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Brownback, Jenkins, Schmidt give policy update at Kansas Soybean Expo
Kansas soybean farmers received updates on federal and state legislation during the Kansas Soybean Expo held Jan. 6 in Topeka, Sen. Sam Brownback, R-KS, Rep. Lynn Jenkins, R-KS, and Derek Schmidt, Kansas senate majority leader, reviewed what is ahead for the U.S. Congress and the Kansas Legislature. Health care Health care legislation was at the top of the list for Brownback and Jenkins. Both said the conference process to merge the House and Senate versions of this bill has moved behind closed doors. "I said if they are going to do that, they should at least broadcast on C-SPAN so people know what is going on," Brownback said. He said no matter how people feel about this legislation, Congress is taking on a huge federal obligation without the necessary funding. "We are broke," Brownback said. "We are $12 trillion in the hole." Jenkins said one good thing about the debate on health care is that it has pushed cap and trade to the back burner. Jenkins said neither the House version nor the Senate version is the solution to improve access to affordable health care in this country. Jenkins supported an alternative health care plan that would reduce premiums, ensure folks have access to health care regardless of preexisting conditions, and allow small businesses to band together to take advantage of the same economies of scale that large companies enjoy. Cap and trade Next on their list of concerns was cap and trade legislation. "I am for taking care of the environment, but I think you do it through investment and innovation not taxation and regulation," Brownback said. Brownback is concerned that they will go after animal agriculture because of methane production. He said there is a plan to go after the 100 largest feed yards. Brownback warned the soybean growers that this is just the beginning. "The House passed its version of cap and trade last year and I strongly opposed this legislation," Jenkins said. "It was written by liberal Democrats from Massachusetts and California and pits the coastal states against the Heartland. Jenkins, who just completed her first year in Congress, said rural America stands to lose the most from this legislation. Debt "When it comes to fixing the problems facing this nation, this Congress is going in the wrong direction," Jenkins said. "And in the process they are spending a lot of your money, your kids' money, and your grandkids' money." Brownback is also concerned about the amount of debt that is piling up with the bailouts, the stimulus package, cap and trade, and health care. "This country, like any business, can carry quite a bit of debt in a good year, but if a bad year comes along you have a big problem," Brownback said. "Something has to give and the margin to move on public debt is coming soon. We are printing a bunch of money and building a lot of debt and that train will end at some time." Brownback said when that time comes, and he expects that to happen in two to five years, other countries will be looking at the U.S. to see which industries they can pick off. Businesses will flee the U.S. if tax rates get too high. State budget Unlike the federal government, the state of Kansas is required to balance its budget every year. Like every other state, Kansas has faced budget shortfalls the last two years. Derek Schmidt, senate majority leader in the Kansas Legislature, said from April 2008 to April 2009 $1 billion was gone from the Kansas state budget. Schmidt said it was gone, due to the reasons that most people saw their 401K become a 201k. "We are not alone, almost every other state is in the same boat," Schmidt said. "The bottom line is we closed that $1 billion hole and we balanced the budget in Kansas. The fight is over how we do it, not if we do it." The hole in the state budget was closed with five rounds of cuts. Gov. Parkinson ordered the fifth round of cuts in November. This year, the state is faced with a $300 million hole to fill. "The governor thinks we have cut as deep as we can cut; and, it is time to raise more revenue," Schmidt said. Up to now, there has been consensus about how the budget deficit would be handled. Spending cuts were the answer. Schmidt said for the first time there are significant voices about what to do next. It changes the dynamics of the discussion. "We should have a better answer in April, after we get the next round of revenue projections for the state," Schmidt said. Last session the state Legislature was focused on immediate problems, but Schmidt said they are starting to look to the future and bring forward new ideas. One of those ideas is to create a committee similar to the Base Realignment and Closure Committee (BRAC) that the federal government used to assess military bases. Except on the state level, this committee would take a look at state institutions and set new priorities. Schmidt said some of these institutions need to be changed or restructured. With a new governor in 2011, this is a good time for this to be done. Another idea is to set up a mandatory savings account for the state. The idea is to set aside money in a reserve when times are good, to use when times are bad. Another theme for this new session of the Kansas Legislature will be to create economic opportunity and create new jobs. "This is what will pull us out," Schmidt said. Schmidt sees investment in wind farms as a way to create opportunity and new jobs, particularly in rural areas of the state. Two wind farm proposals are on the table in Elk County. "This could be the biggest thing to happen to Elk County, ever," Schmidt said. The Kansas Soybean Expo concluded with their annual awards ceremony and annual meeting. Doug Rich can be reached by phone at 785-749-5304 or by e-mail at richhpj@aol.com.
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