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May13,2009
Sedgwick
County Legislative Update
Overview
This report focuseson the
final
wrapup of the2009 legislative session. Other legislation
of
interest passed during the regular session was included in the early April report.
The
2009 Legislature adjournedonSaturday morning. They will returninearly Junefortheceremonial last day. Resolution on the budget described below suggest there will be lots ofaction
before
the
2010
legislative session that will require
careful
attention. The dire economic
situation
may produce a special legislative session or more likely gubernatorial allotments orreductions to state general
fund
expenditures based on miniscule revenue projections. Becausethe ending balance is so low, the Governor will have a great deal of
freedom
and flexibility tomake downward
adjustments
to thebudget duringthecoming year.
Budget
TheLegislature approved Senate SubstituteforHouse Bill 2373 which finalizedthebudgetprocess.
The
Senate passed
the
bill
21-17 and a
majority
of
Democrats
and
Republicanspassed the bill in the House 64-60. The Omnibus
veto
session was in its eight day when thebudget bill was
finally
passed. The House had already
failed
in its first attempt to pass a budget
and
they were scheduled to take up the next House budget bill later on 7
th
. The House bill thatwas about to return to the
floor
contained larger reductions for K-12 and its passage was very
unlikely
and prompted a number of Republicans to vote for the Senate bill.The
final
budget billis inadditionto
10
percent budget reductions passedin theearlierappropriationsbills at the end of April. Now that the final budget bill is done, state agencies willhave
to
make determinations
regardingtheways they
will make budget
reductions.
They weredirected to make general reductions and will now have to determine how to make those
reductions.
• All
State agencies (includingK-12
and
regents) will receive 2.75 percent reductions
o
$
154
million
in
cuts
o
$122
million
in
revenue (Keep
the M&E
Slider payments, keep
$50
million
in
casino privilege
fees,
$18
million
in fee
funds,
and
others)
o
$61million
in new
revenues (see below)
•
Lost revenueo FY 2009 Machinery & Equipment second half payment of $25
million
will not be
made
 
o FY
2010
Machinery
&
Equipment payment
of $44
million will
not be
made
•
Other Sedgwick County-specific accomplishments
o $5
million protected
for
fair
air
fares
programo $5 million for the National Institute for Aviation Research at Wichita StateUniversityo $2.5 million for the National Center for Aviation Training
•
One-half
the
amount requestedo Fully
funded
community corrections, adult residential centerso $3.5 million to the Wichita Center for Graduate Medical Education plus $2.5million
in
matching federal
funds
Taxes
Both
the
House
and
Senate passed Senate Substitute
for
House Bill 2365.
The
bill
was
an
amended down version
of the
original bill that
had up to $100
million
in
tax
increases.
The
tax bill was finalized
after
the budget bill was completed so that only enough revenue wasincreased
to get the
state's
ending balance above
$0.
Based
on the
budget bill
and the tax
bill,the state will have $17,000 in an ending balance on June 30, 2010.
•
$61 million
in
taxes
o
Mainly
tax
amnestyo Delayed or reduced tax credits• No cuts to Liquor Tax (888)
funds.
Legislature rejected the
Governor's
recommendation
to
eliminate
the $27
million
fund
going
to
local units
of
government
Other Legislative Issues
Annexation
On
the
last
night
of the
session,
in the
last
bill
passed,
both
the
House
and
Senate
passed
Senate
Bill51.
The
bill
was the
only annexation legislation passed this year.
•
Senate Bill
51
summary
from
the
League
of
Kansas MunicipalitiesoCould have been much
stronger—does
notinclude public vote requirement
o •
Section
1.
Requires
a
copy
of the
plan
for
extension
of
services
to be
sent
by
certified
copy
to the
board
of
county commissioners
not
less than
10
days prior
tothe
public hearing required
by
K.S.A. 12-520a.
o •
Section
2.
Amends K.S.A. 12-531
to
require
the
county commission
to
hold
a
hearing three years following an annexation or
four
years following theconclusion of litigation relating to annexation to determine whether the city hasprovided
servicesin
accordance with
the
submitted plan. Also gives
the
judgediscretiontoaward attorneys feesto theprevailing partyif thecounty commission
refuses
to
hold
the
required hearing.
D
o • Section
3. Allows land owners to petition for
deannexation
two years following
the
conclusion
of the
hearing required
by
K.S.A. 12-531
or two
years
following
the
conclusion
of
litigation relating
to the
hearing (current
law
allows
 
deannexation petitions
after
2
!/2
years). This section also increases
the
timelimitation
from
one
year
to
four
years
before
the
city
can
attempt
to
annex
the
area
thathasbeen
deannexed
andrequiresthecityto pay for therecording withthe register of deeds. It also gives the judge the discretion to award attorneys
fees
to the prevailing party if the board of county commissioners
refuses
to hold thedeannexation hearing.
D
o •
Section
4.
This section
defines
the
terms "municipal services"
and
"municipal
infrastructure."
D
o •
Section
5.
AmendsK.S.A.12-521
to
prohibit
the
annexation
of any
unplattedtract of land devoted to agricultural use of more than 65 acres. This is a limitation
on
county-approved annexations.
D
o •
Section
6.
Amends K.S.A. 12-520
to
prohibit
any
city
from
annexing
a
"narrowcorridor" to gain access to noncontinguous tracts of land. It
further
provides that
the
"corridor
of
land"
must have
a
"tangible value"
and
purpose other than
for
enhancing
future
annexations. These terms are not
defined
and even apply toannexations
that
are
completely consensual
in
nature.
D
o •
Section
7. This portion of the bill requires that for one year
from
the date ofannexation, the city must spend all proceeds
from
ad valorem taxes levied againstthe annexed property to provide municipal infrastructure and municipal services
in the
area.
D
o •
Section
8.
Requires notice
to be
given
not
less than
60
days
before
the
effective
date
of an
annexation ordinance
to any
rural water district
in the
area.
U
o •
Section
9.
Authorizes
the
city
to
contract with
the
rural water district
to
providewater servicesto all orportionsof theannexed area.
D
o •
Section
10.
Provides that
the
rural water district continue
as the
water providerunless
the
city gives appropriate notice
and
considers certain factors.
D
o •
Section
11.
Amends K.S.A.
82a-612to
allow anyone
who is
charged
a
franchise
fee
for water
service
provided by a rural water district to be considered a"participating
member"
of the
district.
D
o •
Section
12.
Amends K.S.A. 82a-646
to
require
the
board
of a
rural
water districtto consider certain factors whenever lands are petitioned for release
from
thedistrict.
D
o •
Section
13.
Makes sections
8-10
part
of the
Kansas rural water district act.
Unemployment
Insurance
The South Central delegation gave strong support to passage of House
Bill
2374 whichamended state unemployment
insurance
law to
benefit local aircraft manufacturers
to
allow
employees to work three-day work week while also participating in the unemployment program
and
retraining.
•
House Bill 2374,
a
package
of
alterations
to the
state's unemployment laws that alsocaptured
$70
million
in
unemployment money
from
federal
stimulus
funds
of 00

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