On February 18^th, House and Senate members passed the final version of the rescission bill, which made a number of cuts and adjustments to the 2010 state budget to address the state’s $400 million deficit.

The bill affirms many of the same recommendations Governor Mark Parkinson outlined last year.One of the more significant cuts added to the bill was a 5% reduction in pay for all state officials, including legislators.

Even with the passage of the rescission bill, the legislature may need to take up the FY 2010 budget again in the near future.Revenues were lower then expected in January, and the state will likely be short another $40 million by July even with the additional cuts approved this month.

While the legislature has made some compromises and found new ways to reduce the state’s deficit, we have not found a solution to the long-term problems of revenue and spending.During debate on the Senate floor, I introduced “The Billion Dollar List,” which outlines 33 ways the state can trim its budget.Some of the biggest savings on the list include consolidating counties and judicial districts, which will save $700 million per year, and downsizing the number of state legislators, which will save $1.8 million.  You can read the full list of proposals below.

I created “The Billion Dollar List” to generate discussion about options to save or redirect public money and improve our government.Rather than cutting funding from education or public services, we need to find innovative solutions to our state’s budget crisis.For example, Kansas teachers’ salaries are slipping behind those of other Midwest states.To give every K-12 teacher in Kansas a $500 per month raise would cost $230 million.To help the Kansas Public Employees Retirement System (KPERS) regain it’s A-rated status would require several hundred million dollars in new capital.

Not everyone will support the proposals on the “Billion Dollar List,” but every idea should be considered when our state is facing a $400 million deficit.Instead of borrowing money or raising taxes, we should redesign and reinvent government to be more effective and more efficient over the next 50 years.

The Billion Dollar List

We have a once in a lifetime OPPORTUNITY to reinvent government.  Reinventing government gains more than just slashing it.  This suggestion list goes from mild to wild. I’m sure there will be someone who opposes every item on the list, but every idea deserves consideration when we are facing a $400 million deficit.

1. Downsize the Legislature — The PERMANENT method to reduce Legislative costs!

* Place on the 2010 statewide ballot a proposition to downsize the Legislature by 30%.If approved by the people (you know they will!), the 2012 election will be like musical chairs with some seats eliminated and competition deciding who gets to sit and who’s out.

* Reduce Legislature to 30 Senators and 90 Representatives. This will save $1.8 million.

2. Consolidate Kansas into 25 counties and 25 judicial districts. Eliminate townships.A study by Wichita State University shows this could save $700 million per year. http://www.ksrevenue.org/pdf/ConsReport.pdf

3. Sell and lease back of State office buildings:Docking, Landon, Eisenhower, and Mills buildings could all be sold to private developers who can perform renovations cheaper and faster than the State.Sale and lease back offers two advantages:

* immediate cash payment for buildings; and

* any remodeling can be done by private owner FASTER and CHEAPER than the State.

4. Privatize KU hospital for ≥$500 million; use the sale proceeds to recapitalize KPERS.

5. Consolidate all functions of probation and parole in Kansas.A computer tracking system currently in the design stage will greatly facilitate such an efficiency merger.

6. Consolidate all regulatory and licensing functions of racing, gaming, and bingo.

7. Consolidate and simplify all alcohol regulation, including cereal malt beverage.

8. Consolidate into the Department of Agriculture: Livestock Commission, Conservation Commission, Water Office, and Geological Survey.A 2007 Post Audit concludes this will save $700,000 year.http://www.kslegislature.org/postaudit/audits_perform/08pa23.pdf

9. Consolidate into one agency: Bank Commission, Credit Union Office, and Securities Commissioner.A 2008 Post Audit concludes this will save $500,000 year.http://www.kslegislature.org/postaudit/audits_perform/08pa22.pdf

Go another step further and consolidate all of the above with Insurance Dept. and create one, streamlined financial regulatory agency.

10. Capital renovation:

*Renegotiate contracts for architectural services and general contractor.

*Cap architectural fees at 5%.

*Limit build out of basement level visitors center to doors and lights only–a functional shell.

*Eliminate any additional new furniture.

11. Increase premiums and co-pays for state employee health insurance AND createlarge discounts for those who choose healthy living habits such as tobacco avoidance, healthy weight, and annual checkups.

12. Consolidate and refinance all State debt into one mega bond at today’s low rates.When you combine specified revenue streams and general obligation revenue, this is called the “double-barreled” approach.

13. Allow Kansas Department of Corrections to pay hospitals at Medicaid rates.

14. Eliminate state owned buffalo herds.Donate buffalo to Bob Grant for charity BBQ!

15. Eliminate $5 million state-subsidy for airfares in Wichita.Let free market work!

16. Eliminate State purchases of water rights in government owned reservoirs.

17. Eliminate funding for National Guard Training Center in Salina.

18. Obtain dividend payment from land sales at Sunflower Army Ammo plant.

19. Eliminate state support for excessive salaries of top executives of foster care contractors.

20. Transfer turnpike surplus funds to highway program.Go one step further and consider selling the turnpike as a way to finance the transportation plan.

21. Halt new vehicle purchases for three years; no purchases of full size pickups or sedans.

22. Eliminate “weather modification” program for $198,000.

23. Eliminate construction of more “weather monitoring” stations.

24. Renegotiate State building and property insurance.

25. Eliminate state aid to cities and counties but create incentives for city and county unification.

* Eliminate the $18 million transfer from state alcohol tax to city general funds and recreation fund.

26. Ask the four big hospital foundations (Kansas Health Foundation, Sunflower Foundation, Wyandotte Health Foundation, REACH) to donate their annual revenue, $20 million, for two years to Medicaid instead of funding more duplicative studies, newsletters, conferences, and luncheons.These foundations were formed from sale of church founded hospitals, Catholic and Methodist, whose original founders intended direct care to the poor.Returning the foundations revenue back to the original founders intent would complete the circle.

27. Obtain dividend payment from Jayhawks and Wildcats sports franchises.These are lucrative businesses developed on public property with public dollars, but the profit is reaped by a few well-connected folks.

28. Obtain dividend payment from Kansas Bio-Science Authority.

29. Regents Universities

* Require Regents universities to disclose their endowment funds & restrictions. This may not save money initially, but will help us understand what resources are available to fund university operations.

* Cap fees for architectural and contractor services for Regents capital improvements.

30. School Finance

* Create incentives for school districts to unify.

* Eliminate State matching funds for any new school bonds or equipment.State matching funds incentivize oversized and excessive school buildings.When USDs are required and pay the full cost of construction, they will economize!

31. Consolidate all state housing programs into Kansas Housing Resources Corporation.

32. Consolidate all early childhood programs (Tiny-K, Head Start, Early Head Start, Parents as Teachers, Smart Start, Healthy Start, Kansas Preschool Program) at State Board of Education.

33. Privatize management or sell off state owned parking lots.