2022 POLICY WATCH No. 11, March 18, 2022

Kansas Rural Center

Legislative Policy Watch

Issue No. 11, March 18, 2022

Legislative Policy Watch is a weekly online publication of the Kansas Rural Center (KRC) during the State of Kansas legislative session. KRC is a private, non-profit organization that promotes the long term health of the land and its people, through education, research and advocacy that advance an ecologically sound, economically viable, and socially just agriculture.

Policy Watch is produced by Paul Johnson, KRC Policy Analyst, pdjohnson@centurylink.net,

and Mary Fund, Editor, ksrc@rainbowtel.net

2022 Co-Sponsors

www.lwvk.org

League of Women Voters of Kansas

Kansas Natural Resource Council

Climate & Energy Project

www.climateandenergy.org

Kansas Farmers Union

www.kansasfarmersunion.com

Audubon of Kansas

www.audubonofkansas.org

Friends of the Kaw

www.kansasriver.org

Learn More about

KRC

www.kansasruralcenter.org

Kansas Legislature Website

For Legislative Committee and Hearing Information,

and how to contact your legislator, and viewing remotely, go to:

http://www.kslegislature.org/li/

Learn More about

KRC

www.kansasruralcenter.org

By Paul Johnson, KRC Policy Analyst

BALANCE OF POWERS THREATENED

By Paul Johnson & Mary Fund

The framers of the United States Constitution and the Kansas constitution produced a separation of powers between the executive, legislative and judicial branches of government. The basic idea is to prevent one branch from assuming too much power by establishing a relationship of checks and balances. Over time, there have been essential checks of political power at both federal and state levels.

The Kansas Legislature is now taking a threatening course to undermine this delicate balance of power. The Republican supermajorities in the Kansas Legislature have proposed constitutional amendments, and proposed or passed legislation to micromanage executive branch rules/regulations, remove certain judicial oversight, control all state spending (via more authority to the State Finance Council), take control of public health, further restrict local governmental authority, regulate all election law, and undermine public education.

Congressional redistricting is a prime example of how a party in power can solidify that power, and ensure it dominates for the foreseeable future. Last year’s public redistricting hearings were held without consultation with the minority party and before there was any actual census data available and no maps to consider. Virtually all of the public testimony was to not divide Wyandotte County (by race) and to keep as many communities of interest intact as possible.

The House and Senate Redistricting committees started meeting and suddenly out of the dark came a Congressional map that ignored public testimony and apparently redistricting guidelines. It appeared to purposely divide Wyandotte County by race and surgically carved just the City of Lawrence out of the 2^nd District (where the gerrymandered Wyandotte portion was placed) and dropped it into the sprawling Big First district, which covers all of western Kansas and a good portion of central and now eastern Ks. The carving also conveniently divides Democratic strongholds, thus diminishing their-- and their communities of interest-- power.

No legislator claimed authorship of this Congressional map. It is just math, leadership claimed, as we adjust for population shifts. The Governor vetoed the maps pointing out the problems for communities of interest. A few legislators balked during the override work, but the supermajorities were dutifully brought into line to override the Governor’s veto. No surprise that the Congressional maps will now be decided in court.

Now comes a spirited debate over Senate and House State legislative district maps. The Senate passed their redistricting map on Thursday with amendments that satisfied at least some of the Democrats’ objections. It now moves to the House for consideration. The redrawn House maps were introduced just this week, and remain under review.

Legislatively, the overall goal now appears aimed at fully limiting the Governor and local units of government from exercising various authorities, such as public health protections regarding a pandemic and what is taught and how in public schools. The Kansas Legislature’s instinctual wisdom is apparently superior to medical and public health experts. Teachers (and school boards) must be subjected to a rigorous examination of their content and tools rendering classrooms inflexible to real world issues and teachable moments.

The agenda also continues with legislation to take control of elections by placing further restrictions on voting procedures and demanding legislative permission for any election changes by local units of government and the Secretary of State.

The Concurrent Resolutions asking for amendments to the State Constitution will cover how State Supreme Court justices are chosen, give the legislature veto power over rules and regulations, and establish a 2/3 majority vote in the legislature to create new taxes or increase existing ones. At face value for many people, these might seem to enhance democracy but in tandem with all the other legislative changes will render power to one dominant group—upending the balance of powers our founding framers intended.

With these changes, there will be no limits put on the role of ‘dark money’ - in Kansas or at the Congressional level - in terms of private campaign contributions. In our free-market capitalist economy, everything has a price be it ‘truth’, redistricting, public health, education, or pliable politicians. These changes will effectively turn "elections into auctions".

The separation of powers with its checks and balances was established for good reason. What is happening is not democracy but some kind of“winner takes all then keeps it that way” form of government.

Read more on constitutional amendments:

HCR 5014 - legislative power over rules and regulations

SCR 1621 and SCR 1622- how Ks. Supreme Court members are chosen

SCR 1620 - 2/3 vote required to create a new tax or increase an existing tax

https://kansasreflector.com/2022/03/11/senate-committee-advances-constitutional-amendment-limiting-new-taxes-rate-increases/

https://www.kansas.com/news/politics-government/article258507208.html

HOW KANSAS SUPREME COURT JUSTICES ARE SELECTED NOW

The Supreme Court Nominating Commission was established in 1958 when Kansas voters approved an amendment to the state’s constitution. This came about because a Kansas Governor in the mid-1950’s resigned a few days before the end of his term and had the Lt. Governor appoint him to the Kansas Supreme Court.

The current nominating commission is tasked with presenting the governor with a slate of three qualified candidates whenever a vacancy occurs on the Kansas Supreme Court. The Governor interviews the candidates and makes the appointment. This process – known as merit selection – is used by Kansas and 21 other states, along with the District of Columbia, for selecting all members of their highest court.

The commission has nine members. Four are non-attorneys appointed by the Governor. Four others are attorneys selected by attorneys in each of Kansas’ four congressional districts. The chair of the commission, an attorney, is elected by attorneys in a statewide vote. Since 2009, the chair is Anne Burke, who has served as president of the Kansas Bar Association.

After being appointed to the Kansas Supreme Court bench, a justice is subject to a retention election after one year. Subsequently, justices are subject to retention elections every six years. Five other states – Florida, Missouri, South Dakota, Tennessee and Wyoming plus the District of Columbia have merit selection commissions where a majority of the members are attorneys.

The Kansas Senate is prepared to debate constitutional amendments (SCR 1622) to establish partisan elections for these justices or (SCR 1621) a required Kansas Senate confirmation of the Governor’s selection and eliminating the Kansas Supreme Court Nominating Commission.

EDUCATION BILLS SUMMARY AVAILABLE

If you want to know more about legislation currently before the State Legislature that will affect public schools, the Kansas Association of School Boards (KASB) has a summary “Where We Stand, March 10”. It provides summaries and details on more than 50 bills. Click HERE

STATE BUDGET/REVENUE UNCERTAINTY

As the Kansas Legislature’s 2022 regular session winds down come April 1, the dueling budgets of the Governor, the Kansas Senate and the Kansas House are taking shape. The areas of compromise are still in doubt.

There are so many uncertainties over using one-time federal funds for on-going State expenses. There is great uncertainty over revenue projections for the next five years. There is great uncertainty over affordable and sustainable tax reductions that won’t put Kansas back in a similar fiscal mess it faced around 2016.

It is certain that 2022 is an election year for Statewide offices and the 125 House members, so electoral advantages are never far from mind. In today’s partisan climate, long term planning and development is often sacrificed for short term political gain. Let the next set of beginning lawmakers figure it out.

It seems certain that the final decisions on balancing the State Budget alongside enacting affordable tax cuts will not be settled until the veto session plays out in early May. A first key decision will be the amount of existing bonded debt - for various state projects from dredging John Redmond reservoir to State Capitol remodeling to the National Bio-Defense Agriculture Facility in Manhattan to the Kansas Public Employees Retirement System – will be fully paid off now, thus saving tremendous future interest costs.

Tax cut battles are still to be settled for items such as groceries, food, education property taxes, etc. Key spending decisions are far from settled such as state employee salaries, expanded home health/medical institution staffing, State Water Plan Funding, Judicial Branch upgrades, new State Health Laboratory, higher education funding increases, and public water storage debt. It does seem settled that $600 million will be put in the Budget Stabilization Fund as an essential rainy-day account.

The Governor’s Budget Director presented a five-year State General Fund (SGF) outlook to FY 2026. This scenario assumed a modest 1.8% annual growth in revenues (primarily individual/corporate income taxes), a 5% annual growth in Medicaid expenditures and a 3.3% annual growth in public education. With the Budget Stabilization Fund and a SGF ending balance of $213 million, the total cash at hand in 2026 is $813 million which equates to an 8.9% cushion.

The Kansas Legislative Research Department (KLRD) SGF profile out to 2026 was far less solvent. KLRD assumes that the state subsidies for the $4 Billion mystery plant (if they choose Kansas) will be significant and immediate. KLRD has a far lower revenue growth projection and greater Medicaid costs. KLRD has a negative SGF ending balance of $426.4 million in FY 2026.

Come mid-April, the Consensus Estimating Revenue Group (Governor’s Budget Division, KLRD, 3 university economists) will develop the new State revenue forecast out to the end of 2023. This new revenue projection must be used to finalize the Kansas Budget for both FY 2022 and FY 2023. The final budget bill (known as Omnibus) and tax reductions will be completed as the veto session concludes in May.

FOOD SALES TAX UPDATE

The Kansas Senate passed a budget bill on March 17 without any food sales tax relief. The House is still working on their budget version. Both chambers must settle on a compromise budget before the session is over, so the food sales tax issue is not done yet.

https://kansasreflector.com/2022/03/16/kansas-senate-advances-22-8b-spending-plan-with-pay-raise-for-state-workers-no-food-tax-relief/

HOUSING AND RURAL DEVELOPMENT

The political push is on to request that $50 million be dedicated for rural and small city housing. This funding would go to the Kansas Housing Resources Corporation (KHRC) to expand the Moderate-Income Housing Program as well as weatherization, first time homebuyer assistance, affordable housing tax credits and guaranteed mortgage loans. This 20-member coalition taking the lead includes the Kansas Corn Growers Association, the Kansas Farm Bureau, Kansas Bankers Association, and the Sunflower Electric Power Corporation. This $50 million request has now been included in the recently announced Governor’s Budget Amendments for the Fiscal Year (FY) 2022 Budget.

The pandemic has created a situation in rural Kansas where new residents are relocating so the housing inventory is at an all-time low. Numerous manufacturing projects have been announced that will require additional housing.

In Ford County, Hilmar Cheese Processing will construct a manufacturing plant ($630 million) employing 250 workers in Dodge City. To supply this plant, 4-5 new dairies will be constructed within 40 miles of Dodge City employing an additional 750 workers. In Sherman County, Goodland Tech has created 35 new jobs and expects to add an additional 100. In Smith County, Applequist Manufacturing in Smith Center will need 65 jobs to support their new ag equipment manufacturing plant. In Phillips County, Summit Bioenergy is investing $200 million in a wheat gluten plant and will add 55 new jobs to the existing ethanol plant. In Salina, the Schwan’s expansion will require 225 new workers and the Great Plains/Kubota expansion requires 113 new workers. Dodge City does a housing needs assessment study every three years and are 1,600 housing units short up to 2030. This $50 million request involves 96 counties under 60,000 in population and cities under 60,000.

KHRC’s Moderate-Income Housing Program (MIH) has been operating since 2012 and funded at a level of $2 million annually. There have been yearly requests for $20 million from qualified developers and counties. $25 million of the $50 million request would go to the MIH as well as the Governor’s one-time proposal of $20 million. KHRC has dozens of approved but unfunded projects currently.

With a start date of July 2022 and final funding decisions by fall 2022, construction starts spring 2023 and occupancy by the end of 2023. This extra funding would also be supplemented by the proposed the affordable housing tax credits that have passed the Senate and now being debated in the House.

ENERGY BILL UPDATE

The Senate Utilities Committee failed to pass a bill eliminating property tax breaks for wind energy this week. SB 374 did not make it out of committee.