National Archives Records Administration at the federal level – there is tremendous value in looking big-picture, long range, at where we are and where we want to be,” former Kansas Governor John Carlin said. “With everyone pulling in the same direction, you can accomplish some amazing things. I have no doubt that, if the Framework for Growth is bought-into and implemented, it can do great things here in Kansas.”

“It’s time for us to build another common approach and lay out our goals to grow the state.” former Kansas Governor Mike Hayden said. “This plan does not belong to one administration; it is the Kansas plan for growth. As former Governors, John and I are proud to join with the current Governor in making the case for this shared vision for our state’s future.”

“By emphasizing innovation across our core industries as a driver of economic development, the Framework demonstrates forward-thinking vision for Kansas,” Andrew Nave, Executive Vice President of the Greater Wichita Partnership, said. “Our region fully supports the Framework and its guiding principles as the right course for Kansas.”

“Reinforcing and expanding on commitments to businesses and manufacturers as catalysts for growth – while seizing opportunities to attract and retain talent as a way to bolster the workforce – is a welcome and appropriate strategy in positioning our state’s economy for growth now and for years to come,” Mark Chalfant, CEO of Fuller Industries, said. “We’re glad to see our state taking bold action to grow and succeed well into the future.”

“I’m pleased to see the Framework’s people-first approach, which we very much embrace in rural Kansas, and the emphasis on building and strengthening our communities statewide,” Director of Greeley County Community Development Christy Hopkins said. “This plan indicates that our state understands the value of quality of life in overall economic development in places rural, urban and suburban. The Framework’s commitment to strengthening people and communities of all sizes is both refreshing and critical to our state’s future.”

“To ensure the continued strength and vitality of the Kansas economy, we need to craft policies and programs that anticipate our long-term needs,” said Blake Schreck, President and CEO of the Lenexa Chamber of Commerce and President of Team Kansas. “We need to be creative and aggressive in our economic development efforts, and I believe this Framework gives us clear direction on how we can build a dynamic economy for our state that serves us not only today, but well into the future.”

“I’m pleased to see our state implementing this creative new approach to economic development,” Joann Knight, Economic Development Director for Dodge City, said. “Workforce and housing are major priorities in Western Kansas, and I’m glad to know that the Kelly administration sees these concerns as major priorities. I look forward to the implementation of the Framework for Growth, and I know its lasting effects will be hugely positive for our city, our region and our state.”

“Making talent retention and talent growth central to the Framework is absolutely the right and necessary move,” Matt Pavarnik, CEO of the Greater Topeka Partnership, said. “We’ve benefitted from so many young professional minds creating new opportunities, and we understand that keeping and creating the next generation of leaders in Kansas is essential for our state’s economic future. We look forward to the focus on this economic development blueprint the Framework delivers.”

Creation of the Framework for Growth began in late 2019, but the new challenges brought about through the COVID-19 pandemic created an urgent need to rethink our approach resulting in a strategic plan with the flexibility to respond to our ever-changing economic conditions.

Through the Framework for Growth, Kansas will be one of the first states in the nation to take a comprehensive look at the new normal beyond COVID-19 and develop a wholistic strategy to guide state-level economic development policy.

The full report can be seen electronically 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.

Kansas’ January Total Tax Collections 9.7% More Than Previous Fiscal Year

TOPEKA – For January of Fiscal Year 2021, the State of Kansas saw a nearly 10% performance increase in total tax collections with $795.8 million collected. That is a 12.8%, or $90.2 million, increase from the estimate. Those collections are $70.4 million, or 9.7%, more than January of Fiscal Year 2020.

“While these numbers look promising, my administration will continue to take a close look at all tax legislation that may come to my desk and keep an eye on the fluctuation of the national economy,” Governor Laura Kelly said. “As I’ve said before, we must continue to promote fiscally-responsible practices that will ensure our state will not only recover from the COVID-19 pandemic but continue to grow.”

Corporate income tax collections were 29.9%, or $6.4 million, more than last fiscal year with $27.7 million collected for the month. That is an 84.9%, or $12.7 million, gain. Individual income tax collections were $457.9 million. That is $57.9 million, or 14.5%, more than the estimate and $49.2 million, or 12.0%, more than the previous January.

The individual income tax category is slightly higher for the end of the month due to the Internal Revenue Service’s delay in processing of tax returns to February 12, 2021. Due to that delay, the state cannot begin to process returns and issue refund checks until that time.

Retail sales tax collections were $3.8 million, or 1.7%, more than the same month of last fiscal year with $224.6 million collected. That is $9.6 million, or 4.5%, more than the estimate. Compensating use tax collections were $64.6 million for January; a $9.6 million increase from the estimate. Those collections are 22.9% or $12.0 million, more than last January.

Please find the revenue numbers here.

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Governor Laura Kelly Announces Medicaid Expansion Bill Funded By Medical Marijuana

~ Legislation resolves Medicaid Expansion funding question ~

TOPEKA – Governor Laura Kelly today announced legislation to expand Medicaid (Kancare) and provide health insurance for 165,000 Kansans. The legislation also establishes a regulatory framework to make Kansas the 48^th state to legalize medical marijuana.

“After nearly a year of challenges brought on by COVID-19, we need to use every tool at our disposal to protect the health of our workforce and our economy,” Governor Kelly said. “Getting 165,000 Kansans health care, injecting billions of dollars and thousands of jobs into our local economies, and protecting our rural hospitals will be critical to our recovery from the pandemic. By combining broadly popular, commonsense medical marijuana policy with our efforts to expand Medicaid, the revenue from the bill will pay for expansion.”

This Medicaid Expansion bill includes the same components of the compromise legislation from last year with the following exceptions:

• The re-insurance program has been removed.
• The Medicaid Expansion Surcharge paid by Kansas hospitals to offset the state general fund costs of expanding Medicaid has been removed.
• In place of these two programs, a proposed medical marijuana bill has been inserted.
• This bill is modeled after Ohio’s framework and similar to the bill that has been proposed by House Republicans.
• The fiscal note of this portion of the bill should more than offset the state general fund costs of Medicaid Expansion.

“Our economic recovery depends heavily on our ability to attract and retain businesses throughout the state,” Lieutenant Governor Toland said. “Kansas has no business giving companies even one reason to look elsewhere — and I can say, unequivocally, that the availability of healthcare and well-being of all Kansans matters a great deal to companies considering places to locate and grow.”

Under the proposed legislation, Medicaid will be expanded to the full 138% Federal Poverty Line at 90% to 10% match from the federal government. 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 of Children and Families to assist with locating job opportunities through work referral programs.

Individuals will be required to pay a premium not to exceed $25 per person or $100 per family, with a provision to grant exceptions based on hardship. Premiums that go more than 60 days unpaid are referred to the established debt setoff program through the Department of Revenue for collection.

“Making health care available to thousands of low-income, uninsured Kansans would help working Kansans and their families, resulting in a healthier, more productive workforce and  benefit employers across the state,” Tracey Osborne Oltjen, President and CEO of the Overland Park Chamber of Commerce, said. “We know that people who have health coverage are generally healthier and more productive at work. From a business perspective, that’s why Medicaid expansion is so important. Until we expand Medicaid in Kansas, we risk falling further behind our neighbors. We should not stand as an island on this issue, creating expensive challenges for our residents and our businesses.”

Kansas is one of only three states without legalized medical marijuana and one of only twelve that have failed to expand Medicaid.

“Expanding Medicaid is one of the most cost-effective tools our state can use to protect our residents, health care providers and economy during the COVID-19 crisis and later as we rebuild,” April Holman, Executive Director of the Alliance for a Healthy Kansas, said. “With that in mind, we commend the governor for her commitment to this issue. We will need to discuss the full scope of Governor Kelly’s proposal with our coalition. However, we remain unified in urging the Legislature to act on expanding Medicaid now. On its own, expanding KanCare will prove to be a budget positive proposal that will create thousands of jobs.”

The bill designates the Kansas Department of Health and Environment responsibility for overseeing patients and their use of medical marijuana, KDOR is responsible for licensure and fee collections as well as regulation of producers, and the Board of Healing Arts is responsible for certifying prescribing physicians. However, it also establishes a bipartisan medical marijuana advisory committee with appointments made by the governor, legislative leadership, and chaired by the Secretary of Health and Environment.

January 29, 2021

Resolution to change the Kansas Constitution

Who has the authority to write laws addressing abortion in Kansas? House Concurrent Resolution (HCR) 5003 titled Value Them Both (VTB) passed the Senate on a vote of 28 to 11. I was one of the 28 who voted yes to pass the Resolution and allow voters the opportunity to change the Kansas Constitution on the August 2022 ballot, making it clear the legislature has the authority to write laws on abortion, not the courts.

In 2015, the legislature passed SB 95 with a supermajority, banning dismemberment abortion in Kansas.  After becoming law, the Kansas Supreme Court nullified the law by issuing an extreme ruling that the Kansas Constitution allows dismemberment abortion.  You can read the Kansas Constitution and try to find where it says that.  I did and I couldn’t find it.  Do you think our Christian ancestors who wrote the Constitution in the 1800s were wanting to endorse abortion?  I’m pretty certain that protecting dismemberment abortion wasn’t on their agenda.

During debate, I used the words of dissenting Justice Stegall who spoke against the court’s decision, “Today we issue the most significant and far-reaching decision this court has ever made.  The majority’s decision is so consequential because it fundamentally alters the structure of our government to magnify the power of the state….”  We have a rogue Court.

Property Tax Transparency (SB 13) passed the Senate 34 to 1 and will be debated in the House.  The current version of the bill would take effect immediately if it becomes law.  Government authorities argue against the bill taking effect this year, but we have delayed addressing our run-away property taxes long enough.  Presently, as property valuations are increased your property taxes automatically increase.  This bill simply does not allow this automatic tax increase.  The government can still raise your property taxes but it will require that they do so by a vote witnessed by the taxpayers.

Hopefully, House members will understand this and take into consideration the taxpayers.  Taxpayers who have had their property tax increased by double digits year after year.  Taxpayers who are on a fixed income.  Taxpayers who are struggling to make ends meet.  SB 13 does not lower taxes but it will provide transparency and an opportunity for taxpayers to have a say before their taxes increase.

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

Caryn

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