Several conference committees were able to reach agreements on crime legislation, tax legislation and KPERS reform over the course of the week.  The conference committee on the budget was still working to reach a compromise.

Funding Flexibility for Schools (H Sub for Sub for SB 111): The House passed a bill that identifies truly unencumbered funds and allows local school districts to use those funds for more critical purposes if revenues decline.  This bill gives school districts the opportunity to access some of the approximate $358 million in unencumbered funds in over 90 percent of the state's school districts. These are funds districts have received from the state which have been accumulating due to use restrictions.  The bill also requires at least 65 percent of the surplus funds to be used on instruction thus protecting teachers and classrooms from budget cuts.

Kansas Offender Registration Act (H Sub for SB 37):  This bill makes several changes to the Kansas Offender Registration Act to bring Kansas into compliance with the federal Adam Walsh Act.  

Expensing and Job Creation Program Fund (House Sub for SB 196):  This bill allows for certain business investments for equipment and software to be expensed, phases out or repeals several existing state income and sales tax credits, repeals the Kansas Economic Opportunity Initiative Fund (KEOIF) and creates the Job Creation Program Fund (JCPF).   A primary focus of the legislature is the creation of a  comprehensive tax structure that encourages businesses to choose Kansas.

KPERS Update:  Legislators were able to reach a compromise in resolving the solvency of KPERS. The plan creates a 13 member commission to study the feasibility of a 401(k) like plan and requires the commission to make recommendations to the Legislature during the 2012 session.  The bill allows public employees to choose between paying a higher percentage of their salaries into KPERS or having a future benefits cuts.  In addition, the bill requires the state to phase in an increase of $28 million to its annual KPERS contributions starting in FY 2014.