Associations representing the state’s counties and cities say they’re likely to file a lawsuit next week challenging Gov. Bill Graves’ decision Tuesday to cut state aid to local governments by $48 million.

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

“That’s one of the options our board is both aware of and looking at,” 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.

“We’re checking to see if the governor has the authority to do what he did ” there are some who don’t think he does,” said Randall Allen, the association’s executive director.

Together, the league and association represent the state’s 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, Graves’ budget director, disagreed. He said the state’s “allotment laws” gave the governor authority to halt the payments when it appeared the state might not have enough money to pay its bills.

“The statute is very broad,” Goossen said.

But the counties and cities cite a 1982 Kansas attorney general’s opinion that, in part, says the payments are “immune from the allotment system” because they’re defined by state statute and not subject to the budget-setting processes.

What’s at stake

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

Kansas Gov. Bill Graves listens to a question during a news conference in Topeka. Graves on Tuesday made 8 million in immediate spending cuts to the state budget. Some governmental groups are considering whether to sue the state to get funds budgeted to them earlier.

• 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 Governor’s Office often have used cuts in aid payments to cities and counties to balance the budget.

“The state has been giving them (cities, counties) transfers ” but not all of the transfers ” for several years. This isn’t new,” Goossen said.

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

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“If they’d been fully funded, the full amount would have been around $130 million,” he said.

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

At the Kansas Attorney General’s Office, spokesman Mark Ohlemeier declined comment on the office’s 1982 opinion that could be the basis for a legal challenge.

“There’s not much I can say because I’ve checked and there doesn’t seem to be anybody here today who was here back when the opinion was issued,” Ohlemeier said. “So without that background, the opinion pretty much has to stand on its own.”

County hiring freeze

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

“This is a huge hit,” Weinaug said. “Our total budget is around $40 million, but about half of that is debt service ” we don’t have a choice, we have to make those payments.

“So that means that $1.8 million has to come out of the $20-or-so million that’s left ” we have no choice.”

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

Also, “Any new positions approved for the 2003 budget are on hold for the next two or three months ” or until we completely redo the budget,” Weinaug said.

Layoffs also are possible. “Everything is on the table except debt payment,” Weinaug said. “There isn’t a sacred cow that can’t be cut.”

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

“The people who ran for public office this year told the voters that the crisis we’re in could be solved by eliminating inefficiency ” that is simply not true,” he said. “The voters were sold a bill of goods, and now the county’s going to pay the price.”

Weinaug warned that social programs would face a double whammy.

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

City, school district

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

“We may win that battle only to end up losing the war,” Wildgen said, noting there’s little to stop legislators from changing whatever laws might be cited in the lawsuit.

“It would only be a matter of time,” he said.

Wildgen said he expected the city’s 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 association’s 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.