Kansas preparing for infusion of federal stimulus dollars

Kansas’ lack of green energy initiatives may cost it some green under the federal economic stimulus package, officials said Monday.

In the first meeting of an advisory group preparing for the potential $819 billion plan that is being debated in Congress, state leaders reviewed dozens of areas where Kansas could gain upwards of $1.4 billion.

In many programs, Kansas will simply get its share of federal dollars, based on a formula that factors in population or need.

But in some programs, the federal dollars will come with strings attached.

For example, a version of the stimulus plan passed by the House will award states $3.4 billion for energy efficiency programs.

States that require a certain percentage of renewable energy use, or have specific energy efficiency building codes, or encourage utilities to conserve will get first priority for the money. Kansas has none of those policies set into law.

“We’re sorting out what the potential requirements are and where we would land, and basically we wouldn’t land very well at this point,” said Susan Duffy, executive director of the Kansas Corporation Commission.

Debate over federal assistance comes as Kansas and almost all states are struggling to balance budgets amid a national recession. Kansas faces a revenue shortfall of $186 million, which could increase to $1 billion by July 1.

And there are other areas where states may be fighting one another over their share of the potential recovery money.

Under the House plan, Kansas could receive $400 million in additional federal spending for Medicaid, which provides health coverage for low-income Kansas families. But states that have seen dramatic job losses will get a bigger percentage of Medicaid assistance.

“We have been voicing our concerns loudly,” said Marci Nielsen, the executive director of the Kansas Health Policy Authority.

Lt. Gov. Mark Parkinson, who is serving as chairman of the newly formed American Recovery and Reinvestment Act Advisory Group, said the stimulus package “offers our state a one-time opportunity to receive significant assistance from the federal government.”

If approved by Congress and President Obama, the plan could send funds to Kansas in numerous ways, including significant increases for public schools, higher education, highways, unemployment benefits, environmental protection, and health and human services.

In addition, some of the funding will be based on competition among the states.

“We want to make sure that we have a very aggressive plan for the state of Kansas to receive as much of these discretionary funds as we can,” Parkinson said.