Greetings Friends and Supporters! I hope this message finds all of you healthy , happy and engaged in activities that produce fulfillment and happiness for you and your families. It is good to be back home from Topeka for much needed time with my family and to support worthy candidates for our Fall election cycle.
The 2010 Legislative Session came to a grinding halt in Mid May after 90 days of wrangling over a $500 million budget deficit. It was a session that started and ended divided on how solve a budget crisis caused by years of overspending, living on credit, and “robbing Peter to pay Paul” approach to fiscal management. The elephant under the dome the entire session was a budget deficit of $500M and what the best approach in which to plug the hole.
The session was also marred by the second year of the most devastating recession in Kansas history. Receipts continued to plummet as we anxiously awaited consensus revenue estimates. These estimates are based on tax receipt projections and guided our decisions day by day. As it appeared we were achieving a 1-2% growth in our economy it seemed there were only 3 options: Tax our way out, cut our way out or find a combination of both approaches that a majority could vote for. Philosophically, no single approach was acceptable by the majority in either chamber. Many solutions were offered including targeted taxes on liquor, cigarettes and tobacco products, sugared drinks and a boost in the state sales tax from 5.3 to 6.3. One proposal particularly disturbing was what I called a “Granny Tax.” This tax would impose a fee on nursing home beds in order to re-capture lost federal Medicaid funds cut 10% by our Governor as part of his allotment authority. I successfully fought this behind the scenes and on the Senate floor. It was sent back to committee re-emerged still containing language that created winners and losers. Of course I voted no on this tax. Other proposals included a repeal of sales tax exemptions aimed at services and certain businesses. There were even those who came before tax committee asking for additional exemptions or the ability to create a new “taxing authority” in order to raise taxes locally for technical colleges. My votes in tax were a consistent NO.
This year I had the pleasure of serving as Vice-Chair of both Commerce and Labor Committees, as well as Vice-Chair of Assessment and Taxation and Senate Judiciary. These committees work in tandem with one another as many issues cross-over. This grants me a unique opportunity to influence outcomes of business and social legislation in committee before it even gets to the Senate floor. Many times this session I was able to prevent onerous, targeted taxation that would severely affect growth in Kansas. I was able to instill a broader perspective on how our decisions regarding business regulation both economically and socially effect overall prosperity for families and businesses in Kansas.
The key votes this year revolved around the budget, tax policy, economic development , the Kansas unemployment fund, education, developmental disabilities, and state sovereignty regarding health care. I supported the House budget which balanced our budget without a tax increase. The Senate version included the 18% tax increase (the largest increase in state history) as well as economic projections of 4% economic growth which is unrealistic. I felt the budget did not reflect adequate attempts at spending cuts or government reforms which were not even considered this year as a way to find solutions. It saddled Kansas families with an 18% tax increase and will cost the average family and additional $36 per month. (that’s about the cost of one child’s monthly school lunch punch card) In an economy nationally that is growing at 1-2% annually over the past 2 years, with over 100 thousand jobs lost in Kansas and with employers cutting expenses and workers, it was not a long term solution.
Education (K-12) was the biggest winner receiving $133.4 million increase to replace federal stimulus dollars that are no longer available. Still, this was not enough according to the education lobby (KNEA) who pressured many legislators to pass tax increases to “save the schools”. Unfortunately, an 18% tax increase was passed in the final hours of the session marking the largest tax increase in the history of the state. Many believe this increase will greatly benefit our Johnson County schools, but the reality is it will not. The problem is an antiquated and unfair finance formula. For every $3 in taxes sent to the Topeka Department of Education, Johnson County only receives $1 in return. This means that the bulk of the tax increase will benefit schools outside of Johnson County. The problem is not availability of funding, as education receives nearly 70% of our total state budget, but rather a seriously flawed school finance formula . This amounts to a 3 to 1 “transfer of wealth” to rural school districts . Many legislative attempts were made to create a solution to this problem by granting school districts greater control via raising tax dollars locally. All were soundly defeated either in committee or on the floor. The solution is to re-visit the formula and make tough decisions on how to equalize this for Johnson County. Unfortunately, the votes are simply not there and the political will is sorely lacking. The 18% tax increase includes provisions for a percentage of the sales tax amounting to $76 million annually to be allocated for new highway projects. They also receive $1.7 billion in bonding to maintenance projects. I am concerned about any tax that is dropped into the general fund as it can be absconded at any time. The lobbying effort for these funds was unprecedented with Secretary Miller spending most of her time at the Kansas Statehouse in front of committees, on the Senate and House floors, and lobbying legislators in an effort to encourage its passage. I’m also concerned with $34.7 million loan for the intermodal project in Edgerton.The following is my “Explanation of Vote” on the Transportation Funding Bill:When bills come across my desk for final action I always ask three questions: 1. “Is this legislation something that is within the scope of government’s responsibility? 2. “ How much will it cost and what is the funding mechanism?” 3. Is it sustainable?” Mr. President, SSHB2650 does not completely pass my smell test. We are responsible for good roads and they are vital to our quality of life. However, this is not the time. My constituents are concerned with bread and butter issues . They are cutting back, putting off investments and major purchases, watching their consumption and working towards financial prosperity and independence for their families and their children’s future. . Mr. President, it’s time the State of Kansas do the same. That’s why I vote NO on SSHB 2650.
Of course, there are always losers in any funding battle. Losers included the developmentally disabled, medicaid beneficiaries, services for the elderly, community and juvenile corrections services, our court systems and prisons. Veterans also saw losses in funding and I’m sure there are many others that I haven’t listed. As always, there are always 2-3 issues that float to the top during a session and certainly tax increases, spending cuts, education and transportation plan funding took top priority and received the greatest amount of attention. I believe that the 2010 session will be a new beginning for many of us as we will have a new Governor and Lt Governor, a new administration, and even new House and Senate members. This will change the dynamic and direction of our State over the next several years.
A personal legislative victory for me this year was passage of “Lexi’s Law.” This raises the standard of care for children who receive care in a private day care home. The idea for the legislation was brought to my attention as Chair of Children’s Issues. The families of two little girls who lost their lives in a day care home in Johnson County contacted me last summer to express their concerns about current standards of care in both registered and licensed homes. These parents had formed a coalition of concerned families and we spend many months hammering out language and strategy. One of biggest concerns expressed was the fact that 1 in 3 homes never receive inspections and that providers who violated current standards such as number of children being watched were not appropriately regulated or held accountable for repeated violations. These families believe that if quality standards were increased their children would be alive today. This legislation became embroiled in misunderstanding and controversy throughout the session. It ultimately passed both houses at 3:30 am on the final day of the session and was signed into law May 28th. I am thankful for the bi-partisan team who helped improve childcare for our Kansas kids.
Thank you again for all the emails, letters, texts, phone calls, tweets and Facebook posts expressing your opinions during the legislative session. It is my desire to listen and respond. As always, you are my lifeline to my votes. Keep me in your loop and please let me know if there is anything I can do for you.
All my best,
Sen. Julia Lynn | 
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