KPERS

One of the significant challenges Kansas will have to address over the long term is the unfunded actuarial liability (UAL) of KPERS. Unfunded liability is the difference between the amount of the assets in a retirement fund and the total possible costs (a worst case scenario) if everyone in the system were to take retirement today. The accepted ratio for a retirement fund is 80% or higher, the Kansas fund has dropped to under 60%.

Last session, the Legislature recognized it was time to act and get KPERS back on course. The plan to do so makes modifications and funding changes which, over time, will bring the employer contributions for KPERS state, school, and local groups into actuarial balance. Employer contributions for both the state and local groups will reach the actuarial required contribution (ARC) in 2014 and the ARC for the school group will occur in 2019. Through FY 2033, a net savings of $2.9 billion in employer contributions for the KPERS state and school groups and a net savings of $636 million for the KPERS local group is projected. The modification plan for KPERS will increase the employee contributions by $932.0 million for state and school groups and by $365.4 million for local groups.

The Legislature also created a 13 person KPERS commission to study the proposed changes and their effects on all stakeholders. The KPERS taskforce met several times over the summer and fall to create and approve a proposal to overhaul KPERS. Those recommendations will be made into legislation to give new options for employees to consider depending on if they are a newer employee or a longer serving employee. None of the proposed changes will affect any current KPERS retirees or those nearing retirement.

K-12 School Finance

The loss of federal stimulus dollars resulted in a $232 per student cut or 1.9% of combined state, federal and local dollars. To help school districts work through this loss the legislature allowed school districts to spend down unencumbered funds by passing SB 111.

SB 111 changed the starting date of the special education school finance formula which determines the minimum and maximum amount of special education state aid a school may receive until June 30, 2014. The bill also allows school districts to transfer money from certain unencumbered accounts to cover for losses in federal stimulus money. Total unencumbered funds have grown to $776 million statewide for Kansas school districts as of July 1st of last year. This measure gives 90% of school districts in the state the opportunity to access up to $306 million of these dollars. Monies in the unencumbered fund are received from the state and have been accumulating in a variety of accounts due to use restrictions. To offset the loss of base state aid per pupil (BSAPP) funding, the bill gives districts additional authority to use these reserves to fill budget gaps. This helps school districts restore the BSAPP to $4,012 for the 2011-2012 school year.

These cash reserves are of vital importance in helping our school districts. They give districts flexibility in paying bills when budgets are uncertain. The ability to have more flexibility hopefully will help our local schools get through these tough budget times. SB111 also importantly increases the portion of state aid specifically dedicated to classroom instruction from 55% to 65%.

The governor has proposed a new school finance formula with the goal of find a more equitable way to distribute state funds to local schools. The current formula has been a constant source of litigation since it was passed almost 20 years ago. In order to keep up with changes in the districts, it makes sense that we look at updating our school finance formula. The governor is also proposing a two year budget cycle for education funding which will provide school districts with the ability to better plan rather than having an annual question of what the legislature will fund regarding K-12 education.

Protection of Life Legislation

This year I was proud to co-sponsor and support two historic pro-life bills in the House. These bills have had wide margins of support in both chambers for decades but have always met a veto from the last 16 years of governors, Bill Graves, Kathleen Sebelius, and Mark Parkinson. This year I'm thrilled we have a governor who represents the will of the majority of Kansans and had the courage to stand up and defend life.

HB 2035 adds definitions in state law as to what constitutes a "human being" and "unborn child". The bill continues to bar the practice of late term abortion. It would also allow for civil penalties against any provider who does in fact break the late term abortion ban. Civil penalties may be made against these providers by district attorneys or the Attorney General. HB 2035 alsorequires parental consent for minors seeking abortions. This requires more reporting to the state regarding possible incidents of sexual abuse to try to get women the help they need if they are in trouble.

HB 2218 bans abortions on unborn babies who can feel pain. The bill creates the definition of a "pain capable" child and restricts abortions on healthy babies who can feel pain when there is no harm to the mother. Both bills allow for the termination of a pregnancy if the health and safety of a mother is in jeopardy.

Budget

From the start of this Legislative Session it was clear passing a budget would be a huge challenge considering we had a $550 million hole to fill. As the final budget bill was debated there was criticism that it spent too much or it didn't spend enough. It is always easy to find numerous problems with a multi-billion dollar budget. Especially in tough times when the economy is down and many people are struggling, budget cuts are painful.

In the end we passed a budget that for the first time since 1972 cut close to a billion dollars from the all funds budget and turned the $550 million dollar deficit into a $50 million dollar surplus. The massive cuts include both federal and state dollars also included removing more than 2,000 FTE position from state government without cutting services. These cuts are consistent with Governor Brownback's commitment to reduce the size of government and improve efficiency. The Governor also assured the Legislature this budget would not be the actual amount spent. Over the last eleven months the governor has gone department by department with his cabinet creating huge efficiency savings to provide better services with fewer dollars. The budget also allocates 68 million additional dollars to reduce the services waiting list for the severally disabled. We must find room in the existing budget for increased financial commitment to providing home and community-based services for developmentally disabled and autistic children without increasing overall spending.

Even though the economy seems to be slightly improving, state budget numbers still look to be very tight. As the economy recovers it would be wise for the legislature to work to keep an ending balance so that we are better suited to face the challenges that may come our way in the future. I remain firmly committed to reining in burgeoning state spending and controlling the size and growth of state government.

Medicaid

The Lt. Governor's office has been in charge of a proposed Medicaid reform plan. Over the last several years Medicaid costs have steadily increased beyond the state's ability to absorb the increased costs, especially in a slow economy, and possible implementation of the Patient Protection and Affordable Care Act (PPACA - Obamacare) in Kansas will only exacerbate this problem. The proposal is to move to a managed care system that will help cut fraud and abuse and provide savings for the state and still take care of individuals who depend on Medicaid. I also plan to introduce legislation designed to ensure that Medicaid coverage for long term nursing home care, a significant portion of the Medicaid budget, be reserved for those whose long-term financial situation entitles them to such coverage.

Other legislative initiatives.

I have co-sponsored and will pursue legislation in the next session to restructure the process by which we select state supreme court justices and court of appeals judges in Kansas, to make it more democratic by allowing all the citizens of our state, through their elected representatives, and not just lawyers, to appoint the nominating commission charged with providing nominees for court vacancies to the Governor, and by requiring Senate confirmation of the Governor's appointees.

I have co-sponsored and will pursue a Health Care Freedom Amendment to our state Constitution. I had the privilege of "carrying" this proposed amendment on the House floor in the last legislative session. It passed the House with the required two-thirds majority, but is stalled in the Senate. We owe it to the citizens of Kansas to give them the opportunity at the ballot box - an opportunity enjoyed by the voters in many other states, including notably neighboring Missouri, and most recently Ohio -- to vote on the question of whether they want to preserve their right to be free from federal intrusion in their health care choices-to vote to reject the individual health insurance mandate of the PPACA or any other federal or state laws or rules compelling their participation in any health care system or compelling their purchase of health insurance. Everywhere in our nation where the people have been provided such an opportunity, they have answered this question with a resounding "Yes!" It is time that we in Kansas join these other states in demanding that the Obama administration stop governing against the will of the American people.

Redistricting

Every ten years the legislative districts in Kansas are redrawn to reflect population changes over the previous decade. This is a process by which a committee uses census numbers to reapportion representation across the state. Here in Shawnee and Lake Quivira the 18th district will get larger in geographical size because the population of our area has decreased a bit in the last ten years. The most significant change statewide is the migration of population from the western to the eastern part of the state. As a result house seats will need to shift to the east, and Johnson County in particular is expected to gain several new House seats and at least one new Senate seat..

I wanted to also remind you of the e-newsletter which I send out periodically during the legislative session to keep you updated on what your legislature is doing. If you would like to sign up to receive this please email me at john@johnrubin.net or visit www.johnrubin.net and type in your email address.

In closing, let me wish each of you and your families the very merriest of Christmases and a very happy and prosperous New Year. Please feel free to contact me online anytime at john@johnrubin.net or by phone at 913-558-4967 with any questions, comment or concerns. As always, thank you for the honor of representing you in the Kansas House.

Thank you!