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You are here: Home → News & Media → Legislative Updates → Hearing Held on Rainy Day Fund Amendment

Hearing Held on Rainy Day Fund Amendment

Topeka – The Kansas House of Representatives Appropriations Committee heard testimony today on Senate Concurrent Resolution 1614 to amend the state’s constitution to establish a budget stabilization fund in the state treasury.

 

Rep. Mike Burgess (R-Topeka), a supporter of the state establishing a rainy day fund and sponsor of a similar measure, testified before the committee.

 

“We need to learn from this recession. A number of states established similar funds after the last recession to begin preparing for the next economic downturn or unexpected natural disaster,” Rep. Burgess told the committee. “A rainy day fund serves as a state’s first line of defense against the budget pressures caused by declining revenues and rising need for public services during a downturn.”

 

Burgess pointed out with three separate measures being proposed, there is growing support in the Legislature to establish a budget stabilization fund.

 

Burgess introduced House Bill 2320 which passed the House last session while SCR 1627 introduced this session by Senators Laura Kelly and John Vratil is currently in the Senate Ways and Means Committee. A group of senators led by Sen. Derek Schmidt introduced SCR 1614. Burgess recommended the committee make a few amendments to SCR 1614.

 

 “Each piece of legislation offers a different approach with strong and weak parts. After looking at all three of these approaches to rainy day fund legislation, I attempted to pull out best practice concepts from each legislative proposal,” Burgess said.

 

Burgess’ suggested changes to SCR 1614 for the committee’s consideration are:

 
  • Establish an economic trigger for transfers to the fund – a 3% increase in revenues over the previous fiscal year will automatically trigger the .25% transfer into the fund;
  • Limit how much can be transferred out of the fund to 50% during any single fiscal year; and
  • Propose trailer legislation to clearly define funding for .25% transfer shall come only from the State General Fund and not from Fee-Funded funds.
 

“SCR 1614 will give the people of Kansas the opportunity to have their say whether they too believe it is important for our state’s financial well-being to establish a budget stabilization fund,” Burgess said. “This committee as well as the entire House and Senate will have many unpleasant votes this session. Let’s learn from this recession and do what many other states did after the last recession and leave Montana as the only state without a rainy day.”

 

The committee is expected to work the proposed constitutional amendment in the coming weeks. If it receives a 2/3 majority vote of support in both the full House and Senate, Kansas voters will consider the amendment in next November’s General Election.

 
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