What are the major topics you will be addressing in 2017?
S: Budget, budget and did I mention the budget? Every Kansan who reads the news knows that we have reached a point where there is really no way to proceed without facing our deep budget problems and finding lasting solutions. The State of Kansas is looking at ending the current fiscal year, on June 30, 2017, with a budget deficit of about $345 million. Of course, “deficit” isn’t the right word because we can’t legally have a budget deficit. The budget has to be balanced. The first, most-pressing issue on our plates is finding the right mix of budget cuts and shortterm revenues to plug that gap. For the fiscal year that starts on July 1, 2017, we are already predicting that expenses will be about $440 million more than revenues. We are all pleased that the state’s recent monthly revenue reports have been positive, but we clearly have a lot of ground to make up. P: And that’s not counting the school finance ruling. S: Right. We are all waiting for the Kansas Supreme Court to issue its ruling on the adequacy of our public school finances. Depending on who you talk to, they could rule that the state should be spending an additional half a billion dollars or more each year on education. So it is conceivable that this legislature will be trying to find as much as one billion dollars to balance next year’s budget. That’s why I don’t think there will be any air left in the room to discuss very much else. P: To your earlier point, it does seem likely we will be having some detailed and difficult discussions about whether taxes need to be increased. My personal preference is to think of this as restoring the
Chamber Staff
state’s revenue stream to the levels it was at before 2012. I’ve had a lot of people talk to me about closing the “LLC loophole.” It’s important to keep in mind that, even if that exemption went away, the most optimistic projections suggest that would bring in something like $200 million. That would help, but it doesn’t come close to solving the problem. I don’t know what the final answer will look like. We have a number of ways we could approach revenue enhancement so as to fairly spread the burden of paying for government without hurting small business or impeding economic growth. That’s our challenge but my point is that this year, for the first time in a while, I think we will be rolling up our sleeves and really trying to figure it out. The addition of over 40 freshman in the House will definitely change the dialogue.
Matt Pivarnik President and CEO Curtis Sneden Executive Vice President Government Relations Ashley Charest Vice President Resource Development Andrea Bailey Vice President Administration and Finance Jared Hitchens Communications Specialist Matthew Lara Communications Specialist Jes Dawkins Executive Assistant Jensen Moore Administrative/Event Assistant
Chamber Officers Janet Stanek Chair of the Board Paul Bossert Chair of the Board-Elect Chris McGee Treasurer
S: Fourteen in the Senate.
Brent Boles Immediate Past Chair
P: Right. That tells us a couple of things. First, a number of my colleagues from last year simply didn’t run for reelection, I suspect because they knew what an incredibly difficult session this was going to be. Second, I know those new members are eager to dig-in and find solutions and that’s great. I can’t wait to work with them. But this session will involve our making decisions which, while they are hopefully good for the state’s long-term future, are potentially bad for some of our political futures. I’m afraid that’s what we’re in for, but that’s what we signed up for. S: But we knew that when we were knocking on doors this summer! That’s the basic promise Fred and I and our colleagues made. We’re here to make the tough decisions which set the state back on a good long-term course.
Matt Pivarnik President and CEO
Council Vice Chairs Michel’ Cole Marketing James Davis Government Relations Tara Dimick Leadership Sean Frost Young Talent Eugene Williams Diversity Inclusion Lonnie Williams Small Business Gary Yager Resource Development
Cover Photo The beautifully renovated Kansas Statehouse is a buzz as both the Senate and House reconvene to discuss policies and proceedures that will impact all of Kansas.
TopekaChamber.org January 2017
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