Last Friday, the Senate Ways and Means Committee approved the largest tax increase in the history of Kansas. It will be debated by the full Senate this week, and presumably by the House. The increase in taxes is a companion bill to the
Senate's budget, which increases spending for next year by over $400 million. The tax increase is estimated at $417 million in the first year. I cannot support the Senate's increase in spending and corresponding increase in taxes.
The House Appropriations Committee passed its version of a budget for next year that doesn't require a tax increase. Contrary to public perception, the House's budget actually spends more for the physically and developementally disabled than either the Senate plan or the Governor's plan.
Shortly after both Chambers produced a budget bill, we got news that April's revenues had plummeted to roughly $65 million below the recent projections. The mix is a little confusing. Income tax was way down, but sales tax was up a little from expectations.
What this means is that both chambers are going to have to adjust their proposals immediately this week. The Senate will have to adjust their budget down, or increase their tax proposal even more than the unprecedented amount they have already planned on.
House Leadership has already indicated that there are alternatives to raising taxes during the worst recession since the 1930s. There will be a proposal to sell some State assets this coming year. The State has over $10 Billion in property...and that's just the properties valued at over $5 million! The number of lower valued properties are literally unknown.
Mitch Holmes is the Kansas State Representative for the Kansas House District 114. His e-mail is mitch.holmes@house.ks.gov
