Good news for conservatives — willing to twist the most dire outcomes to fit what they long for — is that tax revenue flowing to Kansas coffers in November was $1.4 million more than forecast.
From a pragmatic view:
— Tax revenue was higher than that forecast for November because the forecast was part of new, gloomier projects, the Associated Press’s John Hanna wrote Friday. Also, it was the first time revenue met expectations since April, when the previous fiscal forecast was made.
— Being on the upside in tax revenue occurred for only the 14th time in 47 months since Gov. Sam Brownback and his legion of conservative legislators cut income taxes to benefit, for the most part, wealthy Kansans. The new November forecast was $399.9 million; income was $401.3 million.
— Even with positive November revenue, when the Legislature convenes for its 2017 session in about a month among its chores will to deal with a $345 million budget deficit for the fiscal year that began July 1.
Revenue Secretary Nick Jordan repeated the rationale he has used for months in discussing November’s figures, saying corporate income and retail sales taxes lagged behind a year ago “due to agricultural and energy sector weaknesses.”
No one who watches what occurs with ag and oil as economic drivers would disagree that they have fallen on harder times, because of lower grain and oil prices. The real culprit is the ill-advised income tax cuts of four years ago, which led to an increase of the sales tax, including on food, to one of the highest levels in the nation so the state’s budget would balance, a necessity of the cash-basis law.
The public’s feeling about the matter, including drastic cuts to education, social services and road construction and repairs, was graphically seen in the Nov. 8 election. Democrats added 13 seats in the Legislature and a good number of conservatives’ seats went to moderates.
In the opinion of Rep. Kent Thompson, who represents much of Allen and Neosho counties, the change in politics in the House is sufficient for a coalition of Democrats and moderate Republicans to pass legislation to reverse some of the income tax cuts. The most likely immediate action will be that affecting about 330,000 small businesses and farmers, who pay essentially no income tax — while their employees do.
The Senate remains within the grip of conservatives, and Ty Masterson, a strong supporter of Brownback and his income tax cuts, has made it known he planned to challenge Senate President Susan Wagle for the top seat in the chamber.
According to the AP, Wagle recently has challenged Brownback on fiscal issues and has hinted she would be amenable to reversing part of the income tax cuts.
If Masterson were to seize control of the Senate, he could control legislation enough to do Brownback’s bidding, unless he has an epiphanic awakening.
IN SUMMATION, Kansas legislators must find a way to either skirt Brownback’s intransigence on income taxes, or convince the governor that cuts to programming and raking every dollar possible from KDOT and other agencies have reached the breaking point.
We must balance the budget in a way that helps all Kansans, not just a few while hurting all others.
— Bob Johnson
