Although the tax policies adopted in HB 2059 increase state revenues over the next few years compared to
current law, the bill also includes further income tax cuts that increase
through 2018 and are likely to keep K-12 funding increases below the rate of
inflation over the next five years. It
also provides that, beginning in FY 2019, when annual revenue growth from
certain tax sources exceeds two percent, further income tax rate cuts would be
automatically enacted. As a result,
future funding available for school finance would continue to be constrained.
Common Core and State
to create a two-year joint legislative oversight committee for educational
standards. It would also have blocked
implementation of any new multi-state educational standards adopted by the
State Board of Education between January of 2013 and April of 2014. In March, the House Education Committee had
rejected a bill blocking implementation of the Common Core reading and math
standards adopted by the State Board in 2010.
However, Senate negotiators earlier this month offered a budget “proviso”
that would have prohibited the use of state appropriated funds for
implementation of the Common Core standards and the Next Generation Science
Standards currently under consideration by the State Board of Education, and
assessments affiliated with those standards.
not to block standards that districts are already implementing; an action that
could threaten the state’s No Child Left Behind waiver. The new language in HB 2391, which was adopted by the Senate Ways and Means Committee
on Friday, addressed that concern by exempting standards already adopted prior
to the 2013 Legislative session, which include the Common Core reading and math
standards. Supporters of the bill called
it a “pause” to provide further legislative study of the issue, and the Senate
passed the bill Saturday on a vote of 24-12.
Here is the roll call vote:
Apple, Arpke, Bowers, Bruce, Denning, Fitzgerald, King, Knox, LaTurner, Love,
Lynn, Masterson, Melcher, O’Donnell, Olson, Ostmeyer, Petersen, Pilcher-Cook,
Powell, Pyle, Smith, Tyson, Wagle.
Faust-Goudeau, Francisco, Haley, Hawk, Hensley, Holland, Kelly, Longbine,
McGinn, Pettey, V. Schmidt, Wolf.
Donovan, Emler, Holmes
Core standards are unfounded; that the bill usurped the State Board of
Education’s authority to set educational standards; and that additional
oversight is unnecessary because the State Board is an elected body just like
the Legislature. Those arguments prevailed
in the House, where a motion to concur in Senate amendments failed, 55 to 58. Here is the House roll call vote:
Brunk, Couture-Lovelady, Campbell, Carlson, Carpenter, Claeys, Corbet, Crum,
DeGraaf, Dove, Edmonds, Edwards, Esau, Gandhi, Garber, Goico, Grosserode,
Hawkins, Hedke, Hermanson, Highland, Hildabrand, Hoffman, Houser, Howell,
Huebert, Hutton, Jones, Kelley, Kinzer, Kleeb, Lunn, Macheers, Mast, McPherson,
Meigs, Merrick, O’Brien, Osterman, Peck, Powell, Read, Rhoades, Rothlisberg,
Rubin, Ryckman Jr., Schwab, Shultz, Siegfreid, Suellentrop, Sutton, Thimesch,
Alford, Ballard, Becker, Bideau, Boldra, Bollier, Burroughs, Carlin, Cassidy,
Christmann, Clayton, Concannon, Davis, Dierks, Dillmore, Doll, Ewy, Finch,
Finney, Gonzalez, Grant, Henry, Hibbard, Hill, Hineman, Jennings, Johnson,
Kelly, Kuether, Lusk, Meier, Menghini, Moxley, Pauls, Perry, Petty, Phillips,
Proehl, Rooker, Ruiz, Ryckman Sr., Sawyer, Schroeder, Schwartz, Seiwert, Sloan,
Sloop, Swanson, Tietze, Trimmer, Victors, Ward, Waymaster, Weber, Weigel,
Barker, Bridges, Bruchman, Frownfelter, Henderson, Houston, Kahrs, Lane,
Montgomery, Peterson, Wilson, Wolfe Moore.
Council, composed of legislative leaders, could use its authority to appoint a
special interim committee to study educational standards and assessments prior
to next session. If fact, the LCC will have
to appoint a special committee if any legislative studies of
educational issues are conducted, because another bill passed Saturday, HB 2216, eliminates the joint
Legislative Educational Planning Committee, along with six other permanent joint
committees that have focused on specific topics when the Legislature is not in
Tallman Education Report, May 30.
from its planned 80 days to the wee hours of the 100th (although
technically a continuation of day 99) was the Governor’s request for a tax bill
to shore up current state revenues after last year’s massive income tax cut
bill, while also providing further income tax cuts on what he calls the “glide
path to zero (income tax).”
sales tax rate at 6.3 percent permanently, rather than dropping to 5.7 percent
on July 1 as provided by the temporary increase approved three years ago. Until Saturday, the House had rejected
keeping any part of the higher rate, but the conference committee report on HB 2059 makes the rate 6.15
percent. The bill also raises revenue by
trimming both itemized and standard income tax deductions. Those increases are offset by phasing-in
further income rate reductions, which increase through 2018.
revenues by $777 million over the next five years, leading opponents –
especially Democrats who opposed the higher sales tax rate – to call the bill a
tax increase. Supporters of the bill
argued the revenue was necessary to maintain core government services, and
should be viewed in the context of last year’s income tax cuts. In fact, last year’s tax cut bill was
projected to reduce state revenues (tax collections) by $4.54 billion over the six
years between 2013 and 2018. Even with
the tax increases in this bill, Kansas taxpayers are projected to see a net six
year reduction of $3.76 billion, but with a higher share of revenue coming from
sales tax and lower share from income tax.
would provide $752 million per year. If
K-12 education received 50 percent of those revenues, it would mean $376
million for school districts annually, which would fund the entire shortfall in
local option budget state aid ($90 million), restore capital outlay state aid
($23 million), and increase base state aid per pupil by almost $390.
Legislature was projected to face a $157 million or 2.6 percent deficit in
Fiscal Year 2015.
education funding, but expressed deep concerns about further tax cuts which would
limit future funding. Under this tax
bill, state general fund revenues are expected to be less than projected spending
every year through 2018, reducing the SGF ending balance from 10.0 percent to a
small deficit of 0.4 percent. These
projections are based on “normal” income growth, which does not consider either
additional economic growth due to the tax cuts, or reduced revenue if economic growth
slows or falls into recession.
2059 on a vote of 24- 13, as follows:
Apple, Arpke, Bowers, Bruce, Denning, Fitzgerald, Kerschen, King, Knox,
LaTurner, Longbine, Love, Lynn, Masterson, Melcher, O’Donnell, Olson, Petersen,
Pilcher-Cook, Powell, Smith, Tyson, Wagle.
Faust-Goudeau, Francisco, Haley, Hawk, Hensley, Holland, Kelly, McGinn,
Ostmeyer, Pettey, Pyle, V. Schmidt, Wolf.
Donovan, Emler, Holmes.
Bideau, Boldra, Bradford, Brunk, Couture-Lovelady, Campbell, Carlson,
Carpenter, Cassidy, Claeys, Concannon, Crum, Dierks, Doll, Dove, Edwards, Ewy,
Gandhi, Garber, Goico, Gonzalez, Hawkins, Hedke, Hermanson, Highland, Hill,
Hineman, Hoffman, Houser, Howell, Huebert, Hutton, Jennings, Johnson, Jones,
Kelley, Kelly, Kinzer, Kleeb, Lunn, Macheers, Mast, Meigs, Merrick, O’Brien,
Petty, Phillips, Proehl, Read, Rothlisberg, Rubin, Ryckman Jr., Ryckman Sr.,
Schroeder, Schwab, Schwartz, Seiwert, Shultz, Siegfreid, Sloan, Suellentrop,
Sutton, Swanson, Thimesch, Todd, Vickrey, Waymaster, Weber.
Ballard, Becker, Bollier, Bruchman, Burroughs, Carlin, Christmann, Clayton,
Corbet, Davis, DeGraaf, Dillmore, Edmonds, Esau, Finch, Finney, Grant,
Grosserode, Henry, Hibbard, Hildabrand, Kuether, Lusk, McPherson, Meier,
Menghini, Moxley, Pauls, Peck, Perry, Powell, Rhoades, Rooker, Ruiz, Sawyer,
Sloop, Tietze, Trimmer, Victors, Ward, Weigel, Whipple, Wilson, Winn.
Barker, Bridges, Frownfelter, Henderson, Houston, Kahrs, Lane, Montgomery,
Osterman, Peterson, Wolfe Moore.
Budget for Fiscal
Years 2013, 2014 and 2015
budget, which KASB supported. For K-12
education, the budget is expected to keep base state aid per pupil at $3,838 in
the current year and next year, with a small increase due to anticipated higher
revenue from the 20 mill statewide levy in 2015. No change is provided for local option budget
state aid, which will result in further proration and probable mill levy
increases or budget cuts for districts which receive such aid. No increase is provided in special education state
aid, which means the “excess cost” percentage is likely to further decline.
from the state highway fund in both 2014 and 2015 to help finance
transportation weighting and special education transportation aid. This change reduces the amount of funding
from the state general fund, but does not change the amount of money districts
improvement (bond and interest) aid and KPERS employer contributions based on
the estimated formula requirements of these programs.
in Schools program, which KASB supports.
It also provides $6 million for each of the next two years from the
Children’s Initiatives Fund for grants to support the Lexia reading program in
elementary schools, unless the Governor’s Read to Succeed program passes (which
it did not this session). KASB supported
additional funding for reading interventions under the Governor’s proposal.
$6.164 billion in the current year to $5.965 billion next year and $6.121 in FY
2015. Over the past year, Governor
Brownback consistently opposed reductions in state funding for education, and
K-12 funding was one of the few major budget areas that was not reduced
(although some funding was replaced with highway fund transfers). Higher education funding was generally
reduced 1.5 percent.