2024 Special Session Comes and Goes
The Kansas legislature completed a brief Special Session this week after Governor Kelly called lawmakers back to pass a tax reform bill that she would sign. After issuing a handful of vetoes on previously passed tax plans, news broke last week that legislative leaders and the administration brokered a deal on tax relief. Over the course of two days, a joint House and Senate tax committee held an information hearing on the proposal and the legislature quickly debated and passed the bill. With the state sitting on a record $3.5 billion in reserves, the bill awaiting Kelly's signature provides an initial $470 million tax cut with about $380 million annually in cuts starting in FY2026. The major elements of this bill include: 1) moving from 3 rates to 2 tax tiers (5.2% and 5.58%); 2) slight increases in the standard deduction amounts; 3) increase in the personal exemptions; 4) full elimination of income taxes on Social Security income; 5) an increase in the residential property tax exemption; and 6) a 50% child care tax credit.
While the Governor called the Special Session solely for the purpose of passing a tax relief bill, the legislature did use the opportunity to update state STAR (Sales Tax and Revenue) Bond statutes. The proposal, which passed with supermajorities, allows for the Department of Commerce to offer a new class of STAR Bonds for professional sports stadiums that could lure the Kansas City Chiefs and/or Royals to the Sunflower State.
The legislature adjourned until Monday, January 13 for the 2025 regular legislative session. However, legislative leaders will soon assign special committees to study various topics throughout the summer and fall "interim" session. These interim committees typically approve non-binding recommendations for the full legislature to consider when they return for the regular session next January. More to follow on the interim committees as information becomes available.
Medicaid Fee Schedule Increase
A final note about the Medicaid fee schedule increase proposed by KMS and approved by the legislature this spring. KDHE is in the process of filing the necessary documents with CMS, which must approve the fee schedule increase. As of now, it appears that the process should be completed in time for the 9% increase to take effect for dates of services provided on and after August 1.
Looking Ahead to Election
All 165 legislative seats are up for election this year. Republican leaders hope they can retain or grow their supermajorities in the House and Senate. Of course, Democrats will be working hard to erode the veto-proof GOP majorities. After the early June filing deadline, a picture of the slate of candidates took shape. Here is a snapshot of the field as we head into the Primary Election on August 6:
- 18 House and 11 Senate incumbents did not seek reelection.
- 9 State Representatives filed to seek election to the Senate, while 1 Senator filed for a House seat.
- 43 House (27 Rs/16 Ds) and 5 Senate (3 Rs/2 Ds) candidates have neither a Primary nor a General Election opponent.
- Democrats fielded candidates in 92 of 125 House races and 34 of 40 Senate seats.
- 9 House races and 4 Senate races are Primary contests only.
Join KaMPAC Today!
The Kansas Medical Society Political Action Committee (KaMPAC) is guided by an independent, non-partisan board of physicians from across the state. They evaluate each candidate and race and seek to support candidates willing to listen to physicians' concerns when policy-making. KaMPAC does not give to statewide races or to political parties. The legislature has the most significant impact on the practice of medicine in Kansas and as such, we engage in direct campaign contributions to legislative candidates. KaMPAC's goal is to help elect fair-minded candidates who put responsible public policy above politics. If you haven't already, please join KaMPAC today, and help us make an impact on the elections this fall.
