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Kansas Democrats Join President-Elect Obama in Calling for an Immediate Economic Recovery Plan

Kansas Democratic Party Chair Larry Gates today applauded President-elect Barack Obama for recognizing the need for an immediate economic
recovery plan to create jobs, invest in America’s economic future, and strengthen the middle class.

Last month, the American people elected President-Elect Obama and the Democratic Congress to put our economy back to work for ordinary Americans
by investing in health care, education, and jobs. Gates applauded Congressman Dennis Moore for working on an economic recovery plan that will do
this by improving transportation, modernizing schools, promoting energy independence, creating good jobs, and increase federal aid to states and local
communities to fund critical law enforcement, education and health care services. He applauded efforts to complete a recovery plan for President-elect
Obama to sign when he takes office in January and called on Congressmen Todd Tiahrt, Jerry Moran and Lynn Jenkins and Senators Sam Brownback
and Pat Roberts to join Democrats in passing a recovery plan.



“At a time when jobs are being cut, wages are falling, and Kansans are worried about keeping their homes, we need to put partisanship aside and pass a
comprehensive economic recovery plan,” said Gates. “There are no quick or easy fixes to this crisis, but we have an opportunity to seize this moment to
transform our economy, create at least 2.5 million more jobs over the next two years, invest in America’s economic future, and strengthen the middle
class for years to come. We need to have a plan completed and passed by Congress in time for President-elect Obama to sign when he is sworn in.”

Since December 2007, more than 2 million American jobs have been lost, and a housing crisis has threatened the economic security of countless more
working families. Major industries are beginning to fail, and businesses can’t find the credit to create new jobs. Just last week, reports showed that that
the number of Americans filing unemployment insurance claims rose to the highest level in nearly 30 years. The American economy is already in the
second longest recession since the end of the World War II, a crisis that is expected to grow worse.


Kansas Democratic Party Announces Kenny Johnston as New Executive Director

Kansas Democratic Party Chair Larry Gates last week announced current Technology Director Kenny Johnston as the next Executive Director of the
Kansas Democratic Party.

Departing Executive Director, Mike Gaughan, has accepted a position as Special Assistant to the Governor with Governor Kathleen Sebelius’
administration and will work primarily with the Legislative team.

“In my three terms as Chairman of the Kansas Democratic Party, it has been my privilege to have worked with three excellent executive directors,” said
Kansas Democratic Party Chair Larry Gates. “Each director built upon the accomplishments of the last and the success of our Party is due to their
efforts - none more so than Mike Gaughan,” Gates said.

Gates added, “Under Mike’s leadership, the Kansas Democratic Party has undergone a critical transformation. We have developed an effective network
of grassroots activists connected by their common purpose and by a technology network second to none. In only three and a half years, he provided
political direction for our Party of moderate, commonsense activists, showed solid management skills and an innovative approach to challenges, all with
a passion toward achieving excellence.”

Kenny Johnston has been the hands-on leader of the technology efforts of the Kansas Democratic Party. He has been responsible for the progress
Kansas Democrats have made in on-line organizing and the modernization of the Kansas Democratic Party’s infrastructure. Johnston worked for Dennis
Moore’s Congressional campaigns in 2004 and 2006 before joining the State Party in February of 2007.

“Kansas Democrats are excited that Kenny has stepped forward. He has made the Kansas Democratic Party a more efficient and effective operation and
will be able to build on our recent success and lead us into the critical 2010 elections,” said Gates.


Lt. Gov. Parkinson Launches Website to Help Kansans Save Money

To help Kansans save money during the holidays and year-round, Lieutenant Governor Mark Parkinson launched today “Mark’s Guide for Penny
Pinchers,” a website helping Kansans identify ways to do more with less.

“Just as the State of Kansas is finding ways to cut back, we understand that people across the state are doing the same,” Parkinson said. “This guide is
just one way we can provide resources to Kansans that can help them stretch every dollar they spend – from home efficiency to education.”

“Mark’s Guide for Penny Pinchers” is available through the Lt. Governor’s website and can be found at http://www.governor.ks.gov/LtGov/pennypinch.
htm. At the site, Kansans will find a variety of money-saving suggestions. The site is divided into five categories: gas prices; travel; home; health; and
college and schools.

Additional money-saving suggestions may be emailed to Lt.Governor@ks.gov.


Larry Gates: "What's in a Party? Hopefully, the truth"
Column from Kansas Democratic Party Chair Larry Gates:

Recently, Ray Merrick, the Majority Leader of the House, wrote a letter in which he made blatantly false statements about not only his own party, but
also about our Governor, Kathleen Sebelius.

I appreciate any debate over party philosophies; our democracy hinges on giving voters choices and our party system serves that purpose well.
However, to give voters false information or to make misleading accusations serves no one, and such politicking should be an embarrassment to those
who value truth and honesty.

First, Rep. Merrick declared Republicans are “fiscally responsible” and Democrats are “reckless spenders” – a paradigm which has been proven wrong
so many times, it is remarkable to hear anyone still use it.

All it takes is a look at our state’s recent history. Under the previous Republican Governor, Republican majorities in both the House and Senate drove
Kansas toward a billion dollar deficit. Those same Republican officials then passed and signed one of the largest tax increases in Kansas’ history.

How many taxes has our current Democratic Governor raised? Not one. Not a single penny – ever. Instead, she has eliminated taxes on new business
equipment and machinery, lowered the franchise tax, lowered the unemployment insurance tax and has provided tax credits to businesses seeking to
provide health care for their workers.

In short, Republicans raised taxes and spent us into debt. Democrats cut taxes and cut waste to get us out of debt.

Furthermore, our Democratic Governor cut enough government waste to make possible the largest investment in public schools our state has ever seen.
To do that without a tax increase demonstrates a level of fiscal talent that anyone from any party should be able to appreciate.

Rep. Merrick then makes a claim that was so patently false, I was shocked to read it. He wrote: “Our Democrat Governor has proposed 10% increases
in spending for EVERY government agency every year.”

In fact, for four years, the Governor presented to the Legislature’s Republican Majority a budget in January. By May, that same Republican-led
legislature passed and sent back a budget much larger than the original. This year, after holding a press conference in which Republican legislators
pledged not to increase the budget past 5 percent – they broke their own pledge by creating and passing a final budget far exceeding that benchmark!

Thankfully, there are many Republicans in the Kansas Legislature who do not sink to Rep. Merrick’s level of half-truths and partisan rhetoric. They put
their constituents first, and Democrats have been proud to serve alongside them and work with them to move our state forward.

Kansans do have choices on Election Day, and I know they will make their choices based on facts and not falsehoods.

Our Democracy only works when people are honest, and I can honestly say that with leaders like Governor Kathleen Sebelius, I am proud to vote
Democrat.

Sincerely,
Larry Gates
Kansas Democratic Party Chair



Jenkins Halloween Motto: “Trick and Tax!”

Lynn Jenkins has a tricky record when it comes to raising taxes on Kansans. On more than one occasion, Jenkins has promised to never raise taxes and
then immediately voted to raise taxes.

But perhaps the trickiest of all – Jenkins voted to increase gas taxes and then seriously mishandled the gas tax receipts as State Treasurer, costing some
Kansas counties millions in unpaid state funds!

Trick & Tax #1: Jenkins Mishandled Gas Tax Receipts after Voting to Increase Gas Taxes

While serving in the state legislature, Jenkins voted to raise the state gas tax by 38%. [AP 5/4/01, HB3011 Vote #468, 5/16/2002]

Then, as State Treasurer, Jenkins failed to find an error in her office’s budget that resulted in a misallocation of more than $15 million in gas tax receipts.
To avoid the political fall-out of the mistake, Jenkins waited to notify county officials of the price each county paid until after the story was uncovered
by the Topeka Capital-Journal - months later. [Topeka Capital-Journal, 10/16/08]

Very tricky indeed!

Trick & Tax #2: Jenkins Voted for Largest Tax Increase in Kansas History

During a contentious budget debate in early 2002, the Topeka Capital-Journal reported then-Sen. Lynn Jenkins promised she would vote against tax
increases:

During a break in the debate at about midday, the Senate Assessment and Taxation Committee endorsed a $335 million plan to increase an array of taxes,
including levies on income, sales and cigarettes. Sen. Lynn Jenkins, R-Topeka, voted to move the tax measure out of committee, but she said she
wouldn't support it on the floor because it contained a sales tax increase. [Topeka Capital-Journal, 04/12/02]

One month later, Jenkins voted for the largest tax increase in Kansas history – more than $250 million – which included a sales tax as well as additional
taxes on inheritance, small business, food, property and tires. [SB 39, 2002]

Trick $ Tax #3: Jenkins Has Already Broken her Latest No Tax “Pledge”

As a candidate for Congress, Jenkins’ tricks haven’t slowed down. Jenkins has made her “pledge” against tax increases the centerpiece of her campaign.

Yet, this year, Jenkins advocated for a tax increase on Social Security, saying she would address the program in the same way she addressed KPERS
funds, a plan that would “recklessly raise taxes by $234 billion over five years.” [Topeka Capital-Journal, 4/18/08]

And just this week, as the Associated Press reported, Jenkins said she’ll ask legislators to compensate counties shorted state funds as a result of her
office’s mishandling of the gas tax receipts, but not penalize counties that were overpaid. Because overpaid counties would not reimburse the state,
Kansas taxpayers would instead be left to foot the multi-million dollar bill. [Associated Press, 10/29/08]

Trick $ Tax #4: Jenkins Left Kansas Taxpayers with the Bill for her Lavish Private Party

In September, Jenkins stuck the taxpayers with the bill for a lavish political fundraiser with first lady Laura Bush. Jenkins’ campaign raised more than
$200,000, but reimbursed Kansas taxpayers nothing. [FEC, 10/15/08]

When questioned by a reporter as to why the campaign wouldn’t reimburse taxpayers, a spokesperson for Jenkins’ campaign justified the reckless
spending by saying it’s an important election, saying, “There’s no question this is one of the top races in the country.” [WIBW, 9/15/08]

“In the state legislature, Lynn Jenkins voted to raise the gas tax by 38%. Once she became treasurer, she mismanaged gas tax receipts for six years in a
row,” said Kansas Democratic Party Executive Director Mike Gaughan. “Lynn Jenkins’ record of higher taxes and zero accountability is downright
scary.”



Jenkins Insults County Officials, Continues to Dodge Responsibility for Mismanagement of Gas Tax Receipts

During a tense meeting held yesterday at office of the Kansas Department of Revenue, State Treasurer Lynn Jenkins insulted the intelligence of an
elected official while continuing to dodge accountability for her office’s mismanagement of $15 million in gas tax receipts.

During yesterday’s meeting, Shawnee County Commissioner Vic Miller requested a full list of how 105 Kansas counties were overpaid or underpaid due
to the error by the State Treasurer's office.

Lynn Jenkins’ response?

“Some people are bright enough to understand that it's not something we should concern ourselves with.” [Topeka Capital-Journal, 10/28/08]

On the campaign trail, Jenkins has called for greater transparency in government spending. But in yesterday’s meeting, she insisted that her office should
never have notified counties about whether they had been shortchanged or overpaid by her office.

According to the Topeka Capital-Journal, in response to Miller’s concern that the Treasurer’s Office had never informed him his county had been
shorted at least $1 million:


“You should never have been notified,” Jenkins said.

“Why is that?” Miller said.

“My hope is that you’re not shorted — that you’re going to be made whole,” Jenkins said. “We’re hoping it’s irrelevant to the discussion.”

She said notification was unnecessary because legislators were likely to render the issue moot by authorizing compensatory payments to counties.
[Topeka Capital-Journal, 10/28/08]

County commissioners across Kansas have complained that Jenkins’ failure to notify them of the gas tax error hurt their ability to plan for their
counties’ financial future.

Jenkins’ response to these complaints? “Life’s not fair,” Jenkins said.

“Jenkins had no right to hide the fact that her mistake could cost either counties or taxpayers millions of dollars. Voters deserve to know the full extent
of her office’s failures before they cast their ballots,” said Kansas Democratic Party Executive Director Mike Gaughan. “Kansans expect more from their
elected officials than personal insults and decisions made for political gain.”

BACKGROUND:

Misallocation of $15 Million Went Undetected by Jenkins for Six Years: State Treasurer Lynn Jenkins made no effort to inform Kansas counties upon
the initial discovery of a state computer blunder that led to misallocation of an undetermined portion of $22.5 million in fuel tax revenue and vehicle
registration fees shared with county governments, officials said Wednesday…During Jenkins’ years as treasurer, $15 million in county payments were
authorized by her office with calculations derived from the imprecise software. [Topeka Capital-Journal, 10/16/08]

Republican Leadership Isn’t Making Promises Concerning Misallocated Funds: Senate President Steve Morris, R-Hugoton, said it was unclear how the
House and Senate would proceed. “I don't have a strong feeling right now,” Morris said. “We'll just have to evaluate the total amount.” [Topeka Capital-
Journal, 10/18/08]

Counties Left in a Lurch Due to Misallocated Funds: Kearns told the Mercury Saturday that he is "still trying to figure out exactly what side of the
issue" Riley County is on, and expressed frustration over the fact that the treasurer's office had not notified the county of the problem themselves. “You
get the money from the state and you bank that they do their bookkeeping properly,” he said, adding that he would “not be pleased” if the state asked
for the $70,000 back. “I don't know where this will go, but we'll just have to work it out.” [Manhattan Mercury, 10/20/08]

Jenkins Failed to Notify Counties of Error: Crawford County Treasurer Joe Grisolano said he first learned of the error by reading the article in the
Capital-Journal, and added he didn't know about the article until a friend mentioned it to him during Saturday's PSU homecoming parade…Grisolano
said, like in Bourbon and Cherokee counties, Crawford County officials were not notified of the specifics of the error. He said the only notice the county
received came in June and was part of a cover letter on an e-mail notifying the county of the fuel tax equalization distribution. He said the letter
explained that there may be “potential data discrepancies” in fuel tax revenue distribution. After re-reading the letter on Monday, Grisolano described
the notice as “vague.” [Pittsburg Morning Sun, 10/20/08]

Counties Given Incorrect Information by Jenkins’ Office: Following the full disclosure of the technical error in June, it was discovered yet again that
information was incorrect. The numbers had been reversed, leaving the counties which had actually been shorted believing they were overpaid and visa
versa. [Fort Scott Tribune, 10/21/08]

Jenkins Failed to Notify Douglas County of $340,000 Shortfall: Lawrence County Administrator Craig Weinaug said he understands mistakes happen,
but he said the treasurer’s office should have notified counties of the error as soon as it found out. Scott Gates said the treasurer’s office told the
counties in late June about the problem when the equalization payments were sent out, but Weinaug said the letter made no mention of Douglas County
being shorted $340,000. [Lawrence Journal World, 10/20/08]
Gov. Sebelius Reflects on National Governors’ Association Meeting with President-Elect
Obama

Statement from Governor Kathleen Sebelius after today's meeting with governors and the President-Elect and Vice President-
Elect in Philadelphia:
      “Forty-eight governors gathered in Philadelphia for an unprecedented meeting with the President-Elect, the Vice
President-Elect, and key members of the future White House staff. This has never happened before in history during a
transition.
      "President-Elect Obama made it clear that he wanted input and ideas from governors about the focus and size of the
stimulus package which he plans to propose to help get the economy back on track. He made it clear that he appreciates that
states operate with constitutional responsibilities to balance budgets, and deep cuts in services are likely to make the
recession worse.
      "The key elements of the NGA proposal were funds for infrastructure projects, which was addressed by Governor
Schwarzenegger and the need for additional federal assistance to states to pay for direct services like health care and
unemployment insurance, which will increase with the economic downturn, which I was asked to address.
      "The President-elect asked governors for specifics of what isn't working, for suggestions about best practices, for reform
ideas and engaged in a dialogue for almost two hours.
      "I am optimistic that our ideas will help to frame the President-Elect's proposals and will be very helpful to Kansas as
we cope with continuing to deliver essential services in a declining economy.”