Slow Start to “Veto Session:” A Little Tax Talk; a Little School Finance

May 2, 2017 by

The 2017 Legislative “Veto Session” is off to a slow start (as all veto sessions are). Yesterday was very quiet but things were picking up today.

There was a debate on the House floor on a bill extending the STAR bond economic development program. STAR bonds were utilized most notably in Wyandotte County for the Legends project that includes the Kansas Speedway, the KC Sporting stadium, the T-Bones baseball stadium, lots of restaurants and plenty of shopping including Nebraska Furniture Mart and Cabela’s. The plan was so successful that those bonds were paid off early.

There was no debate on the STAR bonds but the bill did bring out two attempted amendments. The first would have done away with the food sales tax and paid for it by repealing a number of sales tax exemptions including the sale of bingo cards and YMCA memberships. The second amendment would have created a back to school sales tax holiday allowing people to buy clothing and all manner of school supplies tax free once a year.

Both amendments failed with the argument that such ideas were being considered or could be considered as part of a comprehensive revenue/tax reform bill expected later. Most legislators want to make one vote on taxes and make that vote the one to deliver the state from the Brownback tax experiment that has bankrupted Kansas.

Meanwhile the House Tax Committee continues to meet with the hope of hammering out a comprehensive tax bill that will fund state services and increase school funding under the Gannon decision.

The House K-12 Budget Committee met today to review their school finance bill, HB 2410. They will meet again tomorrow and at least Thursday. Chairman Larry Campbell (R-Olathe) announced that the committee will be considering if and how to put the funding directly into the bill rather than in a budget or tax bill. This will be the topic for tomorrow.

On Thursday, the Committee will hear from former Senator Jeff King. King was hired by the legislature to review the bill and give an opinion on the constitutionality of the various provisions and whether or not the Supreme Court would be likely to accept it.

If the Committee meets on Friday, Campbell hopes to finish work and pass the bill out of Committee. And if not Friday, then Monday.

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