June

U.S. Congress
• Legislation introduced to allow NIH funding of altered nuclear transfer stem cell research
• House passes FY2007 budget resolution: recommends that the spending limit for the Labor-Health and Human Services-Education bill be $4.1 billion higher than President’s budget request
• House Appropriations Subcommittee on Labor, Health and Human Services, and Education approved a draft of the FY2007 L-HHS-E bill

Kansas Legislature
• Omnibus session ends; Legislature adjourns for the year
• Stem cell proviso removed from state budget; there will be no ban on stem cell research
• KU Cancer Center receives $5 million appropriation
• State income tax check-off for breast cancer research created
• State budget includes faculty and staff salary increases
• Kansas will begin establishing protocols for cord blood bank operations
• KUMC will retain interest earnings on tuition
• Deferred maintenance funding not included in state budget
• In-state tuition not granted for Kansas high school graduates who are now Missouri residents
• Nursing scholarship programs increased
• Student health insurance improved
• Medical student loan programs increased



Stem Cells

On Friday, May 5, Senator Rick Santorum (R-PA), along with Sen. Arlen Specter (R-PA), introduced legislation to authorize the NIH to fund early stem cell research that does not knowingly harm human embryos. According to the Pennsylvania senators, as well as the President’s Council on Bioethics, this legislation would support altered nuclear transfer (ANT), rather than somatic cell nuclear transfer (SCNT).
KUMC sees this as a positive step forward and an encouraging change in the federal attitude toward stem cell research.

FY2007 Budget

On May 18, the U.S. House voted in favor of the FY2007 budget resolution. This resolution includes a recommended increase of $836 million above FY2006 levels for the Labor-Health and Human Services-Education (L-HHS-E) appropriations bill. This increase would be $4.1 billion above what the President’s budget requested.

The Senate has also passed a budget resolution, but it differs from the House version. A conference committee must now meet to resolve the differences. Even if the House and Senate reach an agreement and pass a final budget resolution, it is important to remember that budget resolution are not signed by the President, do not become law, and are therefore not binding.

As a reminder, the federal fiscal year runs from October to September, so FY2007 runs from October 1, 2006, through September 30, 2007. Also, unlike the state level, at the federal level Congress drafts its own budget resolutions, and the President’s budget request is treated only as a suggestion.

FY2007 Appropriations

Appropriations bills are currently moving forward, even though a budget resolution has not been finalized. At the federal level, unlike the state level, Congress drafts funding bills itself and does not need a final budget resolution in order to proceed.

Most of the programs important to KUMC are in the Labor-Health and Human Services-Education (L-HHS-E) bill, which is the largest and most controversial of all the 10 appropriations bills.

The House Appropriations Subcommittee on L-HHS-E has approved a draft including:

• Title VII health professions and Title VIII nursing programs would total $313 million, an $18 million gain over FY2006 and $154 million above the President’s budget request.
• Title VII geriatric programs were restored to $31 million.
• Title VII centers of excellence, primary care training, and scholarships for disadvantaged students received the same funds they did in FY2006.
• Unfortunately, the Subcommittee has recommended elimination of the health careers opportunity program and faculty loan repayment under diversity training.
• All Title VIII nursing programs will remain at their FY2006 levels.

The appropriations process is a very long one, and Subcommittee approval is only the first step. The bill must now be approved by the full committee and the full House. The House Appropriations Committee has set June 21 as the goal for full House consideration of L-HHS-E.

The Senate has not scheduled subcommittee consideration, and there are no indications as to when full committee or full Senate consideration will take place.

Before the bill can become law, both the House and Senate must pass it, and the President must sign it. Although Congress aims to finalize appropriations by September 30 (prior to the beginning of the fiscal year), it is very often late. It could be November or December before FY2007 funding levels are final.

To see the status of all federal appropriations bills, you can click here: http://thomas.loc.gov/home/approp/app07.html.




Omnibus Session

After an interesting and at times contentious session, the 2006 Kansas legislature adjourned on Wednesday evening. KUMC faired extremely well, and our issues of concern were high profile; they included: new funding for the KU Cancer Center; a pay increase for faculty and staff; important flexibility and affordability for student health insurance; and -- despite a prolonged debate on human cloning -- no state specific prohibitions on stem cell research.

Highlights of the session are outlined below. Should you have the opportunity, please offer your thanks to these various legislators who work hard to support us.

Stem Cells

A stem cell proviso was added to the House budget which would ban any state dollars from being used for SCNT. This proviso was the final issue of dispute in the House-Senate budget conference committee, but was ultimately stripped from the legislation.

Senator Duane Umbarger (Neosho) and Senator Jay Emler (McPherson) were instrumental in ensuring that the onerous language was removed from the bill in the 11th hour. Also playing important roles in the debate in favor of KUMC was Representative Stephanie Sharp (Lenexa), Representative Carl Krehbiel (Moundridge), Representative Ed O’Malley (Roeland Park), Senator Derek Schmidt (Independence), Senator Vicki Schmidt (Topeka), Senator John Vratil (Johnson County) and Senator Anthony Hensley (Topeka).

Cancer Center Funding

The Governor’s budget included a $5 million appropriation for the KU Cancer Center, which she requested be funded annually by the legislature. Notwithstanding considerable debate over how the funding would be distributed, both the House and Senate ultimately voted in favor of the appropriation.

A number of House and Senate legislators were supportive of our efforts, including: Representatives Bonnie Sharp (Kansas City), Ray Merrick (Stilwell), and Nancy Kirk (Topeka) who led the efforts in the House, and Senators Steve Morris (Hugoton), Derek Schmidt (Independence), John Vratil (Johnson County), and Barbara Allen (Johnson County), who led the efforts in the Senate.

Breast Cancer Tax Check Off

Senator Barbara Allen (Johnson County) also introduced and was successful in passing legislation that creates a state income tax check off for breast cancer research, the funds of which will be distributed to the KU Cancer Center.

Faculty and Staff Salary Increases

The state budget includes a 4 percent pay increase for classified staff, a 3 percent merit pool for faculty pay increases, and a 2 percent pool for merit increases for unclassified staff.

Umbilical Blood Bank

Legislation was passed to require the Bioscience Authority and the Kansas Department of Health and Environment to establish protocols regarding umbilical cord blood bank operations in Kansas.

Tuition Interest

KUMC will now be allowed to retain interest earnings on tuition paid by students beginning in 2008, which will result in an additional $300,000 in funding.

Deferred Maintenance

The legislature has not yet to affirmatively address the deferred maintenance needs of the Medical Center, which now exceed $69 million. Despite money being included in the Senate budget for some building KU and KUMC projects, this funding was ultimately stripped from the final budget.

In-State Tuition Change

The House withdrew its proviso on an in-state tuition change that would have allowed students who completed their undergraduate degree out of state, but who attended a Kansas high school in Kansas (for at least five years) to receive in-state tuition for graduate school. This would have cost the School of Medicine approximately $370,000 each year.

Nursing Scholarship Program

Senator Jim Barone (Frontenac) introduced and passed legislation that would add $5.2 million for state nursing programs to build capacity, which will include $200,000 at KUMC for scholarships to be given to those seeking an MS in Nursing or Ph.D. in Nursing.

Student Health Insurance

Senator Jean Schodorf (Wichita) was successful in pushing for and passing legislation to allow state educational institutions such as KUMC to procure health insurance directly for our students. This will provide important flexibility that will ensure more affordable and comprehensive health insurance benefits for KUMC students.

Medical Student Loan Program

The medical student loan program was funded this year at $2.7 million dollars. In addition, another $400,000 from a provider assessment (tax) that was recently approved by CMS will be used for the Medical Student Loan program. The Kansas Academy of Family Practice (KAFP) is leading an effort to increase flexibility in the program and decided to push for legislative changes next year.