Barring an insider lottery win, the state of Kansas budget situation continues to grow more dire. Breaking out the large point type, the Topeka Capital Journal highlighted the problem this morning going above the fold with "State Faces $800M Shortfall" as a headline.
But how is Kansas coming along on this project?
Yesterday, Governor Brownback announced another swipe at this - after his first moves on increasing sin taxes failed to gain traction. His proposals, which include significant decreases in residential and in home service offerings to the mentally disabled, as well as an increase of fees on hospitals that accept medicaid fees so far only account for $72M leaving another $131M not accounted for even including previously announced recalculations.
http://cjonline.com/...
Even assuming the Republican-dominated Legislature implements the conservative governor’s recommendations, lawmakers will still be left to scrounge up to an additional $131 million to balance next year’s budget.
The House Appropriations Committee met for the first time since a new forecast earlier in the week showed the state’s revenue situation will likely be worse than previously expected. At the hourslong meeting, budget director Shawn Sullivan offered proposals that in total reduce state general fund spending in fiscal year 2016 by about $28 million.
“This alone does not yet solve the budget shortfall,” Sullivan said.
The question that roils Topeka now isn't just about the debt - it is about the political will in the statehouse. Numerous Republicans have signed onto a "no tax pledge" arguing that only cuts will be acceptable, and they will not authorize tax increases. Other Republicans argue some means of revenue will be required.
With Republicans holding a super majority in the house and senate, Democrats in either body are not required to pass legislation - but have also not yet offered an alternative vision of how to solve the problem.
The governor’s tax changes alone are expected to generate about $211 million next year. But they have gained little traction in the Legislature so far. Bills to increase cigarette and liquor taxes haven’t passed either chamber.
The governor has also called for about $262 million in revenue adjustments — changes that yield more cash. The largest chunk of that comes from proposed fees on managed care companies expected to produce about $136 million.
Per the state constitution, the session cannot end unless a balanced budget is passed - not without a constitutional crisis. Sine Die is set for May 14, however at this point it appears unlikely the legislature will meet that in order to pass a balanced budget.
With Republicans split between contingencies - groups who refuse to consider any tax increases and those who believe some may be required - are Democrats prepared to offer an alternative vision as a solution? Or will Kansas Democrats bail out Republicans and sign on with those seeking regressive tax increases in order to balance the budget?
This question will shape not just this legislative session but the election cycle of 2016 in the land of "ahhhs"