Kansas state budget (2009-2010)

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Kansas started FY 2010 July 1, 2009 with a deficit of $160 million. Gov. Mark Parkinson received a memorandum on July 2, 2009 from the Director of the Budget explaining needed adjustments and proposing an allotment plan for appropriations.[1]

August 2009 revenue figures were $7.8 million higher than projected, but dropped significantly in September.[2][3] Gov. Parkinson stated, “We knew there would be good months and bad months as we work our way out of this recession. August was up a little, September was down significantly. We can handle the September shortfall through a careful management of existing funds. It is too early to panic, and too soon to make rushed decisions. We will continue to monitor revenues closely over the coming weeks and months.”[4]

2009-2010 budget crisis

The top two sources of revenue for the state were individual income taxes (49.8%) and sales and use taxes (34.9%). The FY 2010 state forecast was for 4% revenue growth to reach almost $5.7 billion for general funds.[5] Kansas Department of Revenue figures showed September tax receipts were $67 million below expectations and $105 million below the previous year. For the first three months of the fiscal year total tax revenues were $96 million below expectations and down $169 million from the first three months of FY 2009.[6]

Kansas revenue collections compared to FY 2009 actual revenue[7]

' FY 2010 tax rev. to Sept. 30 FY 2010 budgeted growth Growth needed for remaining nine months
Individual income tax -5.8% 2.7% 5.5%
Corporate income tax -28.7% 11.6% 29.1%
Sales tax -2.8% 0.6% 1.8%

Budget background

See also: Kansas state budget

The Kansas state fiscal year begins July 1 and ends June 30. On October 1 all of the state's agencies submit their budget requests to the governor and the legislature. Kansas has 20 state agencies that operate on an biennial system but are authorized to file budget adjustment requests every other year. The governor presents the proposed budget to both the House and the Senate for consideration. From February through April state officials deliberate on the proposed budget. By early June the governor evaluates any and all changes before a final decision is approved.[8]

Budget figures

The following table provides a history of Kansas's expenditures and gross domestic product (GDP).

Fiscal year Expenditures (billions) GDP (billions)
2000 $14.4[9] $82.8[9]
2001 $15.6[9] $86.4[9]
2002 $16.7[9] $89.6[9]
2003 $17.5[9] $93.6[9]
2004 $18.4[9] $98.4[9]
2005 $18.9[9] $103.3[9]
2006 $20.3[9] $110.6[9]
2007 $21.7[9] $117.3[9]
2008 $23.3[9] $124.4[9]
2009 $24.9*[9] $131.9*[9]
  • NOTE: The figures for FY 2009 had not been finalized at the time this data was compiled.

Budget transparency

KanView is the name of Kansas's publicly available online spending database. As a result of the Kansas Legislative House Committee on Government Efficiency and Technology, the legislature and governor passed legislation in 2007 and 2008 that mandated greater financial transparency for Kansas state government.[10]

See also: Evaluation of Kansas state website

2008-2009 budget crisis

See also: Kansas state budget (2008-2009)

Accounting principles

See also: Kansas government accounting principles

The Kansas Legislative Division of Post Audit is the audit agency of Kansas government. The Legislative Post Audit Committee is a bipartisan committee comprising five senators and five representatives. Audit reports are published online. Barbara J. Hinton was Kansas Legislative Post Auditor as of 2009.[11]

The Institute for Truth in Accounting (IFTA) rated Kansas “tardy” in filing the state’s Comprehensive Annual Financial Report (CAFR), the annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA did not consider Kansas’s CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis did not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[12] Kansas’s CAFRs are published online by the Division of Accounts and Reports. Kent Olson was Director of the Kansas Division of Accounts and Reports as of 2009.[13]

Economic stimulus transparency

In August 2010, Congress approved a $26 billion jobs bill, giving Kansas approximately $179 million for Medicaid and education.[14]

The Economic Recovery and Reinvestment Act of 2009 designated $787 billion to be spent throughout the nation. Of that $787 billion stimulus package, it was estimated that 69%, or over $541 billion, would be administered by state governments.[15] It was estimated that Kansas would receive at least $1.3 billion in federal funding.[16] 8,901 jobs were created from the stimulus funds, 77 of them in the second quarter of the year, with $182.9 million in funding.[17] Kansas also announced that $500 would be sent through the Kansas Department of Social and Rehabilitation Services to 10,847 to help with school costs.[18]

The state ranked 11th on the "Summertime Blues" report by Senators Coburn and McCain. The report detailed "wasteful" stimulus spending. Kansas spent $39.7 million upgrading office space and indoor parking for the Kansas state capital.[19]

Error in ARRP

According to Recovery.gov, federal stimulus funds would go to 884 congressional districts, though there are only 435.[20][21]

The ARRP website created four fictional districts in Kansas, creating or saving 5,934.8 or 5,940.37 jobs in Kansas, including 10 in the 9th Congressional District, nine jobs in the 8th District, three in the 6th District and two in the 14th. The 00, 99th, 5th, 76th, 68th and 36th Districts saw no job creation. Kansas only has four congressional districts.[22]

Government tools

KanView provides a searchable database of state financial information, organized by expenditures and revenues for the five categories of agency, fund, program, object and vendor. Annual expenditures and revenues are updated soon after the close of Kansas's fiscal year, which runs from July 1 to June 30.[23]

The following table is helpful in evaluating the level of transparency provided by KanView:

Criteria for evaluating spending databases
State database Searchability Grants Contracts Line item expenditures Dept./agency budgets Public employee salary
KanView Y
600px-Yes check.png
Y
600px-Yes check.png
Y
600px-Yes check.png
N
600px-Red x.png
N
600px-Red x.png
N
600px-Red x.png

Support for creation of the database

KanView stemmed from the Kansas Taxpayer Transparency Program of 2007, and was authorized when Governor Kathleen Sebelius signed the Kansas Taxpayer Transparency Act in 2008.

Americans for Tax Reform applauded Kansas's level of transparency, as did the National Taxpayers Union.[24]

Public employee salary information

See also: Kansas state government salary

See also

External links

Additional reading

References

  1. Kansas Department of Administration, “FY 2010 State General Fund Allotments,” July 2, 2009
  2. Gov. Parkinson Press Release, “Governor Parkinson’s statement on August revenue,” August 31, 2009
  3. Kansas Watchdog.org, “Kansas 2010 Budget Crisis,” October 2, 2009
  4. Gov. Parkinson Press Release, “Governor Parkinson’s statement on September revenue,” September 30, 2009
  5. Gov. Mark Parkinson, “Comparison Report FY 2010,” August 7, 2009
  6. Kansas Watchdog.org, “Kansas 2010 Budget Crisis,” October 2, 2009
  7. Kansas Watchdog.org, “Kansas 2010 Budget Crisis,” October 2, 2009
  8. State of Kansas Legislative Research Department,"Legislator briefing book state finance budget overview," accessed March 4,2009
  9. 9.00 9.01 9.02 9.03 9.04 9.05 9.06 9.07 9.08 9.09 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 US Government Spending,"Kansas State and Local spending," accessed February 26,2009
  10. "What was KanView," Kansas Department of Administration
  11. National Association of State Auditors, Comptrollers, and Treasurers Web site, retrieved October 22, 2009
  12. Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  13. National Association of State Auditors, Comptrollers, and Treasurers Web site, retrieved October 22, 2009
  14. Cite error: Invalid <ref> tag; no text was provided for refs named arra
  15. National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
  16. Wall Street Journal, "Stimulus Spending by State"
  17. Kansas Watchdog, Recovery.gov: 77 more jobs, $183 million more received in Kansas in last quarter, Aug. 7, 2010
  18. Kansas Watchdog, Kansas won’t reveal which families got $500 in stimulus money, Aug. 10, 2010
  19. Kansas Watchdog, Kansas’s State Capitol Ranks High In Questionable Stimulus Spending, Aug. 3, 2010
  20. $6.4 Billion Stimulus goes to Phantom Districts, Watchdog.org, November 17, 2009
  21. Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
  22. Fed Stimulus Creating Congressional Districts, Kansas Watchdog, November 16, 2009
  23. "What was KanView," Kansas Department of Administration
  24. National Taxpayers Union, "Taxpayer Group Applauds Kansas for Pioneering 'Google Government' Legislation," May 3, 2007