On track to be $800 million in the hole
Kansas legislators have waited until the wrap-up session to address the state budget. Traditionally, this is the time of year loose ends are tied off. But state finances are so out of whack that you can’t blame our lawmakers for waiting until the bitter end to decide what we all fear will be drastic measures to make the numbers come out right.
Come Wednesday, the bloodletting will begin.
THE GOOD news is that not all legislators are living in denial about the numbers. Even Republicans are alarmed by recent figures that show the state’s finance formula is structurally unsound. To wit: Kansas is heading to an annual deficit of $800 million, according to a recent report by the Consensus Revenue Estimating Group.
Yes, we’ve pretty much headed off this year’s $400 million deficit thanks to the generosity of the “Bank of KDOT” and other one-time transfers, but for fiscal year 2016 and beyond, expenditures outweigh revenue estimates by $800 million.
Had Gov. Brownback’s tax cuts not been enacted, the state would be $1 billion richer today, according to the state’s legislative research department. And we’re only about half way toward his ultimate goal — of eliminating the personal income tax completely.
Instead of backtracking, Brownback is suggesting legislators raise taxes on goods, like alcohol and cigarettes, as well as the statewide sales tax of 6.15 percent. Even if these things were approved — which is a long shot — it would fall far short of what is needed.
Brownback has said he’s offered all he can in terms of raising revenue, leaving it to legislators to take the reins.
Doesn’t matter. We know how we got in this mess in the first place.
— Susan Lynn
