KPI Statement On Gov. Brownback's 2012 State of the State Address
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January 11, 2012 - Wichita - This evening, Kansas Policy Institute president Dave Trabert offered the following statement in response to Governor Sam Brownback's annual State Of The State Address.
Overall Thoughts: "I'm glad Gov. Brownback has identified the things that too many previous administrations and members of the legislature willfully chose to ignore; KPERS, Medicaid, K-12 finance and taxes. While it is nice to see these crises finally get some attention, the state is not moving aggressively enough to save itself from driving off a cliff. Even sustained, record revenue growth will not prevent billions in General Fund deficits unless ObamaCare is repealed and KPERS' rosy 8% investment return assumption holds up so the longer wait only makes the problem worse.
On The SGF Budget: "The proposed cuts are better than the spending increases we've seen in prior years, but with Medicaid and KPERS costs set to grow rapidly, all other SGF spending needs to be reduced by about $300 million to keep Kansas from going over the cliff. That doesn't mean eliminating services. We need a priority-based budget where the state's core functions are identified, examined for efficiency and effectiveness, and the legislature can prioritized the budget just like Kansas families."
On KPERS: "With a true unfunded liability of at least $15 billion it is hard to understate the importance of reforming KPERS immediately. No one is talking about taking back already-earned benefits, but the only way to solve this problem is to reduce benefits that haven't been accrued yet. A 401(k) style plan for new hires and non-vested members stops the current hole from getting deeper but we still have to fill what is likely a $15 billion hole."
On K-12 Finance: "The current formula is most certainly broken. Districts say they don't have enough money while simultaneously accumulating millions of dollars in funds specified by the current formula...a pretty clear indication that the formula, in some cases at least, provides more money than many districts need. But this plan doesn't end the cycle of litigation; it simply pushes it back a few years and it certainly doesn't answer the fundamental question; What does it cost to achieve required outcomes AND have schools organized and operating in a cost-effective manner."
"I hope the legislature will pick up where Gov. Brownback left off and deal directly with the $868 million districts have accumulated in operating carryover cash reserves and examine the 80 things schools can do to operate more efficiently identified in a 2009 audit from Legislative Post Audit."
"There is no question that the current funding formula is broken and needs a complete overhaul but that won't do anything to change outcomes. There's a lot more that needs to be done to raise achievement and ensure that every Kansas kid has access to an effective education." |
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Kansas Policy Institute is an independent think-tank that advocates for free market solutions and the protection of personal freedom for all Kansans. Our work centers on state and local economic policy with primary emphasis on education, fiscal policy and health care. We empower citizens, legislators and other government officials with objective research and creative ideas to promote a low-tax, pro-growth environment that preserves the ability of governments to provide high quality services. To speak with Kansas Policy Institute, please contact James Franko at (316) 634-0218.
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