Session begins on the RIGHT note

Dear Friends,

Well, we are in the second week of the 2012 Legislative Session and have heard Governor Brownback’s State of the State address laying out his budget and agenda for this session.

On the budget front, Governor Brownback has proposed a modest decrease of .6% (approximately $39 million) for the 2013 State General Fund beginning July 1. Our 2012 budget increased 7% ($400 million) over the 2011 budget. The 2013 cut is minimal, but the good news is we’re heading in the RIGHT direction!

His budget proposal also included an ending balance of 7.5%. Unfortunately there was a miscalculation and the correct ending balance is actually $365 million or a 6.2% ending balance. Naturally, the governor is getting hammered in the press for his staff not verifying revenue numbers with the Department of Revenue before releasing the governor’s 2013 budget.

The Topeka Capital-Journal reported strident criticism of the budget error from Senate Minority Leader Anthony Hensley, D-Topeka, and Republican Senator John Vratil, R-Leawood. But wait. According to the governor’s spokeswoman, Sherriene Jones-Sontag, it wasn’t technically an error but a misunderstanding because the “pro-growth” tax policy wasn’t reflected in the budget. It was, instead, an addendum available to legislators.

OK, boys and girls, let’s fight nice. My question to Senator Vratil: Why are you throwing rocks at the governor along side Democrats?  Perhaps there’s something extremely telling in Senator Vratil’s easy co-existence with the folks across the aisle. And Governor Brownback, just admit your administration made an error, correct it and let’s go on down the road.

Now, onto Governor Brownback’s proposal to lower personal and corporate income tax rates, funded by ending a proposed list of 23 exemptions/incentives. Instead of nibbling around the edges, I believe we should institute the Fair Tax in Kansas.

With the Fair Tax, all sales tax exemptions/incentives (exemptions total $5.3 billion) would end. By broadening the sales tax base we would more than fund the elimination of corporate and personal income tax, which currently is a $2.9 billion revenue stream for the state. The state sales tax should be rolled back to be revenue neutral.

Here’s something to think about. Under our present tax system every check written to pay income tax (both personal and corporate) goes to pay for someone’s tax break.

For an additional bonus, local taxing entities (county and city) could reduce their sales tax rate and property taxes with the broadening of the sales tax base. This would be tremendously helpful in growing our economy here in Kansas.

On the continuing saga of ObamaCare in Kansas, here is an interesting press release from the Lt. Governor’s office:
 Topeka – Lt. Governor Dr. Jeff Colyer today joined an important amicus brief filed with the Supreme Court in the pending case regarding the constitutionality of the Affordable Care Act (ACA).

This is wonderful news that Lt. Governor Jeff Colyer has joined the amicus brief regarding the constitutionality of ObamaCare. However, back at the ranch, the administration refuses to return the $85 million, 90/10 federal funds (which replaced the $31 million planning grant) for the KEES (formally K-Med) contract with Accenture. Interestingly, Accenture settled fraud and kickback allegations for $63.4 million with the Department of Justice just two weeks after signing the KEES contract with Kansas.

What’s wrong with this picture? Let’s see. Lt. Governor Jeff Colyer joins the amicus brief arguing that ObamaCare is unconstitutional, but will not support the cancelation of the KEES/Accenture contract which implements key (pardon the pun) elements of ObamaCare. And we’re doing business with a company that had to pay a $63.4 million settlement to the DOJ.  If you can figure it out, call me.

In the meantime, if you have concerns about the implementation of ObamaCare in Kansas, call Lt. Governor Colyer’s office 785-296-2214 and ask that the 90/10 federal funds be returned and the Accenture/KEES/K-Med contract be cancelled.

So the circus continues in Topeka. What’s the good news? The conversation is heading in the RIGHT direction, but we need your constant push to maintain the correct course of less government and lower taxes.  And yes, I’m criticizing the Brownback Administration for implementing ObamaCare in Kansas, but I don’t think you’ll see any Democrats joining me in that criticism.

My next column will be on school finance reform, which we have not yet received details on. Hopefully, within the next week or so, the administration will release their plan.

Please, hold me in your prayers,
Respectfully yours,
Charlotte O’Hara