Associations representing the stateâÂÂs counties and cities say theyâÂÂre likely to file a lawsuit next week challenging Gov. Bill Gravesâ decision Tuesday to cut state aid to local governments by $48 million.

A state association of school boards also is considering a lawsuit.

âÂÂThatâÂÂs one of the options our board is both aware of and looking at,â said Kim Gulley, director of policy development and communications at the Kansas League of Municipalities.

The Kansas Association of Counties also could take part in a legal response.

âÂÂWeâÂÂre checking to see if the governor has the authority to do what he did Ãi¿½” there are some who donâÂÂt think he does,â said Randall Allen, the associationâÂÂs executive director.

Together, the league and association represent the stateâÂÂs 105 counties and more than 500 cities.

The counties and cities say the $48 million was collected on their behalf and cannot be held back by the state.

Duane Goossen, Gravesâ budget director, disagreed. He said the stateâÂÂs âÂÂallotment lawsâ gave the governor authority to halt the payments when it appeared the state might not have enough money to pay its bills.

âÂÂThe statute is very broad,â Goossen said.

But the counties and cities cite a 1982 Kansas attorney generalâÂÂs opinion that, in part, says the payments are âÂÂimmune from the allotment systemâ because theyâÂÂre defined by state statute and not subject to the budget-setting processes.

WhatâÂÂs at stake

The contested payments involve state sales tax collections set aside for:

⢠Local property tax reduction fund, 3.6 percent of the total tax collected.

⢠County and city revenue sharing fund, 2.8 percent of the total tax collected.

Graves also cut payments from the special city and county highway fund, which is financed by a portion of the state tax on gasoline.

Goossen said that in recent years, both the Legislature and GovernorâÂÂs Office often have used cuts in aid payments to cities and counties to balance the budget.

âÂÂThe state has been giving them (cities, counties) transfers Ãi¿½” but not all of the transfers Ãi¿½” for several years. This isnâÂÂt new,â Goossen said.

In the budget passed during the 2002 legislative session, the three state-aid funds totaled about $100 million, Goossen said.

âÂÂIf theyâÂÂd been fully funded, the full amount would have been around $130 million,â he said.

On Tuesday, Gravesâ cut $48 million from the budgeted $100 million.

At the Kansas Attorney GeneralâÂÂs Office, spokesman Mark Ohlemeier declined comment on the officeâÂÂs 1982 opinion that could be the basis for a legal challenge.

âÂÂThereâÂÂs not much I can say because IâÂÂve checked and there doesnâÂÂt seem to be anybody here today who was here back when the opinion was issued,â Ohlemeier said. âÂÂSo without that background, the opinion pretty much has to stand on its own.âÂÂ

County hiring freeze

Douglas County Administrator Craig Weinaug said the cut would cost county operations roughly $1.8 million Ãi¿½” $200,000 more than was estimated Tuesday.

âÂÂThis is a huge hit,â Weinaug said. âÂÂOur total budget is around $40 million, but about half of that is debt service Ãi¿½” we donâÂÂt have a choice, we have to make those payments.

âÂÂSo that means that $1.8 million has to come out of the $20-or-so million thatâÂÂs left Ãi¿½” we have no choice.âÂÂ

Weinaug said that after conversations with county commission members Wednesday, he imposed an immediate hiring freeze.

Also, âÂÂAny new positions approved for the 2003 budget are on hold for the next two or three months Ãi¿½” or until we completely redo the budget,â Weinaug said.

Layoffs also are possible. âÂÂEverything is on the table except debt payment,â Weinaug said. âÂÂThere isnâÂÂt a sacred cow that canâÂÂt be cut.âÂÂ

Weinaug said he welcomed the likelihood of the Kansas Association of Counties suing the state.

âÂÂThe people who ran for public office this year told the voters that the crisis weâÂÂre in could be solved by eliminating inefficiency Ãi¿½” that is simply not true,â he said. âÂÂThe voters were sold a bill of goods, and now the countyâÂÂs going to pay the price.âÂÂ

Weinaug warned that social programs would face a double whammy.

âÂÂTheir state funding is being cut just like ours is being cut,â he said. âÂÂBut a lot of these programs Ãi¿½” Cottonwood, Bert Nash (Community Mental Health Center), the Health Department Ãi¿½” get county funds as well. We could be cutting them, too.âÂÂ

City, school district

Lawrence City Manager Mike Wildgen said he doubted a lawsuit would do much good.

âÂÂWe may win that battle only to end up losing the war,â Wildgen said, noting thereâÂÂs little to stop legislators from changing whatever laws might be cited in the lawsuit.

âÂÂIt would only be a matter of time,â he said.

Wildgen said he expected the cityâÂÂs share of the cut to amount to about $1.3 million.

The Kansas Association of School Boards also is urging school boards across the state to consider endorsing litigation.

Scott Morgan, president of the Lawrence school board, said a majority of the Lawrence school board embraced the idea of a suit filed by the association. Monday, the board will consider sending a letter in support of litigation.

John Koepke, the associationâÂÂs executive director, said a lawsuit would be filed on behalf of Kansas school districts, arguing the Legislature failed to uphold its constitutional obligation to provide a suitable education for children in kindergarten through 12th grade.

It would be paid for by the association.

Staff writers Mark Fagan, Tim Carpenter and Joel Mathis contributed to this report.