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Kathleen Sebelius

House leadership responds to Sebelius lies

The following is a statement from House Leadership regarding the Governor’s continued efforts to misrepresent her role in the events of the State Finance Council meeting and her responsibility to address a revised 2009 budget.

While we all can agree that these are trying times for Kansas families, seniors, and business owners the Kansas House of Representatives respectfully disagrees with breaking the law in order to gain political capital.

The idea that the Legislature is preventing state employees from being paid is the equivalent of shouting fire in a crowded theater. The Governor is attempting to draw attention away from the fact that she has multiple options to fix this problem. Her options do not include illegally issuing certificates of indebtedness when revenues, in this climate, cannot begin to repay the debt. She can easily sign House Substitute for SB 23 or fix the problem by issuing allotments.

The Governor is attempting to mislead the public in an effort to drum up support for poor public policy. The majority of the Legislature recognizes the severity of the current economic situation and is acting in a responsible manner. How the Governor can say on Thursday that we don’t have enough money and issue allotments and then turn around and on the following Monday say, we will have enough money when the numbers HAVE NOT changed is irresponsible and disingenuous. We strongly urge the Governor to use her power to make allotments and cut state spending rather than withholding tax refunds or paychecks from hard working Kansans.

The decision was made, by the Governor, to halt income tax refunds last week. Now that her back is against the wall she is using scare tactics to try to manipulate public opinion. We find it perplexing that she will halt income tax refunds due to not having enough money in the budget but will ask for additional certificates of indebtedness even though she knows the dollars for repayment will never materialize without a fundamental change in the 2009 budget. Kansas citizens deserve better.

The Governor did call a meeting of the State Finance Council to consider the issuance of a certificate of indebtedness. However, when it became apparent to all that the certificate could not be issued because it would violate state law, she reluctantly agreed to postpone the meeting. Incredibly, it was reported that Legislative leadership refused to meet. This is patently false.

Republican Leadership is happy to postpone any State Finance Council meeting until after the Governor has had a chance to review and to sign House Substitute for Substitute SB 23. We fully expect the bill to be on her desk by the end of the day tomorrow. While it was passed last week, the process to engross the bill takes a degree of time and is out of the hands of the executive or legislative leaders. There is still plenty of time for the Governor to responsibly address the concerns that she is raising. In the meantime, she should make allotments consistent with the provisions of House Sub. for Sub. SB 23.

Contrary to what the Governor is saying, the certificate has everything to do with the passage of a revised 2009 budget bill. We cannot issue more certificates if the funds will not materialize by the end of the year. Without the revised 2009 budget bill, there is no way that we can legally issue a certificate knowing full well that the money will not be available to retire the debt.

It is shame that the Governor continues to make the assertion that Legislative Leadership is not representing the people of Kansas in good faith. This (unlike her repeated attempts to leave the state in favor of a cabinet post in Washington) is the right thing to do to ensure that we are taking the necessary and legally permissible steps to fix the structural imbalance in our budget.

The Governor is asking the Legislature to be complicit in breaking the law by approving certificates of indebtedness outside of the parameters set in statute. Kansas law requires the Director of the Budget to certify that money will be present at the end of the year to pay off certificates of indebtedness, and there is no evidence that will be the case. There is no reason to believe that under the current budget such money will be available. It is irresponsible and illegal to act as if the money will be available when all economic indicators show that we may see even less.

If anyone is, as the Governor alleges, “jeopardizing our citizens’ pocketbooks” one should look no further than the Governor’s office. Fee sweeps, illegal certificates of indebtedness and non-existent gambling revenue is no way to provide a long-term solution to the economic issues facing our state.

Although we are glad that the economic crisis in Kansas finally has the Governor’s attention, playing a shell game is not the solution.

Who will blink first?

Republican leaders in the House and Senate today refused to allow Gov. Sebelius to borrow additional cash to make state payroll this Friday. From the Topeka Capital-Journal:

House Speaker Mike O’Neal, R-Hutchinson, and Senate President Steve Morris, R-Hugoton, said it would have been illegal for the State Finance Council to have authorized additional short-term debt because state officials couldn’t honestly declare the state could pay the obligation by the end of the fiscal year.

The speaker and president said the Democratic governor must first deal with the $326 million deficit-reduction bill adopted by both chambers last week. Once action is taken on Senate Bill 25, O’Neal and Morris said expenditures and revenues would likely be brought in line sufficiently to approve more debt.

From Kansas Liberty:

When combined with previous requests, this would create a total loan of $775 for fiscal year 2009, the largest certificate of indebtedness ever issued in Kansas history.

This has understandably angered Democrats and liberals in general.

For the legislative branch to hold the executive branch over a barrel like this, to actually prevent payroll and tax returns from being made, is unprecedented and inexcusable. It is wholly unaccepted for the the Republicans to extort the Governor in this manner, and it comes awfully close to an out-and-out constitutional crisis. Separation of powers guarantees the governor’s power to sign or veto a bill, and if the House and Senate doesn’t like her action, they can always override her veto.

Absolutely true. Gov. Sebelius is free to veto the budget reduction act and continue to pretend the state has money to pay its bills. And legislative leaders are free to refuse to borrow more money that can’t be paid back. So, I guess everyone is free to do as they choose.

I would note however, that I heard not one Democrat complain about the 2005 Supreme Court Decision mandating a set amount of money be spent on K-12 education. Separation of powers only seems to be relevant when you’re on the loosing side.

State Treasurer Dennis McKinney had another take on the situation:

By failing to act on the recommendation of the state budget director to shore up balances in the general fund, legislative leaders put our reputation as a reliable bill payer and our credit rating at risk.

Wrong. Unprecedented spending on the part of liberal Democrats, including McKinney and Sebelius, has put our state’s fiscal reputation on the line.

Republican’s refusing to approve more debt that no one is sure would be able to be repaid, is simply the symptom of years of overspending by legislators and out of control court mandated spending sprees.

It is high time Sebelius and liberal Democrats face reality and address the disease rather than the symptoms.

Either get out or get to work

Gov. Sebelius caring for Greensburg tornado victims

Gov. Sebelius caring for Greensburg tornado victims

I’m going to make a simple request of Gov. Sebelius: Either get out or get to work.

Over the past six years your administration has created far too many problems for the taxpayers of this state to put on hold while you prance around Washington trying to sell yourself for a job you already told everyone you didn’t want.

Leadership doesn’t mean you propose a budget that neither takes into account the full extent of the crisis facing our state nor realistic solutions to the problem. Honest and truthful leaders don’t tell the voters they are staying to solve a budget crisis, criticize legislative leaders trying to find solutions to our money problems and then jump ship when you see greener pastures.

Those actions are not the actions of an honest, trustworthy leader. They are the actions of a self-seeking, egotistical politician. So if you are unwilling or unable to do the work of the citizens of Kansas, move on so true Republican leaders can find solutions to problems you helped create.

Kansas’ problems simply can’t be trumped by your sales pitch to the Obama administration. Either get out or get to work.

Lower energy costs, a balanced budget

Lower energy costs, a balanced budget.

That’s the call that is hopefully being sounded through the statehouse this legislative session.

The expansion of the Holcomb power plants was a dominate issue in last years session. As we’ve previously discussed, the failed veto override can be attributed to just one house vote.

Environmentalists and others are already lining up to prevent another attempt to get the plant built. The Wichita Eagle didn’t even wait for the November elections before publishing an anti-power editorial.

Kansans should press their legislative leaders not to refight last session’ s coal wars with Sebelius. Instead, the Legislature should join entities such as the Kansas Energy and Environmental Policy advisory group and Kansas Energy Council in planning how to power Kansas cleanly and comprehensively long term.

The Wichita Eagle Editorial Board, Oct. 28, 2008

Many others have decided that the current budget crisis can be used to try to silence the power plant supporters. Never mind the nearly $5 billion in investment the expansion would bring to a state over $1 billion in the hole.

The fact is state spending and the plants can’t be separated. The budget crisis the state finds itself in only makes the expansion of Holcomb even more important than ever. KRA has posted an online petition to encourage our legislators to look again at the expansion project.

“I encourage you to develop energy policies that are based on proven science to meet our growing need for electricity and allow our economy to grow, while preserving our quality of life in Kansas.”

Follow the link to sign. Signatures collected will be submitted to your state Representative and Senator to let them know you support the nearly $5 billion in economic development the project would bring to the state.

Lower energy costs, a balanced budget. That’s something all Kansans can believe in.

Sebelius: At the helm of a financial shipwreck

News finally broke today of what had been whispered about by legislators for a few days; the state of Kansas is broke and can’t pay its bills.

Kansas public schools only got 75% of the payments they should have received in December. The reason? It’s simple really, the state doesn’t have the cash.

“We do not have enough cash in the bank,” said Gov. Kathleen Sebelius’ budget director Duane Goossen.

And I guess it depends on your point of view what the cause of the missed payment is. According to many news outlets, it’s just a sign of the slipping economy (as opposed to massive overspending by Kansas bureaucrats.)

If signs of economic troubles weren’t already clear, here is another one. A monthly payment of $220 million split among the state’s 297 public school districts was delayed four days this week.

And what, just what, might have been done to avoid this? Well, here’s a hint, don’t spend so much!

As American’s for Prosperity’s Alan Cobb said:

“Isn’t it worth mentioning the impact of four years of large budget increases on the current budget situation? If the budget had simply increased at 5 percent, hardly a small number, each year since 2004, we would have more than $2 billion in the bank now.”

Yes, I do think it’s worth mentioning.

But apparently the Kansas press doesn’t. A Google News search turned up only a rehashed AP article and a breaking story from the Journal-World. You would think the state of Kansas literally defaulting on it’s payment obligations would be news, but not in Kansas.

Here’s something else worth mentioning that I’m sure the Kansas press won’t; this ship was run aground by none other than Gov. Kathleen Sebelius.

During her six years in office state spending has risen at astronomical rates. State obligations in the form of more bloated education spending were set in stone by hand picked Supreme Court justices and now Kansas has defaulted on payments because the governor is unwilling to cut spending when the state needed it the most.

And for my favorite quote of the day came from newly appointed State Treasurer Dennis McKinney (D), who was upset that legislative leaders finally got a clue and stopped letting bids for statehouse renovations.

“Now is the time to build highways and renovate the Statehouse because it costs the taxpayers less…”

Look, I’m no fan of the massive amounts of money wasted by public education, but don’t you think meeting our educational needs are more important than plush new offices for legislators?

You have to ask yourself, this is the guy Sebelius chose to be our next Treasurer? Another grand move on her part.

And what’s worse, she couldn’t have gotten us into this royal mess without the help of liberal Republicans.

What’s that? Moderate? I’m sorry, but moderate means just that, taking things in moderation. Voting for massive increases in spending when the state doesn’t have the money isn’t moderation.

And then, in true ‘moderate’ form, it’s all blamed on tax cuts rather than massive spending.

Here’s a newsflash for all the ‘moderates’ out there (Republican or otherwise as no politician in Kansas is a liberal according to the Kansas press); Kansans aren’t taxed too little, you spend too much!!!