It is a truly an honor to serve the citizens of the 100th District. My main priority during my ten years’ tenure in the legislature has been to reduce the size of government and grow the Kansas economy. I believe that we need to create more jobs. The only way to accomplish this goal is to make our state one of the most competitive in the region in order to keep the businesses that we have and attract new companies.

Recently, Boeing announced their decision to leave Wichita and take with them many high paying jobs. I think that this action points to the need to continue to improve the business climate in Kansas. We should not waver from maintaining a constant push for less government, lower taxes, and a repeal of unneeded regulations.

Research shows Kansas has one of the highest tax rates in the region and we are consistently losing workers to nearby states with lower tax rates. We need to be committed to developing favorable tax policy that enables employers to create jobs, entices new business to relocate to Kansas, and ensures residents will continue to live and work in our state. Our State has a diverse economy which presents a considerable challenge for any type of major tax policy changes. Any changes to the current tax code will not come without exhaustive study and deliberation. Feedback from all points of view is a critical part of this process, I encourage you to involve yourself in the process and express your views.

Please take the time to track the Legislature’s work. Right now new policy proposals are being aired and discussed. Different perspectives are being expressed, and as a result we are seeing the beginning form of key policy programs. I believe this is an important part of the process to define legislation that will shape the future of Kansas. As you know, the devil is in the details and many components of these policies are still subject to change. Just because a concept is being proposed doesn’t mean that it will become law. My intent, through this newsletter, is to keep you, my constituents, informed. That is why I need for you to let me know your thoughts on the issues that are being discussed. I need to know any ideas that you might have on how to modify these proposals, and how they are going to affect you. Please feel free to call me, e-mail me at goicorep100@cox.net, or leave me a message at www.mariogoico.com. Thank you for the honor of serving you!

Respectfully yours,

Rep. Mario Goico

Tax Proposal (The Talk Intensifies)
My Summary
Last year, the House passed tax reform legislation that would have strengthened the economy while protecting low-income Kansans. However, the Senate failed to act on those bills.

I believe that we need the reforms that were started in the House. We need a comprehensive tax reform specifically directed at growing the private sector economic base and creating more private sector jobs. This has to be accomplished in a socially responsible manner; we should not increase the tax burden on lower-income Kansans. The Governor and the House have proposed that all revenue increase over 2 % should be used to first reduce the individual income tax brackets. I think that this should be 2 % or the inflation rate, whichever is highest.

I agree that we should not eliminate home mortgage interest and charitable deductions. However, eliminating the Earned Income Tax Credit (EITC) and moving it to social service programs (where federal matches would increase the $60 million to more than $113 million) makes sense. Accelerating severance tax receipts from new wells for two years also makes sense (our citizens should derive some benefit from our natural resources). The House vision will focus on growth and job creation while insuring a healthy ending cash balance to keep our state on a sound fiscal basis. I also like the emphasis on reducing the low and moderate income tax brackets (middle class) on an accelerated basis.

The House’s Conceptual Tax Bill
Basically, the House agrees with the Governor’s plan. Their main modifications are in maintaining current tax deductions, credits and exemptions; this includes food sales tax refunds, historic tax credits, charitable deductions and mortgage deductions, while following the Governor’s pro-growth, pro-jobs recommendations of allowing small businesses to retain non-wage profits and to reinvest that capital back into their businesses in order to create new jobs. It would maintain the statutory sales tax sunset, passed during the 2010 session, which lowers the sales tax rate to 5.7 percent in 2013. The House plan depends almost solely on revenue increases above 2% a year to finance the reductions in rates across the tax brackets. The plan proposes to spread the savings possible by the 2% lid on increases in state spending with an emphasis on reducing the low and moderate tax brackets on an accelerated basis. The House also endorses the Governor’s plan to accelerate the severance tax collection on new wells and the proposed expansion of the successful Rural Opportunity Zone (ROZ) program.

State Budget
The proposed reduction in the 2013 State General Fund is a minuscule 6% (approximately $39 million), not large but is at least the beginning of a decrease. The ending balance is proposed at $365 million or a 6.2%. Note that this amount is short of the statutory 7.5% (which has not been achieved since 2002).

Obamacare
Lt. Governor Dr. Jeff Colyer joined an important amicus brief filed with the U.S. Supreme Court regarding the constitutionality of the Affordable Care Act (ACA).

Hunting and Fishing Licenses
A bill was introduced that would eliminate free hunting and fishing licenses for Kansans who are 65 years old. I oppose this bill

Redistricting Kansas
The state of Kansas is in the process of redrawing its Congressional and Legislative boundaries based on the 2010 census figures. The population of Kansas has grown in the eastern part of the state while western Kansas continues to struggle with a declining population. Expectations are that one Kansas Senate (70,986 persons) and three Kansas House (22,761 persons) seats will shift from the West to the East.

Public hearings throughout the state were held on the redistricting process over the summer and fall. Before the 2012 session can come to an end, new district maps must be approved by the Legislature so they can get final approval from the court for the August 2012 primary election and November 2012 general election.

I personally find it very difficult and challenging to part with any friends, neighbors or constituents. Unfortunately my district has grown too much.

Caylee’s Law – HB 2440
I’m one of the sponsors of HB 2440, Caylee’s Law. This is one of the first priorities in the Republican caucus for 2012. Caylee Anthony, a 2-year-old, disappeared in Florida in 2008. Anthony’s mother, Casey, failed to notify authorities of her daughter’s disappearance for a month. Current Kansas’ law does not view this sort of negligence as a crime, and does not impose criminal penalties for failing to notify law enforcement of the death or disappearance of a child. This bill will create those standards. This bill is an essential tool for prosecutors to better protect Kansas children.

In the fall of 2011, Penn State University was rocked by allegations that former football coach Jerry Sandusky had been caught sexually assaulting or inappropriately interacting with underage boys on or near university property. Subsequent investigations appeared to reveal that eyewitness accounts of the abuse were not reported to proper university and law enforcement authorities.

This Regents Reporting Requirements bill requires all state post-secondary educational institutions to develop reporting standards for cases of abuse. In addition, the Kansas Board of Regents will require each regent institution to formalize individual standards for reporting abuse.

State Archives Available Online
The Kansas Historical Society has partnered with the popular family history website, ancestry.com to allow individuals with valid Kansas driver’s licenses free access to over 8 million Kansas records. To access the records, users need to access www.kshs.org/ancestry and enter their name, date of birth and Kansas driver’s license number. Once the number is authenticated, users will be redirected to ancestry.com.

Users will be able to access Kansas census records from 1865 to 1985; Civil War enlistment papers of Kansas Volunteer Regiments (1862, 1863, and 1868); Russell County vital and probate records; selected World War I manuscripts; and United Spanish-American War veterans certificate collections.

The Historical Society also has a digital portal providing access to 200,000 images of photographs, artifacts, diaries, letters, maps and other printed materials at www.kansasmemory.org.

Please, let me know your thoughts on these issues. Feel free to e-mail me at mario.goico@house.ks.gov any time. I’d be happy to discuss any topic with you. Thank you for the honor and privilege of serving you!

The Governor has proposed to overhaul the state tax code. His goal is to make it simple, flat, and fair.
We need to put more money in Kansans’ pockets in order to boost the economy. The tax changes proposed will be revenue-neutral. Any future increases in revenue will be used to further reduce individual income taxes.
He will maintain corporate tax rates unchanged and the penny sales tax will not expire early. Gov. Brownback also introduced his budget for the 2013 fiscal year which begins July 1, 2012. Other subjects presented were: KPERS, Medicaid, and the school funding formula.

Tax Reform
Rebuilding and strengthening the economy is the most important issue facing the Kansas Legislature during the 2012 session, as pointed out by the Governor. During these tough economic times, a growing number of states have cut or are considering cutting taxes as a way to encourage economic growth. Research shows states with zero personal income tax significantly outperform states with higher income tax rates. These states also experience better population growth and increased tax revenues than those with higher taxes. However, a full elimination of state income taxes isn’t feasible in the 2012 session.

The Governor’s plan would lower individual income taxes for all Kansans. The highest tax rate will be reduced to 4.9 percent (from 6.45), and the bottom one to 3 percent. This plan will eliminate individual state income taxes on most small business. Any state revenue growth above two percent will be directed to further reductions in the state individual and corporate tax rates in future years. The plan is revenue neutral. In order to reduce taxes there is an elimination of many itemized deductions.

Kansas has the second highest tax rate in the region, behind only Nebraska. Migration data shows that we are consistently losing workers to nearby states with lower tax rates. From 2001 to 2010 private sector employment in Kansas fell by 39,700 jobs. Between 2004 and 2010, Kansas lost 15,683 tax filers and 17,640 dependents, costing the state $1.09 billion.

We must create a favorable tax climate that enables employers to create jobs, entices new business to relocate to Kansas and ensures residents will continue to live and work in our state. Feedback from all points of view is a critical and essential part of this process. Please involve yourself in the process and communicate your thoughts to me.

State Budget
Last year, for the first time since 1972, we decreased the state spending by nearly a billion dollars, and turned a $500 million deficit into a $100 million surplus without raising taxes. Part of our problem for many years has been that expenditures have been too high. For too long, Kansas government has lived beyond its means and we worked very hard last year to turn the tide. However, we still have very serious challenges facing the state. It is important for us to remain committed to keeping our spending in check. We must still pay off the accumulated state debt and spend conservatively to avoid some of the shortfalls we were forced to deal with in recent years.

Governor Brownback’s budget for FY 2013 funds or increases funding for essential state services while decreasing State General Fund (SGF) expenditures. This budget has a $465 million ending balance, exceeding the 7.5 percent statutory requirement. This is only the second time in the past forty years that the proposed budget decreases total state spending.

Education Finance Formula Reform
Governor Brownback introduced a plan that aims to prevent education dollars from being wasted in courtroom litigation, focuses resources on the classroom, and provides greater flexibility and local control to Kansas school districts.

The Governor’s plan is designed to provide stable, predictable, and fair funding to all of Kansas’ 286 school districts by:
• Providing the statutory $4,492 base state aid per pupil amount;
• Offsetting local property tax inequity through the Property Tax Equalization Fund that pays out in increasingly greater amounts to districts with low property tax valuation per pupil;
• Further equalizing district budgets through Supplemental Equalization to ensure that each district has a stable funding amount year after year; and
• Allowing for unlimited local control of property taxes for educational purposes.

The new legislation would take effect in FY 2014 and sunset after four years. The proposed formula would cost the State an additional $45.1 million. Education is the most important responsibility of the state government. Under the proposal, all the districts would receive at least the same amount as last year and approximately half would receive additional funds.

Kansas Public Employee Retirement System (KPERS)
For many years, the Legislature has failed to properly fund KPERS. The current unfunded liability exceeds $8 billion. This is one of the worst pension systems in the United States. A bipartisan study commission recommended that KPERS should be transitioned to a defined contribution plan. Any person currently receiving KPERS benefits and those who are vested will not be affected by this change. The state must live up to its committed obligation to state employees. The transition still has many details that need to be worked out before we completely correct the problem. Not doing anything is not an option. Unless substantive reform measures are taken to improve the pension fund, the problem will only get worse.

The commission also recommended reducing legislative pensions based on the actual salary of legislators rather than the theoretical salary of approximately $85,000 upon which KPERS retirement is currently calculated. Legislators are paid $88.66 a day for their work (90 days) plus $123 a day for meals and lodging. This would reduce the salary for calculation to about $14,000.

I encourage you to let me know your thoughts on these issues. Please feel free to e-mail me at mario.goico@house.ks.gov. I’d be happy to discuss any topic. Thank you for the honor and privilege of serving you!

The State of Kansas, at all levels, has been committed to the aviation industry to ensure the success of Boeing for the good of the state and of the nation. State legislators and local government officials have been very involved in providing the industry and Boeing a lot of support. We have passed a bill that provided 500 million in bonds to expand the Boeing facilities, supported the National Institute for Aviation Research (NAIR), provided additional funding for universities to increase the number of engineering students, exempted modification and repairs from state sales taxes, provided Industrial Revenue Bonds and exempted from property taxes the expansion of facilities, and facilitated the training of aircraft workers. As a result, Wichita has numerous supplier companies and the best trained workforce in the aviation industry.

The saddest part is the lack of consideration to the commitment, dedication and hard work of many generations of Kansans going all the way back to 1929 and World War II. The Kansas’ workers contributed to the success that Boeing enjoys worldwide. I hope Boeing reconsiders this decision.

God bless our veterans and the sacrifices they made for our freedoms!

This is great news and should create new jobs!