The last two weeks have been hectic as we close in on the first legislative deadline. Wednesday is the deadline for bills to pass out of committee for consideration on the House floor next Thursday and Friday. Friday is the deadline for bills to pass from their “House of Origin”, also known as Turnaround.
Taxation
This week, committee hosted a series of hearings on “sin taxes” (cigarette, liquor). We had an informational briefing on how cigarette taxes are forecasted. While I’m not a fan of picking winners and losers among the “sins”, the briefing was helpful to learn historical trends.
These taxes are part of the governor’s plan to fill the budget hole. The cigarette tax was last raised by $0.22 to $0.79 in 2002. If passed, HB 2306 would raise the tax by $1.50 per pack to $2.29 per pack. The bill would also raise the liquor enforcement tax (one of four layered taxes on liquor) from 8% to 12%. While I tend to support cigarette taxes as a public health measure to reduce smoking, forcing smokers to fill the budget gap is unfair. We held two days of hearings on this bill but it is not scheduled to be worked in committee next week. Raising the tax on cigarettes is projected to raise $72 million in 2016. These sin taxes in my view are not a sound solution to a shortfall expected to be over $600 million.
Finally, if you have delinquent property taxes, you’d better pay them now! HB 2167 would raise the interest rate collected on delinquent taxes by 5%.
Energy & Environment
You may have heard about the tragic Wichita accident which killed the wife of my colleague, and Energy & Environment Committee Chairman, Rep. Dennis Hedke. The committee held no hearings this week as he spends time with his family.
Local Government
Have you seen Cowley County’s historic stone bridges in southeast Kansas? HB 2238 would designate Cowley County as the official “Stone Bridge Capitol” of Kansas. Click here to view some of the 18 stone bridges in the county.
Children and Seniors
Manhattan’s own Dr. Susan Mosier, Secretary of Health and Environment gave the committee an overview of the KanCare program. I am looking forward to working with Dr. Mosier, she brings a wealth of experience and knowledge to the job. While she presented a comprehensive overview, I want to share two key points affecting the Kansas budget. These two slides on Sustained Medicaid Growth and Projected Cost Increase were two key metrics from Dr. Mosier’s presentation to the committee. Please click to view the slides below as they come through very small in this format.
It is very clear that in short order, Medicaid expenses will soon be taking a larger percentage of our state budget. Over the next five years in Kansas, enrollment in Medicaid is projected to grow almost 5 percent annually, while expenses will be growing at 7.4 percent annually. The bar chart below shows the 2012 distribution of the type enrollees and dollars spent. Please note the dollars are in millions.