Kansas state budget
From Sunshine Review
Contents |
Kansas is expected to face an estimated $400 million budget gap for FY 2011.[1] Kansas started FY 2010 July 1, 2009 with a deficit of $160 million. Gov. Mark Parkinson received a memorandum the next day on July 2, 2009 from the Director of the Budget explaining needed adjustments and proposing an allotment plan for appropriations.[2]
August 2009 revenue figures were $7.8 million higher than projected while still being 4.9% below August of 2008, only to drop significantly in September.[3][4] Gov. Parkinson stated, “We knew there would be good months and bad months as we work our way out of this recession. August was up a little, September was down significantly. We can handle the September shortfall through a careful management of existing funds. It is too early to panic, and too soon to make rushed decisions. We will continue to monitor revenues closely over the coming weeks and months.”[5]
[edit] Budget Background
The Kansas state fiscal year begins July 1 and ends June 30. On October 1 all of the state's agencies submit their budget requests to the Governor and the Legislature. Kansas has 20 state agencies which operate on an biennial system but are authorized to file budget adjustment requests every other year. The Governor presents the proposed budget to both the House and the Senate for consideration. From February through April state officials deliberate on the proposed budget. By early June the Governor evaluates any and all changes before a final decision is approved.[6]
[edit] Budget figures
The following table provides a history of Kansas' expenditures and gross domestic product (GDP).
| Fiscal Year | Expenditures (billions) | GDP (billions) |
|---|---|---|
| 2000 | $14.4 [7] | $82.8[7] |
| 2001 | $15.6 [7] | $86.4 [7] |
| 2002 | $16.7 [7] | $89.6 [7] |
| 2003 | $17.5 [7] | $93.6 [7] |
| 2004 | $18.4 [7] | $98.4 [7] |
| 2005 | $18.9 [7] | $103.3 [7] |
| 2006 | $20.3 [7] | $110.6 [7] |
| 2007 | $21.7 [7] | $117.3 [7] |
| 2008 | $23.3 [7] | $124.4 [7] |
| 2009 | $24.9* [7] | $131.9* [7] |
- NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year.
[edit] 2009-2010 budget crisis
The top 2 sources of revenue for the state are individual income taxes (49.8%) and sales & use taxes (34.9%). The FY 2011 state forecast is for 4% revenue growth to almost reach $5.7 billion for General Funds.[8] Kansas Department of Revenue figures show September tax receipts were $67 million below expectations and $105 million below the previous year. For the first three months of the fiscal year total tax revenues are $96 million below expectations and down $169 million from the first three months of FY 2009. [9]
Kansas Revenue Collections Compared to FY 2009 Actual Revenue[10]
| ' | FY 2010 Tax Rev. to Sept. 30 | FY 2010 Budgeted Growth | Growth Needed for Remaining 9 Months |
| Individual Income Tax | -5.8% | 2.7% | 5.5% |
| Corporate Income Tax | -28.7% | 11.6% | 29.1% |
| Sales Tax | -2.8% | 0.6% | 1.8% |
[edit] 2008-2009 budget crisis
- See also: Kansas state budget (2008-2009)
Kansas faced a $186 million gap for fiscal year 2009.[11][12] Then Governor Kathleen Sebelius recommended $600 million in budget cuts for FY 2010 which included eliminating programs, closing facilities, freezing new hires, and reducing spending. However, in light of the federal economic stimulus package Sebelius amended her recommended budget to "prevent harm" to the state. "Budget cuts deeper than what I have already recommended are not necessary, and would in fact do great harm to our state’s economy and employment levels," said Sebelius.[13][14] However state officials said their target for reductions in fiscal 2010 were greater than the Governor's recommendations - $625 million. According to the Governor's recommended budget, the proposed cuts could reduce the projected FY2010 shortfall $103 million, however that estimate depends on $57 million in revenue from state-owned casinos that haven’t yet been built.[15]
Budgets passed by the Kansas Legislature:[16]
General Funds
- FY 2009 $6.1 billion
- FY 2010 $5.6 billion
All Funds
- FY 2009 $13.5 billion
- FY 2010 $13.0 billion
[edit] Accounting Principles
The Kansas Legislative Division of Post Audit is the audit agency of Kansas government. The Legislative Post Audit Committee is a bipartisan committee comprising five senators and five representatives. Audit reports are published online. Barbara J. Hinton is Kansas Legislative Post Auditor.[17]
The Institute for Truth in Accounting (IFTA) rates Kansas “Tardy” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Kansas’ CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[18] Kansas’ CAFRs are published online by the Division of Accounts and Reports. Kent Olson is Director of the Kansas Division of Accounts and Reports.[19]
[edit] Accounting transparency checklist
 | ||||||||
|---|---|---|---|---|---|---|---|---|
|
[edit] The good
- The website has Comprehensive Annual Financial Reports (CAFR) dating back to 2003.[20]
- An independent auditor’s report is published on page 3 of the document. [21]
- It provides supplements to the budget workup, such as non-major Governmental funds, starting on page 106 of the document.
- The budget is posted using organized and consistent methods of financial reporting.
- Kansas law requires a balanced budget.[22]
- It includes all costs incurred by the government, including future liabilities, starting on page 147 of the document.
- The CAFR compares estimated and actual budgetary numbers, such as on page 99 of the document.
[edit] The bad
- The Kansas office was not precisely timely in submitting the budget.
- The CAFR is posted in PDF format, so it’s not searchable online.
| Credit Rating | Fitch | Moody's | S&P |
| Kansas[23] | NR | Aa1 | AA+ |
[edit] Budget transparency
KanView is the name of Kansas's publicly available online spending database. As a result of the Kansas Legislative House Committee on Government Efficiency and Technology, the legislature and governor passed legislation in 2007 and 2008 that mandates greater financial transparency for Kansas state government.[24]
[edit] Website evaluation
 | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ||||||||||||||||||||||
Kansas.gov is the website for the state of Kansas.
- Main article: Evaluation of state websites
[edit] The good
- Budget is published.[25]
- Information on state ethics commission is posted.[26]
- Audit reports are published.[27]
- State tax information is available.[28]
- Elected and administrative officials are listed with contact information under respective office/department.[29]
- Attorney General has Kansas Open Records Act FAQ.[30]
- Current statewide contracts are published.[31]
- Lobbyist expenditures posted.[32]
[edit] The bad
- Site has a search function, but is somewhat difficult to navigate.
- Some departments have contact info/form for making public record requests, but most do not appear to.[33]
- Does not provide any information on state-paid lobbying and agency lobbying contracts.
[edit] Legislation
[edit] Economic Stimulus Transparency
- The Economic Recovery and Reinvestment Act of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it is estimated that 69%, or over $541 billion, will be administered by state governments.[34]
- It is estimated that Kansas will receive at least $1.3 billion in federal funding.[35]
- The economic recovery website for Kansas is available here.
[edit] Error in ARRP
On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.[36][37]
The ARRP website created 4 fictional districts, creating or saving 5,934.8 or 5,940.37 jobs in Kansas including 10 in the 9th Congressional district, nine jobs in the 8th District and three in the 6th district and two in the 14th. The 00, 99th, 5th, 76th, 68th and 36th districts saw no job creation. Of course Kansas only has four Congressional districts.[38]
[edit] Government tools
KanView provides a searchable database of state financial information, organized by expenditures and revenues for the five categories of Agency, Fund, Program, Object and Vendor. Annual expenditures and revenues are updated soon after the close of Kansas's fiscal year, which runs from July 1 to June 30.[39]
The following table is helpful in evaluating the level of transparency provided by KanView:
| State Database | Searchability | Grants | Contracts | Line Item Expenditures | Dept/Agency Budgets | Public Employee Salary |
|---|---|---|---|---|---|---|
| KanView |  | | |  | | |
[edit] Limitations and Suggestions
KanView was supposed to contain information on salaries and wages, including compensation paid to individual state employees. This requirement is clearly specified in the language of the Kansas Taxpayer Transparency law. But the powers-that-be have kept detailed public employee salary information OFF the Web site. KanView only lists summary data on salaries, not the individual information required by law.[40] You can call the Kansas Department of Administration at (785) 296-3011 and demand that the letter of the law be followed by putting specific wage and salary information online.
[edit] Support for creation of the database
KanView stemmed from the Kansas Taxpayer Transparency Program of 2007, and was authorized when governor Kathleen Sebelius signed the Kansas Taxpayer Transparency Act in 2008.
Americans for Tax Reform applauded Kansas's level of transparency,[41] as did the National Taxpayers Union.[42]
[edit] Public employee salary information
The Kansas City Star maintains a searchable database of state employee information for the year 2007. Access it here.
Kanview is by law required to include "salaries and wages including, but not limited to, compensation paid to individual employees of state agencies," but the state has yet to post this information. Kansas residents can call the Kansas Department of Administration and complain about this omission at (785) 296-3011.
[edit] See Also
[edit] External links
- Flint Hills Center for Public Policy
- KanView, official website
- Kansas Department of Adminstration
- Kansas Division of the Budget
- www.kansas.gov
- Kansas Liberty report on KanView
- KansasLiberty.com
- Model transparency legislation from the American Legislative Exchange Council is available at this link.
[edit] Additional reading
- Washington Post,"House panel revises budget, but doesn't balance it," February 4, 2010
- Gov. Mark Parkinson,"2010 State of the State Address," January 11, 2010
[edit] References
- ↑ Associated Press,"Kansas State Senators Offering Budget Proposal," January 5, 2010
- ↑ Kansas Department of Administration, “FY 2010 State General Fund Allotments,” July 2, 2009
- ↑ Gov. Parkinson Press Release, “Governor Parkinson’s statement on August revenue,” August 31, 2009
- ↑ Kansas Watchdog.org, “Kansas 2010 Budget Crisis,” October 2, 2009
- ↑ Gov. Parkinson Press Release, “Governor Parkinson’s statement on September revenue,” September 30, 2009
- ↑ State of Kansas Legislative Research Department,"Legislator briefing book state finance budget overview," retrieved March 4,2009
- ↑ 7.00 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 US Government Spending,"Kansas State and Local spending," retrieved February 26,2009
- ↑ Gov. Mark Parkinson, “Comparison Report FY 2010,” August 7, 2009
- ↑ Kansas Watchdog.org, “Kansas 2010 Budget Crisis,” October 2, 2009
- ↑ Kansas Watchdog.org, “Kansas 2010 Budget Crisis,” October 2, 2009
- ↑ The Topeka Capital-Journal,"Employment and retail sales numbers indicate state's revenue problems won't improve soon," January 29,2009
- ↑ KMBC,"Kansas budget deficit," January 26,2009
- ↑ State of Kansas,"Governor Kathleen Sebelius amendment to FY2010 recommended budget," February 27,2009
- ↑ WIBW,"Kansas Governor makes new 2010 budget proposals," February 27,2009
- ↑ Lawrence Journal-World,"Sebelius crunches new budget numbers," March 2,2009
- ↑ Gov. Mark Parkinson, “Comparison Report FY 2010,” August 7, 2009
- ↑ National Association of State Auditors, Comptrollers, and Treasurers Web site, retrieved October 22, 2009
- ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- ↑ National Association of State Auditors, Comptrollers, and Treasurers Web site, retrieved October 22, 2009
- ↑ Kansas CAFRs
- ↑ Kansas CAFR
- ↑ Institute for Truth in Accounting, Kansas
- ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009
- ↑ "What is KanView," Kansas Department of Administration
- ↑ Budget
- ↑ Ethics
- ↑ Audits
- ↑ Taxation
- ↑ Phonebook
- ↑ KORA FAQ
- ↑ State Contracts
- ↑ Lobbying
- ↑ Search "request public records"
- ↑ National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
- ↑ Wall Street Journal, "Stimulus Spending by State"
- ↑ $6.4 Billion Stimulus goes to Phantom Districts, Watchdog.org, November 17, 2009
- ↑ Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
- ↑ Fed Stimulus Creating Congressional Districts, Kansas Watchdog, November 16, 2009
- ↑ "What is KanView," Kansas Department of Administration
- ↑ http://blog.ntu.org/main/post.php?post_id=3492
- ↑ Americans for Tax Reform, "Taxpayer Transparency in Kansas – Track Your Tax Dollars at a Mouse Click," April 25, 2007
- ↑ National Taxpayers Union, "Taxpayer Group Applauds Kansas for Pioneering 'Google Government' Legislation," May 3, 2007
| |||||||
