Gov. Laura Kelly’s administration released a revised plan for addressing the revenue shortfall facing the state, this time with tweaks that address questions from lawmakers and the attorney general about the governor’s approach.
The new plan released shortly after 6 p.m. appears to answer concerns raised by Attorney General Derek Schmidt, who sent a letter to the governor asking her to explain her legal authority to make some of the budget changes she was seeking.
The governor is grappling with a more than $600 million projected revenue shortfall for fiscal year 2021 as a result of the economic slowdown resulting from the COVID-19 pandemic.
For instance, Schmidt inquired about the governor’s proposal to cut $44.3 million from evidence-based juvenile programs in the Department of Corrections.
“It appears these are funds set aside for programming as part of juvenile justice reform legislation enacted several years ago,” Schmidt wrote.
He said the law that allowed the governor to make budget changes didn’t extend to the juvenile justice programs.
The new budget proposal released late Monday leaves it to the Legislature to decide next year whether to cut the money from the juvenile justice programs.
The first draft proposal given to lawmakers last week didn’t give lawmakers that discretion.
Earlier in the day Monday, the Joint Committee on Corrections and Juvenile Justice recommended asking the attorney general to take any legal action necessary to stop the governor from cutting $44 million for the juvenile programs.
The panel also recommended that a letter be sent to Kelly urging her to adhere to the law and not cut the money as a way of balancing the budget for fiscal year 2021.
The governor’s office could not be reached for comment late Monday.
The governor’s new budget plan also takes a different approach to loans owed to the Pooled Money Investment Board.
The governor originally wanted to delay a $132 million loan payment in fiscal year 2020 to the Pooled Money Investment Board, which would have given her more room to write a budget without deep cuts in taxpayer services like schools and transportation.
The new plan appears to call for making that PMIB payment in 2020 but delaying another $132 million payment in 2021.
Meanwhile, the state would borrow another $132 million from the PMIB in 2021, as well.
It will be up to the incoming Kansas Legislature to make the decision about whether to authorize the PMIB proposals offered by the governor.
Last week, the treasurer made the $132 million payment to the PMIB, but the Department of Administration reversed the payment.
On Monday, Schmidt, Treasurer Jake LaTurner and Casey Lair, chairman of the PMIB, told the Department of Administration in a letter that the loan payment had to be made.
“While we are aware of the state’s current fiscal position, the law mandating this loan repayment remains in force and cannot be disregarded,” the letter said.
“Therefore, we seek your immediate assurance you will make this transfer as
required by law; if not, we will review options for enforcement of the law.”
