Republican leaders in the Kansas Senate are forging ahead with plans to plow millions into tax relief that would largely benefit big business. Some Democrats and more moderate Republicans suspect its also a strategy to deprive the governor of the money to fund her priorities.
Carving out chunks of the state savings account now could send lawmakers scrambling to fund schools and other services with the cash thats left when theyre knitting up the budget later this spring.
When we get to the end of session, then we are stuck, Democratic Rep. Cindy Holscher said.
Republicans say theres urgency to tackling tax relief, and that the state can afford it.
The year started with a financial picture rosier than many forecasts in recent memory. After lawmakers in 2017 reversed the tax cuts then Gov. Sam Brownback had pushed for in 2012, Kansas has seen tax collections rebound. A revenue estimate from November showed the state would have $900 million in the bank at the end of the current fiscal year.
But, a bad monthly revenue report for January prompted Gov. Laura Kelly to reiterate her feeling that the state needs to be picky about what it spends money on.
We must make wise, financial prudent choices to ensure the future is bright for our children, Kelly said in a statement.
The governor said she favors investments in schools, roads, and fixing what she points to as the damage done during the Brownback years.
The Senate on Thursday approved a tax relief bill that the state department of revenue estimates would cost more than $400 million over three years. That includes around $190 million this year, cutting into that projected ending balance.
Democrats in the Senate, who all voted against the bill, said the state cant give up the revenue while staring down a Kansas Supreme Court order to adequately fund schools.
We cant afford this unless we do something drastic to our budget, Democratic Sen. Tom Holland said as a committee worked on the bill before it went to the full chamber. We have to fund our schools.
Sen. John Skubal was one of two Republicans who joined the Democrats in voting no. He criticized the bill for focusing too much on corporations.
They have had tax breaks long enough, Skubal said after the vote. I think we need more money right now to take care of the core functions of government.
Republican Senate President Susan Wagle said lawmakers dont have to choose between tax relief and funding schools.
She calls the money in question a windfall an unexpected boon to the state resulting from changes to the federal tax code.
