To date discussion about means of supporting the fiscal year 2016 Kansas budget through tax increases all have been tutorial, Rep. Kent Thompson told the Register Friday. Thompson represents the 9th District, which contains parts of Allen and Neosho counties, including Iola and Chanute.
“Nothing has been voted out of committee,” he said, which would permit debate on the House floor.
Having said that, Thompson added he “couldn’t imagine passing a budget without having the money to fund it.” But that’s what the Senate did by passing and sending to the House a FY 2016 budget that failed by $130 million of being fully funded. For most of the session, which began in early January, projections are for a $600 million shortfall in the coming fiscal year, which starts July 1.
“We’ve been meeting since day one” in the House Tax Committee, with no proposals yet for the full membership to consider, Thompson said, and suggested that as many as five or six pieces of tax legislation might be considered to put the budget in balance — required by the state’s cash-basis law.
Gov. Sam Brownback proposed increasing taxes assessed on sales of cigarettes and alcohol, which was met with “overwhelming criticism from opponents” in the House Tax Committee, of which Thompson is a member. However, with Brownback’s backing, it would come as no surprise to Thompson if those two taxes become a part of budgetary funding at the end of the day.
The governor carries a big stick, particularly with the Republican-heavy Legislature.
A means of raising more money from property taxes, the backbone of school finance at the state level, would be enhanced if a $20,000 exemption on residential property were removed. That barely has been mentioned, Thompson said.
Marvin Kleeb, R-Overland Park, chairman of the House Tax Committee, “has said he doesn’t expect any action on tax” measures until May, Thompson said, during the Legislature’s wrap-up session.
House members will consider the Senate budget proposal this week. Thompson maintains that even with just a handful of Democrats in the House, it has a more moderate tinge than the Senate, which may lead sooner to action on how to deal with the budget shortfall.
As for efforts to expand Medicaid, Thompson said that responsibility will have to be up to a Democrat and envisions it will happen as an amendment attached to some bill.
The House passed the unfettered concealed firearm carry bill this week, with Thompson voting in the affirmative. Giving citizens the right to carry firearms without restrictions isn’t likely to change law enforcement dynamics, he said, noting that “if a bad guy wants to carry a gun, as has been the case forever, he’s going to carry one.”
Yet to be resolved is bond funding to ensure sustainability of the Kansas Public Employees Retirement System (KPERS). The Senate approach is bonding of $1.5 billion, the House’s $1 billion. The gamble with either is that interest or dividend income from invested bond money will be greater than debt service for the state, which Thompson thinks is well worth the effort given that $500 million invested in 2004 has yielded 11 percent on average.
Eventually, the two chambers will appoint three members each to resolve bond magnitude, with an up-or-down vote in each chamber to follow.
Budget picture puzzle still missing pieces
