| Governor Parkinson Press Release on Budget |
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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. # # # |