Legislative Look

The Topeka Capital-Journal compiled quotes from Gov. Sam Brownback and others reflecting debates in Kansas over taxes, education, the budget and health issues from 2011 to now.

That’s what “

THEY said

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Tax policy at center of debate

By TIM CARPENTER Topeka Capital-Journal

Gov. Sam Brownback views the agenda of moderate Republican and Democratic legislators calling for reconsideration of Kansas’ supply-side tax cuts as ill-conceived economically and poorly timed politically.

Brownback said doubters of the power of supply-side economics should realize that President-elect Donald Trump and U.S. House Speaker Paul Ryan, R-Wisc., expressed interest in taking the Kansas program for stimulating job creation through income tax reduction to a national stage.

“We’ve pioneered this area,” Brownback said in an interview. “I don’t want us to go in a direction that is counter to what much of the country is flowing towards, because they’re targeting the growth of small business and private-sector jobs.”

The second-term governor, identified in 2016 polling as the country’s least-popular chief executive, remains a steadfast proponent of the 2012 elimination of Kansas income tax on owners of more than 300,000 businesses formed as limited liability companies, S corporations or sole proprietorships. In addition, the governor signed a bill deleting the state’s top income tax bracket as part of a now-stalled strategy to zero-out income taxes in Kansas.

The LLC loophole costs the Kansas treasury about $250 million annually and served to rile up voters who tossed an collection of conservative GOP lawmakers from office.

Sen. Jim Denning, the Overland Park Republican who will be the new Senate majority leader, said the business-owner tax exemption would likely be repealed in a bipartisan vote of the 2017 Legislature. He said, “this thing’s going to get closed,” but the change would have to be made retroactive to tax year 2016 to have any influence on closing the projected $350 million deficit in the current fiscal year’s budget.

Evidence that “tens of thousands of jobs”

promised by Brownback were created as direct consequence of the state’s tax reform is difficult to pin down, because arguments offered by the governor — low Kansas unemployment, for example — can be countered by statistics showing Kansas repeatedly missed tax growth targets or lagged peer states in job formation.

“The target of the LLC was to create jobs.

And, it has,” Brownback said. “You have other states and federal government going at it. Iowa has now gone into it, and this subject is now in the Ryan and Trump proposals, of cutting taxes on small businesses as a way to create jobs.”

One undeniable piece of the puzzle: The Legislature and Brownback were informed in November the state government’s budgeted expenditures are expected to exceed tax collections in the fiscal year ending in June, as well as the upcoming fiscal year.

Spending reductions, cash transfers and tax increases will be on the table when the Legislature convenes at 2 p.m. Jan. 9. Brownback is set to deliver the State of the State speech at 5 p.m. Jan. 10 to a Legislature that includes dozens of newcomers. Fine-print details of the budget won’t be disclosed until Jan. 11.

Interviews with state legislators suggest Brownback’s delayed strategy for dealing with tax-andbudget woes could fall like a burlap sack full of rocks.

Rep. Fred Patton, R-Topeka, said the House and Senate would be expected to develop shortand long-term solutions to a quagmire that were viewed as fiscally responsible and fairer by taxpayers.

“We need to jump right in and tackle it,” he said. “The sooner we put a plan in place, the less impact we’ll have on state employees.”

Senate Minority Leader Anthony Hensley, a Topeka Democrat, viewed as folly the notion of transferring the Brownback program to the federal government.

“The word delusional comes to mind,” Hens-

ley said. “It has not worked. It’s been a disaster for our state’s budget. Somewhere along the line, we’ve got to put a stop to it.”

Previously, the Republican-led Legislature and Brownback covered budget shortfalls by stripping nearly $2 billion from state highway funding, delaying a contribution to the state pension fund, cutting higher education and Medicaid, and elevating the statewide sales tax to 6.5 percent.

Brownback and Lt. Gov. Jeff Colyer, who could become governor if Brownback joined the Trump administration, declined to endorse unilateral budget adjustments when the revenue problem was made public after the November election. They’ve promised a plan that balances the budget this fiscal year and next without major spending cuts, tax increases or layoffs.

There’s speculation Brownback could advocate for sale of future payments to the state by tobacco companies. In addition, the state could cash out a long-term investment fund managed under the state pension system. Another idea floated at the Capitol is introduction of a flat 5 percent state income tax — an increase from the two-bracket system with rates of 2.7 percent and 4.6 percent based on income.

The “Rise Up Kansas” coalition of special-interest groups recommended elimination of the LLC loophole, return of the upper income tax bracket, adoption of an 11-cent per gallon gasoline tax increase and a 1.5-cent per dollar reduction in the state’s sales tax on food.

Other trial balloons: raise the state tax on cigarettes and add a sales tax on lottery tickets.

In the past, there have been calls to close sales tax exemptions, including on professional services of accountants, barbers, architects and other business operators. Brownback said he would oppose changes to tax law for those providing such services.

“When I ran for re-election, I said I wasn’t for taxing services,” Brownback said.

“The word delusional comes to mind. It has not worked. It’s been a disaster for our state’s budget. Somewhere along the line, we’ve got to put a stop to it.”

Senate Minority Leader Anthony Hensley

CHRIS NEAL Topeka CapitalJournal

‘That’s what they said’

The Hays Daily News The Topeka Capital-Journal | Tuesday, January 3, 2017 | 7A

THE BROWNBACK YEARS: TAXES

The Topeka Capital-Journal compiled quotes from Gov. Sam Brownback and others reflecting debates in Kansas over taxes, education, the budget and health issues from 2010 to now.

Sept. 23, 2010

Nov. 2, 2010

March 27, 2011

Oct. 11, 2011

Oct. 24, 2011

Dec. 21, 2011

“Senator Brownback has said he wants to change the school finance formula, but has refused to get specific. Senator Brownback uses code words like ‘local control.’ But we know that when Senator Brownback says ‘local control’ what he really means is forcing local property tax increases to make up for massive cuts in state support for our public schools.”

“A clean sweep for a new beginning. No more Obama way. Now, let’s go the Kansas way. We promise an energetic administration.”

“As part of our road map for Kansas to grow the economy, the rural opportunity zone bill is an aggressive policy move targeted to grow our shrinking rural counties.”

“With revenues on the uptick and almost $200 million in the state coffers, I am concerned that Gov. Brownback has announced his intention to eliminate — or significantly reduce — the state income tax. Other states who have followed this path have seen the development of a much more regressive tax structure that includes higher sales and property taxes.”

“The elimination of the state’s income tax gives wage earners an immediate pay raise and encourages economic growth in our state.”

“The states are to be the laboratory for democracy. Why not here and why not us and why not now?

We cannot continue on this path and hope we can move forward and win the future. It won’t work. We have to change course, and we’re going to have to be aggressive about it or we are doomed to a slow decline.”

Gov.-elect Sam Brownback, R-Kan., addressing supporters after easily winning election as governor

Gov. Sam Brownback touting a bill providing income-tax breaks to people moving into any of 50 counties suffering years of population decline

Ashley McMillan, president of Kansans for No Income Tax, which urged the 2012 Legislature to do away with the state income tax

Brownback, preparing policy reform designed to turn the farm state of Kansas into a national showcase for virtues of low taxes and limited government

House Minority Leader Paul Davis, D-Lawrence, responding to Brownback’s call for reduction in state income taxes

Sen. Tom Holland, a Baldwin City Democrat and candidate for governor against Sen. Sam Brownback

Davis

June 19, 2012

May 22, 2012

April 25, 2012

“On taxes, you need to get your overall rates down,and you need to get your social manipulation of of it, in my estimation, to create growth.

We’ll see how it works. We’ll have a real live experiment.”

“After the lost decade for jobs in Kansas, Governor Brownback has been incredibly focuses on creating a pro-growth environment that will increase Kansas families’ income and accelerate small business growth.

With historic tax relief now in place, Kansas is poised to lead America’s economic recovery.”

“If something sounds too good to be true, then it probably is. You don’t need an economist to tell you that if you virtually eliminate the income tax then you are going to see a sharp rise in property and sales taxes.

Increased property taxes are exactly what Kansans do not need.”

Brownback, describing the 2012 tax law on MSNBC

Nick Jordan, secretary of the Kansas Department of Revenue, on a bill the Brownback administration says will directly create 22,900 new jobs, $2 billion in income and 35,740 new residents

Rochelle Chronister, former Kansas Republican Party chairwoman, on Brownback’s supply-side economic plan to grow the economy

March 23, 2012

March 22, 2012

Jan. 11, 2012

“Three-fourths of Kansas work for small businesses. By taking that income tax off of them, it’s like shooting adrenalin into the heart of growth possibilities.

This is a direct shot into it.”

“If Kansas gets rid of the income tax the state will likely find itself both raising other taxes on middle- and low-income families and making massive cuts to vital services that will badly damage the state’s economy.”

Brownback, discussing economic development potential of a state income tax exemption for Kansas business owners

Erica Williams, policy analyst at the nonpartisan Center on Budget and Policy Priorities in Washington, D.C.

“Let me start by saying — I am bullish on Kansas! We are a state in transition. From a high-tax state — to a low-tax state. From a state struggling to pay our day to day bills — to a state with a healthy bank account. From issuing more bonds and borrowing from our kids — to paying down our debt.”

Brownback, in his 2012 State of the State speech to the Legislature

July 18, 2012

Jan. 15, 2013

March 16, 2013

Jan. 16, 2014

April 17, 2014

April 17, 2014

“Some have promised these new initiatives will pump adrenaline into the Kansas economy, yet their own projections indicate job gains of a mere 20,000 over the next few years. The Kansas Economic Policy Council has done the math. It will take 550,000 jobs, earning $50,000 each per year, to replace the revenue loss from their newest tax plan.”

“When I started as governor, we had the highest state income tax in the region, now we have the 2nd lowest and I want us to take it to zero. Look out Texas, here comes Kansas!”

“In addition to being one of the largest tax increases in Kansas’ history, House Bill 2059 also violates the so-called principles of reform that Governor Brownback laid out last year. It actually takes more money out of the pockets of Kansas families that it puts in during the first four years of implementation. And, even more disturbingly, the bill reneges on the promise the Kansas Legislature made to sunset the temporary sales tax when the tax was first passed in 2010.”

“When we took office, we promised Kansans tax relief. Tax rates for all working men and women in Kansas just went down again at the beginning of 2014.

Congratulations are in order. We stopped counting on government to create prosperity and put our faith in the people of Kansas.

And three years in, we are in a much better position.”

“The economy is improving. We’d all like it to be improving more quickly.

If the revenues are higher and the expenditures, we predict, are going to be lower, that’s about as good of news as you can possibly get.”

“Revenue has plummeted since the Brownback experiment began. No matter how this administration tries to sugarcoat it, our Kansas economy remains stagnant.”

Brownback, in the State of the State speech to the 2013 Legislature

Senate President Steve Morris, R-Hugoton, who was defeated in the August 2012 primary

Sen. Tom Holland, D-Baldwin City, after the Senate passed a tax reform bill

Jon Hummel, the governor’s budget director, commenting about an improved state tax revenue forecast

House Minority Leader Paul Davis, a Lawrence Democrat running for governor against Brownback

Brownback, praising the administration’s tax reforms in the 2014 State of the State speech

Jan. 13, 2015

Nov. 23, 2014

October 2014

Sept. 21, 2014

Sept. 21, 2014

Aug. 6, 2014

“Job creators in Kansas have consistently named taxes as their top concern, and as a result, the Kansas Chamber has consistently supported tax reforms to lower the burden. This poll serves as a reminder to the legislature and administration that reducing the cost of doing business by lessening the tax burden is a good growth strategy.”

“I think (Brownback) has to lay his cards out on the table and explain to people just how bad things are. I mean he can’t go to the back bench and hide from people. He’s got to own up and take responsibility, because, you know, the sun isn’t really shining like he says it is.”

“We’re in great shape financially.

I know there are a number of people yelling differently, but the numbers just don’t support what they’re saying. They’re just trying to paint a ‘Chicken Little sky is falling’ situation, which is not true. It’s a bunch of lies.”

“The promise was that this would lead to a kind of immediate economic boom in the state, and that hasn’t materialized. But it has, of course, had an obvious effect on cutting off revenues coming into the state.”

“If you want your taxes higher, vote for a Democrat governor. If you want lower taxes, vote for a Republican governor.”

“It’s hard to break the addiction to high taxes. It’s hard to do, but we need to do it to create growth.”

Brownback, responding to Standard & Poor’s downgrading of the state’s bond rating due to shrinking revenue

Senate Minority Leader Anthony Hensley, D-Topeka, on reports the state was facing a tax revenue shortfall of $279 million

Grover Norquist, a consultant to the Brownback administration, touting tax reductions adopted by the Kansas governor

Brownback, dismissing public concern about the state’s finances during a campaign stop in Alma

Mike O’Neal, Kansas Chamber president, commenting on survey showing more than 50 percent believe spending cuts of 10 percent should precede any tax hike

Thomas Frank, author of “What’s the Matter with Kansas?” in rebuttal to Norquist

Jan. 16, 2015

March 15, 2015

May 30, 2015

June 16, 2015

June 24, 2015

Jan. 12, 2016

“Transitioning to consumption taxes allows Kansans more freedom to determine their spending and reinforce the principle that the family budget is more important than the government budget.”

“Changing the rules in the middle of the game isn’t fair. Farmers generally aren’t sitting on piles of cash. Farms are like any small business. They survive on thin margins, and something as simple as a tax increase can make the difference between breaking even and losing money, and if that happens, if the Legislature causes more farms to fail, then Kansas will really be in trouble.”

“Our tax policy is working. The proof of that can be seen in the number of working Kansans, our low unemployment rate and the fact that working Kansans have more money in their pockets to save or spend as they see fit.”

“Every Kansas income group will pay more as a result of this tax increase, but it still doesn’t solve Kansas’ ongoing budget crisis. Kansas is draining over $800 million a year as a result of Governor Brownback’s 2012 tax plan. The tax increase he signed today doesn’t even fill half of that gap. Until lawmakers finally tackle the root problem in a meaningful way, budget crises will be a permanent part of Kansas’ future.”

“Some have suggested that the Legislature is being unfair to local units of government by requiring them to abide by rules the legislature does not follow itself.”

“Since 1999, when the property tax lid was lifted, Kansans have seen those tax rates increased by 24 percent, and property tax revenue increase by 92 percent.

Voters should have the ability to make their voices heard with an up or down vote on any proposal that raises property taxes in excess of inflation. I would welcome legislation that strengthens the property tax lid by closing the existing loopholes and puts it in place sooner.”

Brownback while proposing to triple the state’s sales tax on cigarettes, more than double the state sales tax on liquor and cut a sliver from the bottom bracket income tax rate

July 1, 2016 “Unfortunately, Kansas is a part of a national trend with many states reporting reductions in revenue collections because of a weak economy.”

Nick Jordan, secretary of the Kansas Department of Revenue, commenting on the $34 million tax revenue shortfall in June

Dan Murray, state director of National Federation of Independent Businesses, opposing a change in the way of assessing taxes on farmland to raise $70 million to $80 million annually

Brownback on the same day he proposed a bill raising the cigarette tax, raised the sales tax to 6.65 percent and eliminated itemized deductions

Duane Goossen, senior fellow at Kansas Center for Economic Growth

June 16, 2016

May 18, 2016

“I can’t, in good conscience, continue to give our tax money to a government that actively works against the needs of its citizens; a state that is systematically targeting the citizens in most need, denying them critical care and reducing their cost of life as if they’re simply a tax burden that should be ignored.”

“This legislation was introduced and passed unanimously with all Kansas taxpayers in mind. The provisions cover contested sales tax, income tax and property tax disputes.”

Jeff Blackwood, CEO of Pathfinder Health Innovations, with criticism of Kansas’ LLC tax break and moving of his corporate office to Missouri

Senate Majority Leader Terry Bruce, R-Hutchinson, on adoption of a bill requiring local units of government to submit property tax increases over the rate of inflation to voters for approval.

Mike O’Neal, chief executive officer of the Kansas Chamber, expressing disappointment Brownback vetoed a bill granting taxpayers the right to a district court trial when challenging decisions of the state’s tax appeal board

April 19, 2016 “Let him own it. It’s his policy that put us there.”

Rep. Mark Hutton, a Wichita Republican, frustrated that Brownback refused to compromise on modifying state tax law in light of budget realities

Brownback, in his 2016 State of the State speech, calling for early implementation of a local property tax lid March 8, 2016

March 1, 2016

“We must close the LLC loophole.

It grows bigger every year, costing Kansas at least a $250 million annually. It continues to make the budget unstable.”

“This is an economic problem, not a tax policy problem. Our tax policy has been instrumental in creating more than 80,000 jobs since we took office and has resulted in a record number of Kansans working. In balancing the budget, I will not support or call for a tax increase on small business in Kansas.”

Sen. Jim Denning, an Overland Park Republican who voted for the 2012 bill granting the state income tax exemption to owners of 330,000 businesses

Brownback, on the latest report showing state tax revenue failed to match expectations

Aug. 2, 2016

Oct. 16, 2016

Oct. 18, 2016

Oct. 23, 2016

Nov. 8, 2016

Dec. 23, 2016

“Too many Kansans still feel that the sun is not rising for them and their families, despite what some leaders tell them. I hear the anger and frustration that those Kansans are expressing. I look forward to working with Republican nominees to offer Kansans a vision for the state that includes a return to fiscally responsible balanced budgeting—something I have long called for, a tax code that is fairer to all Kansans while keeping taxes low, and a focus on the state reforms needed to compete for new jobs and opportunities.”

“The one piece that is working, that we see increases in revenue to the state of Kansas, is personal income tax. That’s the one we cut. That’s the one where we put a pro-growth strategy.”

“There is plenty of myth, rumor and misinformation about the tax plan floating through this election charged atmosphere. Foremost amongst them? The Kansas tax plan is failing.With a growing number of people moving to Kansas, new small business growth, increased money coming into the state, and near record employment levels, where does this tax myth originate?”

“Brownback and his legislative allies cut income taxes in a big swoosh four years ago on the premise that the tax cuts would bring jobs and economic prosperity. Instead, the tax cuts broke the state budget and imperiled education, highways, and key services without delivering the promised economic jolt.”

“The $80 million giveaway has all the hallmarks of bad policy and poor judgment from Kansas’ political class. It’s time to end this taxincentive rodeo and finally pursue a mature economic development policy.”

“My critics, which are many, they only want to look at the budget.

They won’t look with any depth or detail at the impact on smallbusiness growth or private-sector job growth.That’s the target, that’s what we’re after.”

Michael Austin, an analyst with the Show-Me Institute, remarking on Brownback’s plan to issue $80 million in taxpayer-backed bonds to bring the American Royal to Kansas City, Kan., from Missouri

Brownback, urging President-elect Donald Trump to take national the supply-side economic approach to tax cuts adopted in Kansas

Senate President Susan Wagle, R-Wichita, after voters ousted conservative GOP incumbents in the primary

Brownback, stating that income tax collections were on the rise

Melika Willoughby, spokeswoman for Brownback

Duane Goossen, former budget director to Govs. Bill Graves, Kathleen Sebelius and Mark Parkinson

3

School finance a daunting task

By JONATHAN SHORMAN Topeka Capital-Journal

it’s a little hard to see — I think we’re likely going to be back in a world of saying, ‘So, Lawmakers face the most daunting task on how much money are you going to put in, can education policy this coming year they can you afford it?’ And then it will be somewhere possibly tackle: writing a new school finance around the issue of, ‘Well, where does that formula while responding to a high court order money go?’ ” that will likely require additional funding.

Tallman’s first question — how much can Kansas has been building up to this moment be afforded — poses a particular challenge this for years through court rulings and legislative year because of an upcoming Kansas Supreme fights, and now it is here.

Court ruling. The justices are expected to soon The Legislature repealed the state’s school issue an opinion on whether state funding for finance formula in 2015 and replaced it with a schools is constitutionally adequate. temporary, two-year block grant system. Time Kansas has suffered a string of defeats in is ticking on the block grants’ expiration. previous court rulings on school funding. In Legislators must find a new way to distribthe latest ruling, many expect the court to find ute state funding to schools. Specific ideas funding is inadequate. are across the map, but in general, education Exactly how much additional dollars would associations and school districts are calling be needed for adequacy isn’t clear. But some for a system that frequently resembles the old estimates have ranged upwards of $800 milformula that was repealed. lion.

Mark Tallman, a lobbyist with the Kansas What also isn’t clear is how much leeway the Association of School Boards, said that over court would give the Legislature in achieving the past four years the Legislature had a narcompliance. Increasing funding by $800 milrow majority not in favor of the old formula. lion in a single year would be herculean, but The tide is now reversing. the amount spread out over a few years might “Now, we’re back to a Legislature where be more easily achievable. probably there is going to be more support for As for Tallman’s second question — what the concepts in the old formula than there has would be in the formula — the process of been,” Tallman said. “That’s why I’m saying answering that has already begun.

Last fall, Gov. Sam Brownback elicited public input about the elements that should comprise a new finance formula. In a torrent of emails, school districts most frequently provided outlines and bullet points that resembled the old formula.

The Lowell Elementary Site Council at USD 465 in Winfield called for a formula that allows for local school board spending decisions. That echoes the current local option budget provision within the old formula.

Brownback has said he won’t put forward model legislation but will present ideas. Those ideas may be revealed in the State of the State address scheduled for next week.

“What I’m going to be looking at is that we start to think differently about the funding system,” Brownback told the Associated Press.

Mark Desetti, a lobbyist for the Kansas National Education Association teachers union, told the news service he worries that proposals to “incentivize success” would siphon money away from poor school districts and districts with large numbers of immigrant or special education students.

“The bottom line is, some school districts have enormous challenges to overcome,” Desetti said. “Those are the schools that need support the most.”

“The bottom line is, some school districts have enormous challenges to overcome. Those are the schools that need support the most.”

Mark Desetti, lobbyist for Kansas National Education Association teachers union

THAD ALLTON Topeka Capital-Journal

‘That’s what they said’

The Hays Daily News The Topeka Capital-Journal | Wednesday, January 4, 2017 | 100

THE BROWNBACK YEARS: SCHOOlS Jan. 14, 2011

Jan. 14, 2011

Jan. 14, 2011

“For years, we have faced repeated legal action against the state because no one knows what a ‘suitable’ education actually means. I invite this Legislature to define suitability and end the confusion. This will provide us with a definition of what we need to undertake reform of our school finance formula and provide our school districts with stable, sustainable funding for the future.

Let the Legislature resolve school finance … not the courts.”

“It will lead to school closures. It will lead to teachers and other personnel layoffs. It will lead to larger class sizes.”

“I will submit that the education that our children should be mandated to have and the state pay for is something less than the sum total of all the curriculum that is being offered right now”

House Minority Leader Paul Davis, on Brownback education plans

Dec. 24, 2011 “Our current K-12 funding formula is broken” Brownback

House Speaker Mike O’Neal on the cost of K-12 education

The Topeka Capital-Journal compiled quotes from Gov. Sam Brownback and others reflecting debates in Kansas over taxes, schools, the budget and health issues from 2011 to now.

Jan. 6, 2012

Jan. 6, 2012

“One of the main reasons is it provides unlimited local (tax) authority to school districts, which doesn’t mean we can just tax our patrons to the point of causing tax problems, but this is a very important piece we’ve been asking for for many, many years.”

“I know that’s something that Johnson County absolutely has wanted forever. They want to be able to go in and raise the LOB as much as they want, but then of course the litigation comes back into play, because then are you spending the same amount of money for kids in Johnson County that you’re spending for kids in Thomas County?”

Shawnee Mission superintendent Gene Johnson, supportive of Brownback efforts to rework formula

Senate Majority Leader Jay Emler

Gov. Sam Brownback, in his State of the State address Nov. 23, 2013 “Survival mode” Rep. Melissa Rooker, describing Kansas public schools

May 6, 2012

Jan. 11, 2012

Jan. 11, 2012

Jan. 6, 2012

“I think the Senate feels It’s essential we provide more money to K-12 schools”

“This new school finance formula should be sunsetted after four years. Thus ending the cycle of litigation and beginning a cycle of legislation.”

“My plan is straightforward — no district gets less state money, every district gets more flexibility. Let me repeat that — NO DISTRICT will see its state aid go down. I propose adding 45 million dollars in state funding for our poorest school districts.”

“Brownback is institutionalizing the massive cuts our schools have experienced, thus keeping our funding at this level of harm”

Nov. 23, 2013 “I came in and we were facing a huge budget hole and teacher pensions have been horribly underfunded.”

Senate Vice President John Vratil “Scarcity will encourage things to happen that ought to happen. No one wants to talk about the C-word — consolidating schools.”

Brownback, on the beginning of his governorship “I’ve always encouraged the school board to do some saving. It’s not one of their favorite things to do.”

Jan. 16, 2014

Nov. 23, 2013

Brownback. Property taxes are a primary source for education funding

“For the first time, we can ensure that every Kansas child has access to all-day kindergarten, and we should do it now.”

Brownback, proposing expanded kindergarten access

Brownback on his school finance plan

Sept. 6, 2014 “We’ve put a record amount of money in education” Brownback “Gov. Brownback is going to try very hard to rewrite his record on education. But he simply has never made education a priority”

Oct. 18, 2014

Dec. 30, 2014

“Kansans don’t need a Washington D.C.-based liberal think tank distorting the truth about education funding in Kansas. They can hear the truth straight from Kansans”

“We find that as the financing system now stands, one cannot classify the school financing structure as reliably constitutionally sound because the legislature has tied its constitutional duty to the unenforceable precept, yet parochial illusion, of local control and local funding choices as one linchpin for the assurance of constitutionally adequate funding”

Eileen Hawley, a Brownback spokeswoman, on report that shows Kansas education funding falling behind

March 5, 2015

March 5, 2015

March 4, 2015

“With this block grant funding bill, we will increase funding, increase flexibility and create full certainty for our school districts. I’m proud of the collaborative work on this bill, and I thank my colleagues in the Legislature, superintendents and school board members for their input and help through the creation of this bill.”

“This block grant bill is vital for getting more money into the classroom where it can positively impact student outcomes.”

“The school funding issue has been and will continue to be politicized.

This has led to strong division and an unwillingness to listen. Both sides have been quick to immediately dismiss ideas by the other.”

House Speaker Ray Merrick, on legislation that replaces old finance formula

Jan. 15, 2015

Senate Minority Leader Anthony Hensley, on the block grant bill

“I think it would be premature to rewrite the formula” Attorney John Robb, who represented the plaintiffs

“It’s a bad idea” Rep. Barbara Ballard, reacting to Brownback push on school finance

Jan. 15, 2015

Dec. 30, 2014

“At the same time, the Legislature should repeal the existing school finance formula and allow itself sufficient time to write a new modern formula that meets our needs for great 21st Century schools.”

“I continue to believe that restructuring the school funding formula and implementing education policy reforms is critical not only to getting more money into our classrooms but also improving student achievement.

I will be working with legislative leadership to address the best path forward”

Rep. Ron Ryckman Brownback, calling for school finance overhaul

Sen. Ty Masterson

“They’re hiding the cuts”

Dec. 30, 2014

Three-judge panel, ruling in Gannon case that education funding is inadequate

House Minority Leader Paul Davis, at that point running against Brownback for governor

March 6, 2015

KNEA vice president Karen Godfrey

Rep. Mike Kiegerl, on district cash reserves

Ken Willard, a member of the Kansas State Board of Education

“I want local property taxes to go down”

Brownback on his vision for a new formula

Brownback, reacting to ruling

March 16, 2015 “Clearly they’ve shown that they’re an activist court and they’re trying to insert themselves in the legislative process before the bill even becomes law, which is just unheard of in this state and nationally.”

March 25, 2015 “Together we will build on our past success and not jeopardize funding because of flaws in the previous formula” Brownback, as he signs block grant bill

Senate President Susan Wagle, on the court system

Nov. 6, 2015

Nov. 6, 2015

“The fundamental problem is that on one side of 10th Avenue in Topeka people speak French and on the other side they speak Spanish. The languages are close and every once in a while one side gets the gist of what’s being said by the other, but a lot of nuance gets lost.”

“The state didn’t remedy the disequity. It made it worse.”

“Great ruling for Kansas kids”

Justice Marla Luckert, during oral arguments over equity

Attorney John Robb, who represented the plaintiffs, after ruling that education funding inequitable

Feb. 11, 2016

“Kansas has among the best schools in the nation and an activist Kansas Supreme court is threatening to shut them down”

Attorney General Derek Schmidt, after oral arguments at the Kansas Supreme Court over education funding equity

Brownback, reacting to equity ruling

May 27, 2016

May 27, 2016

March 24, 2016

March 24, 2016

Feb. 11, 2016

Feb. 11, 2016

“It did not fix the problem and the court has now agreed with us. It’s my hope that the Legislature will now knuckle down to the hard work ahead and simply fix this for the benefit of our kids.”

“This case requires us to determine whether the State has met its burden to show that recent legislation brings the State’s K-12 public school funding system into compliance with Article 6 of the Kansas Constitution.

We hold it has not.”

“It fully funds a prior-approved equalization formula and it does, as you can see in the paperwork, shrink that disparity.”

“Under this bill, school districts like USD 501 will be forced to further rely on local property tax increases to meet the needs of our students”

Sen. Ty Masterson, on the equity bill

USD 501 lobbyist Jennifer Crow, speaking about equity legislation

“It looks like it’s politically motivated because of the timing, in my opinion, and the courts have now interjected themselves in the business of the people and the business of the Legislature”

“I think the judges are going to get what’s coming to them in the retention elections. I think the public has had enough of their politicizing of the judicial branch and they’re going to demonstrate their displeasure when it comes to judicial retention.”

Attorney John Robb, who represented the plaintiffs, reacting to ruling

House Speaker Ray Merrick Kansas Supreme Court, rejecting equity legislation

Sen. Jeff Melcher

May 27, 2016

June 7, 2016

June 8, 2016

June 24, 2016

June 28, 2016

August 31, 2016

“This court is planning to shut down schools over less than 1 percent of the total education budget”

“After discussion with legislative leadership, I have decided to call a special session to keep Kansas schools open, despite the court’s threat to close them”

“Those plans are still being kicked around with people, but it’s any range of places, including within the education funding formula”

“It provides assurance to our teachers, our kids and property relief to many of our districts”

“It’s official. The Legislature has satisfied the constitution’s requirement for equitable school funding, and Kansas public schools will remain open and operating.”

“Building a new school funding system is a very difficult task. It needs a broad scale of input to it.

We’re trying to get that process started well ahead of the legislative session.”

Brownback

Brownback, on potential ways to address court ruling

House Speaker Ray Merrick “For years, Gov. Brownback and his Republican allies in the Legislature have refused to adequately fund our schools. Today, the Supreme Court finally said enough is enough” House Minority Leader Tom Burroughs

Rep. Ron Ryckman, on new equity fix legislation “I’m absolutely thrilled with it. I’m thrilled the two parties came together and everyone’s working together in great collaboration for this.”

Rep. Kathy Wolfe Moore, on equity fix legislation

Attorney General Derek Schmidt, after Supreme Court accepts new equity legislation

Brownback, as he calls for school finance input

5

Lawmakers face huge deficit

By TIM CARPENTER Topeka Capital-Journal

larger realignment of budget priorities will be necessary.

The updated budget road map in hands of “There’s an appetite for getting that behind Gov. Sam Brownback features spending reduc- us,” said Rep. Don Hineman, a Dighton Retions and revenue increases that could lead to publican who will be the new House majority a fix for the state government’s $350 million leader. “Let’s do a long-term structural solution revenue shortfall. to this imbalance.”

The budget approved last year by legislators Senate President Susan Wagle, R-Wichita, and Brownback produced the chasm between and other legislators expressed alarm Brownrevenue and expenditures and left lawmakers back declined to make use of his unilateral to circle a political roundabout with no obviauthority to order changes to the budget as soon ous exit. The Republican governor and GOP as extent of the shortfall was made public after majorities in the House and Senate are likely to the November election. again grab enough one-time cash infusions and “He needs to lead,” said Rep.-elect Vic Miller, clip appropriations enough to draw the budget a Topeka Democrat. “He forgot he’s governor back into the black by end of the fiscal year in and principally responsible for the state’s probJune. lems.”

“We’ll do a mixture of both cuts and reve“It’s going to be difficult to get through the nues,” said Brownback, who won back-to-back fiscal year,” said Rep. Fred Patton, R-Topeka. elections touting a policy Road Map for Kansas.

The governor said he would remain mum un“We’re down $350 million in these latest projec- til delivering the State of the State speech Tuestions, and coming up with additional revenues day, stepping to the microphone in the Kansas on a short-term basis is very difficult to do. At House just as most folks get off work. His the end of the day, you’ve got to come up with a primary audience in the chamber will be 125 balanced budget.” representatives and 40 senators — one-third The struggle for Brownback and the 2017 of whom are newly elected. Voters in Kansas Legislature, which convenes Monday and inincreased the foothold of moderate Republicans cludes dozens of newcomers elected in Novem- and Democrats in the House and Senate, which ber, won’t end with resolution of the immediate could place the governor’s supply-side economic budget crisis. and budget program at risk.

In Kansas, the budget gap yawns wider in Sen. Laura Kelly, D-Topeka, said the goverthe upcoming fiscal year, which has a projected nor’s decision to sit on the sidelines appeared to deficit of $580 million. There is a belief among be retaliation for losses by conservative Republilawmakers tax reform capable of generating cans in the primary and general elections. hundreds of millions in annual revenue and a “He’s made it clear he’s going to dump this

on the Legislature,” she said.

So far, Brownback and Lt. Gov. Jeff Colyer have promised revised budgets that carry the state over high hurdles without big tax increases, budget cuts or employee layoffs. Brownback did reveal he would propose creation of a teacher scholarship program.

The Brownback administration championed income tax reductions as an avenue to economic success of the private sector. Special emphasis was placed on dropping the personal income tax burden of state’s wealthiest individuals and on eliminating income tax paid by owners of 330,000 limited liability companies and other businesses. State tax collections fell more deeply than anticipated, a series of revenue projections turned out to be too rosy and state government spending was never sufficiently restrained to bring the system into harmony.

The result was evaporation of a $500 million treasury surplus, cuts in state services and programs, draining of the highway fund, escalation of the statewide sales tax, expansion of government borrowing and skipping of the state’s contribution to the pension system.

“The LLC loophole is what he views as his legacy. There is universal agreement it’s got to be repealed because of the inherent unfairness of it,” said Senate Minority Leader Anthony Hensley, D-Topeka.

Brownback has resisted calls for repeal of the business-owner exemption, which costs the state about $250 million each year, but pressure to close the loophole mounted during the 2016 election cycle.

“There’s an appetite for getting that behind us. Let’s do a long-term structural solution to this imbalance.”

Rep. Don Hineman, a Dighton Republican who will be the new House majority leader

BRAD NADING Special to The Hays Daily News

‘That’s what they said’

The Hays Daily News The Topeka Capital-Journal | Wednesday, January 4, 2017 | 100

THE BROWNBACK YEARS: BudgET Jan. 12, 2011

Jan. 30, 2011

“Growing the Kansas economy is my first priority. We must take bold steps today to create economic growth tomorrow. In saying this, however, let me be clear; we cannot governmentprogram or borrow our way into a stronger state economy. We cannot hope for the best and paper over the worst.”

“It sent a very disturbing message.

There is a strong sense among the extreme right wing of the Republican Party to get a pound of flesh from university and state employees.”

Gov. Sam Brownback, speaking to the 2011 Legislature in the State of the State speech

House Minority Leader Paul Davis, DLawrence, after the GOP-led House budget committee recommended a 7.5 percent salary cut at all state agencies in a move described as “necessary” by Rep. Pete DeGraaf, R-Mulvane

March 26, 2011 “It is critical that both the Senate and the House make an honest effort to cut spending and protect the things that matter most to our state. Anything less than that is a disservice to Kansas taxpayers.”

Senate Majority Leader Jay Emler, R-Lindsborg, on pending action to decrease spending $500 million to balance the budget

The Topeka Capital-Journal compiled quotes from Gov. Sam Brownback and others reflecting debates in Kansas over taxes, education, the budget and health issues from 2011 to now.

May 31, 2011

Sept. 11, 2011

Jan. 11, 2012

“Every state should invest in the arts sector simply because it makes good economic sense.”

“Rick Perry is the right leader for this moment in history. Rick Perry balanced budgets in tough economic times, signed the largest tax cut in state history and helped Texas become the national leader in job creation.”

“On the budget, we faced a $500 million deficit — but we did not raise taxes. Instead, we cut spending. Clearly, the era of ever-expanding government had to come to an end. In fact, for the first time in 40 years, the budget for the state’s all funds spending actually went down from one year to the next.”

Alexander Aldrich, executive director of the Vermont Arts Council, after Brownback defunded the Kansas Arts Commission and triggered the demise of than $1 million in external arts grants in Kansas

Brownback endorsing Texas Gov. Rick Perry’s campaign for the GOP presidential nomination

Brownback speaking to the 2012 Legislature in the State of the State speech

March 18, 2013

Jan. 21, 2013

Jan. 15, 2013

Jan. 14, 2013

Oct. 5, 2012

March 23, 2012

“Loss of the sales tax revenue will reduce the agency’s anticipated revenues by nearly $382 million over the next two years. This is in addition to proposed transfers from the state highway fund of nearly $300million.

So, clearly, the loss of sales tax revenue will have serious consequences for the T-WORKS program.”

“Economic Lifelines supports Governor Brownback and (KDOT) Secretary King’s plan to fully fund and deliver the T-Works program with the dedicated 0.4 cent sales tax. The secretary has said he can complete the planned T-Works program on time and on budget.”

“Our schools only get 54 cents of every valuable education dollar into the classroom. This at a time when we put more state money into K-12 per capita than any surrounding state … and when total spending averages more than $12,600 per student per year. We seem to focus only on how much money is appropriated, not on whether it is effectively spent.”

“I know I speak for many of you when I say we want our children to attend the best schools in the country, and when they graduate to not be lured elsewhere, but to have the opportunity to stay right here in Kansas. The path to that goal does not lie in raising taxes and growing government — that’s been tried before over and over again. The path to opportunity for every Kansan lies in the free market, in more choices, in less government burden and restriction.”

“We’ve got to get on a growth strategy so that’s why we’ve got to get these tax rates down.

We took them to zero on small business, LLCs and subchapter Ss to create a growth model where we can grow and we can employ people that come up through our educational system.”

“My administration is committed to fully implementing T-Works and keeping my pledge not to raid transpiration funding to balance the state’s budget. Last year, I raided more than $200 million. I want us out of the business of the state needing to raid KDOT all the time.”

Brownback explaining the Kansas strategy of cutting taxes wouldn’t compromise other spending priorities

Brownback pledging to not dip again into the Kansas Department of Transportation reserves to finance general government operations

Mike King, secretary of the Kansas Department of Transportation, reacting to a House plan to sweep KDOT funding into the state general fund

Michelle Butler, spokeswoman for the transportation lobbying group Economic Lifelines

Brownback in the State of the State speech to the 2013 Legislature

House Speaker Ray Merrick, R-Stilwell Dec. 20, 2013

Jan. 15, 2014

Jan. 16, 2014

April 30, 2014

June 11, 2014

Nov. 4, 2014

“We are moving in the right direction. Our record job and revenue growth, declining unemployment and sound fiscal management ensure that we have the resources to make the strategic investments in education and public safety that benefit all Kansans.”

“It’s been encouraging to see the efforts to responsibly cut government spending in Kansas last year, and we hope those efforts to rein in government spending will continue.

This year our efforts will be focused on reducing the size and scope of state government while increasing its fiscal responsibility.”

“This is an undeniable result of President Obama’s failed economic policies of increasing taxes and over-regulation. Our state coffers are seeing the effect of poor policy decisions at the federal level which have seen a 7.6 percent drop in exports and a slow rate of inventory replenishment.”

“Brownback’s plan to avoid comment and spend down the state savings account is not leadership and it does not fix the problem he created. Two weeks ago, Governor Brownback was in D.C. touting a ‘billion-dollar turnaround’ in the state’s finances. In reality, Kansas’ financial stability is, literally, going in the wrong direction.”

Brownback reflecting on positive economic signs at close of 2013

Nick Jordan, secretary of the Kansas Department of Revenue, commenting after tax receipts in April 2014 were 45 percent below April 2013

House Minority Leader Paul Davis, D-Lawrence, candidate for governor

“Ideas and direction do matter — and I think that’s what the state of Kansas and the people of Kansas and the American people have said tonight. We’ve made bold moves in the state of Kansas and in some cases tough moves to get our state growing again.

It’s not been easy but doing the right thing rarely is.”

Jeff Glendening, Kansas director of Americans for Prosperity

“When we gathered here three years ago, we faced two big challenges: the economy and the budget. Kansas state government was flat broke. We had begun the fiscal year with $876.05 in the bank. The state couldn’t even pay its own bills on time. By January, the state budget was illegally in deficit. Even more daunting, we faced a $500 million pending shortfall, and that was after taxes had been raised.”

Brownback speaking to supporters after winning re-election

Brownback in the 2014 State of the State address to the Legislature

Feb. 11, 2015

Feb. 5, 2015

Jan. 15, 2015

Jan. 12, 2015

Dec. 9, 2014

Nov. 10, 2014

“Kansas deserves human resource policies that are commensurate of the quality of services that state employees provide on a daily basis.

These initiatives are a major step toward ensuring that the State of Kansas is able to deliver those services and maximize the resources that taxpayers provide.”

“The Kansas Department of Education should work with school districts to help them with any cash flow challenges that may arise.”

“The family budget is more powerful than the government budget. Second, a growing economy that is adding private sector jobs and increasing personal income can fix a government budget.

A growing government budget cannot bring lasting prosperity to its citizens by appropriating ever more of their earnings. If we could spend our way to paradise, we would already be there.”

“The people of Kansas are always realistic. So we must be honest, too.

There have been difficulties. Too many people have not progressed in recent years, in many cases held back by an economy that is growing too slowly or an overly paternalistic big government. Too many people feel excluded or unprepared to pursue their American dream. Or believe that dream simply doesn’t exist for them anymore.”

“These first steps are a down payment in resolving the immediate budget issue. I look forward to presenting a full budget proposal and policy recommendations to the Legislature in January. Our job now is to address this situation through good fiscal governance while maintaining our investment in education, sustaining funding for public safety and allowing T-Works to be completed.”

“Sam Brownback spent the last six months lying to the people of Kansas.

He knew all along that his fiscal experiment had bankrupted our state. Now, he and his followers will get exactly what they wanted – to starve public schools, to raid the highway fund, and to cut the social service safety net that so many Kansans depend on; all of this for the sake of his own re-election and political aspirations.”

Brownback delivering the State of the State speech to the 2015 Legislature.

Brownback in his inaugural address after winning re-election in November 2014

Brownback announcing emergency budget cuts prior to start of 2015 Legislature

Brownback suggesting K-12 school districts could draw upon reserves after he ordered a 1.5 percent state funding cut

Jim Clark, secretary of the Kansas Department of Administration, while proposing reforms of state layoff, termination and hiring policy

March 18, 2015

March 27, 2015

April 9, 2015

“This year, most states have made their budgets more open to the public, allowing users to better scrutinize how the government uses their tax dollars. Kansas has improved dramatically, but still has a way to go.”

“If the Legislature raises income taxes now, that’s going to create uncertainty and discourage small businesses especially from expanding and creating jobs. We need to cut spending and eliminate waste in state government before we can even consider the possibility of a tax increase.”

“They used a lot of adjectives I’m sure they now regret, like ‘immediate’ and ‘shot-in-the-arm’ and ‘adrenaline.’ Just cutting taxes, and so deeply, without really any plans for how the state will pay for the spending that it’s not cutting — that’s proven to be a big problem there.”

Phineas Baxandall, analyst with the U.S. Public Interest Research Group Education Fund, reporting Kansas earned a “B” in government spending transparency, up from “D-”

Dan Murray, state director of the National Federation of Independent Business, registering opposition to rolling back income tax cuts adopted in 2012

Joseph Henchman of the Tax Foundation, noting consequence of slashing income taxes without reducing spending

April 16, 2015 “The billion gives what I think we’ll be able to invest with some efficiency over the next year.”

Rep. Steve Johnson, Assaria Republican, after Brownback signed a bill allowing the state to issue $1 billion in bonds and invest the cash proceeds in an effort to bolster the underfunded Kansas Public Employees Retirement System

Senate Minority Leader Anthony Hensley, D-Topeka, following post-election disclosure of a deep budget deficit

April 20, 2015

May 1, 2015

“After decades of reckless speeding through years and years of over-spending, it’s time Kansas puts the speeding spending car in reverse. Governor Brownback and legislative leaders have slowed state government growth, but as we have all seen from the numbers released today, there is a serious need for responsible spending cuts.”

“Today, I call upon Arthur Laffer to refund the $75,000 paid to him as a consulting fee for recommendations made concerning Governor Brownback’s tax experiment. Laffer’s consultation on the Brownback tax plan not only cost the state $75,000, it cost the state billions of dollars in lost revenue.”

Jeff Glendening, state director of Americans for Prosperity, after another downward correction in projected revenue and broadening of a budget shortfall

Senate Minority Leader Anthony Hensley, D-Topeka, remarking on the fee paid by the Brownback administration to Laffer for advice on supply-side economic theory and tax cuts

April 20, 2016

March 8, 2016

March 1, 2016

Jan. 12, 2016

June 5, 2015

May 30, 2015

“That is one-time money, which is the downside of it. It does not structurally fix the budget in the long term but does provide a bridge to future fiscal years.”

“In yet another budget hoax, Sam Brownback wants the people of Kansas to follow the Wizard of Oz’s admonition, ‘Do not pay attention to that man behind the curtain.’ Clearly, Professor Marvel was a charlatan and so is Sam Brownback.”

“We cannot continue to address ongoing revenue shortfalls with budget maneuvers, accelerated borrowing or sweeping fees and reserves. The time has come to cut every government funded entity. The reduction will be small when equitably spread across the board.”

“We have controlled spending, reformed tax policy and reduced burdensome regulations. We have consolidated agencies, eliminated wasteful programs and overhauled workers compensation.”

“There is no time to waste. Kansans expect state government to be there for them when they need it, and state workers who provide valuable services should not have to endure furloughs because the Senate stalled on taking up the budget.”

“Rather than admitting the root cause of the problem, his failed 2012 tax plan, Brownback is attempting to balance the budget on the backs of middle class and working families. Not only is this plan irresponsible and unsustainable, but I find it unconscionable that Republicans are asking individual Kansans to pay more in taxes while wealthy big businesses pay none.”

Shawn Sullivan, the governor’s budget director, outlining Brownback’s plan to close a budget deficit by drawing $185 million more from KDOT and delaying a $99 million pension payment

Senate Minority Leader Anthony Hensley, D-Topeka, after an advocacy group revealed Brownback considered selling future tobacco settlement payments to Wall Street for an injection of quick cash

May 18, 2016

June 22, 2016

“When Governor Brownback began the KanCare program, he emphasized that his Medicaid reform program would allow the state to avoid Medicaid rate cuts. The governor’s proposal to now cut Medicaid rates is a broken promise.”

“The state has a cash flow problem because of years of fiscal mismanagement. It is a shame to rely on more borrowing to fulfill the state’s obligations, but we simply cannot afford the consequences of being delinquent on our future financial commitments.”

Cindy Samuelson, spokeswoman for the Kansas Hospital Association, after Brownback cut $56 million from Kansas Medicaid

House Minority Leader Tom Burroughs, D-Kansas City, after the State Finance Council issued a $900 million certificate of indebtedness to ease cash flow challenges

Brownback in his State of the State speech to the 2016 Legislature

Senate President Susan Wagle, R-Wichita, in response to a revenue shortfall in February

June 22, 2016 “Did I do allotments? Did we pass bills last year, tax bills and rescission bills last year?”

Brownback defending the administration’s leadership in balancing the budget amid ongoing revenue shortages

House Speaker Ray Merrick, RStilwell, pleads for Senate passage of a budget bill to avoid furloughs of state workers while lawmakers work on a deal to balance the budget

House Minority Leader Tom Burroughs, D-Kansas City, after Brownback unveiled a budget plan to hike sales taxes and eliminate deductions

June 25, 2016

Dec. 12, 2016

Dec. 14, 2016

“Our state of affairs is on a continuous decline. It’s time to acknowledge the experiment has failed. Being a Kansas conservative used to mean paying off debt, balancing the budget, and not running up bills our grandchildren would be expected to pay. I’m eager to see Kansas restored to those principles and the upcoming election is our first opportunity.”

“I can assure you a number of legislators are very concerned the governor is looking for a ticket to D.C. and we’re concerned we may not get a budget that has a long-term structural fix in it.”

“I think it’s ridiculous and I think it’d be more helpful if she would be proposing budget solutions rather than name calling. We’re working hard on the budget.”

Former Gov. Mike Hayden, a Republican who led the state from 1987 to 1991

Brownback responding to Wagle Senate President Susan Wagle, a Wichita Republican, who faulted the possible appointee of the Trump administration for not ordering budget cuts to address a $350 million revenue shortfall

7

Uncertainty looms

By JONATHAN SHORMAN Topeka Capital-Journal

Kansas enters 2017 amid national uncertainty over health care policy and worries at home about the state’s Medicaid program.

The election of Republican Donald Trump, along with a GOP-controlled Congress, signals trouble ahead for the Affordable Care Act, and with it the prospects for Medicaid expansion in Kansas.

At the same time, processing problems have haunted KanCare, the state’s Medicaid program, over the past year, and lawmakers continue to fear a backlog that officials spent months trying to wind down will grow again.

Still, Gov. Sam Brownback’s administration is bullish on the year ahead.

Lt. Gov. Jeff Colyer tweeted in mid-December that Kansas had renewed its KanCare contracts for the year ahead and that Medicaid expansion was dead. Time will bring clarity from D.C., he said, adding that a new request for proposal on KanCare will come in late 2017. “(Donald Trump) has proposed block granting Medicaid to the states. This is a great opportunity for Kansas and KanCare,” Colyer said.

Trump campaigned on repealing and replacing the Affordable Care Act, the 2010 law championed by President Barack Obama.

Some Republicans support turning Medicaid into a block grant program.

“States will no longer be shackled by federally determined program requirements and enrollment criteria. Instead, they will have the freedom and flexibility to tailor a Medicaid program that fits the needs of their unique populations,” House Speaker Paul Ryan’s Medicaid plan says.

The Centers for Budget and Policy Priorities, a left-leaning think tank, said block grants would institute deep cuts to funding for state Medicaid programs and threaten benefits for low-income individuals. Sean Gatewood, with the KanCare Advocates Network, said that wouldn’t be a good idea given KanCare’s issues.

“I can’t imagine what it would be like if it was sort of a complete blank check, what that would mean for people with disabilities across the entire state,” Gatewood said.

Supporters of Medicaid expansion say the potential for block grants lend greater urgency to their cause. Democratic lawmakers argue expansion will bring in additional federal money into the state, thereby making it more likely Kansas would receive more cash under a block grant system.

“A lot of us are concerned that if we don’t expand Medicaid now — even though that 100 percent (federal) match is down to 95 now — that should feds go to the block grant, then we’ll lose out,” Sen. Laura Kelly, D-Topeka, said.

After tax cuts, the creation of KanCare has arguably been Brownback’s biggest policy achievement. In an effort spearheaded

by Colyer, Kansas privatized its Medicaid program in Brownback’s first term, handing operations to managed care organizations.

KanCare provides services to hundreds of thousands of Kansans through plans offered by the managed care organizations. Currently, Amerigroup, Sunflower and UnitedHealthcare offer plans.

After implementing a new electronic eligibility system in 2015, Kansas developed a backlog in processing Medicaid applications. For much of the past year, the state has worked to bring the backlog under control.

At its peak, the backlog included more than 15,000 applications. The state spent more than $2 million on anti-backlog efforts.

State auditors found that Kansas wasn’t in compliance with federal law on eligibility determinations. Federal officials indicated to auditors, however, that no action will be taken against Kansas once the backlog is resolved.

But lawmakers fear the underlying problems that led to slow processing haven’t been fixed.

“They don’t have the backlog taken care of,” said Rep. Dan Hawkins, R-Wichita.

Hawkins chairs the House Health Committee. He said he would like an independent study to look for where the processing bottlenecks are occurring.

“(Donald Trump) has proposed block granting Medicaid to the states. This is a great opportunity for Kansas and KanCare.”

Jeff Colyer, lieutenant governor of Kansas

THAD ALLTON Topeka CapitalJournal

‘That’s what they said’

The Hays Daily News The Topeka Capital-Journal | Friday, January 6, 2017 | 100

THE BROWNBACK YEARS: HEALTH Jan. 12, 2011

Jan. 12, 2011

August 13, 2011

“Quality, affordable, patientcentered healthcare is a priority for all Kansans. Next year, Medicaid will command over 18% of the state general fund, and the program is growing faster than the economy”

“Under the leadership of Lieutenant Governor Doctor Jeff Colyer, our Administration will begin this month a collaborative effort to remake Medicaid and improve healthcare. If we are going to keep our promises, quality must be improved for the patient. And for the taxpayer, costs must be controlled. If and only if we do this, will we protect Kansas’ families and help those in their time of need”

“We are going to have to save some money. A firm, hard dollar amount has not been set.”

“Elderly, disabled and low-income Kansans are not a priority in this extremist GOP administration”

Lt. Gov. Jeff Colyer, on parameters for the state’s new Medicaid program, KanCare

Joan Wagnon, Kansas Democratic Party Chairwoman

Brownback, announcing his intention to overhaul the state’s Medicaid program

Lt. Gov. Jeff Colyer

August 9, 2010 “I really question whether the money will be there to make it happen” Gov. Sam Brownback, doubting the viability of Medicaid expansion

The Topeka Capital-Journal compiled quotes from Gov. Sam Brownback and others reflecting debates in Kansas over taxes, education, the budget and health issues from 2010 to now.

Brownback

August 13, 2011

Nov. 8, 2011 “Kansas faces major challenges in its Medicaid program that require swift and effective policy changes to continue serving vulnerable Kansans.”

KanCare executive summary

“What we’re trying to do is transform so we create incentives to quit smoking, have a better diet, take your medications, see your doctor.”

March 7, 2012

March 3, 2012

March 3, 2012

March 3, 2012

Nov. 8, 2011

Nov. 8, 2011

“We’re not talking about what managed care companies were like in the old days”

“The state has thorough protections throughout the contracting process to ensure the selection of qualified bidders who can meet the requirements of the KanCare program, including financial sustainability”

“If you read the reports provided in committee, other states have been left holding the bag in terms of financial loss and stranded patients.

We don’t need that kind of grief here.”

“I think it’s always relevant to know whether the entities the state contracts with are on sound financial footing.”

“The devil is really in the details.

When I see the details of the RFP and the details of the contract, I think we’ll know a lot more about how that notion will truly be implemented.”

“Our goal is improving care and the experience for Kansans. The new system will achieve cost savings through improving outcomes for needy Kansans”

Rep. Ann Mah

Anna Lambertson, head of the nonprofit Kansas Health Consumer Coalition, on KanCare

Lt. Gov. Jeff Colyer

Sherriene Jones-Sontag, Brownback spokeswoman

Lt. Gov. Jeff Colyer

Sen. John Vratil, on examining potential KanCare bidders

March 13, 2012

March 14, 2012

“We believe that with state oversight, contractual protection and private-sector resources, we can better coordinate and manage all services.”

“But I will say that I’m certain there are ways to improve care and services and save money other than just handing you all over to for-profit insurance companies.”

“I’ve seen a lot of mistakes made in this community, and I don’t want to see Kansas make one”

“We’re concerned they may find ways to become more efficient by cutting services.”

Jim Coopersmith, of Northwestern Mutual, on launching KanCare

Tom Laing, executive director of InterHab, on KanCare

KDADS Secretary Shawn Sullivan

Wendell Potter, former health insurance executive

March 13, 2012

March 22, 2013 “There’s no guarantee the federal funding is going to continue” Sen. Tom Arpke, on Medicaid expansion

March 22, 2013 “We’re open on it. We’re very concerned about the long-term costs. I want to listen to the Legislature” Brownback, on Medicaid expansion

March 22, 2013 “We need to remain flexible here in this state and find our own Kansasbased solutions” Senate President Susan Wagle, on Medicaid expansion

April 4, 2012

June 27, 2012

June 27, 2012

“These new KanCare plans will provide our most vulnerable Kansans with superior service at a more sustainable price”

“The current Medicaid program is financially unsustainable and provides fragmented services to our most vulnerable Kansans who deserve far better care”

Lt. Gov. Jeff Colyer, announcing KanCare contracts

March 5, 2013 “Leaving money on the table” Kansas Insurance Commissioner Sandy Praeger, endorsing Medicaid expansion

Nov. 4, 2012 “The simple fact is, we can’t afford it” House Majority Leader Arlen Siegfreid

KDHE Secretary Robert Moser

June 27, 2012 “While cost savings may have been at the center of the selection process, without robust benefits for pregnant women and children, it is unlikely the selected contractors will achieve the improved health outcomes that have been promised” Shannon Cotsoradis, president of Kansas Action for Children, on KanCare

Jan. 13, 2014

May 8, 2013

June 25, 2013

Sept. 21, 2013

“KanCare has proven it is possible to increase services and reduce cost at the same time.”

“We know there are glitches in the system. (But) everybody’s very committed to this, and I think they’ve done a really outstanding job so far.”

“By not adopting Medicaid expansion you’re leaving not only a lot of federal dollars, but a lot of people on the side of the road”

“There has to be more customer service to the providers, as well as the consumers. I understand the frustration from the providers.”

“I’ve been pretty straightforward about this all along.

Obamacare continues to, really, just be a wreck.”

“My first priority is to extend KanCare to those who need it most — Kansans with disabilities on waiting lists for services”

Lt. Gov. Jeff Colyer, on KanCare problems

Health and Human Services Secretary Kathleen Sebelius

KDHE Secretary Robert Moser, on KanCare

Brownback

Brownback, on Medicaid expansion

Sherriene Jones-Sontag, Brownback spokeswoman

Sept. 29, 2013

March 23, 2014

“We still have a lot of work to do. We haven’t crossed the finish line. We’ve just barely started” KDHE Secretary Robert Moser

May 18, 2016

May 17, 2016

Oct. 7, 2015

July 7, 2015

April 29, 2014

“Kansans cannot afford the explosive growth of state government spending that has occurred in the past”

“That’s scary as hell. We’re just sort of bracing for the worst”

“This isn’t just bad policy…this is morally reprehensible. Gov. Brownback will maintain his commitment to provide care to vulnerable Kansans before able-bodied adults.”

“We really want KanCare to be able to meet the promise of ensuring that we’re focused on the person’s needs and we’re not limiting access to services that help people stay in homes and communities”

“As you can see from these numbers, the effect of KanCare — overall — has been to increase services to these vulnerable consumers”

Jenian CEO Marilyn Kubler, on KanCare reimbursement rate cuts

Brownback, ordering KanCare reimbursement rate cuts and other budget cuts

Melika Willoughby, a Brownback spokeswoman on the possibility of Medicaid expansion

March 23, 2014 “We need to do this. It’s the right thing to do.”

Rep. Paul Davis, on expanding Medicaid

KDADS Secretary Shawn Sullivan

KDADS Secretary Kari Bruffett

May 18, 2016

June 8, 2016

June 17, 2016

June 20, 2016

August 17, 2016

August 17, 2016

“If you reimburse less for those with Medicaid, that gives them even less money and less flexibility to provide services for those who have no coverage. This is on top of a series of cuts for mental health. It’s pretty devastating.”

“Overall, KanCare has been a very successful program. Not that there haven’t been disputes and different things along the way, and we’ve had some sign-up difficulties as we’ve shifted it from KDADS to Department of Health and Environment. But we’re getting on top of those, and that’s starting to work.”

“It’s a pretty epic screw-up. How do you lose 12,000 people?”

“We’ve got to figure this out. This is getting pretty bad”

“Why didn’t he do this in the first place instead of putting everybody through this very painful exercise?”

Sean Gatewood, with KanCare Advocates Network, on news that the state undercounted the size of the application backlog

Rep. Dan Hawkins, on the backlog

“I look forward to working with the Legislature to restore the 4 percent cut in reimbursement rates and will call on them to pass an increase in the provider tax”

Sen. Laura Kelly, on KanCare reimbursement rate cuts

Brownback, on Medicaid application processing backlog

Brownback

Sen. Laura Kelly, on Brownback desire to reverse reimbursement cuts

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