By Sarah Green
KHI News Service
TOPEKA, April 16
The Kansas economy is healthy but much of the additional revenue it is expected to generate already is spoken for.
The Consensus Revenue Estimating Group, which estimates incoming revenues and agrees upon the amount of money the state has to spend, released on Monday its projections for Fiscal Years 2007 and 2008.
The group estimated that the state would take in $140.1 million more than expected through the remainder of the current budget year but predicted a decrease of $153.8 million in available revenue in fiscal year 2008 because of spending obligations.
When those numbers are factored together, the net result is a $13.5 million decrease in available revenue for the two years combined.
“The Kansas economy is doing fine, with good growth,” said State Budget Director Duane Goossen.
But he said much of the growth is essentially already obligated. About $122 million has been put in an “education lock-box” to pay for the multi-year school finance plan approved last year and another $80 million has been committed for disaster relief, Kansas Public Employees Retirement System liability and for state building maintenance.
“Those two things take $200 million out of the general fund,” Goossen said. “That skews the bottom line.”
The revised estimates also take into account the impact of legislation approved this session and expected to be signed into law. That category includes approximately $36 million in tax cuts, which House Speaker Melvin Neufeld urged Sebelius to sign into law despite their budget implications.
“These carefully crafted tax cuts for Kansas businesses and tax relief for seniors, the disabled and families on limited incomes will keep our great state moving ahead,” Neufeld said in a media release.
Most of the revenue that remains uncommitted, Goossen said, will be needed to pay for
budget amendments totaling more than $96.7 million that Gov. Kathleen Sebelius is expected to submit to the Legislature this week.
Neither Goossen nor Alan Conroy, director of the state”s Legislative Research department, would speculate on what those budget amendments would leave for Legislators to spend when they return on April 25 to work the final spending bill of the session, the Omnibus bill.
“Tomorrow, there”ll be more on that,” Conroy said.
If the state spends to its allowed balance, about $45 million will be available in unallocated funds, Goossen and Conroy said. By law, the state”s balance at the end of the year must be, at minimum, 7.5 percent of its total expenditures.
In an earlier interview with KHI News Service, Goossen said almost every request for new spending in the budget the governor proposed in January had been put off for Omnibus discussions, which are scheduled to start this week in the Senate Ways and Means and House Appropriations committees.
Among the health proposals that will be up for consideration during Omnibus are:
* $4 million from the State General Fund to expand the number of children ages 5 and under who are eligible for state-subsidized health coverage. The expansion is expected to cost $10 million all funds;
* $590,000 SGF, $1.475 million all funds, for incentives for childhood obesity counseling for primary care providers.
* $255,000 for the Department of Aging to hire additional assisted living facility inspectors;
* $2.5 million for community-based primary care clinics;
* $584,000 to expand the state”s immunization program;
* $9.9 million for the Department of Social and Rehabilitation Services for home and community based services.
-Sarah Green is a staff writer for KHI News Service, which specializes in coverage of health issues facing Kansans. She can be reached at
sgreen@khi.org
or at 785-233-5443, ext. 118.