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.

###

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