Kansas Senate panel advances Brownback nominee for cabinet post

A Kansas Senate panel approved Gov. Sam Brownback’s pick for a cabinet secretary position Monday despite grilling her over recent financial deals and demanding more information.

Sarah Shipman has served as acting secretary of the Department of Administration since July after the departure of former Secretary Jim Clark, but has recently faced pushback from lawmakers about a deal the department struck with Bank of America in late December to finance the construction of a new power plant for state office buildings in Topeka.

Shipman faced tough questions at a confirmation about the power plant deal and the rental leases for state agencies that have been moved to new offices in Topeka in anticipation of the demolition of the Docking Building, which currently houses the power plant for the Capitol and surrounding buildings.

Despite requesting more information about those deals, the Senate Ways and Means Committee voted to approve Shipman’s nomination and send it to the full Senate. Sen. Laura Kelly, D-Topeka, was the only lawmaker to vote against it.

“They just let the train run out of the station when we have a lot of lingering questions,” Kelly said after the vote.

Kelly had pressed Shipman on complaints from Larned State Hospital that administrative delays by the agency, which handles the state’s human resources and facilities management, have slowed down its ability to hire new workers despite a large number of open positions.

She also grilled Shipman about the power plant deal.

Lawmakers of both parties have questioned the legality of the agreement with Bank of America, which was made without legislative approval, to finance the construction of a new power plant through a tax-exempt municipal lease. The bank has lent the state money to build the power plant, which it will pay back with interest through 2031 at a total cost of $19.9 million.

The agency says Shipman as acting secretary had the power to enter into the lease under Kansas statute.

The Joint Committee on State Building Construction asked the department for more information on the project in October, but brokered the deal with Bank of America without providing it.

Shipman blamed this on a miscommunication and said fault lay with both agency and legislative staff. She said she would be attending the committee’s meeting personally from here on out to avoid future miscommunications.

"I would be far more or impressed if you would just take ownership of this rather than trying to spread the blame,” Kelly replied.

Shipman pledged that she would work to rebuild the Legislature’s trust with the agency. The Department of Administration paused the controversial power plant project in January in the face of legislative backlash and Shipman said the agency would be exploring alternative proposals before it proceeded with construction.

"We haven’t reached a decision yet in regards to next steps,” she said.

Shipman said she was hopeful that the vote was a sign that most lawmakers had regained trust in her agency.

“I’ve been working very hard over the last few weeks to try and get to the point with the Legislature where we all are in agreement on the direction we’re moving on the power plant,” she said.

Shipman has worked for the agency since 2011 in various capacities, including as chief counsel and deputy secretary before being nominated to replace Clark.

Sen. Michael O’Donnell, R-Wichita, pressed Shipman about the rental leases that state agencies entered into after leaving the Docking building in anticipation of its demolition.

"I’ve heard some pretty mind-blowing figures,” he said.

Shipman agreed to provide the committee with more information about the lease deals this week.

O’Donnell contended after the hearing that renting non-state owned office space in Topeka would cost the Department of Revenue $1 million in expenses a year compared to when it operated out of the Docking building.

“People are getting pushed out of the Docking building. They didn’t have a choice of where they went and now they’re paying more money for facilities that are not in good shape,” he said. “If there is any funny business going on, I think you’ll find it in some of these leases … allegedly, I should say.”

Despite his concerns about the lease agreements, O’Donnell voted in favor of Shipman’s confirmation in committee.

He said that once he gets the information requested from the agency he will decide whether to support her nomination when it goes to the floor of the Senate.

“We don’t have any other hiccups or any other reservations other than this power plant issue … I’m not concerned about her ability outside of this one cloud that’s hovering over her nomination,” he said.

Kelly said that the committee should have waited for this information before voting to recommend Shipman to the whole Senate.

Sen. Ty Masterson, R-Andover, the committee’s chair, said the question of whether to confirm Shipman shouldn’t be solely focused on the controversy over the power plant.

“We’re concerned about the (power plant) project. We’re getting all that information. She’s the conduit to that information, but the truth is that the confirmation’s about can she or can she not fulfill the position she’s been asked to fill,” Masterson said.

This story was originally published February 15, 2016 at 12:47 PM with the headline "Kansas Senate panel advances Brownback nominee for cabinet post."