LEGISLATIVE ACHIEVEMENTS – 2019 Session

Issues in which KPI played a key role and/or laid the groundwork 

  • 1. Association Health Plans

    Small employers are now permitted to join associations with other employers to offer health coverage at better premiums available to large groups.

  • 2. Medicaid Expansion Prevented

    KPI was part of a coalition that fought off another attempt to expand Medicaid via Obamacare.  Our experts provided testimony and participated in panel discussions, sharing research showing the devasting impact expansion has had in other states.

  • 3. Public disclosure of state subsidy programs

    After several years of highlighting the negative impacts of tax ‘incentives’ for theoretical economic development, KPI helped pass legislation requiring a public inventory of all subsidy programs and periodic audits to determine their effectiveness.

  • 4. School accountability

    KPI developed legislation requiring school districts to certify that their budgets allocate sufficient funds to Instruction – defined as a direct interaction between teachers and students – so that students can achieve statutorily-required outcomes.  The legislation passed the House, but Senate negotiators refused to consider it in negotiations on school finance legislation.  In addition to the obvious benefit to students, the legislation would provide the state with a strong legal defense for the next iteration of the current lawsuit or the next school funding lawsuit.  We’re already laying the groundwork to pass this next year.

  • 5. Prevented expansion of online sales tax collections

    A U.S. Supreme Court decision allows states to force retailers to collect sales tax even if they don’t have a physical presence in the state.  To prevent this from allowing the government to tax and spend more, KPI proposed using any new revenue from this tax to reduce the sales tax on food.  Our suggestion was incorporated in a broad tax relief bill that passed both chambers but was vetoed twice by Governor Kelly.

  • 6. Attempt to prevent the third tax increase since 2017

    KPI was part of a broad coalition attempting to reverse a state income tax increase resulting from federal tax reform.  Our bill would have allowed Kansans to itemize deductions for state purposes even if they took the federal standard deduction, and it would have prevented multinational companies from having to pay income tax on money earned overseas and repatriated.  The bill passed both chambers, but Governor Kelly vetoed it and there weren’t enough votes to override the veto.

  • 7. Electricity Rates

    KPI has been part of a multi-year coalition effort to reduce electric rates, which are the highest in the region and a major barrier to economic development. Legislation passed this year requiring the state commission to conduct a study showing why rates are so high and what corrective measures can be taken.  Utility companies opposed the legislation.

LEGISLATIVE ACHIEVEMENTS – 2018 Session

Issues in which KPI played a key role and/or laid the groundwork in prior years

  • 1. School Choice

    KPI was the leading voice in protecting Kansas’ only school choice program. We helped get the program signed into law and, in 2017, expanded but serious efforts were made to eliminate the program in 2018. Several attempts in committee and through the larger K-12 funding debate were made to eliminate the one program that helps needy students and provides accountability to low-performing schools.

  • 2. Medicaid Expansion Prevented

    KPI was part of a coalition that fought off another push to expand Medicaid; our research proved that expansion would cost Kansans over $13 billion in the first 10 years without necessarily improving outcomes. During the 2017 session, a gubernatorial veto was nearly overridden. However, in the 2018 session legislation to expand Medicaid, as part of ObamaCare, failed to make it through either legislative chamber.

  • 3. Voter Empowerment on Property Taxes

    A serious effort was made in 2018 to undermine voter input on local property tax hikes; see below for the backstory. Local government wanted to go back to the days of hiding behind “flat” mill rates while property valuations skyrocketed. Local governments were defeated in their work to disregard voter input in the name of governmental inefficiency.

  • 4. Civil Asset Forfeiture

    KPI testified with groups as diverse as the ACLU and The Federalist Society to see more transparency brought to asset forfeiture in Kansas. Asset forfeiture is where property is taken from citizens, not necessary after a crime was committed, and where citizens have very little recourse to reclaim their property. The bill in question provides much-needed transparency to law enforcement’s use of this practice. It is but the first step in a larger effort to protect the property of citizens.

  • 5. Tax Handouts and Transparency

    KPI and other groups shined light on an effort to provide tax incentives for specific types of investment in rural Kansas. Our rural communities need real economic development. They do not need tax carve outs of little benefit that simply raise taxes on the rest of the state, even other rural taxpayers. Another piece of legislation was advanced through the House that would have created a database of economic development programs in the state. We’ll work again next year, discussing economic development abuse with legislators in both parties, to see this policy made law.

  • 6. Occupational Licensure

    KPI played a supporting role in loosening restrictions on people seeking to provide basic dental cleanings, expanding multi-state licensing for nurses, and making it easier for people to become cosmetologists. Some of these efforts were successful while others were not. But, KPI continues to play a role in making it easier for customers to be served and individuals to find a job without undue barriers to entry.

  • 7. Electricity Rates

    A coalition has been working for years to bring about reform in electric utility rates. KPI joined this coalition this year and a resolution focusing on the artificially high electric rates was passed by the Senate.

  • 8. 529s

    Changes to federal tax law in 2017 allowed for 529 college-savings plans to be used for K-12 expenses. KPI worked directly with the State Treasurer to provide support and guidance to bring this change to Kansas 529 plans as well.

  • 9. Constitutional Implications of Spending

    House leadership worked directly with KPI to include language in a spending bill providing for spending hikes to be cut if the Court demanded more money for K-12 education. It took a full-court press from the opposition to get this provision removed from the appropriations bill. However, the effort highlighted the budgetary impact of continued Supreme Court meddling in K-12 finance. It was part of a larger effort to bring other constituencies into the fight for a constitutional amendment on K-12 funding.

  • 10. Constitutional Amendment

    A concerted effort to remove judicial interference in education funding decisions was undertaken for the first time in over a decade. KPI played a key role in seeing a constitutional amendment through the House Judiciary Committee, albeit this is a small step. This bill would have returned the “power of the purse” to elected legislators instead of unelected judges.

LEGISLATIVE ACHIEVEMENTS – PRIOR YEARS

Issues in which KPI played a leading or supporting role

  • 1. School Choice

    A tax credit scholarship program for low income and special needs students is the state’s first real school choice program.  Our extensive research showing student achievement is much lower than media and the education establishment reports convinced legislators that this program is necessary. During the 2017 session, we led the fight to expand the program to more eligible donors to provide more educational opportunities to students.  School districts and teacher unions try to kill the program each year, but we defeated every attempt.

  • 2. Student outcomes are more important than the amount of money spent

    Many legislators credit our work in this area with influencing the 2014 State Supreme Court on school funding (Gannon v. State of Kansas).  KPI discovered that previous court rulings were based on deliberately-skewed research designed to inflate required funding.  The Court invalidated the ‘actual cost’ method of measuring adequate funding and adopted outcome criteria (the Rosestandards) in its place.  The Court also agreed with our position that all funding sources should count. This work paved the way for the elimination of the dysfunctional school funding formula in 2015.

  • 3. Creation of a new school funding formula

    The dysfunctional 1992 school funding formula was eliminated in 2015 and a temporary two-year block grant system was put in place. The legislature failed to take advantage of this opportunity as the new formula implemented for the 2018 school year is remarkably like the old formula, whereby schools are not held to account for student outcomes and taxpayers’ money is not efficiently spent.

  • 4. State Education Aid correction

    KPI discovered that about $600 million in state-mandated property tax was being recorded as Local aid instead of State aid.  Beginning in 2015, that money must be sent to the state for distribution, so it is properly recorded as State aid.

  • 5. School Spending Transparency

    School districts are now required to post a one-page budget summary (designed by KPI) on the home page of their web sites and distribute it at every local school board meeting.

  • 6. School District Cash Reserves Now Accessible

    KPI discovered school districts were diverting education dollars to build large cash reserves while claiming to be underfunded.  Legislation was passed to remove restrictions on the use of carryover cash reserves in 2011. Legislators are considering making partial use of excess funds mandatory.

  • 7. Mandatory reporting of cash reserves to local school boards

    School districts must annually provide a detailed report of the unencumbered cash balance in every fund to local school board members.

  • 8. Alternative licensing for teachers

    People with degrees or professional certification in science, technology, engineering, and vocational fields will no longer be required to have an education degree to teach in high school.

  • 9. Equal access for non-union teacher organizations

    Prior to this 2013 law, most school districts would only permit a union to have access to teachers.  Since passage, the non-union Association of American Educators has seen membership surge and several small school districts have de-certified from their union.

  • 10. Collective bargaining reform for school districts

    The number of mandatory subjects of bargaining was reduced from 31 to a maximum of 8; each party may select up to 3 subjects in addition to pay and time worked.

  • 11. K-12 Efficiency and Student Performance

    KPI wrote the legislation to create a study commission that spent 6 months in 2014 exploring a variety of efficiency opportunities, including the consolidation of non-classroom functions across district lines.  KPI president Dave Trabert was appointed to the Commission and co-authored the Minority Report, which highlighted many important findings, including:

    • School districts don’t know how to define or measure performance against the Rose standards, which the Supreme Court now says is the litmus test for funding adequacy; if schools cannot measure Rose, they have no legal basis for claiming to lack funding to achieve the Rose standards.
    • School districts acknowledged that they choose to operate inefficiently.
    • School districts want collective bargaining reform to dramatically reduce the number of mandatory subjects of bargaining.
  • 12. Universities required to publish degree prospectus

    State schools must publish a prospectus for degree programs, including the average number of years and total cost required to complete and the earning potential upon completion.

  • 13. College savings accounts

    Changes to federal tax law in 2017 allowed for 529 college-savings plans to be used for K-12 expenses. KPI worked directly with the State Treasurer to provide support and guidance to bring this change to Kansas 529 plans as well.

  • 14. Income tax cuts

    Historic income tax cuts that could have ultimately led to the elimination of the state income tax.  KPI paved the way by showing that Kansas was headed for budgetary disaster without tax reform and then showed legislators that spending control is the key to tax reform. The 2016 election sent new legislators to Topeka who approved the largest tax increase in state history and undid all of the positive economic benefits of allowing citizens to keep more of their hard-earned money, but our original effort still produced $2.8 billion in income tax savings through fiscal year 2016.

  • 15. Union giveaways

    Multiple proposals have been put forward in recent years to reward unions, both public and private sector, for their defense of governmental and special interests at the expense of taxpayers. Tenure for public school teachers was made a prerogative of local districts rather than state-mandated several years ago, with KPI’s help, and efforts to repeal this important change were beat. The idea of paying a prevailing wage, thereby helping cost-inflated union projects and costing taxpayers more money, was introduced and defeated this year. An attempt to effectively eliminate Right to Work was also defeated.

  • 16. Property tax reform

    With some exceptions (including but not limited to the value of new construction and spending on public safety) cities and counties cannot increase property taxes by more than inflation without voter approval.  Another property tax bill allows tax appeals to be taken to District Court after a full opinion has been rendered by the Board of Tax Appeals. Appeals to the District Court are considered de novo trials with evidentiary hearings during which issues of law and fact will be determined anew.  The bill also includes improvements in the valuation of oil and gas leases and there are multiple improvements to the appraisal and appeals process to become more taxpayer-friendly.

  • 17. Public Pension Reform

    Multiple studies showing the true nature of the unfunded liabilities in the Kansas Public Employees Retirement System (KPERS) led to 2013 reform that puts new and unvested employees into a hybrid cash balance plan instead of the defined benefit plan.  KPI continues to be the driving force for ending the defined benefit plan for all employees and putting everyone into a defined contribution / 401(k) plan.

  • 18. Performance-based budgeting

    Passed in 2016, this law requires each agency to prioritize programs and functions according to effectiveness and show the cost of each. The Legislature allowed three years for the plan to be implemented.  The progress so far has been slow and less than effective but KPI is monitoring the process.

  • 19. Civil asset forfeiture

    KPI testified with groups as diverse as the ACLU and The Federalist Society to see more transparency brought to asset forfeiture in Kansas. Asset forfeiture is where police take property from citizens when a crime is suspected to have been committed, and where citizens have very little recourse to reclaim their property if not charged or found guilty. We passed a law requiring police to publish lists of all property taken, which is the first step in a larger effort to protect property rights

  • 20. Live streaming of committee hearings

    Much of the legislature’s work happens in committee hearings that are now viewable online. Prior to the passage of this law, only those in the capitol itself were able to truly understand the goings-on in committee. This is a huge transparency win.

  • 21. Renewable Energy Mandate made voluntary

    The fear of losing a lifetime property tax exemption for the renewable energy industry prompted negotiation to eliminate the mandate in exchange for keeping a 10-year tax exemption.

  • 22. Court of Tax Appeals (COTA)

    Our efforts on property tax reform also were instrumental in many changes to the appeals process that created a more taxpayer-friendly environment. COTA was changed to a Board of Tax Appeals, taxpayers will receive information needed to file appeals on a timelier basis, valuations on victorious appeals must remain in place for two years and the Board may no longer make arbitrary decisions on who may represent taxpayers on their behalf.

  • 23. Uniform School Accounting System

    Our work on school funding drove legislation requiring school districts to use a standard accounting and reporting system and annually post spending information on their web sites.

LEGISLATIVE ACHIEVEMENTS – PRIOR YEARS

Issues in which KPI played a leading or supporting role