adv-web.jpgApril 29, 2016 Advocacy Update

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I. Kansas Supreme Court Ruling

The Legislature passed HB 2655 on March 24 in response the Court’s ruling. Details below.

Parties have submitted briefs; oral arguments scheduled May 10.

II. State Revenue and Budget

April Consensus Revenue Estimate for 2016 and 2017.

Changes from November

2016:        Tax Revenue Reduced $177.1 million

Other Revenue (Transfers) Increased $83.2 million

Net Receipts Reduced $93.9 million

2017:        Tax Revenue Reduced $170.7 million

Other Revenue (Transfers) Increased $36.0 million

Net Receipts Reduced $134.7 million

Two Year Change: Combined Reduction of $228.6 million in total revenues

Tax Revenue Only*

2016

2017

April Estimate

$ 5,871,000

$ 6,025,100

July Adjustment

$ 6,223,019

$ 6,396,195

(Tax Increase)

$ 352,019

$ 371,095

November Estimate

$ 6,041,800

$ 6,209,900

April Estimate

$5,864,700

$6,039,200

Reduction from July

($358,319)

($356,995)

Change from Previous Year

$ 147,347 (2.6%)

$ 174,500 (3.0%)

*Thousands of Dollars

State General Fund Budget as Adopted by Legislature after April revenue revisions:

Governor’s Budget Options’

Option One - Ending Balances: FY 2016, $28.7 million; FY 2017, $72.2 million

Governor’s Allotment Authority

Option Two - Ending Balances: FY 2016, $27.7 million; FY 2017, $40.2 million

Governor’s Allotment Authority

Option Three - Ending Balances: $29.7 million, FY 2017, $35.8 million

Governor’s Allotment Authority

Link to Governor’s Budget Amendment: http://budget.ks.gov/files/FY2017/GBA1_04-20-2016.pdf

III. Bills Signed by Governor

School District Audits

SB 312 - Auditing unified school districts. Passed Senate 39-0; passed House 117-4. Signed by Governor 3/21/16

The bill would extend the sunset of a statute requiring the Legislative Division of Post Audit to conduct three school district efficiency audits each fiscal year from June 30, 2017, to June 30, 2020. The bill also would allow a school district to decline participation in an efficiency audit if the district has participated in a similar audit in the past 10 years. Current law allows a school district to decline participation if it has participated in a similar audit in the past five years.

KASB testified in support of the bill. (KASB Testimony)

(Identical bill, HB 2441 - Legislative Post Audit Committee; auditing unified school districts; Passed House 122-0. S. Education amended to contains subject of SB 444, language assessment for deaf and hard-of-hearing students.

Local Option Budget and Capital Outlay Equity

HB 2655 - Amendments to the CLASS Act regarding supplemental general state aid and capital outlay state aid. Passed Senate 32-5; House concurred in Senate amendments 93-31. Signed by Governor 4/6/2016

Contains the following:

Impact to School Districts

Juvenile Justice Reform

SB 367 - Amendments to juvenile justice system. Conference Committee Report adopted. Signed by Governor 4/11/2016

The bill would implement recommendations of the Juvenile Justice Working Group with a goal of reducing the number of juveniles in state custody. Specific provisions concerning school districts include:

KASB was neutral but offered comments and concerns in conjunction with school administrators organizations. KASB analysis and KASB/USA/KSSA testimony.

IV. Conference Committee Reports Adopted

Data Privacy

S Sub for HB 2008 - Creates the Student Online Personal Protection Act; conference committee report adopted by Senate 40-0; House 115-2.

Senate Sub. for HB 2008 would enact the Student Online Personal Protection Act (SOPPA). The bill would prohibit an operator (defined as the operator of an educational online product with actual knowledge the product is used primarily for educational purposes and was designed and marketed for educational purposes) from knowingly:

For the purposes of the bill, the term “operator” would not be construed to include any school district or school district employee acting on behalf of a school district employer.

Operators would be required to:

The bill also outlines several instances when an operator may disclose information, including the following:

The bill would clarify other instances where the bill’s provisions are not intended to apply and would define key terms.

Finally, the bill would allow the Attorney General or any district attorney to enforce SOPPA by bringing an action in a court of competent jurisdiction and to seek injunctive relief to enjoin an operator in possession of student information from disclosing any student information in violation of SOPPA.

Related bills:

SB 342 - Creates the Student Online Personal Protection Act; passed Senate 39-0. In H. Education.

As amended, KASB is neutral. [KASB Testimony]

KPERS Working After Retirement

H Sub for SB 168 - Providing certain provisions relating to working after retirement.

Summary: House Sub. for SB 168 would revise provisions of the Kansas Public Employee Retirement System (KPERS) statutes pertaining to working after retirement, the calculation of final average salary, and certain reporting requirements. The bill also would make technical and clarifying amendments to statutes pertaining to death and disability contributions, Tier 3 members, the tax status of 457 Roth accounts, optional 401(a) plans for local public employers, retirement income planning, and the Deferred Retirement Option Program (DROP).

Working After Retirement

No prearrangement. When filing an application for retirement, an employee will have to certify to KPERS that the individual will not be employed by a participating employer within 60 days of ending employment and there is no prearranged agreement for employment with any participating employer.

The bill defines the term “prearranged agreement for employment” to mean one where the fact and circumstances of the situation indicate that the employer and employee reasonably anticipated further services would be performed after the employee’s retirement.

When hiring a retirant, the appointing authority of a participating employer will certify to KPERS there was no prearranged agreement for employment. If KPERS determines a retirant entered into a prearranged employment agreement with a participating employer, the retirant’s monthly benefit would be suspended for the duration of the reemployment period plus six months after the termination of the employment. The retirant would pay to KPERS all monthly retirement benefits paid since the prearranged employment began. A participating employer, such as a school district, that prearranged an employment agreement would be required to indemnify KPERS for legal costs and any costs imposed by the Internal Revenue Service.

Grandfather for pre-2015 retirees extended. The bill would extend the current exceptions to the earnings cap by three years, from July 1, 2017, to July 1, 2020, for licensed school professionals who retired prior to May 1, 2015.

Protocol for certain school exceptions. The bill changes a provision in the retirement law passed last session regarding certain exceptions, including hard-to-fill positions in school districts, special education teaching position, and hardship cases. Rather than requiring approval from the Joint Committee on Pensions, Investments and Benefits, the participating employer would file an assurance protocol with KPERS to extend the exception by one year. For hardship positions, the exception could be extended in one-year increments for a total extension not to exceed three years. The filing of an assurance protocol would be required for each one-year extension. The protocol would state the position was advertised on multiple platforms for a minimum of 30 days and that one or more of the following conditions occurred:

No applications were submitted for the position;

If applications were submitted, none of the applicants met the employer’s reference screening criteria; or

If applications were submitted, none of the applicants possessed the appropriate licensure, certification, or other necessary credentials for the position.

If submitted by a school district, the superintendent and board president would sign the protocol. If submitted by a municipality, which would be defined by statutory reference, the governing body or its designee would sign the protocol. The Joint Committee would continue to have the authority to review extensions.

Limits on working under exceptions. Under current law, an individual who retired on or after May 1, 2015, may earn no more than $25,000 from a participating employer before deciding to either terminate employment or forgo monthly KPERS benefits until the end of the calendar year. For an exception period of three school years or 36 months, whichever is less, the earnings cap does not apply to certain hardship, special education, or hard-to-fill positions in school districts. The bill would extend the exception period to four school years or 48 months, whichever would be less. The extended exception period would apply to the individual’s total term of employment with all employers under one or more of the hardship, special education, or hard-to-fill exceptions. The cap would then apply regardless of the employer or position filled. Participating employers would pay a 30 percent employer contribution to KPERS.

Evaluation of employer contribution rate and compensation limits for retired employees. By July 1, 2019, and at least every three years thereafter, the KPERS Board of Trustees would evaluate the Retirement System’s experience with employed retirants and would certify a new rate, which would not be less than 30 percent.

The bill would extend the deadline placed on the Joint Committee on Pensions, Investment and Benefits, from July 1, 2016, to July 1, 2021, to study the compensation limitations place on retirants who work after retirement.

Note: the bill does not include two provisions passed by the House:

The conference committee did not include provisions of HB 2724 - Placing limits on calculation of KPERS benefits related to amounts taxable under 409A and 457(f) plans, as recommended by H. Pensions and Benefits; passed House 72-53. In Senate Ways and Means.

The conference committee did not agree the House-passed provision that if an employee waits to retire until they reach age 62, they can return to work with no earnings cap, no limit on the number of years they can work after retirement, and they can remain in the same district or move to a new school district.

Suicide Prevention (Jason Flatt Act)

Included in SB 323.

The bill creates Jason Flatt Act would require the board of education of each school district to provide suicide awareness and prevention programming to all school staff.

The bill would require such programming to include at least one hour of training each calendar year based on programs approved by the Kansas State Board of Education (KSBE), which could be satisfied through independent self-review of suicide prevention training materials.

It also requires a building crisis plan developed for each school building, including steps for recognizing suicide ideation, appropriate methods of interventions, and a crisis recovery plan. The bill also would require each school district to notify parents or legal guardians of students enrolled in such district that the training materials provided under such programming are available. The bill would prohibit a cause of action from being brought for any loss or damage caused by an act or omission resulting from the implementation of the provisions of the bill, or resulting from any training, or lack of training, required by the bill.

Further, the bill would state nothing in this section shall be construed to impose any specific duty of care. The bill would require KSBE to adopt rules and regulations necessary to implement the Jason Flatt Act by January 1, 2017.

Deaf/Hard of Hearing Language Assessment

The bill would establish a language assessment program coordinated by the KCDHH with the purpose of assessing, monitoring, and tracking the language developmental milestones of children who are deaf or hard of hearing from birth to age eight. In addition to defining other key terms, the bill would define “language” as a complex and dynamic system of conventional symbols used in various modes for thought and communication. The recognized languages used in the education of children who are deaf and hard of hearing would be English and American Sign Language (ASL). The scope of the program would include children who may use one or more communication modes in ASL, English literacy, and, if applicable, spoken English and visual supplements. On and after July 1, 2018, the bill would require an annual language assessment to be given in accordance with the bill’s provisions and any rules and regulations adopted pursuant to the bill to each child who is deaf or hard of hearing and who is younger than age nine. The assessment would be provided either through early intervention services administered by the Kansas Department of Health and Environment (KDHE) or, if the child is age three or older, through the school district in which the child is enrolled.

The bill also would establish a 16-member advisory committee on the language assessment program (Advisory Committee) within the KCDHH. The Governor would appoint nine members with the following qualifications:

The remaining seven members, or their designees, would be ex officio members: the executive director of KCDHH; the coordinator of the Sound Start Program; the KCDHH member representing the State School for the Deaf; the KCDHH member representing KDHE; the KCDHH member representing the KSBE; the coordinator of the KDHE Early Intervention Program; and the coordinator of the Kansas State Department of Education (KSDE) Early Education Program.

The executive director of KCDHH would call an organizational meeting of the Advisory Committee on or before August 1, 2016, where the members would elect a Chairperson and Vice-chairperson. The bill would authorize the Advisory Committee to meet at any time and at any place within the state on the call of the Chairperson. The bill would specify a quorum would be nine members and all actions of the Advisory Committee would be by motion adopted by a majority of members present when there is a quorum.

The Advisory Committee would be charged with developing specific action plans and proposed rules and regulations necessary to fully implement the language assessment program by January 31, 2018, and would cease to exist after July 1, 2018. To carry out its charge, the bill would require the Advisory Committee to:

Collaborate with the Coordinating Council on Early Childhood Developmental Services and the Kansas State Special Education Advisory Council;

Solicit input from professionals trained in the language development and education of children who are deaf or hard of hearing on the selection of specific language developmental milestones;

Review, recommend, and monitor the use of existing and available language assessments for children who are deaf or hard of hearing;

Identify and recommend qualifications of language professionals with knowledge of the use of evidence-based, best practices in English and ASL who can be available to advocate at individualized family service plan (IFSP) and individualized education program (IEP) team meetings;

Identify qualifications of language assessment evaluators with knowledge on the use of evidence based, best practices with children who are deaf or hard of hearing and resources for locating such evaluators; and

Identify procedures and methods for communicating information on language acquisition, assessment results, milestones, assessment tools used, and progress of the child to the parent or legal guardian of such child, teachers, and other professionals involved in the early intervention and education of such child.

The bill would require the specific action plans and proposed rules and regulations developed by the Advisory Committee to include the following:

The bill would require KSDE, KDHE, and the State School for the Deaf to enter into interagency agreements with KCDHH to share statewide aggregate data. Further, on or before January 31, 2019, and annually thereafter, the bill would require KCDHH to publish a report specific to language and literacy development of children who are deaf or hard of hearing for each age from birth to age eight, including those who are deaf or hard of hearing and have other disabilities, relative to such children’s peers who are not deaf or hard of hearing. The report would be based on existing data reported in compliance with the federally required state performance plan on pupils with disabilities. KCDHH also would be required to publish the report on its website.

State Aid for Capital Improvements

The bill would amend the capital improvement state aid formula (bond and interest state aid) for school districts’ general obligation bonds approved at an election held on or after July 1, 2016. For such bonds, the bill would place a cap on the total amount of capital improvement state aid available. This cap could not exceed the six-year average amount of capital improvement state aid as determined by the KSBE. The bill would use the same formula for calculating capital improvement state aid as currently exists under the block grant to school districts.

The bill would require the KSBE to determine this six-year average by calculating the average of the total amount of capital improvement state aid spent per year in the immediately preceding six fiscal years, but not including the current fiscal year.

The bill would instruct the KSBE to use the following priorities (from highest to lowest priority) when allocating capital improvement state aid:

The bill would further instruct KSBE, when allocating capital improvement state aid, to give a higher priority to school districts with a lower assessed valuation per pupil compared to other districts who are to receive capital improvement state aid.

Further, the KSBE would be required to provide approval of the amount of capital improvement state aid a district could expect to receive before the district holds a bond election. At the beginning of the 2017 Legislative Session, and each year thereafter, the KSBE would be required to submit a report to the Legislature including information on school district elections held on or after July 1, 2016, and the amount of capital improvement state aid approved.

Bills in Conference - Tentative Agreement

Small Business Income Tax Exemption

SB 63 - Full repeal of small business exemption repeal. Estimated to raise $269 million. (Text of conference committee report not available.)

Open Records

SB 22 - Among other provisions, the bill makes changes to the Kansas Open Records Act.

The bill would amend the definition of “public record” to clarify that the specified recorded information would fall under the definition regardless of the location of the information.

The bill also would add to this definition any recorded information that is made, maintained, kept by, or is in the possession of any officer or employee of a public agency pursuant to the officer’s or employee’s official duties, and is related to the functions, activities, programs, or operations of any public agency.

The bill would specify that the definition of “private person” used in defining records that are not public shall not include an officer or employee of a public agency who is acting pursuant to the officer’s or employee’s official duties.

The bill also would remove “officer” from the definition of “public agency” and would no longer exempt from this definition officers or employees of the State or localities who have their offices open to the public fewer than 35 hours a week. Finally, the bill would make additional technical and non-substantive structural changes.

Bill Passed by Both Houses - in Conference

Contracts among Municipalities

HB 2163 - Municipalities; contracts with other municipalities. Passed by Senate; House: Nonconcurred; Conference Committee requested; appointed Huebert, Phillips and Alcala; Senate acceded; appointed Pyle, Fitzgerald and Faust-Goudeau.

KASB testified in support during the 2015 session.

Income Tax Checkoff for Schools

H Sub for SB 149 - Income tax; relating to income tax returns and instructions, use tax remittance, checkoff for schools; credits, angel investment credit. Passed House 122-3; Senate: Nonconcurred; Conference Committee requested; Senate appointed Donovan, Tyson and Holland; House appointed Kleeb, Sawyer and Suellentrop.

Among other income tax provisions, the bill was amended to include provisions of HB 2590 that would create a new individual income tax checkoff program authorizing taxpayers to donate to local school districts of their choice. Donations could be made in an amount of $10, $25, $50, or any other amount designated by taxpayers (including the entire amount of a given refund). Moneys donated would be required to be treated as donations to school districts and be reported as gifts for purposes of the Kansas Uniform Financial and Reporting Act.

KASB did not testify on the original bill HB 2590.

Children in State Custody; School Funding

SB 418 - Human trafficking, children in need of care and juvenile offenders. Passed Senate 28-8. Recommended as amended by H. Judiciary, passed House 125-0; Senate: Nonconcurred; Conference Committee requested; Senate appointed King, Smith and Haley; House appointed Barker, Macheers, and Carmichael.

The bill would create and amend the law related to human trafficking, sexual exploitation of a child, children in need of care, and juvenile offenders. As amended by Senate Committee of the Whole, creates the juvenile out-of-home placement education fund. If a child is placed under the Child in Need of Care or Juvenile Justice costs and is removed from attending a school district:

The House committee removed the educational funding provisions.

KASB did not testify on the original bill. In House Judiciary, KASB testified as neutral but opposed the educational funding provisions.

IV. Other Bills with Action this Week

SB 508 - Income taxation; relating to determination of income; limiting certain modifications to business income. Hearing held in S. Assessment and Taxation.

The bill would subject to state income tax a portion of certain business income exempted  the 2012 tax bill. It is estimated to raise $170 million for fiscal year 2017.

V. Bills on Senate General Orders

Juvenile Justice Reform

S Sub for HB 2382 - Amendments to juvenile justice system. Recommended by S. Judiciary, on Senate General Orders.

The bill contains the same items as SB 367 - Amendments to the juvenile justice system, which passed Senate 38-2. (H. Corrections and Juvenile Justice, has recommended an amended version, which was on House Final Action for March 18. Passage of S Sub for HB 2382 by the Senate would allow immediate conference committee.)

The bill would implement recommendations of the Juvenile Justice Working Group with a goal of reducing the number of juveniles in state custody. Implications for school districts include:

KASB was neutral but offered comments and concerns in conjunction with school administrators organizations. KASB analysis and KASB/USA/KSSA testimony

VI. Bills on House General Orders

Common Core Prohibited

Sub for Sub for HB 2292 - Development and establishment of K-12 curriculum standards; relating to the student data privacy act. Recommended by H. Education, re-referred to H. Education, further amended to replace previous language; on House general orders; motion to recommend favorably failed.

New substitute bill contains the following provisions:

Impact of new substitute language:

The previous version of the bill, now deleted, would:

KASB opposes the bill for the following reasons:

State Aid for Capital Improvements

HB 2486 - Providing a cap on capital improvement state aid for future bond payment obligations of school districts. Recommended by H. Education, on House General Orders.

This substitute bill was substantially changed from the original and contains the following provisions:

Implications for school districts:

KASB testified against the original bill. The amended bill addresses some of those concerns. KASB Testimony.

Related bills:

SB 356 - Substitute bill recommended by S. Education, on Senate General Orders.

Open Meetings/Records

SB 361 - Open records act; definitions, public agency and public record. Passed Senate 39-0. Recommended by H. Judiciary, on House General Orders.

The bill would amend definitions included in the Kansas Open Records Act (KORA) as follows:

KASB did not testify on the bill. KASB will seek clarification that the bill does not apply to individual school board members. The bill would apply to the public records of a school district, as maintained by the district under the Kansas Open Records Act.

Concealed Weapons/Air Guns at School

H Sub for SB 65 - Carrying of concealed handguns by public employees while engaged in employment. Substitute bill recommended by H. Federal and State Affairs; on House General Orders.

As passed by Senate:

House Federal and State Affairs Committee added language of HB 2468 - Authorizing possession of air guns on school property, which previously passed House 94-26; scheduled for hearing in S. Federal and State Affairs March 22..

KASB opposed the bill (testimony):

The amended bill contains several other provisions concerning weapons.

Expanding Tax Credits to Non-Public Education

HB 2457 - Amending the tax credit for low income students scholarship program act; recommended as amended by H. Education. On House General Orders; passed over, retains place on calendar.

Makes the following major changes to current law (as amended by H. Education):

KASB opposes the bill for the following reasons:

KASB Testimony - Opposed

Potential Participation in Private School Scholarship Program

Students in Public Schools:

Student in Private Schools:

Human Sexuality Education

HB 2199 - Human Sexuality Education, School District Policies. Recommended by H. Education; on General Orders

The bill would:

KASB opposes the bill on the grounds that decision to have an “opt in” or “opt out” policy should be made by local schools, not the state. KASB Testimony (last session)

Ethnic Studies

HB 2207 - Development and implementation of ethnic studies in schools. Recommended as amended by H. Education; on House General Orders. Provisions of the bill were amended into HB 2532, including financial literacy as an educational capacity, which subsequently failed on House Final Action, 43-81.

The bill would require the State Board to develop state curriculum standards for ethnic studies for grades seven through 12. The standards would be developed within existing history, social studies, or civics curriculum. The bill also would require the State Board to encourage school districts to select textbooks and supplemental materials containing substantive information on ethnic studies, excluding those textbooks and materials that advocate for social justice remedies.

KASB did not testify on the bill.

VII. Bills Passed one House, in Second Committee

Professional Negotiations

SB 469 - Recertification of professional employees’ organizations under the Professional Negotiations Act. Recommended by S. Commerce; passed Senate 22-18, referred to H. Appropriations.

KASB supports the current Professional Negotiations Act as amended in 2015 to implement an agreement between KASB, Kansas National Education Association, United School Administrators, and the Kansas School Superintendents Association.

Emergency Safety Intervention

HB 2534 - Amendments to the freedom from unsafe restraint and seclusion act; Schools; relating to restraint and seclusion of students, recommended as amended by H. Children and Seniors. (Exempt) Passed House 120-0; in S. Education; no hearing scheduled.

Weapons - Air Guns

HB 2468 - Authorizing possession of air guns on school property. On House General Orders; recommended as amended by H. Federal and State Affairs (Exempt) Passed House 94-26; in S. Federal and State Affairs; hearing held.

KASB opposed the bill (testimony):

Regulation of Nutrition Labeling

HB 2595 - Reserving regulation of consumer incentive items and nutrition labeling for food menu items in restaurants and vending machines to the legislature. Recommended by H. Commerce. Passed the House 89-34; not yet referred.

The bill would pre-empt regulation of food items by local governments. Three amendments have been adopted to concerns raised by KASB and other local governments and organizations:

KASB testified in opposition on the grounds that schools must comply with federal school nutrition laws and regulations.

KPERS Final Salary

HB 2724 - Placing limits on calculation of KPERS benefits related to amounts taxable under 409A and 457(f) plans. Recommended by H. Pensions and Benefits; passed House 72-53. In Senate Ways and Means.

KASB did not testify on the bill.

Foster Care Pilot Program; Educational Funding for Non-Public Schooling

SB 410 - Revised Kansas code for care of children; authorizing a CARE family pilot program for foster care; passed Senate 24-14. In H. Judiciary, hearing held.

The bill would allow the Secretary for Children and Families to establish a category of foster care to be known as a CARE family, which the Kansas Department for Children and Families (DCF) could select and license only if it met a number of social and educational standards, and would serve on a volunteer basis and would not receive payment or reimbursement for care of any child placed with the family.

KASB did not testify on the original bill; testified against the educational funding provisions in the House committee.

VIII. Bills Remaining in First Committee - Recent Hearings

School FInance Equity - Hold Harmless

SB 515 - A hearing was held Wednesday before S. Ways and Means. The bill was amended and placed into House Bill 2655. Senate substitute for HB 2655, on March 24, passed the full Senate 32-5; Passed House 93-31.

School Finance Equity

SB 512 - Court ordered redistribution of district funds act. Recommended by S. Ways and Means, referred by Committee of the Whole to S. Ways and Means.

The bill was introduced to respond to the Kansas Supreme Court order, to address inequities found by the court in local option budget and capital outlay state aid.

SB 512 does the following:

Impact on school districts:

KASB testified as neutral supporting restoration of the previous equalization formulas; opposing the reduction in block grant operating funds to pay for the equalization.

Resources:

From Kansas Legislative Research Department: “AVPP Ranks with LOB Percent Used and Mill Levies

From Kansas State Department of Education: “School Finance: What’s New” page provides links spreadsheet on both SB 512 and HB 2731 impact. Specifically, Excel file for SF 16-122 shows:

From KASB: “The Gannon equity decision and the impact of state aid changes on local property rates and per pupil revenues” PDF and Interactive; appendix 1 of this report beginning page 20.

Related bills:

HB 2740 - Amendments to the CLASS Act regarding supplemental general state aid and capital outlay state aid. Hearing held Wed. March 23 in H. Appropriations. Contents of bill placed in SB 59 and voted favorable for passage.

HB 2731 - Amendments to CLASS act regarding local option budget and capital outlay equalization. In H.  Appropriations. Hearing and discussion held, no vote, no apparent majority to pass; no further action scheduled.

Identical to SB 512 with the following exceptions:

State Income and Sales Tax

HB 2444 - Eliminating the business non-wage income tax exemption and reducing the sales tax rate on food. In H. Taxation, hearing held.

KASB testified as neutral, supporting the repeal of the business income exemption to raise state revenue, but opposing the reduction in food sales tax in order to retain the income tax revenue.

Unencumbered Balances

SB 505 - School finance; general state aid adjustment for unencumbered cash balances. In S. Ways and Means, hearing held; no further action scheduled.

Implications for Districts:

Related bills:

HB 2728 - School finance; general state aid adjustment for unencumbered cash balances. Introduced, referred to H. Appropriations. No hearing held.

Identical to SB 505 (above).

School District Procurement

HB 2729 - Requiring school districts to procure specific spend categories through the department of administration and bidding services; Recommended by H. Education Budget; on House General Orders; Re-referred to H. Education Budget.

Implications for districts:

Related bills:

 

SB 499 - Requiring school districts to strategically source specific spend categories through the department of administration; In S. Ways and Means; hearing held, no further scheduled.

Implications for districts:

School District Insurance Pools (Not Health)

HB 2730 - Authorizing the establishment of a school district group-funded pool for insurance purposes. Introduced, referred to H. Financial Institutions; no hearing held or scheduled.

Transfer of KSDE Fiscal Staff

SB 311 - Transfer of administration of school finance from the state board of education to the department of administration and secretary of administration. In S. Ways and Means. Hearing scheduled for March 10 cancelled.

KASB testified in opposition. (Testimony)

Data Privacy

HB 2588 - Requiring encryption of student data; in H. Education, hearing held; chair proposed conceptual amendments; will ask for further study.

KPERS Calculation of Final Average Salary

HB 2725 - Limiting compensation related to accumulated leave and 409A and 457(f) plans for purposes of computing final average salary for retirement benefits under KPERS. In H. Appropriations; hearing held. No action scheduled.

Prohibits regular KPERS employees from accumulating more than 240 hours of vacation leave or using sick leave accumulated after July 1, 2016 for computation of benefits. Amounts in excess already accumulated as of July 1 may be used. The bill also prohibits income taxable under sections 409A and 457(f) of the federal internal revenue code from being used to compute benefits.

Approval of certain tax levies and bonds

HB 2719 - Concerning local government; relating to certain taxing jurisdictions, approval of levies and bonds by electors or elected body. H. Taxation, hearing held, March 14.

IX. Bills with No Recent or Scheduled Action - in Committee

Energy Conservation Projects

HB 2418 - Review of and limitations on contracts and lease-purchase agreements for energy conservation measures. In H. Commerce Subcommittee report approved; no hearings scheduled. (Exempt)

KASB will review the amended language.

School District Income Tax Checkoff

HB 2590 - Income tax contributions for benefit of school districts, in H. Taxation, hearing held Mar. 2.

KASB did not testify on the bill.

Sports Head Injuries

HB 2578 - School sports head injury prevention act. Passed House 70-53. In S. Public Health and Welfare.

KASB did not testify on the bill.

KPERS

HB 2489 - Providing a moratorium on KPERS death and disability contributions for a portion of FY 2016 and FY 2017, and applying accidental death benefits and annuity interest rates for members under the KPERS act of 2015. Passed House 90-34; referred to S. Select Committee on KPERS.

KASB did not testify on the bill.

Bullying and Harassment

HB 2698 - Requiring school districts to adopt certain policies against bullying, harassment and cyberbullying. In H. Education, hearing held.

School Finance in Legislature

HB 2596 - Creating the classroom-based funding act; Hearing held in H. Education, (Non-exempt)

USA|Kansas School Finance group working on proposals

School Consolidation or Realignment

HB 2504 in H. Education, hearing held Feb.3. No further action expected. (Exempt)

HB 2504 - School district realignment

Key Issues:

KASB Support materials:

Information on Question Submitted Elections

SB 368 - Prohibition against using public funds or resources to promote question submitted election issues; use of bond proceeds; in S. Ethics and Elections, hearing held Feb. 4, no action scheduled. (Not exempt)

Key Points from KASB in opposition (testimony)

Judicial Selection

HCR 5005 - Constitutional amendment changing the selection process for Kansas Supreme Court Justices, failed to receive a two-thirds majority Feb. 4. Final vote was 68 votes for and 54 votes against. Roll Call Vote

HCR 5013 - Relating to the judiciary, placing the court of appeals into the constitution, changing the membership of the supreme court nomination. In H. Judiciary hearing held Feb. 17. (Exempt)

Open Meetings/Records

HB 2325 - Enacting the public employee bargaining transparency act. Hearing held in H. Commerce held; discussion held; amended substitute bill proposed. (Non-exempt)

Capital Outlay for Redevelopment Projects

HB 2475 - Exempting the capital outlay mill levy from redevelopment districts established after June 30, 2016. In H. Taxation. Hearing scheduled for Feb. 10 cancelled. (Exempt)

X. Bills Killed on General Orders

Financial Literacy

HB 2532 - Including financial literacy as an educational capacity. Recommended by H. Education. Failed on House Final Action, 43-81

The bill would add “financial” to the “sufficient knowledge of economic, social, and political systems to enable the student to make informed choices,” that one of the seven “Rose” capacities. It was amended by the House Committee of the Whole to include provisions of HB 2207, development and implementation of ethnic studies in schools; then failed on final action.

KASB supports the original bill. KASB testimony. (KASB did not testify on HB 2207.)

School District Accounting

SB 188 - Publication requirements under the Kansas uniform financial accounting and reporting act. Failed on House Final Action, 58 for and 61 against. Roll Call Vote. Motion to reconsider failed.

The bill revises requirements for posting certain documents on a district’s website homepage on or before November 1 of each year; redefines Budget at A Glance and Budget Summary.

KASB opposed the bill

XI. State and School District Efficiency Report

KASB Summary and Analysis of A&M Report 

Special Committee on K-12 Student Success

Final meeting Jan. 19 approved report

K-12 Committee Recommendations and Related Issues and Bills

General Principles

Accountability and Assessments

At-Risk Funding

Bonding by Local School Districts

Accounting

Efficient Use of Taxpayer Money

Standards

Other Committee Topics

Other School Finance Items

KASB Achievement and Funding Research

KASB Resources


Appendix 1 - Equalization Issues

KASB Resource: Spreadsheet on assessed valuation and impact of changes in LOB and Capital Outlay Aid

Change LOB formula in 2015 SB 7 results in higher mills to fund adopted local option budgets this year in about 80 percent of districts, but the amount of increases varies significantly. (A few districts were able to lower mill levies.)

The court’s objection is that changes in SB 7 result in greater disparities in mill levies required to fund comparable budgets. These charts and spreadsheet compare what districts would have received under the pre-SB 7 formula with the SB 7 formula that was “locked into” the block grants.

Under the block grant bill, districts were able to raise their mill levy to make up for lost revenue, but there was no further “equalization” aid; therefore the amount required varies significantly.

2015 SB 7 also reduced the capital outlay aid formula, then added any capital outlay received by districts into the block grant. The spreadsheet and following chart shows about 25 percent of districts receive no state aid and were not affected; other lost as much as $140 per pupil due to the state aid reduction.

Simplest option for Legislators: return to the previous formula

LOB State Aid: Equalize to the 81.2 percentile (Previous Formula)

Example of Impact of Change in Assessed Valuation Per Pupil at 81.2 Percentile

Capital Outlay Aid (Previous Formula):

How would these changes impact your district:

KSDE Spreadsheets for LOB and Capital Outlay Aid - comparing block grant amount with old formula

Net Cost to state to reduce to previous formulas:

Why might your district gain aid even though AVPP dropped?

Why might your district still lose aid?

Remember, state aid loss or gain doesn’t show what happens to mill levies - the real impact of equalization.

Impact of change in Bond and Interest Aid

What 1 mill raises in each district

2014_One_Mill_Raises_Per_Pupil.jpg

Appendix 2 - State Budget for K-12 Funding Information

State Budget Highlights

H Sub for SB 161 - Appropriations revisions for FY 2016, FY 2017 and FY 2018 for various state agencies (Pending enrollment)

Conference Committee Report adopted by House, 68-54, Senate 22-16

Conference Committee Report Explanation

Block Grant Funding:

School District Block Grants funding to school districts unchanged except for KPERS funding

Early Childhood Programs:

KPERS Adjustments and Allotment Authority:

Other Budget Documents:

Previous Documents:

Projected Revenues, Expenditures and Ending Balances (based on November Consensus Revenue Estimates, not actual collections):

How has state funding for K-12 changed in recent years:

table.png

Kansas and National Economy