Governor Parkinson puts forth plan to fix $106 million budget gap: Governor calls on Legislative leaders to join in solution

Governor Mark Parkinson has put forward his plan to balance an unexpected $106 million hole in the current fiscal year’s budget by, among other things, reducing work on Kansas’ highways and roads throughout this year and next.

“I have said, time and time again, that there are no great options left to balance the budget. Having already cut more than $1 billion from state spending, every option I have left will harm state programs. However, facing an additional $106 million shortfall with less than four months left in the fiscal year, I am compelled to act.

“A strong infrastructure is critical to our ability to move goods and services to market; and maintaining our roads creates hundreds of potential jobs and millions of dollars in economic activity throughout Kansas. With this in mind, we must work together towards a solution that would recommit our state to a reasonable transportation plan.

“In the meantime, we cannot balance the next budget or protect our schools, public safety and safety net services without new revenue. I look forward to the Legislature to coming to the table, putting politics aside, and raising the revenue we need to get Kansas back on track.”

Administration officials will make a series of cuts, transfers and adjustments to net at least $52 million; a detailed description of administrative steps is attached. The remaining $54 million will require legislative action; therefore, Governor Parkinson has asked the legislature to do the following:

·         Transfer $28 million from the highway fund to the State General Fund. This action will require the Department of Transportation to cancel nearly all maintenance projects that have yet to be started in 2010 and 2011.

·         Pass HB 2130, primary seatbelt legislation. This action will produce $10 million in federal funds.

·         Implement a moratorium on KPERS death and disability payments for the last quarter of FY 2010. This action will produce $12 million in available resources while keeping the fund solvent.

·         Pass legislation to codify the Insurance Commissioner’s equal treatment of Kansas’ three Medicaid HMOs. This action will produce $4 million.

Governor Parkinson also signed today Senate Substitute for House Bill 2222, commonly known as the 2010 Rescission Bill.

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KOSE Executive Director Jane Carter Responds to Governor Parkinson’s Proposed Budget Solutions  
 
“KOSE members and state employees can breathe a small and temporary sigh of relief in knowing that we will not be suffering any further cuts to the vital services we provide under the budget solutions announced by the Governor. However, with a $106 million budget gap we will remain diligent and mindful of any further action toward cutting the budget.

We agree with Governor Parkinson’s statement that; “We cannot balance the budget or protect our schools, public safety and safety-net services without new revenue.” We now urge the Legislature to implement these sensible changes the Governor outlined in his press conference because we cannot cut our way out of this current crisis.

The Governor is also correct when he addressed the recent tax cuts and how they have not affected one average citizen but have feathered the nest of special interests. Simply put, they have not generated the amount of revenue that some had hoped for and that is why we must look at real solutions such as raising revenue.

We all understand these types of cuts are designed to carry us through this crisis; however, they will only provide a temporary fix and will not solve our long term problems. When the Governor called for a revenue increase he was not only right in doing so, but he is setting the right kind of example for our Legislature. We cannot face any more devastating cuts. Raising revenue is the only option and only solution.     

State Employees and KOSE members provide the vital services that maintain our roads, hospitals, and public safety—we care for the most venerable of Kansas and we know what their needs are. That is why we agree with the Governor’s sensible approach to our budget shortfalls and that is also why we will keep the pressure on the Legislature should they try once again to balance this budget on the backs of our state workers.”
    

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NEW PROPOSAL TO INCREASE YOUR MANDATORY KPERs CONTRIBUTION!

 

A proposal has been moving through the committees that affect public employee retirements in the past few days. This proposal calls for:

• All Tier 2 employees to increase their contribution over the next few years to 8% of their base salary
• Tier 1 employees would face a 6% increase.

 

From 2013 to 2023 that will equal $1,487.9 billion in employee contributions and by 2034 it will be nearly $400 billion!

 

Can you afford to give up 8% of your salary?  We all know there is an unfunded liability for KPERs for the long term. But we must not resort to balancing this liability on the backs of public employees for the short tem.

 

Our small pension and small salaries didn’t create this liability.  House Assistant Minority Leader Jim Ward says: “State employees need to contact their legislators and let them know state workers can’t afford these increases!”

 

CONTACT THESE LEGISLATORS NOW!

 

Joint Committee on Pensions, Investments and Benefits

 

House Select Committee on KPERs

 

Senate Subcommittee on KPERs