Financial advisers tell clients to plan ahead, avoid maxing out credit card debt and make adjustments if projections don’t pan out.
That’s also good advice for Kansas legislators, particularly those who have accepted, finally, that supply-side economics doesn’t work.
In the meantime, we are in a heck of a mess and it’s going to take time to get our finances back in order.
The current fiscal year ends June 30 and by then, by law, we must find about $280 million to cover budgeted expenses.
To their credit legislators have cast aside proposals to cut spending, mainly that of schools, and are examining other ways to deal with the shortfall.
Today the Senate is expected to vote on a measure that would raise better than $300 million, in ways that in any other time wouldn’t be considered reasonable.
The plan is to cut $152 million from the state’s contribution to public employee pensions, and pay it back over 10 years; borrow $103 million from idle funds, and delay by $75 million school aid payments due in June.
If all that sounds desperate, it is. But the alternative of slicing money from school aid without future recourse is unacceptable.
Earlier in the session House members passed a bill to restore most of the income tax cuts Brownback and a more conservative Legislature saddled the state with in 2012-13. The measure passed the Senate with 22 votes.
Meanwhile, Gov. Brownback, fortified by a rousing reception at a Kansas Chamber of Commerce meeting, made good on his promise to veto the bill.
While the House overrode his veto, the Senate failed to do so, falling three votes short of the necessary 27.
Here’ what we face:
Projections are for a budget deficit of $1.1 billion for fiscal years 2018 and 1019. Also, a new school finance formula will be written, because Supreme Court justices, who ruled block-grant funding was unconstitutional, said in no uncertain terms schools were not adequately financed.
ANOTHER income tax bill will unfold soon, and with added responsibility of more funding for schools legislators in both chambers are obligated to cast aside whatever political debts they owe the governor, or the ultra-conservative groups, and put restoration of income tax rates on a fast track.
