Budget woes and bright spots
Published on -2/7/2010, 8:36 PM
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Janis Lee
As the Legislature finishes the fourth week of the 2010 session, the main topic of discussion continues to revolve around the budget and whether the Legislature will make additional reductions in funding for the various agencies or will in some manner enact legislation which will enhance revenues.
As a result of the recession, revenues for Kansas have declined for an unprecedented four straight years, while total spending has been slashed more than $1 billion in the last 18 months. Currently, revenue estimates for fiscal year 2011 would indicate that either an additional $300 million in either reductions to agency budgets will be necessary or that same amount of revenue enhancements will be necessary to maintain current funding levels. Just a few of the reductions that would possibly be made if there are no increases in revenues would include some of the following:
* Reducing general state aid for K-12 education by $188 million, thus requiring our schools to either reduce staff or rely more heavily on local property taxes;
*Reducing state funding for the regents system by $35 million, which very likely would result in higher tuition rates;
* Reducing mental health grants by $3.9 million, which would dramatically reduce services in our local areas or place more burden on the local property taxes to replace state funds;
* Reducing funding for the courts by $3 million and thus require that court employees take unpaid furlough days,
* And reduce Children's Initiative Funding for early childhood programs.
I do not support any of these proposed reductions and, therefore, believe the Legislature must look to alternative proposals.
One bright spot in the current news at the state level is that the Kansas Corporation Commission has received more than $48 million from the U.S. Department of Energy as part of the American Recovery and Reinvestment Act of 2009. The bulk of the funding has been used to create energy efficiency and renewable programs at the State Energy Office.
The largest portion of that funding, $37.2 million, has been dedicated to the Efficiency Kansas Loan program, which targets energy-efficiency improvements in existing homes and small businesses.
The program is designed as a public-private partnership that will channel $34 million through private businesses directly into local Kansas communities. Once the initial funds are loaned, the revolving loan fund is expected to replenish and provide approximately $2.3 million for additional loans each year.
Kansans can borrow up to $20,000 for approved projects in homes and up to $30,000 for approved in small commercial and industrial structures.
In order to be approved for Efficiency Kansas financing, the estimated energy savings must cover the project cost over the term of the loan, which cannot exceed 15 years.
All approved projects are based on the findings of a comprehensive energy audit, preformed by private-sector energy auditors who have met program qualifications.
Efficiency Kansas is accessed through partner lenders and partner utilities Currently, 15 lenders with 93 branch locations have signed up to be official partners. At this time, one utility, Midwest Energy, has signed on as a partner and is offering their How$mart program in partnership with Efficiency Kansas. Several other utilities are expected to submit applications to operate meter-based energy-efficiency programs also.
The State Energy Office also is offering several complementary programs in conjunction with Efficiency Kansas, including $350 rebates to offset the costs of the energy audits for the first 1,000 participants, $250 loan fee rebates to lenders to defray upfront administrative costs, and 100 scholarships for energy auditor training.
Janis Lee represents the 36th District. jlee@ink.org









