Gov. Kelly vetoes second GOP tax relief plan

State News

May 17, 2019 - 5:18 PM

TOPEKA, Kan. (AP) — Democratic Gov. Laura Kelly on Friday vetoed a tax relief plan from the Republican-controlled Kansas Legislature for the second time in two months, arguing that even the new, smaller measure would “decimate” the state’s finances.

The second tax bill, like the first, was designed to provide relief to individuals and businesses that have been paying more in state income taxes because of changes in federal tax laws at the end of 2017. Republicans are expected to try to override her veto when the Legislature reconvenes May 29 for a last day in session before adjourning for the year.

The bill vetoed Friday would save taxpayers roughly $90 million during the budget year beginning in July and about $240 million over three years. It was less than half the size of a GOP tax relief plan that Kelly vetoed in late March. Republican leaders and business groups had hoped — in vain — to avoid a veto by making the second plan smaller.

“It will decimate the state’s ability to pay our bills and invest in our people,” Kelly wrote in her veto message to lawmakers. “Successful tax reform must be shaped by a thoughtful, big-picture vision — not by a rushed attempt to achieve an immediate political victory.”

GOP legislators pushed the second tax bill through the Legislature after lawmakers approved an increase in public school funding of roughly $90 million a year. They also boosted spending on the state prison system, social services and higher education as part of a record $18.4 billion budget for the state fiscal year beginning in July.

Democrats warned that the second tax bill, like the first one, could cause big budget shortfalls within a few years.

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