The FY 2010 Mega Budget is one of the most difficult budgets the state has had to face in decades. Difficult decisions must be made when state revenues drop as drastically as they have.

This is a compromise bill that accepts many of the governor’s recommended cuts. There are spending cuts in this bill that no legislator likes. But we must do the responsible thing and reduce state spending. According to Legislative Research, March revenues are down approximately $57 million. There is great concern among many legislators that these reductions will not be enough to address the current revenue shortfall and deeper cuts will have to be made in the Omnibus budget bill.

Spending Levels:

• FY 2010 State General Fund budget totals $5.76 billion, a decrease of 6.8% below the revised FY 2009 budget.
• FY 2010 All Funds budget totals $13 billion, a decrease of 3.8% below the revised FY 2009 budget.

• Includes and uses all federal stimulus funding for Medicaid, K-12 Education and Higher Education.
• K-12 Education remains a top priority for the Legislature.
  • Receives least amount of SGF funding reduction.
  • Base State Aid Per Pupil in FY 2010 is $4,367 compared to $4,374 in FY 2008.
  • $71 million in additional Title 1 funding will put approximately five school districts over their previous funding levels for the 2008-2009 school year.
• Higher Education increases $10.2 million with federal stimulus funding included.
• 1% base salary increases and longevity bonus payments to State Employees. Self-funded by agencies through existing funds.
• Below market pay increase for classified state employees fully funded at $8.5 million
• Transfers $5 million to the Special City and County Highway Fund for repair of local roads and bridges. This means jobs for local economies.
• Second-half of FY 2009 Slider payment still will be made on June 1st. Funding for the FY2010 Business and Machinery Tax Slider will be reconsidered during Omnibus.
• Additional $4 million to the Home and Community Based Services Physically Disabled waiver.
• $1.2 million to from a KEY fund transfer to the SGF to increase State Children’s Health Insurance Program qualifier to 250% above the federal poverty guidelines.
• Additional $328,465 from a KEY fund transfer to the SGF for primary care/safety net clinics.
• Additional $355,000 SGF for Pregnancy Maintenance Initiative.
• Makes all federal funding for family planning services subject to a competitive grant process.
• Agencies will decide how reductions to their budgets will be implemented. They are in the best position to decide what is best for the Kansans they serve.

• Legislative researchers estimate the state faces a nearly $800 million budget shortfall based on the November Consensus Revenue Estimates.
• We will receive an update on the state’s financial picture in mid-April. We expect the state’s finances to worsen and the projected shortfall to grow from the November Consensus Revenue Estimates. This will govern how the Legislature proceeds with the Omnibus budget bill.
• We hope to be able to maintain the proposed funding level for K-12 Education but reductions may be necessary based on the April revenue update.
• By trying to hold K-12 harmless, other state agencies and programs must carry more of the burden and absorb deeper cuts. While most must cut their budgets 6% - 9%, some agencies will be required to reduce their spending 10-20%.
• Some have suggested tax increases are the answer to the state’s tight budget. Now is not the time to raise taxes on Kansans and businesses who are struggling to make ends meet.
• Instead of raising taxes, the state should set budget priorities – funding necessary programs and services and delaying or eliminating new ones. Agencies are carefully reviewing what they do. Eliminating ineffective or outdated programs and services is a priority.