Sebelius proposes programs to assist flooded businesses

? Gov. Kathleen Sebelius is proposing three new programs to help flood-damaged businesses in southeast Kansas.

She wants to provide state funds to businesses so they can reopen and keep jobs in afflicted communities, repair or rebuild their buildings, replace damaged machinery and rent space while original stores and offices are under repair.

Sebelius plans to ask legislative leaders this morning to approve the programs, using the State Finance Council’s power to spend state emergency funds. The council, which includes the governor and the Legislature’s top eight leaders, will meet at 9 a.m.

The governor’s office declined to say how much the programs would cost, but did provide some details in response to questions from The Associated Press. Spokeswoman Nicole Corcoran said the governor hopes approving the programs will prevent her from having to call a special legislative session.

“I don’t really anticipate a need for a special session,” said Senate President Steve Morris, a Republican from Hugoton. “I think we should have enough flexibility within current resources and the statutes that we have.”

The new programs for southeast Kansas would be similar to ones created for Kiowa County in south-central Kansas following a May 4 tornado in Greensburg, the county seat. The storm destroyed more than 90 percent of the town and killed 10 people.

Three weeks after the tornado, the Legislature took only a few hours to approve a $32 million relief package, but the Finance Council has appropriated only $7.5 million of it so far.

One new program would give flood-damaged businesses up to $3,500 for every job they restore in the same community.

A second program would give such businesses a grant to rebuild their stores or offices or replace damaged machinery. The grant would be up to 10 percent of the cost.

The third program would give businesses up to $1,500 to help them rent space for up to six months while their buildings are repaired or rebuilt.

The governor’s office disclosed details of the package for southeast Kansas on the same day Sebelius toured flood damage in Osawatomie and Coffeyville, two of the hardest-hit communities.

The flooding in late June affected 23 counties, destroying 680 homes and doing major damage to nearly 1,600 others. One man drowned when flooding hit his Coffeyville motel room, and the damage there was made worse by a 71,000-gallon oil spill from a refinery.

State officials still are tallying the damage and have no estimate.

The extent of the flood damage raised questions about whether Sebelius would have to call a special session. The Legislature has had only 21 special sessions in the state’s 146 years, the last one in 2005 to pass a school finance plan.

Last week, The Iola Register called for such a session, saying it was necessary in part because, “Those whose homes were destroyed need to know as soon as possible what the future holds for them.”

Senate Majority Leader Derek Schmidt, a Republican from Independence, said Sebelius still shouldn’t rule out calling one. The Legislature’s next regular session convenes in January.

Schmidt said people whose homes were damaged must make decisions before then about whether they’ll stay in southeast Kansas, and cities must decide what to do in flood-damaged neighborhoods.

He said Sebelius has developed a good package and, “That may relieve some of the pressure.”

“But it doesn’t resolve the problem,” he said. “It’s a first step.”