The 2017 Legislative session will officially close on June 26th when both chambers adjourn Sine die. This will bring the running day total to 114 days, tied for the longest in Kansas history. So, what did we get for these 114 days?
The Kansas Legislature passed a budget that will fund FY 2017, FY 2018, and FY 2019 supplemental expenditures for most state agencies and FY 2018 and FY 2019 capital improvements for selected state agencies. See; http://cjonline.com/news/local/2017-06-18/kansas-tax-hike-hailed-fix-doesn-t-quite-balance-budget
The bill, Senate sub for HB 2002, has an all fund total of $15.6 billion over the three-year span and $6.4 billion for just FY18. The bill makes the following expenditures:
- Adds $141.4 million to KPERS;
- Adds a 2.5 % raise for all employees with less than five years of service and 5.0 percent adjustment for state employees who have not had a pay adjustment in five years; and a 2.5 percent adjustment for judges and non-judicial staff in FY 2018;
- Add $20.3 million for Home and Community Based Services;
- Add $10.5 million for community health centers;
- Add $4.6 million for Osawatomie state hospital;
- Add $1.1 million for KS BIDS Habeas Corpus proceedings.
The legislature passed a tax plan, SB 30, that will cover the expenses listed above. Over the next two years the tax plan is expected to increase revenues by $1.2 billion dollars.
The bill is expected to increase SGF receipts as follows: ● FY 2018—$591.0 million; ● FY 2019—$633.0 million; FY 2020—$617.4 million; ● FY 2021—$584.4 million; and ● FY 2022—$590.3 million.
The plan accomplishes this with the following adjustments:
- Three tiers of income tax: 3.1%, 5.25% & 5.7%.
- Eliminate Glide Path to Zero
- Elimination business pass-through exemption (LLC Exemption).
- STAR Bond authority extended for 3 years; 1-year moratorium on new projects.
- Medical, mortgage interest and property tax deductibility reinstated; 3-year phase in.
- Child care tax credit reinstated.
The bill is retroactive to January 1, 2017 with modified rates for this year: 2.9%, 4.9% & 5.2%. The new income brackets are as follows:
- $0-$30,000 3.10%
- $30,000 - $60,000 5.25%
- $60,000+ 5.70%
Interestingly, Moody’s Credit Rating upgraded Kansas Bond rating to stable after the tax plan passed. See; http://www.kansascity.com/news/politics-government/article155202759.html
The legislature also passed a new school finance plan. this plan resembles the old formula and rescinds the block grant approached passed some years ago. The basics of the new formula include:
- Base Aid for Student Excellence (BASE) per pupil spending of $4,006 for school year 2017-2018, $4,128 for school year 2018- 2019, and adjusted each year thereafter according to the average percentage increase in the Consumer Price Index (CPI) for all urban consumers for the Midwest region during the three immediately preceding school years.
- A 33% cap on the Local Option Budget (LOB) by a resolution of the school board when the BASE is less than $4490.
- The Kansas Supreme Court will hear testimony on the new school finance formula on July 18th. Schools will remain open. See; http://www.kansas.com/news/politics-government/article157057109.html
All tolled the Kansas Legislature introduced 688 bills, 93 Resolutions and 24 Concurrent Resolutions. The legislature passed 111 bills, the governor signed 108 bills, vetoed 2 tax bills and allowed 1 bill (conceal carry) to become law without his signature. This works out to just of 18% of all bills introduced became law.
You can review all bills passed to date (6.20.17) here: