Tax receipts tank; Legislature doesn't address school finance, etc. by KS Association of School Boards

Tax receipts tank; Legislature doesn't address school finance; Senate approves transgender resolution

State budget problems got worse on Wednesday and schools moved one day closer to a possible shutdown.

The Legislature ended the 2016 legislative session without acting on the Kansas Supreme Court’s school finance ruling in the face of a possible closing of the public school system in one month.

And just moments after legislators adjourned, the state reported another steep shortfall — more than $70 million — in projected tax receipts for the month of May.

As the clock ticked on the school funding deadline and the budget situation worsened, the Senate ended the session right after approving a resolution condemning the Obama Administration's directive to allow transgender students to use bathrooms that correspond to their gender identity.

Republican leaders said legislators would work later on school finance, but did not indicate when. Gov. Sam Brownback could call the Legislature back for a special session but has not commented on whether he would do that, nor when.

Last week, the Kansas Supreme Court said the Legislature's latest attempt to fix inequities in school finance continued those inequities to the detriment of poor districts. The court, again, said the Legislature had until June 30, the last day of the fiscal year, to produce a constitutional finance plan, or on July 1 schools would be unable to operate.

On Wednesday, the Legislature met for the official, usually ceremonial end of the session, and the major question was would leaders try to pass a new school finance bill or wait.

As the day progressed, it became apparent that Republicans, who hold significant majorities in the House and Senate, were nowhere near agreement on what to do.

Reporters tweeting from the Senate GOP caucus meeting reported senators were all over the map on how to address the court decision with some saying the Legislature should defy the court while others said legislators should abide by the ruling and allocate the funds needed to provide equity.

Meanwhile, Democrats and some Republicans urged passage of the former equalization levels, which would require approximately $38 million.

But the ability to put more funding into schools was dealt a setback when it was announced tax revenues for May fell more than $70 million short of recently lowered projections. With the state having an approximate $25 million ending balance for the current fiscal year, more budget cuts are likely.

"Large company layoffs and struggles in the aviation, oil and agricultural industries point to an overall sluggish economy which contributed to lower-than-expected revenue receipts," said Kansas Department of Revenue Secretary Nick Jordan. "This is a trend reflected throughout the region," Jordan said.

Last month, Brownback cut universities, health care and other areas by nearly $100 million because of lagging revenue.

Arguments over school finance spilled into debate of a resolution by Senate President Susan Wagle, R-Wichita, that condemned the Obama administration's decision requiring public schools allow transgender students to use bathrooms and locker rooms based on their gender identity and not based on their gender assigned at birth.

The federal guidance from the U.S. Department of Justice and U.S. Department of Education, providing a new interpretation of the decades-old Title IX anti-discrimination law, has been hailed by advocates for transgender students, who have said being forced to use facilities unaligned with their sexual identity has resulted in discrimination, bullying and high suicide rates.

But the resolution, approved by the Senate 30-8, urged public schools, colleges and universities to "disregard the Obama Administration Title IX guidance," which the resolution decries as an executive intrusion on local decisions that threatens the rights of privacy, safety and education of Kansas students.

Wagle said the resolution was needed to express discontent with federal overreach, but Democrats said Kansans were more concerned about whether schools would be open after July 1 than about where students go to the bathroom.

Sen. Tom Holland, D-Baldwin City, said the state has a growing budget deficit, an unconstitutional school finance system "but we're debating where transgender can pee."

Earlier in the day, Kansas Attorney General Derek Schmidt announced he had joined a lawsuit with 11 other states, led by Texas, that challenges the Obama administration's over the issue.