Rep. Kent Thompson describes the restoration of Kansas income taxes as a “step in the right direction, but we still have a long ways to go.”
Last week legislators voted to override Gov. Brownback’s veto of a bill that revoked tax breaks for 330,000 businesses, including farms, and otherwise repealed an income tax vacation that in large measure benefited high-end taxpayers.
“That will raise about $2.4 billion,” including $289,000 to fund a new school finance formula, Thompson said.
Thompson, a centrist Republican, represents two-thirds of Allen and much of Neosho County.
“We’re still $5 billion to $6 billion behind,” he added. “Remember, Brownback has taken $2.7 billion from KDOT,” the state transportation department, as well as dipped into other reserves. Also, the state has put off raises for its employees for nearly a decade. The last raise for many — the current fiscal document includes 5 percent raises — occurred in 2008.
Thompson was not kind in his assessment of what occurred during the 114-day session, the second of that length and the longest on record — the other came in 2015 when legislators finally settled into a massive sales tax increase to keep the state solvent.
“We ended up where we should have been 25 days ago,” Thompson said. “No one wants to raise taxes, but it’s our duty to cover basic state responsibilities.”
Whether the new school formula and its $289 million bump in revenue will find favor with Kansas Supreme Court justices is an unknown that Thompson refused to handicap. “No one knows what the magic number is,” he said. “That is up to the court.”
Those that led the school funding fight say the “magic number” is closer to $500-$800 million, rather than the $189 million for the first year and $100 million for the second.
Thompson anticipated Supreme Court justices will put a decision concerning the Legislature’s action “on the fast track.”
If the justices decide more funding is necessary, the deadline to do so is June 30. If that occurs Gov. Brownback would be expected to reconvene the Legislature.
“I think the formula is a good one, similar to the old one in weighting,” Thompson said, but it’s the financial provision the Court may find unacceptable.
“At the end of the day, it’s up to the Supreme Court,” Thompson allowed.
State finances still a struggle
