Topeka ? Longer lines at the Lawrence driver’s license renewal center. Shrinking mental health services in Douglas County. Less staff at Kansas University.

Those are among the real-world implications of Gov. Bill Graves’ proposal Tuesday for closing a projected deficit of $312.1 million in the state’s budget for the current fiscal year. During a news conference in his office, Graves also ordered $78.1 million in immediate spending reductions.

He left few recipients of state funding unscathed.

State parks may have to close campgrounds because of cuts to the Wildlife and Parks budget. Lines at drivers license renewal stations may get longer because of cuts to the Revenue Department’s budget. Drivers who find themselves with car trouble on a highway may have to wait longer for help because the Kansas Highway Patrol’s budget was thinned.

“Everybody is going to be part of the solution,” he said. “I don’t know how most of the agencies are going to find the money that’s embedded within this recommendation.”

The lone exception: funding to public school districts.

It was the second time since August the governor has trimmed state spending in response to shortfalls in tax revenue. In the first round, he cut $41 million from the $4.4 billion state budget.

“I’m disappointed this has to occur,” said Graves, who will be replaced by Gov.-elect Kathleen Sebelius in January. “Those of us who have aspired to serve in these positions need to do our job.”

Higher ed hit

On Tuesday, Graves offered a laundry list of options for dealing with the calamity but exempted public school districts from an across-the-board 3.9 percent, or $78.1 million, immediate cut to state agencies under his control. Social services took the biggest hit, losing $33.7 million.

Higher education must absorb a $27.3 million reduction. That includes an overall $9.4 million reduction on KU campuses, possibly forcing program cuts and employee layoffs.

¢ City, county brace for budget cuts¢ 6News video: K-12 education spared from budget cuts¢ Arts community braces for state cuts (11-21-02)¢ Education may be target of new cuts (11-21-02)¢ SRS cuts include office closings (10-09-02)

“Everything is on the table,” said Dick Carter, spokesman for the Kansas Board of Regents.

Graves suggested $56.3 million in requested supplemental aid for the departments of education, social and rehabilitation services, and aging also could be denied early in the next legislative session.

Rejection of that supplemental aid would deeply hurt “poor” school districts with high local-option budgets. But it would spare relatively wealthy districts such as Lawrence because they’re not eligible for this supplemental assistance.

“It’s not too pleasant to be spared on the backs of poor districts or while KU is getting hammered,” said Scott Morgan, school board president.

SRS mulling options

To comply with the 3.9 percent reduction, SRS will have to cut $26.6 million from the $640 million it expected to receive from the state general fund.

It’s unclear which services will bear the brunt of the cuts.

“We’re making those determinations as we speak,” Marianne Deagle, director of SRS’ Office of Planning and Policy Coordination said late Tuesday afternoon. “We just received this information, we’re sorting through it.”

She said SRS today would continue to discuss its plans for dealing with the cuts.

But directors of several advocacy groups said they expected SRS to speed up a cost-cutting plan it proposed last month.

The plan included closing SRS offices in as many as 70 counties, reducing day-care assistance, cutting services for the physically and developmentally disabled, and increasing premiums paid by families enrolled in the state’s health insurance program for low-income children.

Services aimed at helping troubled families stay together and payments to doctors who care for the poor also could be affected.

‘Inexcusable’ plan

“We’ll have to see what SRS is going to do, but the impact this could have is devastating if you’re someone who’s depending on a Medicaid waiver to meet your health care needs or to stay in your own home rather than having to go to a nursing home,” said Bob Mikesic, advocacy director at Independence Inc. in Lawrence.

Paul Johnson, director of the Public Assistance Coalition of Kansas, objected to Graves’ decision to spare K-12 from the across-the-board cut.

“It’s inexcusable that K-through-12 is off the table,” Johnson said. “It’s denying the most vulnerable Kansans access to basic medical care and safety versus minor cuts in education – I’m sorry, education needs to be on the table.”

The cut to SRS-financed programs will hit home in Lawrence.

Bert Nash Community Mental Health Center expects a loss of at least $225,000 from $4 million it receives annually in state and federal assistance controlled by SRS, said David Johnson, CEO at the center.

None of the agency’s employees should lose their jobs, he said, but any money-losing services that aren’t required by law will be first in line for elimination.

“Our biggest problem with the cuts right now is that we have seen a 30 percent increase since July in the number of people that we’re accepting for services,” Johnson said.

Cities, counties not exempt

Graves also moved to delete $48 million in transfers to city and county governments.

He suggested the state general fund not repay a $94.6 million loan made earlier this year from the Kansas Department of Transportation.

More than $35 million from youth programs, senior services, waste management and insurance benefits also could be used to balance the budget, Graves said.

Officials have 10 days to appeal the 3.9 percent across-the-board cut and the 0.5 percent reduction for cities and counties, but the governor said he expected all to fail.

“I’d encourage everyone to save their time and energy and ink,” Graves said.

State agency officials will be responsible for deciding on specific cuts.

The budget reductions were prompted by state revenue forecasters’ Nov. 5 report cutting an earlier estimate by $363.5 million – the largest downward revision the revenue monitoring group has ever made.

Even if the Legislature and Sebelius followed Graves’ deficit-reduction map to the letter, the state could still face a $600 million deficit in the next fiscal year.

“This is not necessarily the end of the bad news for anyone,” Graves said.

He said some of the second-round reductions could have been avoided if the 2002 Legislature had approved a larger tax increase. The governor proposed a $364 million tax increase; lawmakers approved $252 million in new taxes.

Sebelius’ response

Sebelius will submit a revised fiscal 2003 budget to lawmakers in January. She also will develop a spending plan for fiscal 2004, which will reflect cuts made by Graves and current revenue estimates.

In a statement Tuesday, she said “difficult times call for difficult decisions.”

Sebelius has formed committees to examine state government for inefficiencies that could be translated into budget savings.

That quest is appropriate, Graves said, but it might not be as fruitful as some hope.

“There are many people who believe that somehow : there’s a lot of money to be found, a lot of waste and inefficiency,” he said. “I think they’re going to discover that’s not necessarily the case.”

Graves said he had given Sebelius and legislators “a little cover” by taking steps to slow the budget bleeding before leaving office.

He said the state needed people of both political parties, in both the House and Senate, and in all branches of government to work together on the budget problems.