Legislators in Kansas return to Topeka to begin the veto session, but the recent publication of tax revenues complicates significantly the work in the statehouse.
http://www.kansascity.com/...
The new estimates mean the state faces a $400 million gap — a chasm Republican Gov. Sam Brownback has proposed closing with tax increases on cigarettes and alcohol as well as slowing tax cuts enacted in 2012 and 2013.
“Unfortunately, with revision of revenues downward, it does make balancing the budget more of a challenge than it already was,” Brownback’s budget director Shawn Sullivan said after the estimates were released Monday.
Brownback, who campaigned on a policy of Sunshine in Kansas and a bright economic future now faces a potential constitutional crisis. The Kansas Constitution requires the legislators and the governor to pass a balanced budget, and coming up with $400M at this point will be difficult.
The legislature so far this year has worked to eliminate state revenues rather than add to them. Doing away with state fees for concealed carry permits as well as large tax incentives to lure Missouri Companies to cross the border.
What hasn't come easily for Kansas is revenue enhancement.
http://www.kansascity.com/...
State Rep. Mark Kahrs, a Wichita Republican, took a firmer stand against taxes.
“I was not elected by my district to go to Topeka to raise taxes,” Kahrs said in a recent interview. “They sent me to Topeka to control spending and limit the growth of government.”
With many Republicans holding steadfast that there will be no tax increases, the question of revenue remains.
Governor Brownback offered an initial proposal to Republicans - which included significant tax increases on alcohol and tobacco as well as lowering medicaid and school funding plans.
The Brownback proposal was dead on arrival, however, as the sin tax increases were enormously unpopular with businesses and both Republicans and Democrats, noting that they primarily pulled money from the poor - while unlikely to generate the revenue that Brownback projected.
With Kansas gross state product also growing at lower than expected rates, the Brownback administration has turned to promoting the number of jobs created; noting that 17,000 new jobs were created in the first quarter of 2015. What is unclear from that number is how many of those jobs recommend second employment or the gross pay value of those jobs.
The dip in expected numbers on state gross product makes building revenue more difficult for Kansas.
With the
Institution on Taxation and Economic Policy pointing out that Kansas has based the economic future on cutting taxes for the top earners, Republicans are unlikely to backtrack or consider throwing policy completely overboard.
There are no solution proposals on the table at this point - and only a limited number of days to craft one lay ahead.