KBA Chairman Jonathon Johnson kicked off the 2021 Harold A. Stones Public Affairs Conference. He thanked all attendees who took the time to learn about the banking industry’s state and federal legislative priorities. Johnson introduced Harold Stones, who formerly served as KBA’s Executive vice president and had recently retired as Kansas Director of Special Projects for U.S. Senator Pat Roberts, who was honored and commented on its history, which began in 1971. Johnson also introduced the new industry image campaign recently launched by the KBA, which included ads on social media that take viewers to KBA’s landing page where they can learn the vitally important role banks play in communities across Kansas.

KBA SVP-Government Relations Alex Orel introduced the Kansas Legislative Leadership Panel. Panelists were Senate President Ty Masterson, Senate Minority Leader Dinah Sykes, Speaker of the House Ron Ryckman, and House Minority Leader Tom Sawyer. Orel asked panelists questions that included what they were putting on their agendas this year, including tax policy and regulatory reform and how they will address the COVID – 19 pandemic and state emergencies moving forward.

After the panel, Attorney General Derek Schmidt spoke about the unemployment insurance fraud claims that are being mailed to recipients saying they claimed employee benefits and payments and how he is trying to respond to them. Schmidt said he doesn’t know-how much of the Kansas Unemployment Fund has been lost due to fraud, but estimates have shown more than $300 million. Kansas had the third-highest incident of unemployment fraud in the country. Schmidt stated that the fraudsters committing these financial crimes are mainly offshore, so they must get shut down, and prevention is the only solution to this problem. The Kansas legislature is working on addressing the issue.

Next up was Secretary of State Scott Schwab, who discussed the successful certification of Kansas’ recent election results. Part of that success is attributed to the fact that the state’s voting machines are never on a network to be hacked. Schwab also discussed the new Kansas Business One-Stop, a website for anyone interested in starting a business in the state. Resources include getting a license, paying taxes, and learning how to grow a small business.

Following Secretary Schwab, State Bank Commissioner David Herndon provided the audience with an overview of the Office of the State Bank Commissioner (OSBC) and a brief update on the state of Kansas banking. Commissioner Herndon also outlined the OSBC’s legislative priorities for the 2021 legislative session and thanked the bankers in attendance for their leadership during the pandemic.

U.S. Senator Jerry Moran spoke next of his engagement in the Sweet Sixteen, consisting of 16 Republicans and 16 Democrats and the COVID-19 Relief Bill. Moran also talked about his support for KBA-supported Enhancing Credit Opportunities for Rural America (ECORA) Act and his plans to introduce the legislation in the 117th Congress. Moran said he is critical of several presidential executive orders, including those impacting the oil and gas industry, waters of the United States, and energy and agriculture.

Next, KBA Federal Affairs Committee chairman Kurt Knutson introduced Rob Nichols, President & CEO of the American Bankers Association (ABA). The ABA represents all 51 state banking associations, including Puerto Rico. Nichols stated that industry issues and needs don’t change, but the tactics to deal with them must evolve.
Next up was Federal Reserve Bank of Kansas City President Esther George describing what the regional economy looks like from her position. George said she had seen drawbacks from spending and buying durable goods until the end of last year. She said that we are also 10 million jobs short from the beginning of 2020, and there remains a significant gap that has yet to close. Of that deficit, about a third are in the leisure and hospitality industries which says that the pace of employment growth is likely to be lackluster until the pandemic subsides. One factor would be looking at the equity markets responding to positive news of the vaccine. Examples are these hardest-hit industries that have seen some of the most significant price gains, indicating they will bounce back strongly. The other dynamic that George looks to are industries that are positioned to support growth in the year ahead because retail businesses ran down their inventory in the earlier stages of the pandemic and the uncertainty of future sales prospects. With a sustained recovery, George thinks businesses will begin to restock and even create some gains. The third factor that George wants to consider is the additional financial support that passed at the end of last year, which also sets the stage for recovery because of, for example, the Paycheck Protection Program to sustain small businesses. George said that this did not look like a typical recession because they saw credit scores go up. Her outlook is relatively positive for the second half of this year, depending on the pandemic’s progress.

Last but certainly not least, Kansas Governor Laura Kelly addressed the audience. She spoke on Senate Bill 15, KBA’s signature tax equity and economic recovery legislation, saying she would sign it in its current form if it were to land on her desk. Governor Kelly also updated the progress with which vaccines are being distributed around the state.

Thank you to all the sponsors and the bankers that tuned in for the 2021 Public Affairs Conference, and we look forward to seeing everyone back in person in 2022! If you are interested in sponsoring next years conference, please contact Alex Orel at 785-232-3444 or aorel@ksbankers.com.