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Difference between revisions of "Kansas state budget"

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(Fiscal Year 2013 State Budget)
(Fiscal Year 2012 State Budget)
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*Figures were calculated by dividing each state’s intergovernmental revenue into its general revenue.<ref>[http://www.census.gov/compendia/statab/cats/state_local_govt_finances_employment/federal_aid_to_state_and_local_governments.html '''US Census''' Federal Aid to State and Local Governments]</ref><ref>[http://taxfoundation.org/blog/monday-map-federal-aid-state-budgets ''Tax Foundation''' "Monday Map: Federal Aid to State Budgets. Accessed October 15, 2013]</ref>
 
*Figures were calculated by dividing each state’s intergovernmental revenue into its general revenue.<ref>[http://www.census.gov/compendia/statab/cats/state_local_govt_finances_employment/federal_aid_to_state_and_local_governments.html '''US Census''' Federal Aid to State and Local Governments]</ref><ref>[http://taxfoundation.org/blog/monday-map-federal-aid-state-budgets ''Tax Foundation''' "Monday Map: Federal Aid to State Budgets. Accessed October 15, 2013]</ref>
 
==Fiscal Year 2012 State Budget==
 
* '''See past [[Archived Kansas state budgets|state budgets]]'''
 
 
The state finished the fiscal year with reserves of $466 million – more than double what it had at the end of FY2011.<ref>[http://www.kansas.com/2012/07/25/2421307/brownback-state-finances-solid.html Kansas.com "Brownback: State finances solid enough for tax cuts" July 25, 2012]</ref>
 
 
The governor signed the $13.8 billion FY2012 budget into law on May 28, 2011.<ref name=signs>[http://www.kansasreporter.org/74527.aspx "Brownback signs budget, makes veto changes" May 28, 2011]</ref> The budget closes a shortfall of around $500 million by reducing overall spending 6.1 percent, with public schools aid being reduced by 5.6 percent.<ref>[http://www.forbes.com/feeds/ap/2011/05/28/general-ks-kansas-budget_8489962.html Forbes "Kan. gov. OKs $13B budget but rejects arts agency" May 28, 2011]</ref>
 
 
The budget does not raise taxes and, as written, leaves a surplus of $50 million.<ref>[http://kslegislature.org/li/b2011_12/year1/measures/documents/hb2014_enrolled.pdf Veto message from Gov. Sam Brownback]</ref>
 
 
The state offered buyouts to 4,000 employees of up to five years of their current health coverage or a one-time lump sum $6,500 cash payment to entice them to voluntarily take early or full retirement.  The retirements would ease pressure on the state budget.<ref>[http://kansasreporter.org/76350.aspx Kansas Reporter "Kansas offers buyouts to 4,000 state workers" August 2, 2011]</ref>
 
 
'''Courts'''
 
 
On May 20, 2012 the Legislature approved $1.1 million in supplemental funding to keep courts open for the remaining 40 days until FY2013 begins on July 1.<ref>[http://fox4kc.com/2012/05/21/budget-deal-keeps-kansas-courts-open/ Fox4KC.com "Budget Deal Keeps Kansas Courts Open" May 21, 2012]</ref>
 
 
'''Medicaid'''
 
 
Gov. Brownback said that he would return $31.5 million in federal funds that were part of a grant to help the state integrate its health insurance databases and policy networks into a user-friendly system.<ref>[http://www.kansascity.com/2011/08/10/3068179/kansas-gov-brownback-rejects-federal.html#ixzz1V6sxQf73 The Kansas City Star "Kansas Gov. Brownback rejects federal health care grant" Aug. 10, 2011]</ref>
 
 
'''Public Employee Unions'''
 
 
The [[Kansas House of Representatives|House of Representatives]] passed a bill on Feb. 24, 2011, that would prohibit employee payroll deductions for union dues and political action committees.<ref>[http://www.reuters.com/article/2011/02/25/us-states-unions-idUSTRE71O7C920110225 Reuters "Several U.S. states consider union limits" Feb. 25, 2011]</ref>
 
 
'''State Income Tax'''
 
 
A bill that would have phased income taxes down over time and reduced corporate tax rates was introduced but not passed in the legislative session.  Budget Director Steve Anderson said that there would be a renewed effort to reduce or get rid of state incomes taxes for FY2013.<ref>[http://www.kansascity.com/2011/07/24/3034075/kansas-budget-chief-seeks-end.html#ixzz1T87km5L7 The Kansas City Star "Kansas budget chief seeks end to state income tax" July 24, 2011]</ref>
 
 
===Governor's Proposed Budget===
 
 
To resolve that deficit, Governor [[Sam Brownback|Sam Brownback]] on his first day in office proposed an immediate spending freeze and eliminating eight state agencies, though he did not specify which agencies.<ref name=maintain>[http://www.kansascity.com/2011/01/12/2580167/brownback-plans-to-maintain-state.html#ixzz1AvgGSAeF The Kansas City Star "Brownback plans to maintain state spending on schools" Jan. 12, 2011]</ref> He also said the state can eliminate $750 million from its FY2012 budget while actually increasing the amount the state spends on K-12 education.<ref name=maintain/>  Gov. Brownback also plans to eliminate 2,000 state jobs, all of which were unfilled at the time of the announcement.<ref name=maintain/>
 
 
In July 2010, Gov. [[Mark Parkinson|Mark Parkinson]]’s budget staff expected revenues from a sales tax increase to keep programs intact for the coming fiscal year and instructed state agencies to prepare status quo spending proposals for FY2012, which begins July 1, 2011.  Legislators, however, did not express similar confidence and warned that a new round of cuts could be required.  “They probably need to have a Plan B in place,” said [[Jay Emler|Jay Emler]], chair of the [[Kansas State Senate|Senate]] [[Ways and Means Committee, Kansas Senate|Ways and Means Committee]].<ref name=prepare>[http://www.ktka.com/news/2010/jul/20/kansas-agencies-told-prepare-status-quo-budget/ "Kansas agencies told to prepare status quo budget" July 20, 2010]</ref>
 
 
The Budget Division guidelines for FY2012 presume that revenues from the sales tax increase from 5.3% to 6.3% will offset the loss of up to $438 million in one-time federal stimulus funds.  Although agencies are able to propose new spending initiatives, the Budget Division also asked agencies to propose ways to trim their spending of state tax dollars by up to 5 percent, if necessary.<ref name=prepare/>
 
 
Governor-elect [[ Sam Brownback|Sam Brownback]] said his budget priorities in order are Medicaid, K-12 education, higher education and public safety.<ref name=priorities>[http://kansasreporter.org/69767.aspx Kansas Reporter "Brownback lays out budget priorities" Dec. 22, 2010]</ref> His priority areas account for 80% of the state budget, meaning the other 20% is subject to more  aggressive cuts until state finances improve.<ref name=priorities/>  Brownback said repealing the 1-cent sales tax that went into effect July 1 is not an option given that size of the shortfall.<ref name=priorities/>
 
 
Brownback said he hopes to give K-12 school districts more flexibility to use their reserve funds.<ref>[http://www.kansas.com/2011/01/03/1656741/deeper-state-budget-cuts-will.html The Wichita Eagle "Deeper state budget cuts will hit schools again" Jan. 3, 2010]</ref>
 
 
===Legislative Budget===
 
 
The legislature approved a $13.8 billion budget, with  the Senate approving it 28-11 on May 12, 2011, and the House approving it with a 69-55 vote.on May 13, 2011.  Relying on cuts and not increasing taxes, the budget closed a $500 million revenue shortfall.  The bill cuts base state aid to schools by $232 per student, or 6 percent,<ref name=pass/> reducing the amount from $4,012 in 2011 to $3,780 in 2012.<ref name=approves/>  That is lowest level in more than a decade.  The budget would end the final two years of a pay plan to bring up the wages of state employees who are paid way below market value.<ref name=pass>[http://www2.ljworld.com/news/2011/may/13/kansas-senate-approves-cuts-leaves-state-budget-ha/?kansas_legislature LJWorld.com "Republicans pass Kansas budget, send it to supportive governor" May 13, 2011]</ref>  The plan raises the state sales tax rate from 5.3 percent to 6.3 percent in 2010 to shore up revenues.  The approved budget plan calls for cutting government spending by $881 million, or nearly 6 percent.<ref name=approves>[http://www.businessweek.com/ap/financialnews/D9N6IGKG0.htm Businessweek "State Legislature approves $13.8B Kansas budget" May 13, 2011]</ref>
 
 
Kansas Senate Ways and Means Committee members endorsed a proposed 2012 budget on March 17, 2011, and it was passed by the entire Senate on March 29, 2011.  The Senate budget reduces aid to the state's 289 school districts by $226 per student — slightly less than the $232 per-student cut proposed in the House budget bill.<ref>[http://arkcity.net/articles/2011/03/30/news/doc4d936b1cc8217276562083.txt The Arkansas City Traveler "Kansas Senate passes $14 billion budget with salary, school cuts" March 30, 2011]</ref>  It differs significantly from the governor's proposal and focuses on cuts, reducing state spending by $535 million so that the state will end the year $7.5 million in the black. 
 
 
In contrast, the budget drafted by the Kansas House budget follows many of the governor's proposals, but shifts $35 million in funding cuts into 2011 to end with that balance instead of zero.<ref>[http://kansasreporter.org/72319.aspx Kansas Reporter "Kansas Senate panel proposes 2012 state budget" March 17, 2011]</ref> 
 
 
Both versions call for spending approximately $14 billion from all revenue sources, including $6 billion from state taxes and fees.<ref>[http://www.businessweek.com/ap/financialnews/D9M8A9AO0.htm Businessweek "House, Senate budget debates await Kan. lawmakers" March 28, 2011]</ref>
 
  
 
==Budget transparency==
 
==Budget transparency==

Revision as of 08:26, 17 April 2014

Kansas state budget

Flag of Kansas.png
Budget calendar:  Annual
Fiscal year:  2013
Date signed:  June 1, 2012
Financial figures
GF expenses:  $6.2 billion
All funds expenses:  $14.3 billion
Other state budgets
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Kansas lawmakers in the Kansas state legislature approved a $14.3 billion FY2013 state budget on May 20, 2012.[1] Gov. Sam Brownback signed the budget into law on June 1, 2012, saying that the budget reduces overall state spending by $465 million.[2]

The state operates on an annual budget cycle.[3] The state's fiscal year begins July 1.

As of August 2012, Kansas has a total state debt of approximately $28,444,549,000, when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the FY2013 budget gap.[4] The state budget total remains similar to the prior year's total of $28,538,211,000.[5]

Kansas' total state debt per capita is $9,906.72 as of October 2012.[6]

See also: The Kansas State Budget on State Budget Solutions

Federal Aid to State Budget

The chart below represents how much of the state’s budget comes from the federal government.[7]

The number is the corresponding ranking in relation to the rest of the nation (if #1, the state receives the highest percentage of federal funding in the nation):

State 2008 2009 2010 2011
Kansas 25.88% (#38) 28.1% (#41) 32.52% (#39) 32.9% (#35)
  • Figures were calculated by dividing each state’s intergovernmental revenue into its general revenue.[8][9]

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 mandates greater financial transparency for Kansas state government.[10]

See also: Evaluation of Kansas state website

Art. 2, Sec. 15 of the state constitution provides that "No bill shall be passed on the day that it is introduced; dispensable in case of emergency as declared by 2/3 of members present in the House where it is pending"

See also: Constitutional provisions regarding reading of bills

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.[11]

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[11] Y
600px-Yes check.png
Y
600px-Yes check.png
N
600px-Red x.png
Y
600px-Yes check.png
Y
600px-Yes check.png
P
Partial.png
Kansas Department of Administration, Purchasing[12] Y
600px-Yes check.png
N
600px-Red x.png
Y
600px-Yes check.png
N
600px-Red x.png
N
600px-Red x.png
N
600px-Red x.png
  • Grants are viewable as an expenditure category.
  • The site does not provide individual employee salaries, only pay rates by position and agency.
  • Line item expenditures are available by agency.[13]
  • KanView links to the state's Budget Division, which provides annual budgets that include agency expenditures.[14]
  • The Department of Administration's Purchasing site provides information on all state contracts, including expired contracts.[15]

Limitations and Suggestions

KanView was supposed to contain information on salaries and wages, including compensation paid to individual state employees. This requirement is clearly specified in the language of the Kansas Taxpayer Transparency law. But the powers-that-be have kept detailed public employee salary information OFF the Web site. KanView only lists summary data on salaries, not the individual information required by law.[16] You can call the Kansas Department of Administration at (785) 296-3011 and demand that the letter of the law be followed by putting specific wage and salary information online.

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.

Multi-Measure Budget Transparency Profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Kansas, which measures state transparency as of September 2011 using indicators from a range of organizations. [17] These indicators measure both website transparency and other recognized facets of governmental transparency. In addition, IGPA presents four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state. In addition to the individual state profile, IGPA offers a 50-state comparison.[18] It also offers profiles for other states[19]

U.S. PIRG Following the Money report

See also: Following the Money 2014 Report

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[20] According to the report, Kansas received a grade of D- and a numerical score of 50, indicating that Kansas was "Lagging" in terms of transparency regarding state spending.[20]

Budget background

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 which 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.[21]

Budget figures

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

Fiscal Year Expenditures (billions) GDP (billions)
2000 $14.4[22] $82.8[22]
2001 $15.6[22] $86.4[22]
2002 $16.7[22] $89.6[22]
2003 $17.5[22] $93.6[22]
2004 $18.4[22] $98.4[22]
2005 $18.9[22] $103.3[22]
2006 $20.3[22] $110.6[22]
2007 $21.7[22] $117.3[22]
2008 $23.3[22] $124.4[22]
2009 $24.9*[22] $131.9*[22]
  • NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year.

Accounting principles

See also: Kansas government accounting principles

The Kansas Legislative Division of Post Audit is the audit agency of Kansas government.[23] The Legislative Post Audit Committee is a bipartisan committee comprising five senators and five representatives. Audit reports are published online.[24] Barbara J. Hinton is Kansas Legislative Post Auditor.[25]

The Institute for Truth in Accounting] (IFTA) rates Kansas “Tardy” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities.[26] IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Kansas’ 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 does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[27] Kansas’ CAFRs are published online by the Division of Accounts and Reports.[28] Kent Olson is Director of the Kansas Division of Accounts and Reports.[29]

Credit rating

The State of Kansas was given the following ratings by S&P as of 2012 and by Fitch and Moody's as of 2010.

State Fitch[30] Moody's[30] S&P[31]
Kansas AA Aa1 AA+


Stimulus

Kansas received $2.1 billion in federal funding between February 2009 and June 2013.[32]

Public Employees

See also: Kansas public employee salaries
See also: Kansas public pensions

According to 2011 Census data, the state of Kansas and local governments in the state employed a total of 239,636 people.[33] Of those employees, 174,247 were full-time employees receiving a net pay of $625,498,207 per month and 65,389 were part-time employees paid $61,735,686 per month.[33] More than 60% of those employees, or 148,384 employees, were in education or higher education.[33]

See also

External links

Additional reading

References

  1. The Kansas City Star "Kansas legislature sends $14.3 billion budget to governor" May 20, 2012
  2. The Hutchinson News "Brownback signs 2013 Kansas budget " June 1, 2012
  3. National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting" April 2011
  4. State Budget Solutions "State Budget Solutions' third annual State Debt Report shows total state debt over $4 trillion" Aug. 28, 2012
  5. State Budget Solutions “Report reveals aggregate state debt exceeds $4 trillion” Oct. 24, 2011
  6. State Budget Solutions "State debt more than $37,000 per private worker, $13,000 per capita" Oct. 2, 2012
  7. Tax Foundation, "Monday Map: Federal Aid to State Budgets," accessed August 16, 2013
  8. US Census Federal Aid to State and Local Governments
  9. Tax Foundation' "Monday Map: Federal Aid to State Budgets. Accessed October 15, 2013
  10. "What is KanView," Kansas Department of Administration
  11. 11.0 11.1 "What is KanView," Kansas Department of Administration
  12. Kansas Department of Administration, Purchasing, accessed August 19, 2013
  13. FY 2011 Data
  14. Kansas Division of the Budget
  15. Procurement Contract List
  16. http://blog.ntu.org/main/post.php?post_id=3492
  17. University of Illinois Institute of Government and Public Affairs, "Kansas: Budget Transparency Profile," accessed August 16, 2013
  18. University of Illinois Institute of Government and Public Affairs, "Alabama: Budget Transparency Profile," accessed August 16, 2013
  19. University of Illinois Institute of Government and Public Affairs, "State Transparency Profiles," accessed August 16, 2013
  20. 20.0 20.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  21. State of Kansas Legislative Research Department,"Legislator briefing book state finance budget overview," accessed March 4,2009
  22. 22.00 22.01 22.02 22.03 22.04 22.05 22.06 22.07 22.08 22.09 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 US Government Spending,"Kansas State and Local spending," accessed February 26,2009
  23. The Kansas Legislative Division of Post Audit, accessed August 16, 2013
  24. The Kansas Legislative Division of Post Audit, "All LPA Audit Reports," accessed August 16, 2013
  25. National Association of State Auditors, Comptrollers, and Treasurers Web site, retrieved October 22, 2009
  26. Institute for Truth in Accounting, accessed August 16, 2013
  27. Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  28. Kansas Department of Administration Office of Management Analysis and Standards, "Financial Reporting," accessed August 16, 2013
  29. National Association of State Auditors, Comptrollers, and Treasurers Web site, retrieved October 22, 2009
  30. 30.0 30.1 "State Budget Solutions," State GO Debt Ratings," accessed August 19, 2013
  31. The Pew Charitable Trust, “Infographic: S&P State Credit Ratings 2001–2012," accessed August 19, 2013
  32. Recovery, "Stimulus Spending by State"
  33. 33.0 33.1 33.2 2011 Kansas Public Employment U.S. Census Data