Because Kansas revenues are currently robust, Gov. Laura Kelly sees it as an opportunity to use the funds to save money.
How’s that?
She’d like to pay down Kansas’ debt and shore up its savings.
In her budget for fiscal year 2023, Kelly proposes paying off early $586 million in bonds as well as avoid issuing $224 million in new bonds for approved construction projects.
Top of the list is making up $253 million in delinquent payments to the Kansas Public Employees Retirement System. That lump sum would save the state $172 million in debt service on the original loan of $426 million due in 2039.
Kelly also wants to pay down debts on the National Bio and Agro-defense Facility in Manhattan, bonds due for the 2016 dredging of John Redmond Reservoir and the KU Medical Health Education Building for a total of $332 million, saving another $80 million over the next 13 years.
Staying on the topic of capital projects, Kelly suggests using a portion of the $2.9 billion in surplus for remodeling the decrepit Docking Building ($120 million), building a new laboratory for the Department of Health and Environment ($65 million), building a new armory in Hays to support the 997th Brigade ($18.1 million) and other immediate projects.
“BORING!” you scream.
Agreed.
But these are the things that help keep taxes down. The less we owe, the less we must raise.
NOW FOR the candy.
Gov. Kelly proposes three ways to save Kansans $1 billion.
First is to eliminate the 6.5% sales tax on food beginning with new fiscal year on July 1.
For the average Kansas household, that will result in $500 a year in savings. For the state, it’s a difference of $450 million.
Kelly also proposes a one-time $250 tax rebate for Kansas taxpayers. That direct deposit will cost the state $460 million.
