May 12, 2008
The 2008 Kansas Legislature has wrapped up its business for the year and many KU priorities, including expansion of the KU School of Pharmacy, were approved by legislators. Below is a summary of some of the issues of importance to KU that were discussed this session.
School of Pharmacy Expansion: The 2008 legislature enacted Sen. Sub for HB 2946, the Omnibus Budget, authorizing $20 million in bonding authority and an additional $15 million in ELARF for FY 2010 and $15 Million in ELARF for FY 2011 to provide for the expansion of the KU School of Pharmacy. An earlier “mega budget” measure appropriated $1 million in FY 2009 for planning resources associated with the project. This is the only capital improvement project authorized by the legislature using state resources and one of only two budget items funded with ELARF dollars.
Property Tax Policy for Research & Development: Language was adopted to clarify the property tax exemption for property used in association with research and development on property owned and/or operated by the university or endowment association. HB 2750 was incorporated into HB 2434, the omnibus tax measure of 2008. The bill’s effective date is July 1, 2008.
Budget Increase Modest: The Governor’s original block grant increase of $20 million was shaved in half as no additional revenue was appropriated in the omnibus budget bill. A $10 million increase was appropriated in the “mega budget” in early April for all Regents institutions. Additionally, the legislature approved the state pay plan in a separate budget measure which contained appropriations for a 2.5 percent salary increase. The annual $5 million appropriation for the KU Cancer Center was included in the “mega budget” bill.
WCGME Funds Approved: $2.5 million was appropriated to the KU Medical Center to shore up financial support for the Wichita Center for Graduate Medical Education. $1 million was appropriated in the early April “mega budget” bill, followed by a second appropriation of $1.5 million in SB 81, the Health Reform Act of 2008. That measure contains language directing that the revenues be used for non-research expenditures such as off-site or rural rotations and are contingent upon the request to the Kansas Bioscience Authority of $7.1 million to build research capacity. The measure also calls for the creation of a Physician Workforce and Accreditation Task Force whose members would be appointed by the Governor, the KU Medical Center, Legislative leaders, the Kansas Board of Regents, WCGME hospitals, the Kansas Health Policy Authority, and the Kansas Hospital Association. The group would make recommendations at the start of the 2009 legislative session.
Faculty of Distinction: The Legislature approved an expansion of the highly successful Faculty of Distinction program operated through the Kansas Board of Regents. HB 2343 raises the current cap on the program by $1 million per year beginning in FY 2009 and continuing through FY 2011 taking it up to $8 million.
Sale of Property: The university was granted authority to sell property located at 1043 Indiana as a part of HB 2858. The measure was amended to increase the potential area eligible for sale after questions were raised about potential use of the property and necessary accommodations for parking.
Capital Improvements: Legislation to allow universities to commence with capital improvement projects when non-state funds are being used outside of the legislative session was recommended for further study and review. KU asked legislators to ease the restrictions that currently require projects to be approved through the capital budgeting process. By eliminating that requirement, the university would be able to reduce construction costs.
Elimination of 60-day Waiting Period for New Employees: Discussions continue with state officials as we seek to have this 60-day waiting period eliminated. Beyond being a barrier to recruitment, the waiting period places an undue burden on new state employees and their families.
Interim Studies: Legislators have begun identifying study topics for the summer and fall in preparation for next year’s session. Medical student loan programs, and the service obligation requirements, have been identified as a potential study topic. Additionally, the operations of the State Fire Marshall and the KU Fire and Rescue Training Institute will be reviewed as a way of examining funding for these operations from premium taxes.
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