We knew the hurt would be bad. That everyone would feel the pinch. But perhaps not to the extent that some programs — including the state’s pension fund — are put in peril. STATE departments will face across-the-board cuts of 4 percent under Brownback’s plan. Among others, the Kansas Department of Transportation will be cut by $95 million, the Kansas Highway Patrol by $1.1 million, the Department of Children and Family Services (SRS) by $3.9 million, and the state’s contribution to the future National Bio and Agro-Defense Facility in Manhattan by $5 million.
Such will be the effect from Gov. Sam Brownback’s proposed cuts in an effort to patch up a $280 million hole in the state budget — and that’s to get us just to July.
The Kansas Employers Retirement System will be in a world of hurt if legislators OK the governor’s proposal. KPERS provides retirement benefits to the state’s 289,000 members and retirees that include teachers, firefighters, police and other municipal and government workers. Brownback proposes to scale back the state’s contribution to KPERS from 12.5 percent to 9.5 percent to save about $40.7 million.
That’s a real slap in the face to the legislators who worked so hard to get the pension system back on track in the 2012 session. With increased contributions by both the state and its beneficiaries, the pension program was due to be solvent by 2033.
Today, the program is $7.35 billion — yes, billion — short to fulfill the pledges due to current retirees. Counting those still to come, the program has $9.77 billion in unfunded liabilities.
The latter is significant, because to locate the $1.25 billion research and education facility to our state, Kansas has to pledge some skin in the game.
The state is behind $700 million in expected revenues. It has $380 million in the bank. The new cuts to programs and services are to make up the difference.
Put together, that gets us to a zero balance.
What a house of cards.
— Susan Lynn
Governor’s cuts leave nothing to chance; zero balance is goal
