House Saves the Day; Kills Corporate Tax Giveaway & Tax Cuts for the Rich

May 7, 2018 by

Later this week, we will provide a more comprehensive review of the 2018 Legislative Session but for today, we talk about the taxing events of Thursday and Friday, May 3 and 4.

Two highly controversial bills dominated the discussion for these two days. One was Sub for SB 284, a bill enacting the so-called “Adoption Protection Act.” (We will report on this bill later.) The other was Sub for HB 2228, the Senate’s large corporate tax giveaway and tax cut for the wealthiest Kansans.

Both were contained in Conference Committee Reports (CCR). So you understand the order of business, a conference committee report on a Senate bill goes first to the House for action while a conference committee report on a House bill goes first to the Senate. Conference committee reports cannot be amended. There is a motion to adopt the CCR which is debated and then voted on. Both chambers must adopt the report for it to go to the Governor for his signature or veto.

Because of the controversial nature of both reports and the fact that they were running almost simultaneously, it meant the atmosphere under the dome was tense.

The tax bill (Sub for HB 2228) was really the brainchild of Senate leadership, in particular, Sen. Caryn Tyson (R-Parker). The original fiscal note on the bill as it came out of the Senate and before it went to conference was a more than $500 million loss in revenue to the state. It essentially offset all of the spending increase in K-12 education.

Fiscal notes on the measure as it was debated and amended in conference changed constantly because there was no actual way to calculate the impact of changes to Kansas income taxes before the full impact of federal income tax changes were known.

The two biggest threats to the state budget included in HB 2228 were directly tied to the federal tax act passed last December.

One of these was a provision to decouple the state income tax from the federal code so that taxpayers who could no longer itemize on the federal form could still itemize on the state form. The federal code has changed so much that many filers will no longer be able to itemize. While some taxpayers may find a federal benefit (although most will not), the loss of itemization at the state level means higher revenue collections at the state level. But because those who itemize are generally the wealthiest taxpayers (Kansas estimates only about 20% of taxpayers itemize), this revenue would come from the wealthiest Kansans.

The second big item was the “repatriation” of overseas corporate earnings. Among the federal tax changes was a provision to bring the overseas earnings of multi-national corporations back to the United States for tax purposes. These corporations have long been able to essentially shelter much of their earnings overseas to avoid U.S. taxation. These earnings are now being “repatriated” – brought back to the U.S. – and taxed. Tyson wanted to block taxation of these repatriated earnings in Kansas, a measure that is essentially a big corporate tax giveaway.

So – big item number 1 cuts taxes on the wealthiest Kansans while big item number 2 allows corporations to avoid taxation in Kansas. All while providing no relief to the 80% or more of working Kansans.

On Thursday, May 3, the Senate approved the measure on the slimmest of margins 21 to 19, sending it on to the House for a vote on Friday. See how your Senator voted by clicking here.

Now our attention turned to the House where it was expected the vote would be close. As we watched discussions and followed caucus discussions, it was often unclear as to which way the vote would go.

One thing we knew for certain was that if this bill were to pass, the chances that our schools would close in August would be much greater. As it is, many people think the school funding bill passed is likely not to meet adequacy but a tax cut bill that puts the budget underwater in the second year of the school finance plan is almost certain to result in rejection of the plan. Remember the Court was clear in their earlier ruling that the state needed to demonstrate the money would be available to fulfill the promise of a phased-in funding plan.

Debate on the bill in the House began mid-afternoon on Friday. Rep. Steven Johnson (R-Assaria), as chair of the House tax committee, made the motion to adopt the report. Rep. Tom Sawyer (D-Wichita), the ranking Democrat on the committee made the arguments against the bill. Nearly every member who went to the well to speak on the bill was a conservative who supported it. They tried to persuade others that they were giving the people back what was theirs and helping the middle class. Unfortunately, the bill only provided benefits for corporations and the wealthiest Kansans, leaving most of us holding the bag for funding critical state services including schools.

With seven members out as excused absences, the vote came in at 59 to 59. It is important to know that a final action vote such as this requires 63 votes to pass and on a tie vote the bill fails. Conservatives put on a call of the House under which the doors are locked and Legislators are kept in their seats until the call is lifted. The time is then used to pressure anyone that proponents believe to be “weak” in an attempt to get the win. Often the Highway Patrol is sent out to bring absent Legislators back. A call can go on for hours.

In this case, because they were working on Sine Die, the last day, they could not go past midnight. So if people held their positions until midnight the bill would fail.

There were a number of calls to raise the call of the House but if 10 members object, it is not lifted and so the call went on and on. But no votes changed. It held at 59 to 59 until a call to raise the call was successful. Speaker Ryckman (R-Olathe) asked if there were any explanations of vote. There were none. He asked if there were any changes of vote. There were none. He closed the roll, tallied the vote, and declared the bill dead. You can see how your Representative voted by clicking here. 

Another tax conference committee report dealing with motor vehicle rebates was quickly passed and the House adjourned Sine Die.

Thanks to the failure of HB 2228, there is a greater chance that schools will be open come August and that a special session is less likely. Understand that both are still possible! We won’t know until the Court finishes its review of school finance plan but had HB 2228 passed,  a special session and closing of schools would’ve been almost assured.

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Rush, rush, ruin.

May 2, 2018 by

What’s the rush?

When it comes to tax policy, what’s the rush is indeed the question of the day.

Last night at a 9:00 tax conference committee meeting, Sen. Chair Caryn Tyson (R-Louisburg) was insistent that urgency was necessary, demanding that the committee return at midnight after giving the staff a couple hours to draft extremely complex amendments dealing with the repatriation of overseas profits for tax purposes. Corporations, many of which don’t believe they should have to pay taxes and are notorious for using “shelters” to avoid taxes, are determined to stop tax provisions that make them pay their fair share of the responsibility for funding services. Tyson is determined to do whatever corporations want. Hence, the urgency. Let’s pass something after midnight without giving anyone the time necessary to really review a proposal and determine its impact on the state budget both immediately and long-term.

Fortunately House members, led by Committee Chair Steven Johnson (R-Assaria), are trying to be more deliberative and resisted the call by Tyson to continue into the wee dark hours of the morning when everyone would be sleep-deprived and unable to do such important work thoughtfully.

We all know the quality of work done after midnight. The Kansas Legislature is known for waiting until the last minute to get down to work and often ends up very late at night or early in the morning frantically passing the most important bills of the year. And they end up making grave errors in the process. One need only look at this year’s school finance bill with an $80 million error.

It would appear that Tyson’s goal is to maximize the depression of revenue to the state. Perhaps she wants to demonstrate her commitment to exploding deficits as if that is a qualification for a member of Congress (she is a candidate for Congress). The problem, of course, is that, unlike the federal government, the state cannot deficit spend. Kansans know better than anyone what that means thanks to the failed Brownback tax experiment.

Since the budget is being built on the assumption that all of the revenue available or predicted to be available is there to be spent, the passage of tax cuts will push the budget under water, jeopardizing any progress being made on school funding or the restoration of other state services.

We would remind the Legislature of the 2013 lower court decision in Gannon when the State argued that they did not have the revenue to increase school funding or honor the promises of Montoy. Here’s what the Court said to that argument:

The State has argued and asked us to find the  coming limitation on the State’s resources require the Legislature to make difficult appropriation decisions. The State has proposed that we find “the Legislature could reasonably conclude adjustment of state education aid to the Levels demanded by the plaintiffs would have disastrous consequences to the Kansas economy and its citizens” (P. 34 of the State’s Proposed Memorandum and Order). However, at the same time that the States attorney was advancing that argument, the Legislature passed the income tax cut.  According to one of the States experts, Dr. Art Hall, the Executive Director of the Center for Applied Economics at the University of Kansas School of Business, the tax cut bill will cause a revenue reduction in the first year (2013) of $800,000,000 to$1,000,000,000. See TR: Arthur Hallat pp.2421-2424. While Hall was called by the State to present evidence of the disastrous effect a 1.2 billion dollar infusion of money in a single year for education would have to the State, the same reasoning should apply to an $800,000,000 to $1,000,000,000 reduction in State revenue.

It seems completely illogical that the State can argue that a reduction in education funding was necessitated by the downturn in the economy and the states diminishing resources and at the same time cut taxes further, thereby further reducing the sources of revenue on the basis of hope that doing so will create a boost to the states economy at some point in the future. It appears to us that the only certain result from the tax cut will be a further reduction of existing resources available and from a cause, unlike the Great Recession which had a cause external to Kansas, that is homespun, hence, self-inflicted. While the Legislature has said that educational funding is a priority, the passage of the tax cut bill suggests otherwise and, if its effect is as claimed by the State, it would most certainly conflict with the States Article 6 § 6(b) constitutional duties.

So it would seem to us – and to most reasonable people – that enacting large tax cuts at this time would be a bad decision. We believe that lawmakers should take a “wait and see” approach. Let’s see if the recovery from the Brownback disaster continues and what the real impact of the federal tax changes will actually be for Kansas.

The tax conference committee met or attempted to meet several times today without making any progress. Tyson was bitterly angry with the House members at the 9:00 meeting last night and again at the 8:30 meeting this morning. At 11:30 this morning she made an offer to the House that was seen as backtracking on some earlier Senate offers. When questioned by Johnson, she said, “Sometimes when you reject an offer the next offer might be worse.”

In response Johnson and the House members left, telling Tyson that if she wanted to meet again she could let him know. She immediately called out for a 12:30 meeting. At 12:30, we gathered for the meeting only to be told it was postponed until 1:30. At 1:30, it was postponed until 3:00.

As of this posting, the two sides continue to negotiate, but not much progress is being made.  We will continue to update you as negotiations continue.  It’s also important to be aware and ready to take action if and when we put out the call to do so.

 

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Budget Negotiations Progressing; Taxes? Not So Much

May 1, 2018 by

While budget negotiations between the House and Senate are definitely making some progress, the same cannot be said about the tax negotiations which took an interesting turn late this afternoon.

In earlier tax conference committee meetings, Senate Chair Caryn Tyson (R-Louisburg) made it clear that she wanted one big mega tax cut bill that included everything the Senate voted for in Sub for HB 2228 (the massive reduction of over $500 million) and a whole bunch of small tax cuts rolled in. We suppose that as a candidate for Congress she wants to demonstrate her ability to crush revenue streams just like real members of Congress!

The House, while certainly not rejecting the idea of tax cuts, has taken a more cautious approach and appears reluctant to adopt one massive conference committee report, suggesting that some ideas should stand separately.

The conference committee was scheduled to return to meet at 5:00 pm but the House was still on the floor. It was right about 5:00 when House Tax Chairman Steven Johnson (R-Assaria) made a motion to concur in HB 2492, a bill in the conference committee that contains several tax changes that Tyson wanted in the big bill (a sales tax exemption on the purchase of gold bullion, a sales tax exemption on certain hospice providers, and permission for four counties to hold elections to raise local property taxes for local projects. If the House concurred, then these items would no longer be available to be put in a bigger conference committee report; if the House did not concur, the bill would stay in the conference committee but the House would have an official position against these items. The House voted 19 to 102 not to concur.

Senators were listening in downstairs in the committee room and reports have it that Tyson was not happy. She called the meeting off and left the room. Johnson and the other conference committee members showed up and, after much discussion and calls to Tyson agreed to meet again at 9:00 tonight.

We will report on tonight’s ongoing discussions tomorrow.

Schwab Says Good-bye

House Speaker Pro-Tem Scott Schwab (R-Olathe) took a moment of personal privilege this afternoon to announce that today would be his last day in the House. He is leaving tomorrow to accompany his child’s class on a trip to Washington, DC and as a candidate for Secretary of State is assured he will not be in the House in 2019 win or lose.

Schwab has twice served in the House with his two terms of service separated by two years after losing a bid for Congress. He was briefly replaced by former Rep. Ben Hodge (R) who earned a reputation for uncooperativeness with most people under the dome. Schwab has always been a gentleman even to those with whom he disagrees. We wish him well whatever he does next.

 

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House Handles Budget and School Finance Fix

Apr 28, 2018 by

House Budget Bill Passes with Minimal Changes

The House this morning passed HB 2365 on a final action vote of 92 to 24. Debate on the budget lasted into the night yesterday with many amendments offered and most defeated.

The most significant amendment offered by Rep. Steven Becker (R-Buhler) was one to strip out the language added in Committee by Rep. Brenda Landwehr (R-Wichita) that would have lapsed all new spending added by the Committee if the Supreme Court were to rule against the State in the school finance case. Landwehr’s amendment had come to be known as the “trip-wire.”

The debate on removing the trip-wire was vigorous and in the end, the Becker amendment was adopted on a vote of  71 to 53. KNEA supported the Becker amendment.

Other interesting amendments and their results were:

Motion by Rep. Whipple (D-Wichita) to prohibit non-disclosure agreements signed by state employees to silence those employees in cases of sexual harassment and/or abuse. Adopted 100 to 12.

Motion by Rep. Jennings (R-Lakin) to prohibit taxpayer funds from being spent on defense or fines for any state-wide elected official found in contempt of court (can you say Kris Kobach?). Adopted 103 to 16.

Motion by Rep. Holscher (D-Olathe) to prohibit taxpayer funds from being used for penalties or settlements of sexual harassment claims and prohibit making such claims secret except at the request of the victim. Adopted on a voice vote.

Motion by Rep. Clayton (R-Overland Park) on legislative transparency would have required names on bills. Objections and challenges came from Rep. Schwab (R-Olathe) first on germaneness (it was ruled germane) and then as not allowed under the rules. The Rules Committee determined that the amendment was out of order because changes to rules have to be done through resolutions.

Motion by Rep. Parker (D-Overland Park) to expand Medicaid. It was challenged on germaneness but found to be germane. Failed 56 to 66.

Motion by Rep. Whitmer (R-Wichita) to strip $45 million out of K-12 funding (the money he says KSDE spent illegally) and transfer it to higher ed. The amendment would also freeze tuition. The motion failed.

A motion by Rep. Garber (R-Sabetha) to stop state money from going to any city or county in Kansas that adopts a resolution or law contrary to federal law (can you say “sanctuary cities?”). Under questioning, it became clear Garber had no real understanding of the extent of his amendment. For example, if a city adopted a gun resolution that was more liberal on gun ownership than federal law, the state could not provide any funding. Failed 28 to 69.

The bill was advanced on a voice vote with the final action vote this morning.

School Finance Fix

Last night, once the budget was done and the House went home, the Appropriations Committee met and moved the contents of HB 2796 into SB 61, creating Sub for SB 61 – the school finance $80 million fix. What it does is provide a mandate that every district levy a 15% LOB (they all do now) and direct that the money raised be counted towards adequacy by the Court. It also removes the language that took $80 million out of what was believed to have been in SB 423. Sub for SB 61 is a simple fix of the problem discovered on April 9.

The bill was brought to the floor for debate this morning.

The first amendment was offered by Rep. Jerry Stogsdill (D-Prairie Village) and it was a big one. It would have stripped out the mandatory LOB language, added the “Trimmer amendment” that increases BASE aid, added the “Pittman amendment” that brings special education funding up to the statutory 92% reimbursement, ends the cap on bond and interest and adds funding for parents as teachers and the ABC therapy program (two programs wanted by the Senate).

The amendment was challenged on germaneness because Sub for SB 61 is a simple policy fix and the amendment is an appropriation. After a long delay, the challenge was withdrawn and the debate on the Stogsdill amendment went on.

In the end, the Stogsdill amendment was defeated by a vote of 42 to 78.

The next amendment came from Rep. Sydney Carlin (D-Manhattan). This one would just repeal the cap on bond and interest; it was one part of the prior amendment. The amendment failed on a vote of 53 to 66.

Rep. Jeff Pittman (D-Leavenworth) offered an amendment to increase special education aid from 84% as in SB 423 to 85% – an additional $6 million. This amendment failed on a vote of 49 to 68.

Rep. Jarrod Ousley (D-Merriam) offered an amendment to allow other districts to enter the mental health pilot program and expand cooperative opportunities. The original Landwehr amendment specified which districts could participate. Ousley’s amendment carefully kept the Landwehr amendment intact but would merely allow the State Board to choose other districts that could participate. Landwehr opposed the Ousley amendment. The amendment failed on a vote of 43 to 77.

Rep. Kristey Williams (R-Augusta) offered an amendment to mandate a 2.5% pay raise for all teachers. It was ruled not germane because you can’t put an appropriation proviso in a policy bill.

Rep. Melissa Rooker (R-Fairway) offered an amendment stripping out the requirement that a certain percentage of LOB dollars must be directed to the at-risk and bilingual programs based on the percentage of students in those programs. Districts should be able to decide how best to expend the dollars they get to serve their students. Rooker believes the requirement is a likely violation of equity.

Williams opposed the Rooker amendment because 248 school districts have LOB authority they are not using including her own district. They have taxing authority they are not using – they should look at their own effort and if they need money, they should go to 33%.

The Rooker amendment, the last amendment of the day, failed on a vote of 54 to 64.

In the end, not one amendment was adopted and Chairman Fred Patton (R-Topeka) who argued for a “clean fix” bill with no amendments got exactly what he wanted.

The bill was advanced on a voice vote.

Later, on emergency final action, the bill was passed on a vote of 92 to 27.

 

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Quiet Day One of Wrap-up Session

Apr 26, 2018 by

Day one of the 2018 legislative wrap-up session was a quiet one. A number of conference committee reports were adopted and some new bills were introduced. The House was done shortly after noon today and the Senate later in the afternoon. Neither chamber planned to work into the night as this is the day of annual Legislative Shrimp Peel, an event to raise money for Kansas Special Olympics.

School Finance Measures

Of the bills introduced in the House, several were addressing the error in SB 423, the school finance bill. We don’t have the numbers yet and they won’t be available online until later but here’s what we understand about three of them:

HB 2796 – This would repeal the mandatory LOB provision that caused the error, restore other LOB provisions that had been changed, and adjust BASE aid accordingly.

HB 2797 – This would somehow amend the mandatory LOB provision so that the lost $80 million would be restored but we believe would keep the mandatory 15% LOB levy.

HB 2798 – This would strike provisions requiring school districts to adopt a minimum local option budget and transfer funds from the supplemental general fund to certain categorical funds; restore certain provisions relating to local option budgets and adjust the BASE aid accordingly.

There was another bill read in – probably HB 2799 – that would do what HB 2798 does and increase BASE aid by adjusting how the cost of living index was applied. It would also increase special education aid to the statutory 92% reimbursement and repeal a cap on bond and interest payments.

There is also a bill in the Senate (we do not have a number yet) that we understand is the same as HB 2796.

We will be keeping an eye on these bills as the session continues.

The KPERS Repayment

Yesterday we reported on a Governor’s Budget Amendment (GBA) that would prepay $82 million in money owed to KPERS. KNEA supported the GBA. The House Appropriations Committee not only supported it, they augmented it by increasing the payment to $192 million before passing their budget bill out of committee.

In response to good revenue projections, the budget committees now have the ability to not just afford the school finance costs in SB 423 but to do good work in other areas as well. These revenue projections are why there is a move to increase the funding in the school finance plan which would, in turn, raise the chances of the plan being constitutionally adequate thus keeping our schools open and ending the need for a special session.

But after adding the increased spending to the budget bill, the committee adopted an amendment by Rep. Brenda Landwehr (R-Wichita) that would lapse all the new spending if the Supreme Court did not accept the school finance plan. House Minority Leader Jim Ward (D-Wichita) said the Landwehr amendment was cruel in that it “dangles money” in front of constituents only to pull it back based on the Court ruling. 

The Landwehr amendment was adopted after an 11 to 11 tie vote with Committee Chair Troy Waymaster (R-Bunker Hill) breaking the tie with his YES vote.

In other words, don’t count on the KPERS restoration just yet.

The House will debate the budget bill tomorrow.

House Doesn’t Take the Senate’s Massive Tax Cut

The House did take action today on Sub for HB 2228, the Brownbackian tax cut bill passed by the Senate on April 7. Because the Senate put the plan in a House bill, the House could not amend it, only vote to concur or non-concur in the changes.

Tax Committee Chairman Steven Johnson (R-Assaria) made a motion to non-concur in the Senate changes and send the bill to a conference committee. That motion was passed on a voice vote. What this action means is the chances of the House adopting the Senate tax cuts is remote but what tax cut bill might emerge from conference is anyone’s guess.

KNEA continues to believe that Kansas would be best served if legislators would resist the urge to cut taxes while we are only 10 months into recovery from the disastrous Brownback tax experiment.

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Are We Ready for Tomorrow?

Apr 25, 2018 by

The Legislature is set to return on Thursday, April 26 and at the top of everyone’s list of questions is “What about the school finance error?”

Maybe not everyone’s, but it’s on the top of our list!

We’re working on rumors and some good intelligence gathering to try and figure out how things will go down come Thursday.

First, we know there is a planned fix for the error which is tied to Rep. Clay Aurand’s (R-Belleville) effort to mandate a certain level of LOB effort and label it as part of BASE aid. The error can be fixed simply by repealing that provision and we are hopeful that will be the first order of business.

Of course, in the meantime, the state has received more good news about revenue collections and that has spurred a lot of talk about what to do with this “extra” money.

Rumor has it that the some in the House will again try to add to the school finance bill perhaps by pursuing either an amendment offered earlier by Ed Trimmer (D-Winfield) to change how the CPI was calculated in determining  a funding level or one by Jeff Pittman (D-Leavenworth) that would boost the reimbursement of special education funding to the statutory 92%. Both amendments were considered in floor debate on SB 423 earlier and were not adopted, having received only 41 and 43 votes respectively.

If SB 423 is amended to fix the LOB issue and restore the $80 million, we believe there is a chance that the Court will still believe the bill falls short of constitutional adequacy either for the overall increase or for the five-year phase in. Such a Court decision could result in a special legislative session this summer. There is also a chance the Court could call this bill a “good faith effort” and give the Legislature another year to augment the future-years in the plan. We’ll just have to wait and see.

If either the Trimmer or Pittman amendments were to be added, it increases the chances that the Court will approve the plan but it may also create a greater challenge getting the bill through the Senate – we are confident Senate President Wagle (R-Wichita) and Majority Leader Denning (R-Overland Park) will oppose such increases. We just can’t predict what might happen to the 21 votes in the Senate if the bill gets costlier.

KNEA supports the Trimmer and Pittman amendments because both align with our Legislative Agenda and priorities. But we also believe that, should they be offered and fail, that is not a reason to vote NO on the $80 million fix. To allow SB 423 with the error to stand as the proposed solution to Gannon would be irresponsible, to say the least. And it would guarantee a negative reception in the Court, a special summer Legislative Session, and the possibility that our schools will be closed come August.

Now throw into this the Senate’s massive, “Brownbackian” tax cut bill, HB 2228. This bill, which now goes to the House, gives away more than $500 million in new tax cuts and tax adjustments. Coincidentally, the new school finance bill with the fix costs more than $500 million. Passage of HB 2228 cancels out the revenue needed for SB 423!

The Court has been very clear that they want a school finance plan that has the money in it. They have essentially said, “show us the money.” To pass a $500 million finance plan concurrent with a $500 million tax cut would be a disaster. Remember that in the early stages of Gannon, the State argued that there was no revenue for increased school funding and the Court responded that the money was there but the Legislature gave it away in the 2012 Brownback tax cuts. Deja Vu all over again!

Our hopes for the next nine days?

Fix the mistake. Repeal the Aurand LOB amendment. That will restore the bill to the level of funding that was intended on April 7 and take care of new equity challenges.

If the votes are there to increase the funding, do so. We support full funding of special education – we always have and always will. If such amendments are not adopted, pass the underlying bill that fixes the error. Do not use a desire to do more as an excuse to not fix the underlying problem.

Resist the temptation to cut taxes again. Kansas is still in recovery from the Brownback disaster. Things are looking good but this is not the time to cut taxes. We still have to meet school funding adequacy and we also need to address the mess in our foster care system, the challenges faced in public safety, the restoration of funds taken from the highway program and KPERS, and many other vital services. Tax cuts can wait. Remember that voters in 2016 sent many new legislators to Topeka specifically to restore our revenue system. It’s only been 10 months since that happened.

Good Revenue News Means We Can Have Necessary Things Again

We, like all Kansans, are happy to see continuing good news about revenue collections. We’ve repeatedly exceeded estimates thanks to the work of a bipartisan group willing to vote to repeal Brownback’s income tax changes and then vote to override his veto of their action. It looks like the state is on a path to stability once again. We’re not out of the woods but, as Sam would have said, “The sun is shining in Kansas.”

The revenue news means different things to different legislators. Some, as we noted earlier, want to go back to handing out tax cuts as if we had already satisfied the Court school finance ruling, restored the highway plan, paid KPERS back, found the 70 missing children in DCF, and so much more.

In truth, the news means that while we can have some necessary things, we still have a lot to do to get back to our beautiful Kansas.

For the first time in a long time, the legislature is looking at budget profiles with ending balances above zero. In fact today the budget committees are looking at reports that show the state meeting the required 7.5% ending balance. HB 2228, the tax cut bill would wipe that out of course but in the meantime, they can look at other things to fix.

Governor Colyer has submitted a Governor’s Budget Amendment (GBA) that would take funds above the 7.5% ending balance and make an early payment to KPERS. The Legislature is supposed to be making back payments to KPERS by 2020 and this GBA would bring a portion of that payment up now. KNEA supports this GBA. It is critical that KPERS be paid back and the sooner, the better.

This one opportunity and action should be enough to convince responsible lawmakers to step back from the temptation to return immediately to the tax policy decisions that led Kansas to the brink of disaster. We don’t need another radical tax cut – that’s how the Legislature created the problems we are facing today. Now that things are turning around, we hope the Legislature will focus on restoration of services and programs that have made Kansas a great place to live, work, and raise a family.

Join with Our Partners and Urge Your Legislators to Reject Irresponsible Tax Cuts

KNEA is working with other organizations to make sure that our state has ample time to recover from the Brownback experiment before considering any reductions in taxes. As they return to Topeka, it’s important for them to hear that voters want them to act responsibly to ensure our economic and budget recovery. Please take the time to email your Legislators.

Click here to send a message to your Legislators.

 

 

 

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