Lawmakers race to solve big issues

Kansas Legislature scrambles to address tax cuts, funding for disability services and immigration issues ahead of its annual three-week spring break.

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April 1, 2024 - 3:44 PM

Photo by Sherman Smith/Kansas Reflector

TOPEKA, Kan. (AP) — The Kansas Legislature is scrambling to address tax cuts, funding for disability services and immigration issues ahead of its annual three-week spring break starting next week. Most bills that don’t pass by then won’t be considered when lawmakers return April 29 for a short wrap-up session.

Republicans disagree over how to cut income taxes, as well as pay for other big-ticket items such as disability rights. It’s all coming to a head as lawmakers approach their annual “Drop Dead Day,” a deadline to either pass legislation or let it fade away.

Lawmakers are supposed to finish a proposed $25 billion budget for the fiscal year beginning July 1.

Here is a look at some of the major issues up for consideration this week:

GOP WAVERING ON ‘FLAT TAX’

The Legislature is having its second go at enacting income, sales and property tax cuts this year after Democratic Gov. Laura Kelly vetoed a GOP package in January because it included a single-rate, or “flat,” income tax, which she said favored the “super rich.” With help from several GOP defectors, Democrats narrowly stopped the governor’s veto from being overridden in the House.

State tax collections have fallen short in recent months, but Kansas is still on track to end June 2025 with more than $4 billion in surplus funds. Legislators are poised to approve tax cuts worth $500 million to $600 million annually, while a plan Kelly outlined in January would be worth about $300 million a year.

The House and Senate both want to exempt retirees’ Social Security benefits from income taxes, decrease the property taxes levied by the state for public schools and adjust standard personal income tax deductions.

The key difference is in proposed income tax rates.

A Senate plan would set a single rate of 5.7% — the top rate now — and decrease it over five years to 5.45%.

In the House, GOP leaders concluded a single-rate plan is unlikely to overcome another Kelly veto. Instead, they want to eliminate the lowest income tax bracket and set the top rate at 5.65%.

Kelly hasn’t said publicly whether she would accept a plan with two rates.

While Senate Republicans appear to have a two-thirds majority for their plan, the House approved its version this week 123-0. The final tax plan will be drafted by three Senate and three House negotiators.

IMMIGRATION AND DIVERSITY

Immigration and diversity issues are both part of this year’s budget negotiations in Kansas.

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