Sunday Reader: Farm bankruptcies peak; Broadband access

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Good morning everyone:

We are working this morning from our mobile office in St. Louis, where we took a short weekend trip with the wife. It kept us from getting to the prison story on Friday, but that news has been anticipated for months. We regret not being able to get to that piece of state news. But we will include that coverage in today’s roundup in case you missed it.

Now, onto the more significant stories we published last week and other items from around the state and country that are relevant to you.

  • The state Revenue Department is running into criticism for trying to collect internet sales tax from out-of-state retailers without a law similar to one upheld in South Dakota.
  • Democratic state Rep. Jeff Pittman is considering a run for the state Senate in a district covering parts of Wyandotte and Leavenworth counties.
  • Secretary of State Scott Schwab says the American Civil Liberties Union sued the wrong public official in litigation challenging a buffer zone intended to stop electioneering at polling places. He wants to be dismissed from the suit.
  • The state health department warned a Medicaid contractor about failing to comply with its state contract. Aetna, one of three managed-care companies in the state, responded.
  • The attorney general named a youth suicide prevention coordinator who will work part time because the Legislature didn’t approve money for a position it mandated.

Dead-letter office

A new audit out last week revealed that more than 200 emails sent to the vacant Medicaid inspector general’s office went unread, including messages with allegations of fraud or abuse.

The report by new Kansas Medicaid Inspector General Sarah Fertig found that 209 emails were ignored from Aug. 7, 2017, to Jan. 9, 2019.

Ninety-five of those emails included charges of fraud, waste, abuse or illegal acts in the Medicaid or state Children’s Health Insurance programs.

The Medicaid inspector general had been based in the Kansas Department of Health and Environment until June 1, 2017, when it was transferred to the attorney general’s office.

However, since KDHE staff were not part of the transfer, there was no one to alert the attorney general’s office about an email account for the inspector general.

Once the responsibilties were moved to the attorney general’s office, KDHE no longer had authority to solicit complaints of fraud on behalf of the inspector general.

The inspector general didn’t begin work in the attorney general’s office until Oct. 9, 2018, when a Senate panel preliminarily approved the attorney general’s nominee.

The audit points out that when the inspector general was at KDHE, it sat empty for more than three years.

The last person to hold the position at KDHE left in November 2014. It wasn’t filled until October 2018.

Farm bankruptcies cresting in Kansas

This report from the Farm Bureau does not paint a positive picture for farm bankruptcies in Kansas.

Kansas, along with Wisconsin and Minnesota, led the country in Chapter 12 bankruptcies from July 2018 through June 2019.

Chapter 12 bankruptcies let “family farmers” and “family fisherman” restructure their finances and avoid liquidation or foreclosure.

The Farm Bureau reports there were 39 Chapter 12 bankruptcies in Kansas during that period, compared to 45 in Wisconsin and 31 in Minnesota.

The Sunflower State also had 13 more bankruptcies during the last year, an increase of 50% from the year ending June 2018, the Farm Bureau reported.

It was the biggest increase in bankruptcies nationally. By comparison, Minnesota had 11 more and Oklahoma 10 more.

Overall, there were 240 bankruptcy filings across the Midwest during 2018-19, an increase of 12% from the year before.

The biggest percentage increase was in the Northwest, where there were 27 filings.

The Farm Bureau blamed the declining economic conditions on several years of low income, increasing debt and the ongoing trade war and retaliatory trade tariffs on agriculture products.

The bureau credits Congress for taking action to help farmers, namely passage of the Family Farmer Relief Act.

The legislation, sent to President Donald Trump for his signature, lifts the cap on the amount of debt farmers can have to file for bankruptcy.

Under the legislation passed a little more than a week ago, the limit would be raised to $10 million from about $4 million.

Supporters of the bill said the legislation would allow more farmers to qualify for bankruptcy, giving them a better opportunity to reorganize and avoid liquidation.

Kansas broadband ranking

A new report out last week from the Federal Reserve Bank of Kansas City revealed some interesting facts about the gap between those with and without high-speed internet access.

The report said just 53% of adults with incomes less than $30,000 have broadband at home.

By comparison, about 95% of those with incomes of $75,000 or more had high-speed internet access. About 68% of people without broadband at home live in rural areas.

But the report had some very interesting facts about internet access in Kansas and how it compared to other states within the Federal Reserve’s 10th District.

The district covers Kansas, Missouri, Colorado, Wyoming, Oklahoma, New Mexico and Nebraska.

Photo credit: “Creative Commons LEDs on Sky Broadband box by DeclanTM is licensed under CC BY 2.0

About 87% of Kansas is covered by broadband, and the state ranks 38th nationally in level of connection, which was measured in terms of the percentage of the population with speeds of 25 megabits per second or faster.

About 21% of the Kansas population is considered underserved, meaning that it has access to fewer than two wired providers.

The average broadband speed in Kansas is 44.4 megabits per second.

By comparison, Kansas was equal or better than most states in the region in terms of coverage.

Colorado was at 91%, Missouri was at 84%, Nebraska was at 87% and Oklahoma had 77% coverage. About 82% of New Mexico had coverage, while Wyoming was at 76%.

At 44.4 megabits per second, Kansas had one of the faster average speeds in the region, trailing only Colorado with an average of 48.4 mbps and Oklahoma with an average of 45.5 mbps.

They were followed by Missouri (40.9 mbps), Wyoming (35.4 mbps), New Mexico (31.4 mbps) and Nebraska (30.5 mbps).

With the exception of Colorado, all of the states within the Federal Reserve’s 10th District ranked in the bottom quarter for the level of connectivity nationally.

State responds to Tyson fire

Gov. Laura Kelly’s administration on Saturday sent assistance to western Kansas in response to a fire that indefinitely shut down the Tyson Fresh Meats plant near Holcomb.

The plant reportedly employs 3,500, making it the largest employer in Finney County, leaving many to worry about how the fire will affect the region’s economy.

Kelly directed Commerce Secretary David Toland and Secretary of Agriculture Mike Beam to travel to Finney County to meet with Tyson executives and local government and economic development officials to offer and coordinate support from the state as needed.

“Our agencies are prepared to coordinate support for Tyson and its workers as needed during this challenging time,” the governor said in a statement.

House Speaker Ron Ryckman Jr., who grew up in western Kansas, expressed concern about the impact the fire would have on the economic stability of the region.

“The Tyson plant is an integral part of our ag economy,” Ryckman said in a statement.

“From the Kansas ranchers and feedlots to the refrigeration and shipping companies that partner with Tyson, the regional and statewide impact of this emergency closure cannot be understated,” he said.

“The House stands ready to do everything we can to help Tyson rebuild and continue to thrive in Western Kansas.”

Here’s coverage of the fire from the Garden City Telegram, KWCH-TV and WIBW.

ACLU condemns prison move

The American Civil Liberties Union is criticizing the state for its plans to send up to 600 inmates to a private out-of-state prison to relieve overcrowding in its prison system.

In a move that had been anticipated for weeks, the Department of Corrections announced Friday it would send 360 inmates to the Saguaro Correctional Facility in Eloy, Arizona, by the end of 2019.

A total of 600 prisoners could be sent to Arizona under the one-year deal signed with Nashville-based CoreCivic. The state has two one-year options on its contract with CoreCivic.

“This decision is disappointing & shortsighted. It’s also costly to taxpayers shouldering millions; families with children who won’t be able to visit their parents; and inmates facing a more difficult path to rehabilitation, separated from their families & support networks,” the ACLU said in a series of tweets Friday.

“CoreCivic’s facilities are rampant with documented examples of egregious rights violations,” the group tweeted.

“The cure to overincarceration is NOT outsourcing. It’s decarceration,” the ACLU said in its tweets.

The company has faced a number of lawsuits across the country over inmate treatment, including this one from Tennessee, where an inmate was beaten to death for coffee and prison understaffing was blamed as a cause.

There also was a lawsuit brought by a woman whose daughter died in an immigration detention center operated by CoreCivic in Texas on behalf of U.S. Immigration and Customs Enforcement.

Meanwhile, four people have died at a south Georgia detention center that CoreCivic operates on behalf of ICE.

The Atlanta Journal-Constitution has reported the facility struggles with drug smuggling, medical staff shortages and other safety issues. The facility has been called a “ticking time bomb.”

Acting Corrections Secretary Jeff Zmuda said the state had little choice but to outsource prison beds.

“Sending Kansas inmates to another state is an option we wish we could avoid,” Zmuda said in a statement.

“Entering into this contract to accommodate growth in the prison population is the best option available at this time for the safety of our staff and inmates.”

As of last Thursday, the population of the Kansas prison system totaled 10,002, which was 82 above capacity.

State officials noted the contract provides for an on-site monitor who reports directly to the Corrections Department.

The agency also has unrestricted access to the facility to make sure conditions are safe.

Border war not over

The Kansas City Star reports on Sunday morning that companies are still trying to use state tax incentives to relocate across the Kansas-Missouri state line before the new border war truce starts at the end of August.

The newspaper reports that Waddell & Reed and Hostess Brands are seeking incentives to move across the border — Hostess is moving to Lenexa in Johnson County, and Waddell & Reed is eyeing Missouri.

USDA move

The issue started to bubble up weeks before the U.S. Department of Agriculture announced it planned to move two research divisions out of Washington, D.C., to Kansas City.

Skeptical Ag Department employees say the move is driven by an effort to push out researchers who have challenged the president’s policies on taxes, climate change and the farm economy.

The issue continues to percolate, however, with last week’s Inspector General’s report saying the Agriculture Department didn’t receive the required congressional approval needed to make the move.

Meanwhile, a federal employees union has accused President Donald Trump’s administration of orchestrating the move as part of a larger effort to reduce the government workforce.

Also, the American Federation of Government Employees has reached an agreement with the Agriculture Department on an incentive plan for employees relocating to the Kansas City area.

Employees at the Economic Research Service and National Institute of Food and Agriculture who move to Kansas City will receive incentive payments equal to one month’s salary.

This payment is intended to help make up for employees losing pay because they’re moving from a higher wage area in Washington and its surrounding suburbs.

Pompeo (incremental) news

U.S. Secretary of State Mike Pompeo can’t make a move without stirring rumors about whether he’s running for the U.S. Senate.

So it was last week when reporters climbed over one another — even to the point of using anonymous sources — to report that Pompeo was going to speak at Kansas State University this fall.

Here’s all the coverage, although it’s hard to discern the difference from one story to the next. Here are the stories from The Associated Press, The Capital-Journal, the Manhattan Mercury and The Kansas City Star.

Grissom endorsements

Three formers chairs of the Kansas Democratic Party have come out in support of former U.S. Attorney Barry Grissom for U.S. Senate.

Larry Gates and Lee Kinch have joined John Gibson in backing Grissom, who, for now, is facing a primary against former Democratic Congresswoman Nancy Boyda.

However, state Sen. Barbara Bollier of Mission Hills and Manhattan Mayor Pro Tem Usha Reddi are seriously looking at running for the Senate, as well.

“We are supporting Barry Grissom because he is the most compelling candidate best prepared to make history and win a seat in the United States Senate,” the three former chairmen said in a joint statement released Friday.

“Barry’s background as U.S. attorney, fighting domestic terrorism in Wichita and Fort Riley, and gang violence in Dodge City helps him understand the challenges we face to keep Kansans safe.”

Senate longshot enters race

Conservative commentator Bryan Pruitt has announced he plans to run for the U.S. Senate.

An admitted longshot, Pruitt is a Wichita native who would be the first openly gay senator from Kansas.

He used to work for the conservative political blog RedState.

He has a master’s in public administration from Wichita State and bachelor’s degrees in politics, economics and English from Catholic University of America.

Two years ago, Pruitt resigned as executive director of Capital Pride after he was accused of making transphobic comments in a RedState blog post.

Pruitt is now the fifth announced Republican candidate to run for the U.S. Senate seat that will open up with Pat Roberts’ retirement.

Already in the field are Treasurer Jake LaTurner, Senate President Susan Wagle, former Secretary of State Kris Kobach and former Johnson County Commissioner Dave Lindstrom.

Medicaid expansion news

The Henry J. Kaiser Family Foundation published this report that examines data about Medicaid expansion and the work requirement states are seeking to impose on beneficiaries.

The foundation reports that most adults receiving Medicaid are already working. Those beneficiaries who are not working face a number of obstacles, including having an illness or disability, attending school or having caregiver responsibilities.

Among Medicaid adults with jobs, 70% were employed full time, or at least 35 hours per week, while 30% were employed part time.

Among Medicaid adults who work part time, many cited school or training, family or personal obligations or child care as some of the reasons for not working full time.

Industries with the largest number of Medicaid beneficiaries include food services, construction, elementary and secondary schools, hospitals and home health care services.

Speaking of work requirements, New Hampshire recently became the third state, along with Arkansas and Kentucky, to have its work requirement struck down by a federal judge.

In other expansion news: Idaho continues to examine ways to pay for Medicaid expansion approved by voters last year.

Lawmakers are considering the possibility of using money that went to counties to pay for health care for the less affluent as one way to pay for expansion. They are also looking at using court fees and money from a tobacco settlement.

Here’s the coverage from The Associated Press and Boise Public Radio. And more coverage here.

Abstinence and pregnancies

The new secretary of the Kansas Department of Health and Environment said last week he doesn’t believe that abstinence-based programs reduce unwanted pregnancies. Here’s what Lee Norman told the Capital-Journal’s editorial board last week.

Warner sworn in

New Kansas Court of Appeals Judge Sarah Warner was sworn in last week. Court of Appeals Chief Judge Karen Arnold-Burger presided over the ceremony.

Warner was appointed to the Court of Appeals by Gov. Laura Kelly on May 14, and her appointment was confirmed by the Kansas Senate on May 29.

She replaces Patrick McAnany, who retired Jan. 14 after 15 years on the Court of Appeals.

If you want to get to know Warner a little better, here’s a video she recorded where she talks about her background, including her inspiration for becoming a judge and her joining the Court of Appeals after working in private practice.

Gun polling

After the mass shootings in Texas and Ohio last weekend, there was lots of news about how Americans feel about gun control and where Republicans and Democrats might agree.

Last week, Gallup released this nifty summary of polling on guns over the last several years, including surveys on the National Rifle Association, assault-weapons bans and new regulations on guns sales. It’s got everything you want to know from Gallup about guns.

Here’s also a look at polling from Pew Research that gives some idea about the kinds of gun policies Democrats and Republicans generally agree on.

Here and there

The Hinkle Law firm has set up a new office in Topeka and brought aboard veteran lobbyist Scott Schneider.

Schneider’s experience includes work on behalf of a number of clients from sectors including construction, health care, insurance, transportation, food service and energy.

Scott Schneider

“Scott has built long-standing relationships with policymakers, businesses and leaders in the economic development arena,” said Philip Davidson, the leader of Hinkle’s litigation practice group.

“His knowledge in multiple industries…will be valuable in helping the firm’s clients further their business strategies in the regulatory environment,” Davidson said.

Schneider’s private practice focused on governmental relations.

He was formerly director of governmental affairs for Cox Communications and governmental relations director for the city of Wichita. He serves as executive director of the Kansas Metro Business Healthcare Coalition.

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The Department of Corrections last week announced that Joel Hrabe has been tapped as as the agency’s deputy secretary of facilities management.

Starting this week, Hrabe will oversee the division responsible for the day-to-day management of the state’s eight adult correctional facilities.

Currently, Hrabe is serving as the warden for Norton Correctional Facility, a position he has held since 2017.

During his 27 years at Norton Correctional Facility, Hrabe has served as a corrections counselor, classifications administrator and deputy warden. He also has worked with the agency’s special operations and response team.

Hrabe earned his bachelor’s degree in criminal justice from Kansas State University.