TOPEKA, Kan. (AP) - Kansas legislators fashioned a plan Saturday for balancing the state budget that would require Republican Gov. Sam Brownback to do most of the work.
The measure drafted by House and Senate budget negotiators would partially close shortfalls totaling more than $290 million in the state’s current budget and the one for the next fiscal year, beginning July 1. It delays $96 million in state contributions to public employee pensions due this spring, possibly until the end of June 2018.
The plan assumes Brownback follows through on announced plans to cut higher education spending during the next fiscal year and delay major highway projects so road funds can be diverted to general government programs. It also assumes the governor would cut spending further if tax collections fall short of expectations - as they have in 11 of the past 12 months.
Kansas has struggled to balance its budget since the GOP-dominated Legislature slashed personal income taxes in 2012 and 2013 at Brownback’s urging in an effort to stimulate the economy. The push to have the term-limited governor make tough decisions about the budget reflects some lawmakers’ frustration that he won’t back away from key cuts.
“The danger is nothing passing,” said Senate Ways and Means Committee Chairman Ty Masterson, an Andover Republican and his chamber’s lead negotiator. “The debate in this building has become toxic to the level that I’m not sure anything passes.”
The House was to consider the plan first, on Sunday. If House members approve it, the Senate would debate it to decide whether it goes to Brownback. If either chamber rejects the plan, the budget negotiators would have to resume talks.
Brownback spokeswoman Eileen Hawley said that after reviewing the plan, “the governor believes it is something he can sign.”
Legislative researchers said the plan counts on Brownback cutting up to $92 million in additional spending from the state’s $16 billion budget for the next fiscal year to finish closing the shortfall and leave the state with a small cushion of cash reserves at the end of June 2017. The state constitution prohibits a budget deficit.
“It’s irresponsible on the part of the Legislature to walk away without a truly balanced budget,” said Sen. Laura Kelly, a Topeka Democrat and one of the negotiators. “But I understand why we need to do it at this point because we’ve not been able to address the revenue issue.”
Brownback’s administration already has announced plans to delay 25 major highway projects so that $185 million in funds can be diverted to general government programs. He plans to cut almost $18 million from state universities’ budgets in the next fiscal year, after trimming almost as much from the current budget.
The lawmakers’ plan outlined on Saturday does put some constraints on cuts during the next fiscal year. It would set a formula for the higher education cuts that favor smaller schools over larger ones, and it would prohibit Brownback from cutting the state’s more than $4 billion in aid to public schools. House negotiators pushed for the last provision.
The delayed pension payments could be paid back - with 8 percent annual interest - by using part of the state’s annual payments from a 1998 national legal settlement with tobacco companies.
The negotiators finished their work a day after the House rejected a bill that would have repealed one of Brownback’s signature income tax cuts. The 2012 policy exempted more than 330,000 farmers and business owners from personal income taxes.
Sen. Jim Denning, an Overland Park Republican who supported repealing the policy, said Brownback’s refusal to bend on the issue was crucial in the House vote. Denning is one of the budget negotiators and said the governor’s stance on taxes justified leaving him to make tough budget decisions.
“It’s his tax plan,” Denning said. “We didn’t have the will to change because he wouldn’t support us changing it, so he’s going to have to deal with it.”
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Online:
Kansas Legislature: https://www.kslegislature.org .
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