(Syndicated to Kansas newspapers Dec. 14, 2015)
It’s a little like wishing for a new hot water heater for Christmas, but the Legislature this month may be hoping for more of the small-buck money saving ideas that it is paying $2.59 million to a New York management/professional services company to deliver just after New Year’s.
Yep, it’s behind-the-scenes savings that most Kansans will never notice that may be the key to Kansas lawmakers ending the upcoming fiscal year with a little cash in the bank and then can constitutionally devote their summertime to getting re-elected.
There’s little doubt among Legislature-watchers that the upcoming session is going to be an ugly one, with state revenues shrinking and nobody interested in raising any taxes on voters during an election year. And, there’s also that little problem that there aren’t many taxes or fees that can be raised quickly enough to get the state through the last six months of this fiscal year. It’s going to have to be cuts, and the amount of cuts isn’t clear yet.
The latest projections—shaky, and made with the presumption that nothing gets worse—are for $5 million in ending balance. That’s practically not going to happen if there is a Supreme Court decision in a school finance lawsuit or a former pizza magnate wins his $50 million-plus judgment against the state for charging him income tax after he left the state.
Now, Gov. Sam Brownback might come up with some interesting little snips here and there for his budget update in January, or it might not snow this winter and the Department of Transportation can save money on sand and salt and gas for the snowplows.
But the real—if a few weeks late—Santa for lawmakers in this election year may be Alvarez & Marsal, that consulting firm that last week offered up a few hors d’oeuvres of the budget-cutting menu it will serve in early January.
The offerings last week? KDOT can sell off a few wood chippers. Or, agencies can lay off or at least redirect more than 50 property leasing employees. Another thought: This prompt-pay state which often writes within 10 days checks for goods and services it buys may stretch that to 30 days (or seek an Early Bird discount) from businesses.
Nice ideas, pretty businesslike, and probably just what legislators and the governor are looking for…
Except…that it’s likely that Kansas is going to need millions more to get through the current fiscal year which is the key to life as we know it under the dome.
Worried about the fiscal year which starts July 1?
Worry if you want, but whatever it looks like—and current projections are for roughly $170 million but probably much more of a shortfall—the House and Senate that is elected next November can deal with that, and in the first session after their swearing-in, can gasp in unison that they didn’t realize in the opening days of their two-year House and four-year Senate terms just what a mess they inherited.
That’s why the consultant report is going to be pivotal for the upcoming session. Cuts and paring that lawmakers have talked about for years among themselves get a special glow when mostly out-of-state consultants—including enough accountants to pack a bus—recommend them, not just some representative from west of US-81.
So…the big event, that first offering from the consultants, is not only important but a dab reflective on just what Kansas lawmakers on their bargain daily salaries couldn’t come up with among themselves.
It’ll be a little late for Christmas–and will probably move the governor to add some of those items to his budget-cut wish list—but like that hot water heater, folks are figuring that even if some of the ideas are dull and almost imperceptible to most Kansans, if they work, we get hot showers…and the hot water heater goes in the basement, anyway…