Kansas lawmakers must reject destructive budget cuts and big sales tax increase

Desperate to keep in place income tax cuts for thousands of businesses, the Kansas Legislature this week continues to look at irresponsible ways to balance the budget.

The latest destructive plan emerged Tuesday, pushed along by Sen. Ty Masterson, an Andover Republican.

It calls for a nearly 6 percent across-the-board cut of close to $400 million in state spending — including an estimated $180 million from K-12 school districts. That would be an unconscionable decision by legislators, one that would have long-term, devastating effects on the state’s educational system.

Such a proposal would not get the benefit of any public hearings, in which Kansans along with school district representatives could discuss it and try to change the minds of lawmakers.

But it did get some national attention when Grover Norquist of Americans for Tax Reform tweeted, “KS lawmakers should support Sen Masterson’s 6% budget cut, not raise taxes. It’s an overspending problem, not a revenue problem.”

It was encouraging to see late Tuesday that House leaders did not think such a large cut would pass in that body. Then again, if a compromise plan emerges, it could still lead to a steep decline in school funding, so the issue is not dead.

The other bad idea getting renewed attention this week is an increase in the sales tax rate from the current 6.15 percent to 6.65 percent.

That tax would fall hardest on low- and middle-income Kansans. Unfortunately, it also would fall right in line with the thinking of Gov. Sam Brownback, who floated the 6.65 percent rate over the weekend, when he finally entered the fray over the state’s budget crisis.

Unfortunately, too many in the Legislature still refuse to seriously consider the single best way to raise money to provide services to Kansans: Roll back some of the excessive income tax cuts lawmakers approved in 2012.

In particular, some businesses now pay nothing in income taxes. It’s absurd to see the Legislature defend that policy to the death while almost cavalierly looking at a large sales tax increase on 3 million Kansans.

But Brownback has indicated he will veto any attempt to change the business tax structure, even though it is bleeding the state budget of millions of dollars every month. Even some Republicans who want to make this needed change appear upset by the governor’s stance.

The Legislature is trying to fill a $400 million gap in the 2015-16 budget that takes effect July 1. However, state officials already are working on plans to furlough some employees starting as early as Sunday.

As of Wednesday, the lawmakers will be entering day 104 of the scheduled 90-day session, at a cost of more than $40,000 in extra taxpayer funds every day.

Much of that money has been wasted, as lawmakers look at hastily sprung ideas.

Legislators on Sunday debated a $630 million plan to end tax exemptions used by hospitals, schools and nonprofit groups, before killing it.

On Tuesday, the Senate approved a measure aimed at forcing counties and cities to hold votes on minor property tax increases in the future. That action was taken without hearing from any city or county officials, and it will take control of some tax questions out of the hands of locally elected officials.

The best option for the House and Senate is to reduce some of the costly tax cuts awarded in 2012, and then see what kinds of small tax increases could be needed to keep the budget fully funded starting in less than a month.

The sooner lawmakers leave Topeka, the better. Because the longer they stay there, the more questionable ideas they seem to embrace.

This story was originally published June 2, 2015 at 6:33 PM with the headline "Kansas lawmakers must reject destructive budget cuts and big sales tax increase."