| B- | Kansas |
Population (rank): 2,764,075 (33)
Average per capita income (rank): $23,818 (26)
Total state spending (rank): $12,553,494,000 (34)
Spending per capita (rank): $4,542 (37)
Governor: Kathleen Sebelius (D)
First elected: 11/2002
Senate: 40 members: 10 D, 30 R
Term limits: None
House: 125 members: 47 D, 78 R
Term limits: None
Governor Kathleen Sebelius holds a master's degree in public administration, and it shows. Where preceding governors tended to ignore the everyday workings of the state bureaucracy and allowed some segments of it to fall into general disrepair Sebelius has involved herself in managerial detail and forced agencies to collaborate on everything from water policy to training for state personnel. Kansas is just small enough for this kind of approach to be feasible. "This ship is like a medium-sized cruise boat," says Burdett Loomis, a professor of political science at Kansas University. "It's not easy to turn around, but it's possible."
That's the good news. The bad news is that there's quite a bit to turn around. Among the most significant challenges is a $5.4 billion pension liability proportionally one of the largest in the country. An education funding settlement is also putting fiscal pressure on the state. At the insistence of the Kansas Supreme Court, the legislature increased education funding by $466 million over three years. The state relies on conservative revenue estimates and large ending balances in lieu of a rainy day fund, and this year, it's spending down that balance to meet the school-funding obligations.
The state's workforce is in pretty dire shape, thanks to an inconsistent pay system that can't compete in the labor market and sometimes compensates veteran employees little more than new hires. "Anyone who's worth their weight in salt, we lose them to private industry," says state Senator Dwayne Umbarger, who chairs the Ways and Means Committee. "We need to do what we can to retain high-quality workers." Given this reality, the absence of a meaningful workforce plan is particularly troubling.
There's a comprehensive pay-plan redesign up for debate this spring. It has a significant pay-for-performance component, and would better align salaries with the market rate. This would be a significant change, because the state currently has little way to reward employees who excel. If it passes and right now, that seems likely Kansas also will dramatically change its performance-review system to a more centralized, mandatory model. Supervisors and managers would receive training on how to fairly assess employees.
Kansas' current job-classification system is set up on formalized career ladders, charting rigid routes for state employees as they move from title to title, and requiring them to become supervisors in order to receive significant raises. The new pay plan would simplify the labyrinth of classifications and allow more flexibility for employees to map their own careers. It would create a dual path so that employees wouldn't have to take on managerial responsibilities in order to move forward in their careers. "You can lose a great employee and get a bad supervisor by promoting them into a supervisory class," says Kraig Knowlton, manager for personnel policies and regulations. "Now, they won't be topped out from a pay perspective."
These changes are much needed. The current system isn't particularly helpful or well enforced. Because there's been pay compression, or a lack of salary separation between new and more seasoned employees, there's a tendency to give "exceptional" ratings for average work.
The Sebelius administration has intentionally strengthened and streamlined the power of the public-employee organizations by consolidating bargaining units and reducing the number of them from 42 to 17. Some of the smaller units were poorly represented and so were left behind. This is being embraced as an important step in the state, a sign that the administration is more responsive to its employees.
For additional data and analysis, go to pewcenteronthestates.org/gpp.

