Labor and redistricting
The third week of our legislative session continued with most work still in our committees.
The Commerce Committee heard reports on the status of unemployment within the Department of Labor.
The unemployment trust fund has returned to a healthy balance, holding above $600 million after we added $250 million from federal stimulus funds in July.
We are reviewing the estimates for fraud to determine any additional amounts we will add from those federal funds. Our legislative post audit showed fraud amounts of $344 million in Kansas unemployment benefits with another $343 million in federal benefits (total of $687 million). The Department of Labor estimates total fraud of $380 million (for both state and federal funds). We intend to replenish the dollars lost to fraud in the Kansas trust fund from our federal stimulus money.
The goal is to hold Kansas employers harmless for the fraud.
For example, if the post audit number of $344 million is correct, that is the total we would return. We have already put in $250 million so we would add another $94 million (to equal the $344 million lost from the Kansas trust fund).
A concern that surfaced in January is an uptick in initial unemployment claims. Roughly 40 percent of employers are reporting an unexpected increase in unemployment claims. Given the low unemployment in our economy, it appears this is an increase in fraudulent claims. So far, we are not seeing an increase in claim payments and believe measures put in place last year will stop these fraudulent claims from progressing. We will be monitoring the process and looking for any unexplained increase in claim payments.
We still have old claims that have been languishing in the appeals process. While encouraging the department to investigate claims due to fraud efforts, we still need to help them and our legitimate claimants move to a conclusion. There are some cases that are taking an unacceptably long period of time and steps.
The federal re-districting maps moved from the Senate, through the House committee and to consideration by the full House. During the four hour debate, several alternative amendments were offered. Each of the new dividing lines were met with concern.
I am not sure how to best divide Wyandotte and Johnson counties, and none of the alternatives offered could gain widespread agreement on either side of the aisle.
Another concern was about splitting our Indian nations. While their preference is key, I have found having multiple representatives interested in issues can be useful. There have been times I have wished we had more than one representative with a portion of Ellsworth County so I had help on issues we wanted to advance.
Adding Lawrence to the first congressional will continue to be controversial. Whether combining KU and KSU in one district makes sense will be debated for some time.
The bill advanced with a vote along party lines and now moves to the governor’s desk.
The Senate passed a bill that creates a special tax incentive for economic development projects with at least a $1 billion investment. The issue will be brought to the House committee among others to address this week.
It has been good to see visitors in the Capitol again this year. I have enjoyed meeting with several groups and I am looking forward to having pages work with me.
If you are coming to Topeka or if you know someone who might be interested in paging, please contact my office at (785) 296-7696.
Steven Johnson is an Assaria Republican who represents the 108th District in the Kansas House of Representatives. The district includes all of Ellsworth County and a portion of south Salina.