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Posted on Tue, Mar. 03, 2009

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How will Kathleen Sebelius appointment affect Kansas budget situation?

BY JEANNINE KORANDA

Eagle Topeka bureau

Will Kathleen Sebelius' departure disrupt an already-difficult legislative session -- or will Lt. Gov. Mark Parkinson smoothly step into the gap?

Lawmakers offered differing views Monday, in part because much is still unknown -- including how long Sebelius will remain governor.

She doesn't plan to resign until she is confirmed as health and human services secretary. It's unclear how long that will take.

With five weeks remaining in the Legislative session, the biggest task lawmakers face is crafting the 2010 budget -- which top Senate Republicans have estimated needs more than $600 million cut from it.

"Kansas needs the United States Senate to act quickly on the Sebelius nomination so the transition of governors can occur and the critical work of reshaping state government to live within its means for years to come can proceed during the remaining few weeks of this legislative session," said Senate Majority Leader Derek Schmidt, R-Independence.

He called Sebelius' departure a "disruption."

"The state budget remains substantially out of balance, and she will leave behind no consensus on how to balance it," he said.

Rep. Jason Watkins, R-Wichita, vice-chair of House Appropriations Committee, suggested that Parkinson could take a more active role in the budget negotiations even before the U.S. Senate concludes its confirmation hearings.

"We're really at a critical time, almost in crisis mode," Watkins said. "The communication needs to be there between executive branch and the legislative branch."

Parkinson will succeed Sebelius as governor and serve out the remainder of her term. He has said he does not plan to run for governor in 2010.

Monday, he released a statement saying he would "continue to be focused on the budget and other issues" while Sebelius undergoes confirmation.

"We know that Kansans are facing the most challenging economy in our lifetimes," the statement said. "Our commitment is to continue to do everything we can to move our state forward."

Senate Minority Leader Sen. Anthony Hensley, D-Topeka, criticized Schmidt's characterization of Sebelius and said she "has given us sound, fiscally responsible recommendations for using federal stimulus dollars for stabilizing the 2010 budget."

Sen. Jean Schodorf, R-Wichita, said now that cuts to the current budget are resolved and the governor has offered a proposal to use federal stimulus money in the 2010 budget, it isn't a bad time for the governor to leave.

She said people are waiting to see how a mid-session change in governors could affect things.

"Everyone is wondering if it is going to be very different and everyone is wondering how it will play," she said.

The Legislature's staff projects Kansas will end fiscal 2010 with a $654 million deficit if it attempts to duplicate its current budget.

Leaders of the Republican majorities in the House and Senate contend spending cuts must close most of the shortfall. Their target is $625million in cuts, or an average of 10 percent of the spending financed with the state's general tax revenue.

Sebelius recommended some targeted cuts in January. But she also proposed to tap revenue from yet-to-be-built state casinos, make accounting changes, divert funds from cities and counties, and freeze estate and corporate franchise taxes at current levels rather than phase them out by 2011 as planned.

Last week, she proposed using $909 million in federal stimulus funds to keep the budget balanced through fiscal 2011. GOP leaders said they are still studying her proposals but are wary of using one-time funds for ongoing programs.

Republicans wondered whether Parkinson, who switched to the Democratic Party to run for lieutenant governor with Sebelius in 2006, would stick closely to her budget proposals.

"I think a lot of folks are excited about the positions he'll take and don't think that he is beholden to the Democratic base, as Governor Sebelius is," said House Appropriations Committee Chairman Kevin Yoder, R-Overland Park.

Fellow Democrats were confident Parkinson would continue with Sebelius' policies.

Rep. Tom Sawyer, a Wichita Democrat who serves on the House Appropriations Committee, said he expects Parkinson to push the same proposals.

"There will be a smooth transition," he said.

Contributing: Associated Press
Reach Jeannine Koranda at 785-296-3006 or jkoranda@wichitaeagle.com.