TOPEKA — The Kansas Senate has advanced a $22.8 billion state spending plan that provides a 5% pay raise for state employees, doesn’t account for any reduction in the state sales tax on food, and leaves the state general fund with a balance of $359.6 million.
The budget bill also invests $245 million in disability services, eliminates funding the governor set aside for an unlikely expansion of the Medicaid program, counts on federal aid to pay for the remodel of the Docking State Office Building and a new health agency lab, and reduces revenues by $255.1 million in the current fiscal year, which ends July 1, and $80.1 million next year to account for tax cuts that have already passed the Senate.
Those tax cuts include incentives for a mystery company that promises thousands of jobs if it chooses to move to Kansas, as well as credits for wildfire victims, aviation program graduates, and college graduates who move to rural areas of the state.
Not included: Gov. Laura Kelly’s proposed one-time $250 rebate on income taxes this year, which would have cost $460 million, or the elimination of the 6.5% state sales tax on food, which would cost $402 million over 12 months.
The Senate advanced the spending plan on a voice vote following a three-hour debate that centered on last-second changes. The Senate still has to take a final vote, and work out differences with a House plan that isn’t finished yet.
Senators approved an amendment from Sen. Caryn Tyson, R-Republican to add a 15% pay increase for legislative staff at a cost of $240,880. Those employees were not included in the governor’s proposal to raise executive branch salaries by 5%. The raise for state workers would come in the form of a $145.5 million lump sum to be distributed based on merit.
Senators also accepted a proposal from Sen. Tom Holland, D-Baldwin City, to require state contractors to use the E-Verify system to ensure employees can legally work in the U.S. The governor vetoed the same amendment a year ago.
Holland successfully proposed two additional amendments.
One of the amendments would have banned state contractors from outsourcing IT services overseas or using employees who are working in the U.S. on temporary H-1B visas. Holland said the proposal would help protect American jobs.
Sen. Rob Olson, R-Olathe, accused Holland of “dabbling” in hate.
“I have a company in my district called Garmin,” Olson said. “They have a lot of H-1B employees. They’re all over my neighborhood. Some of them are my best friends.”
Holland’s other amendment would have capped the monthly cost of insulin for those on the state employee health plan.
In both cases, Republicans complained that Holland was attempting to introduce complex policies that have never received a legislative hearing. Holland said he repeatedly introduces the legislation, and Republican leaders refuse to hold a hearing on it.
“This is why this place drives me nuts,” Holland said. “I’ve had this bill in the Public Health and Welfare for several years. It’s never had a hearing. I’m sorry, if the committees aren’t going to work public policy, we need to work them here.”
“Everybody acts shocked,” he added, “when it’s like, ‘How could you dare bring this to effect good policy for Kansans?’”
