Kansas' population grew overall but 77 counties lost population, and the state will continue seeing an aging population and population loss in rural areas. While the private sector lost nearly 50,000 jobs, the public sector added over 19,000. The unemployment rate fell to 6.3% in May 2011. Kansas faces challenges from its growing debt load and budget deficits as expenditures exceed revenues, driven by increased costs for programs like Medicaid, education, and pensions. The presentation calls for continued reforms and discussions around tax policy, school finance, and pensions to address the state's fiscal issues.

1. State of the State Kansas Budget RealitiesNew Mindsets, New Models Kansas State Senator Julia Lynn – Dist 9

2. Kansas' population grew 6.1 percent, to 2.85 million people …… HOWEVER…… 77 of the 105 counties lost population Kansas will continue to see an increasingly aging population, rural-area population loss and diversity in highly concentrated areas Kansas Population Growth2000-2010

3. The Private Sector Lost Jobs while the Public Sector Added Them! Lost 49,800 Jobs! Added 19,300 Jobs

4. Jobs in Kansas The May 2011 unemployment rate in Kansas was 6.3 percent, unchanged from April 2011 and down from 6.8 percent in May 2010. Karin Brownlee, Kansas Secretary of Labor"Each month, the economic data indicates that our recovery is tentative but fortunately going in the right direction. We are all hopeful that job growth will accelerate in the next few months."

5. Business ClimateRankings from CNBC Study – America’s Top States for Business 2011 Improved Access to capital — #28 Business friendliness — #14 Quality of life — #26 Tech and innovation — #30 Declined Education — #24 Cost of doing business — #27 Infrastructure and transportation — #19 Economy — #16 Cost of living — #7 Overall, Kansas was ranked as #11 as one of America’s Top States for Business in 2011

6. One thing that may inhibit our growth is Debt Long term obligations $5,732.5 Unfunded pension liability $9,384.0 Unfunded OPEB liability $316.5 Unemployment loans $159.5 (Millions)

7. What this means for us Debt per Capita $5,465 Total Debt for Family of 4 $21,860

8. All Funds Budget Federal Funds that make up the total budget of $14 billion. Education Medicaid Unemployment benefits Public Safety

9. All Funds Resources

10. All Funds Expenditures

11. State General Fund Revenues Individual Income Tax Sales & Comp. Use Tax

12. SGF Budget Expenditures$6.3 billion

13. We’re Spending More than We’re Receiving!

14. Mandates Causing a SGF Increase Human service caseloads $245 M KPERS Delayed Payment $69 M K-12 Special Education $60 M Corrections $44 M KPERS Rate Increase $41 M

15. What’s Next?? Redistricting Elections Continued Organizational Reforms School Finance Tax KPERS Reconvene January 2012

16. And now, a word of wisdom… Government is like a baby. An alimentary canal with a big appetite at one end and no sense of responsibility at the other. -Ronald Reagan

17. Thank You! Kansas State Senator Julia Lynn – District 9 julia@senatorjulialynn.com www.senatorjulialynn.com

18. Appendix America's Top States for Business 2011 - Overall Rankings - CNBC CNBC: Kansas is 11th best state for business | Wichita Business Journal Labor Market Information - Labor Report Kansas' population growth not all positive, sociologist says Kansas Division of the Budget budget.ks.gov/publications/FY2011/FY2011_Overview.pdf