KABR is closely tracking two major legislative issues at the Kansas Legislature:  The Governor’s Revenue Proposal to double the liquor enforcement tax from 8% to 16%, and the Uncork Legislation to put Strong Beer and Wine Sales in Big Box and Convenience Stores.  At this point, neither bill has been published.  We do expect the House Commerce Committee to hold hearings on the Uncork bill (maybe in February), assuming that bill is referred to the Commerce Committee.

PUBLIC INFORMATIONAL HEARING ON LIQUOR TAX AND TOBACCO TAX NEXT TUESDAY

The House Taxation Committee will host an informational hearing on Tuesday, January 31 at 3:30 p.m. on the Liquor Tax and Tobacco Tax Increases.  See Tax Committee information at the bottom of this message.  If you are interested in providing testimony, please contact Amy at 785-969-1617 as soon as possible.  If you are from Johnson or Wyandotte County, this tax increase will significantly impact your business.  Groups that support the increase cite the fact that cereal malt beverages at the convenience store pay sales tax as high as 9.5% in some cities, while liquor store beer is charged 8%.  This position ignores the multiple levels of taxation that apply to liquor store products: manufacturer, gallonage, enforcement and drink tax.  Our customers pay a tax on a tax on a tax.  Retailers will soon see anti-tax public information materials delivered by the distributors.

The tobacco tax increase is also substantial, adding $1.00 to every pack of cigarettes and doubling the tobacco products tax from 10% to 20%. 

House Taxation Committee – Contact Amy at 785-969-1617 to submit testimony.  We will help facilitate.  Individuals who intend to testify must contact Lea Gerard, Committee Assistant–785-296-4830 and provide copies of testimony 24 hours in advance.

Meeting each day at 3:30 p.m. in room 346-S of the Kansas Statehouse  (Click here for list of committee members.)   Chair is Steven Johnson, Vice Chair Tom Phillips, and Ranking Minority Member Tom Sawyer.

Monday, January 30:   Informational hearing:  Sales Tax Exemptions Statutes: 3603(b), 3603(p), 3606(ee), 3606(t), 3606(hhhh), 3606(nn), 3603(s), 3606(i)    (Includes Lottery tickets and advertising)

Tuesday, January 31:   Public Input on Governor's proposals regarding raising cigarette tax, alcohol tax and potential motor fuel tax

Wednesday, February 1:   Informational briefing:  Taxation on Retirement Benefits

Thursday, February 2:  Discussion on: Changes to Income Tax Rates and Glide Path to Zero

RSVP at  KABR Board Meeting and GOLD Meeting

Upcoming event information:
KABR Board Meeting and GOLD Meeting Clubhouse Inn and Suites, 924 SW Henderson Rd, Topeka, KS 66615
Date: 11 Feb 2017 3:00 PM EST

KABR BOARD MEETING AND GOLD MEETING

ALL MEMBERS ARE ENCOURAGED TO ATTEND.

Please make your reservations at Clubhouse Inn and Suites, 924 SW Henderson Rd, Topeka, KS    785-273-8888   Ask for the KABR rate of $91.00 plus tax.

Saturday GOLD Committee - 3:00 p.m. - 5:30 p.m. - Goals of Liquor Dealers committee is open to all members and develops action proposals regarding legislative advocacy, policy development, and member services for consideration by the Board of Directors.  Please contact Brian Davis, President (davisliquor2@cox.net) regarding agenda items.  

Saturday evening dinner - Meet in the hotel lobby at 6:30 to go to dinner at the Blue Moose.  We will invite local legislators to join us.  Please RSVP so we can reserve tables.

Sunday Board of Directors Meeting - 9:30 a.m. - 12 noon

9:30 a.m.         Meeting Call to Order                                                Brian Davis, President

            Roll Call                                                         

            Introductions

            Minutes of the Previous Meeting  

            Financial Statement

           

9:50 a.m.         Regional Vice Presidents Reports                  

Janet Wise, Dave Dvorak, Monica Tieben

                                   

10:15 a.m.       Reports

                        Membership Report – Nomination of New Members

                        Member Credit Processing Program update

                        Retailer Education Program 

                              GOLD Committee –    

10:45 a.m.       Legislative Report      Amy Campbell   

HB 2282 - Uncork House Bill - House Commerce, Labor and Economic Development Committee

       Public Hearings February 13-14

SB 163 - Uncork Senate Bill - Senate Federal and State Affairs Committee

Wine Clubs Request

SB 164 - Drinking Establishments - Entertainment District Ordinances - Senate Federal and State Affairs Committee

HB 2277- Alcoholic Liquor, Consumption Areas, Cities and Counties - House Committee on Local Government - Hearing Thursday February 9

Governor's Proposal to double liquor enforcement tax from 8% to 16%

Various proposals to change income tax policy and increase tobacco tax rates        

www.kslegislature.org        Legislative information, bills and calendars.

www.votesmart.org            Non-profit website where you can look up your legislative districts if you do not already know them.  Can also call your local election office.

 

11:30 a.m.       Old Business

  

11:45 a.m.       New Business         

12:00 noon      Adjourn

More information and online registration: KABR Board Meeting and GOLD Meeting

Tuesday evening, Governor Brownback presented the State of the State address, and promised that his proposed budget would be balanced, including a combination of revenues and spending cuts.  The Governor’s proposal to raise revenues includes doubling the liquor enforcement tax rate from 8% to 16%.  This is the tax paid at the liquor store register.

The revenue proposal recommends adding another $1.00 tax per pack of cigarettes and increases the tobacco products tax from 10% to 20%.

The revenue proposal would also increase the annual business filing fee for for-profit entities from $40 to $200.  That annual fee is paid to the Secretary of State’s office.  Most liquor stores pay this fee for their LLC filing.

Additionally, the Governor’s plan will freeze the bottom category income tax rate at 2.7%.  The rate is supposed to step down to 2.6% this year.  The tax changes will also impose income tax on passive income such as rents and royalties.

The entire package raises $179 million for fiscal year 2018.  That is far short of the projected deficit, and the budget plan includes multiple proposals for shifting funds, borrowing from State investments and selling other assets.  It also combines a couple of agencies and regulatory boards.

Meanwhile the House Taxation committee has already introduced several income tax bills designed to roll back the LLC income tax exemption and otherwise rewrite our income tax statutes. The Governor says the LLC Exemption is growing Kansas small business and should be preserved.

Some rumors suggest there is another revenue plan circulating behind the scenes that the Governor might prefer or at least wouldn’t mind signing if the Legislature passes it.  We have also heard that a Senate GOP plan will be announced soon.

                          

UNCORK BILL INCLUDES STRONG BEER AND WINE FOR BIG BOX AND CONVENIENCE STORES On Thursday, January 12, Rep. J.R. Claeys, R-Salina, requested introduction of a “bill expanding consumer options for beer and wine purchases” in the House Commerce, Labor and Industry Committee.  The introduction was seconded by Rep. Stephanie Clayton, R-Overland Park.  We will forward the language to our members as soon as it becomes available. This is very early compared to Uncork introductions in the past.

The Kansas Legislature convened for the 2017 Legislative Session today, January 9, in Topeka.

The Governor’s State of the State speech will be 5:00 p.m. Tuesday, January 10, and the House and Senate budget committees will receive the Governor’s Budget Proposal Wednesday morning.  We have been told that the Governor will be proposing revenues from the liquor industry.  We do not know if it will be in the form of increased gallonage and/or liquor enforcement taxes, or if it will include the Uncork proposal to raise state general funds by allowing grocery and big box stores to buy into the retail liquor system with large up-front licensing fees.  Shawn Sullivan, Budget Director, will present the report to the House Appropriations and Taxation Committees at 9:00 a.m. and Senate Ways and Means Committee at 10:30 a.m. Wednesday.  That report will be posted at the Governor's Budget website at 9:00 a.m. Wednesday - http://budget.ks.gov . 

We do expect to see hearings this session on Uncork proposals.  It is also possible that the convenience stores will be pursuing a separate bill for Strong Beer.  Beer and wine are likely to be the focus of the Big Box Stores' efforts this year.  They are touting the Oklahoma constitutional change adopted by a public vote in November.  

Click to see the 2017 Session Planner here. This calendar shows the days the Legislature will be in session and the deadlines for bill introductions and passage.  It is subject to change.  Legislative leaders expect to have a longer legislative session this year, and will face issues such as major tax changes, Medicaid expansion, and a new school finance formula.  The task will be challenging, with revenues $340 million short for the fiscal year ending in June.  Most of the newly elected legislators ran on the promise to reform the income tax reductions for business owners that were passed in 2012 and 2013 – but the Governor is opposed.  

KABR will be tracking public hearings of interest and will share committee schedules with members regularly.  If you are interested, you can check yourself each Friday by looking at the House and Senate calendars posted for the following week at www.kslegislature.org to see what public hearings and meetings are scheduled for the following week.  This is especially important if you are watching specific issues of interest.  A better way to be prepared to act is to contact the committee secretary (listed below each committee name in the calendar) and ask IF and WHEN a bill or issue is to be discussed.  Typically, if you wish to testify or submit written comments for a public hearing on a bill, you will need to sign up with the secretary and turn in your testimony or comments at least 24 hours in advance.  Each committee’s rules are different and secretaries may have different requirements.  Unfortunately, there will also be hearings that pop up in the middle of the week with very little advance notice.  Committee schedules are also posted on the walls outside the House and Senate chambers and updated when changes occur.

Unofficial Election Results for Kansas statewide races:          

(At this time, there are still precincts that are not recorded, so these are unofficial results.)

The changes that began in the primary elections have carried over to the general election, although Democrats did not experience as many wins in the Senate as some had predicted. As of the results around 2:30 a.m., Democrats picked up one seat in the Senate – Lynn Rogers has won the district held by retiring Senator Michael O’Donnell (R-Wichita).  Two others appear very close with some precincts not final – Denning and Pilcher-Cook.

Democrats appear to have gained 14 seats in the House of Representatives – better than predicted. If the numbers hold, there will be additional Democrats on each House committee.

KANSAS SENATE

Senator Dennis Pyle (R) retains his seat, winning over Rep.Jerry Henry

Senator Marci Francisco (D) retains her seat, winning over Meredith Richey

Senator Tom Holland (D) retains his seat, winning over Echo Van Meteren by only 2%

Senator Steve Fitzgerald (D) retains his seat, winning overBill Hutton by only 2%

Senator Pat Pettey (D) retains her seat, winning over Libertarian Jason Conley

Senator Barbara Bollier (R) wins over Megan England.  Bollier is currently a Representative

Senator Jim Denning (R) leading vs. Don McGuire to keep his seat in a close challenge

Senator Julia Lynn (R) retains her seat, winning over Chris Morrow

Senator Mary Pilcher Cook (R) leading to retain her seat vs. Vicki Hiatt in a close race

John Skubal (R) defeats Skip Fannen

Senator Caryn Tyson (R) retains her seat, defeating Christopher Johnston

Senator Jake LaTurner (R) retains his seat, defeating Lynn Grant

Bruce Givens (R) defeats Mark Pringle

Dan Goddard (R) defeats Chuck Schmidt

Senator Ty Masterson (R) retains his seat, defeating Gabriel Costilla

Senator Jeff Longbine (R) retains his seat, defeating Susan Fowler

Senator Laura Kelly (D) retains her seat, defeating a close challenge by former senator Dave Jackson (4%)

Senator Anthony Hensley (D) retains his seat, defeating Zach Haney

Senator Vicki Schmidt (R) retains her seat, winning over Candace Ayars

Dinah Sykes (R) hangs on to win over Heley and Kerner.  She defeated Senator Smith in the primary.

Senator Rob Olson (R) retains his seat, winning over Spencer Kerfoot

Randall R. Hardy (R) defeats Donald R. Merriman

Lynn W. Rogers (D) defeats Jim Price

Senator Dan Kerschen (R) retains his seat, winning over Benjamin Poteete

Rep. Gene Suellentrop (R) wins his race over Tony Hunter and will move from the House to the Senate.

Senator Mike Petersen (R) retains his seat in a race that looked very close early in the evening, defeating Keith Humphrey by 4%

Senator Susan Wagle (R) retains her seat, winning over Anabel Larumbe

Senator Carolyn McGinn (R) retains her seat, defeating J.Michelle Vann

Larry W. Alley (R) retains her seat, defeating Don Shimkus

Mary Jo Taylor (R) defeats Matt Bristow

Edward E. Berger (R) defeats Homer L. Gilson

Senator Richard Wilborn (R) retains his seat, defeating Levi Morris

Senator Elaine Bowers (R) retains his seat, defeating Brian Angevine

Senator Molly Baumgardner (R) retains her seat, defeating Kevin King

Rep. Bud Estes (R) defeats Miguel Angel Rodriguez.  Estes is currently in the House of Representatives.

Rep. John Doll (R) defeats A. Zacheriah Worf.  Doll is currently in the House of Representatives.

Rep. Rick Billinger (R) defeats Alex Herman.  Billinger is currently in the House of Representatives.

HOUSE OF REPRESENTATIVES

Dist. 3    Monica Murnan (D) defeats Rep. Chuck Smith (R)

Dist. 5    Rep. Kevin Jones (R) beats Doug Walker

Dist. 6    Rep. Jene Vickrey (R) defeats Christy Levings

Dist. 8    Patty Markley (R) defeats Ben Chociej

Dist. 9    Rep. Kent Thompson (R) defeats Patrick McMurray (L)

Dist. 12 Doug Blex (R)defeats Jean Kurtis Schodorf

Dist. 14 Rep. Keith Esau (R) defeats Merlin Ring  ??

Dist. 15 Erin Davis (R) defeats R. Paul McCorkle

Dist. 16 Cindy Holscher (D) defeats current Rep. Amanda Grosserode (R) 

Dist. 17 Tom Cox (R) defeats Helen Stoll

Dist. 18 Cindy Neighbor(D) defeats Eric Jenkins.  Neighbor is a former Representative.

Dist. 19 Rep. Stephanie Clayton (R) defeats Elizabeth Meitl and John Taube

Dist. 20 Jan Kessinger (R)defeats Chirstopher McQueeny

Dist. 21 Jerry Stogsdill (D) defeats Dorothy Hughes

Dist. 23 Rep. Linda Gallagher (R) defeats Amber Versola

Dist. 24 Rep. Jarrod Ousley (R) defeats Rob Johnson

Dist. 25 Rep. Melissa Rooker (R) defeats Matt McCann

Dist. 26 Rep. Larry Campbell (R) defeats Cheron Tiffany

Dist. 27 Sean Tarwater Sr. (R) defeats Larry Miller

Dist. 29 Brett Parker (D) defeats Rep. James Eric Todd

Dist. 30 Rep. Randy Powell (R) defeats Darla Graham

Dist. 36 Rep. Kathy Wolfe-Moore (D) defeats Kevin Braun

Dist. 38 Rep. Willie Dove (R) defeats Mike Fonkert and Frederick Caleb Cristopher

Dist. 39 Shelee Brim (R) defeats Angeliina Lawson

Dist. 40 Debbie Deere (D) defeats Rep. John Bradford(R)

Dist. 41 Jeff Pittman (D)defeats Rep. Tony Barton(R)

Dist. 42 Jim Karleskint (R) defeats Kara Reed

Dist. 44 Rep. Barbara Ballard (D) defeats Michael Lindsey

Dist. 45 Rep. Tom Sloan (R) defeats Terry Manies

Dist. 47 Ronald Ellis (R)defeats Michael Caddell

Dist. 48 Rep. Marvin Kleeb (R) defeats Sandy Ackerson

Dist. 49 Rep. Scott Schwab (R) defeats Darnell Hunt

Dist. 50 Rep. Fred Patton (R) defeats Chris Huntsman

Dist. 51 Rep. Ron Highland (R) defeats Adrienne Olejnik

Dist. 53 Jim Gartner (D)defeats Richard Kress

Dist. 54 Rep. Ken Corbet (R) wins over Renae Hansen

Dist. 56 Virgil Weigel (D)takes back his former House seat from Rep. Lane Hemsley

Dist. 60 Mark Schreiber(R) defeats William Ballard

Dist. 61 Francis Awerkamp (R) defeats Lauren Van Wagoner

Dist. 63 John Eplee (R)defeats W. Brett Neibling

Dist. 66 Rep. Sydney Carlin (R) defeats Stanley Hoerman

Dist. 68 Dave Baker (R)defeats Laura Blevins

Dist. 69 Rep. J.R. Claeys (R) defeats Gerrett Morris by a narrow margin – 163 votes

Dist. 70 Rep. John Barker (R) defeats Jo Schwartz

Dist. 71 Rep. Diana Dierks (R) defeats Jeffrey Zamrzla and Joey Frazier

Dist. 72 Tim Hodge (D) defeats Rep. Marc Rhoades by 2% - 220 votes

Dist. 73 Rep. Les Mason (R) defeats Terrance Krier

Dist. 76 Eric Smith (R) defeats Teresa Briggs

Dist. 78 Rep. Ron Ryckman (R) defeats Jason Darby

Dist. 80 Anita Judd-Jenkins (R) defeats Michelle Schiltz

Dist. 81 Rep. Blake Carpenter (R) defeats James McCluer

Dist. 82 Rep. Pete DeGraaf (R) defeats Danette Harris

Dist. 83 Rep. Henry Helgerson (D) defeats M. Lewis Ackerman

Dist. 85 Rep. Chuck Weber (R) defeats Patty Beamer

Dist. 86 Rep. Jim Ward (D)defeats Christopher Drake and James Pruden

Dist. 87 Roger Elliott (R)defeats Tonya Howard and Marco Giorgi

Dist. 88 Elizabeth Bishop (D) beats Rep. Joseph Scapa (R)

Dist. 90 Rep. Steve Huebert (R) defeats Lou Cicirello

Dist. 93 Rep. John Whitmer (R) defeats Deb Shepard

Dist. 94 Leo Delperdang (R) defeats Susan K. Osborne

Dist. 95 Rep. Tom Sawyer (D) wins a close race over Michael Capps

Dist. 97 Rep. Les Osterman (R) defeats Stan Reeser

Dist. 98 Steven Crum (D) defeats Rep. Steven Anthimedes. 

Dist. 100 Rep. Dan Hawkins (R) defeats Glen Shafer

Dist. 101 Rep. Joe Seiwert (R) defeats Clifton Beck

Dist. 102 Patsy Terrell (D) defeats Rep. Jan Pauls (R)

Dist. 104 Rep. Steven Becker (R) defeats Betty Taylor

Dist. 105 Brenda Landwehr (R) defeats Cammie Funston.  Landwehr is a former legislator.

Dist. 106 Clay Aurand (R) defeats Todd Frye.  Aurand is a former legislator.

Dist. 108 Rep. Steven Johnson (R) defeats Kelley Menke

Dist. 111 Eber Phelps (D) former Representative – defeats Rep.Sue Boldra to take back the seat.

Dist. 116 Rep. Kyle Hoffman (R) defeats Jolene Roitman

Dist. 119 Bradley Ralph defeats Daniel Love

Dist. 120 Adam Smith (R) defeats Bonita Peterson

Dist. 121 Rep. Mike Kiegerl (R) defeats Jason Graff

FEDERAL RACES

The 45th President is Donald J. Trump (R)

Senator Jerry Moran (R) retains his U.S. Senate seat over Wiesner and Garrard.

Roger Marshall (R) wins U.S. House District 1 over LaPolice and Burt.  Defeated Huelskamp in primary.

Representative Lynn Jenkins (R) retains her U.S. House District 2 position over Potter and Bales.

Representative Kevin Yoder (R) retains U.S. House District 3, over Sidie and Hohe in the closest U.S. House race in KS.

Representative Michael Pompeo (R) retains U.S. House District 4, over Giroux, Allen and Bakken.

It appears that all of the Supreme Court Justices have retained their judicial positions in spite of an aggressive campaign to kick out at least four of them.

And finally – the constitutional amendment to protect hunting and fishing rights passed handily.

                              

KABR is giving  you the tools to Stand Up for Small Business.  The key is to support the candidates who support you.  MAKE IT COUNT!  With the polls running very close in a number of races, your vote matters.  And this is the time of year when elected officials and candidates are most eager to hear from you. Click here for a list of candidates on the ballot and where they stand on our issues (if we know).  Many of our friends are facing fierce challengers and they need your help!   For step by step instructions - read more at this link.

KABR expects to face our toughest battle against Uncork during the next legislative session.  This means that what retailers do between now and the General Election in November will be key to our success or failure next year.  Many of our loyal friends in the Legislature are retiring - so, we can't sit back to "see what happens"!  Legislators (especially new ones) are not likely to ignore the Big Box offer to add $40 million to the state budget - in spite of its falsehood - unless they have been educated by their local businesses.

The KABR Annual Conference and Legislative Events has been organized to support our fight for small businesses - we will meet with legislators at the Friday Reception and the Saturday Legislative Luncheon.  Please RSVP today!

Get more out of these events by bringing your checkbook, and it will be an informal fundraiser for those who attend the Reception from 5:00 to 7:00 pm Friday at Blarney Stone Pub.  We must support the legislators who support us, so please plan to participate by attending or sending a contribution through KABR.  Senate contributions are limited to $1000.  House of Representatives contributions are limited to $500.  Any level is appreciated by the candidates.  

The KABR Conference and Legislative Luncheon is an effective opportunity to educate legislators and show them the importance of their locally owned retail businesses.  You will also learn which legislators have supported our Kansas owned liquor stores.  Our annual luncheons have created wonderful partnerships with many legislators.  In order for these efforts to continue to be successful, retailers must show up.  (This is also a good opportunity to give a contribution to key legislators.)

We will also present first hand information about the efforts in neighboring states Oklahoma and Colorado to expand liquor sales to the grocery and convenience stores  and how that may impact the issue in Kansas.

Other important weekend events include the Retailers/Employees Training, Awards Dinner, and Annual Business Meeting.

Please register now to attend:   Register Online

                       

KABR is giving  you the tools to Stand Up for Small Business.  The key is to support the candidates who support you.  MAKE IT COUNT!  With the polls running very close in a number of races, your vote matters.  And this is the time of year when elected officials and candidates are most eager to hear from you Click here to read the chart for a list of candidates on the ballot and where they stand on our issues (if we know).  Many of our friends are facing fierce challengers and they need your help! KABR is providing the step-by-step formula for a winning future – and we know it works!  KABR is doing the research to help you make informed choices for the elections.  The strategy is simple – we must support legislators and candidates who support us – please act now.  Legislative candidates cannot win without financial contributions, campaign signs, and volunteers to help with fundraisers and campaigning.  What to do: Pay your dues to KABR and attend the October 7-9, 2016 Wichita Conference.  Info at http://kansasretailer.org Establish your budget for campaign contributions for the 2016 Kansas Elections.  How much can you afford to give each week or every two weeks through the General Election November 8?   Can you host a fundraiser?  Post a message in support for your preferred candidate on Facebook?  Put up a campaign sign at your store and your home? Begin with your local House of Representatives race and Senate race.  If you have a supportive Representative and/or Senator who is running, contact them now.  Confirm their support.  Please make the maximum contribution you can afford and offer to post a campaign sign in your yard and/or at your store.  Your store and your home may be in different election districts and we encourage you to be involved in all of these races. You can and should contribute up to the maximum limit in both the primary election and the general election.  Find your legislators at http://openstates.org/find_your_legislator/  or you can easily find your district by looking up your voter registration - see instructions at the bottom of this message. Contribute to and support legislative leaders and committee chairs who support us.  Contribute to and support other candidates across the state.  A list is available from the KABR Office 785-969-1617. Share information with KABR about the candidates you know.  Verify that current supporters still stand with us and talk to new candidates to gain their support. Remember to always have a conversation with the candidate(s) and be sure to include your name, address, phone number and email when sending contributions.  Reach out to them through telephone, email or show up at events.  Ask to be included on their mailing list.   AND DON'T FORGET - THE GENERAL ELECTION IS NOVEMBER 8, so it is very important to reach out to those candidates before November.  You will receive more information about those candidates in the near future. ***************************************************************** ELECTION INFO Check your voter registration:  Click this link or copy and paste into your browser for important information about your ballot  https://myvoteinfo.voteks.org/VoterView/RegistrantSearch.do   – you can view your ballot! Simply enter your county, name and birthdate to see the address of your polling place, the districts you live in, and your voting history.  Under Sample Ballots, click on the underlined color letters of your precinct ballot.  You can see all of the choices you will make in the voting booth.

Contacts:             Brian Davis, KABR President – 316-990-1425   Email President                                  Amy Campbell, lobbyist – 785-969-1617    Email Lobbyist

Legislators adjourned the Special Session this evening around 8:25 p.m. after the Senate approved a bipartisan bill on a vote of 38-1 to solve the K-12 equity funding issue.  The House of Representatives approved the bill - Sub. for HB 2001 - 116-6 around 7:06 p.m.   The substitute bill was crafted on Friday with the collaboration of House moderate Republicans when it became clear that the original versions of SB 1 and HB 2001 would not have enough votes to pass. Leaders had initially crafted a plan that would redistribute existing school funds in order to meet the equity demands of the Supreme Court.  The original plan would have taken .5% of schools' general state aid to achieve a balance between rich and poor districts in addition to taking from the extraordinary needs fund and shifting Children's Initiatives Funds / tobacco settlement funding and holding Pre-K programs harmless by inserting federal TANF (temporary assistance to needy families) funds. The plan that was adopted will use different sources to come up with a similar equity formula and avoid cutting schools' base budgets.  This doesn't mean that all schools will be net winners at the end of the day, but attorneys for four school districts that were plaintiffs in the Supreme Court case have agreed that this will resolve the equity issue. Sub. for HB 2001 distributes $38 million to school districts from the following sources: $2.8 million cut to virtual school aid $7.3 million sweep from the K-12 extraordinary needs fund $4.1 million sweep from Temporary Assistance to Needy Families (to replace Pre- funding that would have come from the tobacco settlement) $10.5 million from state’s tobacco settlement $13 million from the sale of the Kansas Bioscience Authority* *If the KBA sale comes up short, an addition $8 million will come from the extraordinary needs fund and another $5 million will come from KDOT’s motor vehicle fee fund. Below is an article from Kansas.com by Bryan Lowry with more information: Brownback says he will sign school finance plan passed by lawmakers    http://www.kansas.com/news/politics-government/article85793822.html Bill would send $10.3 million in additional aid to Wichita school district Plaintiff districts think bill meets equity standard Plan would use sale of Kansas Bioscience Authority for school finance fix BY BRYAN LOWRY    blowry@wichitaeagle.com Gov. Sam Brownback says he will sign a school finance bill that passed both chambers of the Kansas Legislature on Friday night with overwhelming bipartisan support. Brownback, lawmakers and school officials all hope the measure will eliminate any possibility of a school shutdown next month and satisfy a Kansas Supreme Court order for more equitable school funding. The bill will steer more than $10 million in additional aid to the Wichita school district, and the district’s attorneys submitted a signed letter to lawmakers saying they won’t contest the bill in court. Lawmakers and school districts both declared victory, suggesting that the issue of whether Kansas schools are equitably funded is settled for now. “Even plaintiffs’ attorneys agreeing for the first time in the known history of school finance litigation that the Legislature has fully complied, that’s pretty good,” said Senate Vice President Jeff King, R-Independence, who served as the state’s attorney in a previous school finance case. The plan was crafted after a coalition of Republicans balked at leadership’s original plan, which would have imposed a 0.5 percent cut to all school districts’ general state aid in order to pay for a financial fix to inequities identified by the Kansas Supreme Court. The new plan does not include the cut. HB 2001 passed the House by a vote of 116-6. An hour later, it passed the Senate by a vote of 38-1. “I will sign it, and this will be finished,” Brownback said, noting that Wichita school district and other plaintiff districts that have sued the state over school funding since 2010 supported the bill. Their attorney, Alan Rupe, confirmed in an e-mail that the plaintiff districts have agreed to file a joint stipulation with the court saying the bill meets the equity standard. The court still needs to rule on whether Kansas schools are adequately funded in the future. “While plaintiffs view this as a victory, we are also mindful that this is just one aspect of the overall case,” Rupe said. “One down, one to go.” The plan will steer proceeds from the sale of the Kansas Bioscience Authority to the school finance fix, an idea that attracted support from moderate Republicans and Democrats who objected to House leaders’ initial plan. “Everybody ought to be just warm and fuzzy about it,” House Speaker Ray Merrick, R-Stilwell, joked about the compromise plan. Lawmakers enabled Brownback to sell off the assets of the Bioscience Authority, which oversaw investment in the biotech sector, earlier this year. The pending sale is estimated to bring in $25 million, but if the sale surpasses that mark, up to $13 million could be used to give extra aid to poor school districts, allowing lawmakers to avoid a cut to all districts’ general fund budgets. However, Brownback said he does not expect the Bioscience Authority sale to beat its estimates. That means alternative sources of funding will likely have to be used. “I wouldn’t be particular confident of that at all. But there’s another piece in if it doesn’t click in,” Brownback said. “That’s not the sort of estimates I’ve been seeing as far as the price tag on KBA, but who knows. I just wouldn’t be confident it’s going to come in higher than $25 (million).” If the sale comes up short, the bill would allow the state to empty the K-12 extraordinary needs fund, a pool of money meant to help districts cope with unforeseen costs. Another $5 million can be taken out of the Kansas Department of Transportation’s motor vehicle fee fund, which otherwise goes to highway projects, if the Bioscience Authority sale misses the mark. Despite the uncertainty around the Bioscience Authority sale, the plan attracted a broad base of support. “Yes, I can live with this,” said Rep. Melissa Rooker, R-Fairway, one of the main lawmakers who pushed for alternatives to the original bill. “The main thing is we protected the classroom, which was the key,” she said. “The sources of funding are never easy, whichever direction we’re going at this point, but I do like the fact that I think we have a compromise that I think will have plenty of support.” The Senate waited until it received a signed letter from the districts’ attorneys stating that fact until it began debate on the bill. “We want the signature of their attorney. … Not that I don’t trust them, but I don’t trust them,” said Sen. Jeff Melcher, R-Leawood. The bill would bring in nearly $10.3 million to the Wichita school district. A little more than half of that would go toward property tax relief for Wichita residents. “We lost over $17 million in state aid the last two years. Our property taxpayers have paid higher taxes. They deserve having a tax reduction,” said Diane Gjerstad, a spokeswoman for the Wichita school district. In addition to the tax relief, the bill gives the district $4.5 million in capital outlay aid that Gjerstad said would give it “a little breathing room” to “fund the brick and mortar of schools.” A total of 169 school districts will see net gains in their state funding through the plan. Another 77 districts will see net losses, but they will lose less than they would have under the leadership’s original plan. And 40 districts will see no change in their funding. Todd White, the superintendent of the Blue Valley school district, said the bill was much better than the one lawmakers entered Topeka with the previous day and credited that collaboration between school officials and lawmakers. “There were a lot of people who participated at various levels to make sure we were going to have the best opportunity to have schools open on July 1,” he said. Conservatives, moderates and Democrats all embraced the plan, a rare occurrence in Topeka. “I think this is a fabulous spirit of collaboration, bipartisan agreement,” said Rep. Kathy Wolfe Moore, D-Kansas City. “Nobody wants to close schools,” Rep. Dan Hawkins, R-Wichita, said before the House debate. “I think this is a good compromise. … There’s things that people don’t like in there, but everybody can get behind it. And I think that’s what’s happening right now. Everybody’s getting behind it and saying, ‘Hey, we can do this.’ ” Some Republican lawmakers had initially bristled at the prospect of the special session and even suggested a few weeks ago that the Legislature defy the court. A handful of members still felt that way Friday evening. Rep. John Rubin, R-Shawnee, opined that lawmakers had sent a message that the Legislature is subservient to the court. For the most part, however, lawmakers embraced the need to craft a solution and do it quickly. “I believe the legislators realized the seriousness of the situation,” said Senate President Susan Wagle, R-Wichita. “They didn’t want schools closed, and it was a relatively small amount of money. And we clearly wanted to resolve the problem.” Read more here: http://www.kansas.com/news/politics-government/article85793822.html#storylink=cpy