By Barbara Hollingsworth, Topeka Capital-Journal, May 03, 2010
The Kansas Legislature sputtered into what is supposed to be its last week of work.
With lawmakers and their staff only budgeted to work through Wednesday, the House and Senate continued the slow slog toward putting together a balanced budget that will allow legislators to leave town. Neither the House nor the Senate has approved a budget, and the original Wednesday deadline looked unlikely.
"I think there are solutions available to us, and we've got reasonable minds working toward those," Sen. Laura Kelly, D-Topeka, said as the Senate Ways and Means Committee said during a break Monday evening.
Facing a budget shortfall of $450 million to $510 million and coming off bad news on Friday that April revenue numbers fell $65 million short of expectations, the Kansas House launched into a budget debate Monday afternoon. However, members showed no interest in increasing taxes until they can first vote on a budget bill that would determine how much revenue is needed.
Early in the debate, House members voted on the $438 million tax package teed up last week by the Senate Ways and Means Committee. It failed on a vote of 0-122. On Tuesday, House members are to switch courses — first voting on a budget bill and then voting on a tax plan to support that budget.
After a couple hours of floor amendments, the debate finally ended, and House Speaker Mike O'Neal said he was frustrated that some House members wouldn't cast meaningful votes on taxes.
"This idea that they want to load up a budget so then there is a reason to raise taxes is pretty transparent," said O'Neal, R-Hutchinson.
Meanwhile, the Senate Ways and Means Committee continued meeting late Monday, changing its budget bill in anticipation of debate that could occur as early as Tuesday. The committee altered its plan to count on more uncertain revenue. For example, members voted early Monday evening to count on receiving an additional $131 million in Medicaid matching funds. However, that money depends on Congress extending a 70 percent match on Medicaid reimbursements rather than the normal 60 percent match.
Committee chairman Jay Emler, R-Lindsborg, said the changes would allow the committee to lower some other proposed tax increases that were part of the $434 million tax hike approved last week. A new plan approved by the committee late Monday lowers the proposed tax increase to $350 million and drops plans to raise taxes on tobacco and cigarettes. Emler said while he heard lots of concerns about cigarette taxes, people seemed more willing to support a sales tax increase. The committee on Monday continued to call for an increase to the sales tax of 1 cent for every dollar spent.
"I'm not saying people like it, but they are more willing to accept it," he said.
While some lawmakers continue to hammer away at the message that Kansans can't afford increased taxes, Emler said most have come to the conclusion that the state can't continue slashing at already hard-hit programs.
"Most people understand that you have to have a balanced budget, and most people also understand the only two places left to cut are education and social services," he said. "And we devastated social services with the cuts we made."
April's revenue numbers could improve from the originally announced $65 million drop from expectations. The Department of Revenue on Monday was still processing about 20,000 checks that arrived Friday. Among them was a tax payment for about $1.5 million — though such a fat check was certainly the exception.
Rep. Anthony Brown, R-Eudora, said April's shortfall shows that lawmakers need to stop dawdling, hoping for good news.
"Money isn't falling down from heaven," he said.
Barbara Hollingsworth can be reached at (785) 233-7470 or barbara.hollingsworth@cjonline.com and tweets at twitter.com/CapJ_Barb.