If you aren’t worried about the future of Kansas, here are some reasons to start
Mismanagement and chronic fiscal problems in Kansas are eroding the state’s ability to serve the public.
The
situation is no longer one of short-term budget pain, as states
typically experience in a recession. The financial problems are severe
and deep-seated. They are pushing officials to make decisions that will
harm Kansas and its citizens well into the future.
Misplaced
priorities and poor leadership make matters worse. Some legislators say
they are alarmed by turnover in crucial state agencies. Many capable
employees have departed, leaving those in place often unable to deal
with the crises that are arising with increasing frequency.
Conservative
Republicans in the Legislature, who pushed for the deep income tax cuts
at the heart of the dysfunction, are fond of saying that government
needs to be run more like a business.
But in
fact no business could get away with failing as spectacularly as Kansas
has. The management team would be shown the door, something Kansas
voters failed to do when they narrowly re-elected Gov. Sam Brownback in
2014.
Voters will have opportunities to turn
over many legislative seats in elections later this year. It is crucial
to recruit and elect candidates who will help reverse the damage of
recent years.
Without a dramatic correction, the state will continue to spiral downward. Here we highlight a few of the areas of concern.
Road to ruin?
The raids on the state’s transportation fund in order to pay other bills are well known. Brownback and the Legislature have plundered $1.4 billion from the Kansas Department of Transportation over six years.
But
now the state is engaging in even riskier practices. A little-noticed
provision slipped into the budget last year opened a window for
unlimited borrowing of highway construction bonds. KDOT quickly issued a
record $400 million in bonds in December.
The
bond rating agency Fitch reported that highway officials had disclosed
that “the increase is partly tied to the state’s plan to transfer
additional funds to the state’s General Fund,” meaning the
administration is borrowing to funnel money through KDOT for other
expenses.
Even more irresponsible is the
structure of the bond issue, which requires the state to pay only
interest for 10 years and begin paying off the principal after that.
KDOT
Secretary Mike King told lawmakers the state will have finished paying
on other bonds in 10 years time. But Kansas has rarely taken such risks
in the past.
The increased borrowing isn’t
reflected in highway work. While its schedule calls for repairing 1,200
miles of roads a year, the state this year is fixing only 200 miles. At
that rate it won’t take long for Kansas roads to fall into serious
disrepair.
Power outage
In
a move that has legislators from both parties seething, Brownback’s
administration last month signed a $20 million lease-purchase agreement
with Bank of America to construct a new state power plant in Topeka.
Never before has Kansas turned to a lease-purchase agreement to finance
long-term debt.
Lawmakers weren’t consulted
about the deal, which will put the cash-strapped state on the hook for
$1.32 million in annual payments through 2031. The arrangement will
likely require the state to demolish the aging Docking State Office
Building, although not all lawmakers want to do that.
The
unilaterally arranged lease agreement is typical of Brownback’s
imperious management style and his inclination toward budget denial. The
state’s projected revenue shortfall through July 2017 could exceed $200 million. This is hardly the time to take on a new long-term debt payment.
But canceling the lease reportedly would cost more than $400,000. So it appears to be a done deal.
Waiting game
The
rollout of a new computer system for processing eligibility for Kansas’
privatized Medicare program, KanCare, has become a nightmare.
The system took years longer to build than anticipated, and costs are running about 25 percent over budget.
About 10,000 applications are pending. Advocates for disabled and elderly Kansans say clients are inexplicably being dropped from coverage. They find out they are uninsured when they visit their doctor or try to fill a prescription.
People are complaining of four-hour waits to get someone on the telephone and often no resolution of their issues once they do.
Other
states, including Missouri, have experienced technical difficulties as
they have upgraded software to comply with changes brought about by the
federal health care law and other developments.
But fixing the problems will require money, manpower and expertise. Right now Kansas is short in all of those areas.
Point of no return?
Low
pay for employees and disinvestment have created situations where
Kansas is actually paying more than it should to provide minimal
services.
Kansas once was heralded for
offering treatment and services that helped keep former inmates out of
prison. But much of that was stopped by budget cuts even before
Brownback took office. Now the state pays more to support increased
prison populations.
And because Kansas’ salaries are lower than in neighboring states, its prisons are beset with staff shortages that require corrections officers to work overtime at higher rates.
Staff
shortages are most acute at the state’s two hospitals for people with
severe psychiatric problems. Nurses and support staff at the state
hospitals in Larned and Osawatomie work so many extra hours that
concerns for staff and patient safety are well founded.
Because
of security breaches at Osawatomie, the federal Centers for Medicare
and Medicaid Services cut off Medicare payments for patients. The state
must now pick up the cost, about $600,000 a month.
“It
is possible to cut past the point of efficiency and create costly
problems,” said Kansas Rep. Melissa Rooker, a Republican from Fairway.
“It’s my belief that we’re there.”
Indeed,
there is no other valid conclusion. Services are breaking down in
Kansas, and the longer the financial and management ineptitude continue,
the harder it will be to restore them.