Lawmakers question Brownback’s allotment cuts

? When Gov. Sam Brownback announced his plan last month for filling a $279 million hole in the current year’s budget, he spared funding for public schools, higher education and Medicaid from any direct cuts.

Instead, he offered a plan that mostly involves transferring money out of other funds into the state general fund, a temporary cut in state pension contributions and only minor cuts to other state agencies.

But most of that plan requires legislative approval when lawmakers return to the Statehouse Jan. 12, and two key lawmakers indicated Tuesday that they may want to look at other options.

“We need to see his plan for next fiscal year before we make any big decisions,” Senate President Susan Wagle, R-Wichita, said. “For continuity of both plans. We have a shortfall this year; we have one next year. We need to be able to put the two plans together. Actually, we need to hear from him during the State of the State.”

Brownback will deliver the annual State of the State address on Jan. 15, three days after the Legislature convenes for the start of its 2015 session. He’s expected to outline a two-year budget plan, covering the fiscal year that begins July 1 and the following fiscal year.

House Majority Leader Rep. Jene Vickrey, R-Louisburg, said he would have preferred to see fewer fund transfers and more direct cuts in state spending.

“I would have probably preferred that, but we’ll know more about what the governor’s two-year budget is and what his recommendations are (after the State of the State address),” Vickrey said.

He added: “As is always the case, I’m confident the House will have our own direction and plan that makes sense, and we’ll work hard fitting in with the governor and the Senate in doing what’s right for the state.”

Brownback announced his plan for budget allotments in November after new revenue estimates were released projecting the state will come up $279 million short in the current fiscal year and, assuming normal growth in Medicaid and other mandatory spending, about $436 million short in the following fiscal year.

But if lawmakers approve Brownback’s plan, budget officials say next year’s shortfall actually could end up being more than $600 million because the plan includes very few actual spending cuts this year, which only pushes that problem down the road.

Brownback’s plan calls for transferring $95.7 million out of the state Highway Fund, and another $55 million out of fee funds that the Department of Health and Environment receives in the form of rebates on pharmacy medications purchased through Medicaid.

It also calls for cutting the state’s contributions to the state pension system by $40.7 million over the next six months.

Although the administration has said that is only a temporary cut and will not be continued in future fiscal years, lawmakers from both parties have criticized that part of Brownback’s plan, saying it only adds to the existing unfunded liability in the financially troubled pension fund.

Brownback has defended his allotment plan, saying it fills this year’s budget gap without cuts to core government services. And he has said KPERS can absorb a temporary cut this year because it has enjoyed much higher than average earnings on its investments in the past year.