In a recent editorial “Legislature took responsible path” State Senator Stephen Morris from Hugoton wanted to set the record straight regarding the final budget and tax increase enacted by the legislature for next year. He concluded that after listening to Kansans in every corner of the state the only responsible way to move forward was with a tax increase. He also states that some lawmakers chose not to be part of the solution and are spreading false information to frighten Kansans.
I would like to offer a different viewpoint.
It’s true that during this recession the state faced revenue shortfalls from the proposed budgets approved by the Governor. But that doesn’t tell the whole story.
For the period from 2005 to 2009 the state’s All Funds Budget spending rose from $10,585,500,000 to $13,960,345,000. That is a net 31.9% increase in state spending while inflation rose a cumulative 11.8% during that same time period. While the citizens of Kansas are trying to live within their means during a nasty recession, 71 house members and 21 senators voted to increase the 2011 budget by spending over $200 million dollars more than last year. It seems that we have a spending crisis, not a budget crisis.
What Senator Morris and others are citing as a “modest, three year, one cent tax increase” is actually a 19% increase in the sales tax rate, the largest sales tax increase ever imposed on Kansas citizens. It must also be noted that 40% of the tax increase is permanent, extending beyond this current economic downturn.
The article declared that this sales tax increase to 6.3% (plus county and city rates) allows Kansas to be competitive with its neighbors. But Oklahoma (4.5), Missouri (4.225), Colorado (2.9) and Nebraska (5.5) all have lower sales tax rates than Kansas. How does that possibly make us competitive?
As a further justification for an increase, Senator Morris and the proponents of this unprecedented tax hike want us to look back to the 2002 recession when the legislature raised taxes to satisfy their spending habits. He claims that it was a catalyst for economic growth and that 35,000 jobs were created because Topeka raised taxes. But according to the U.S. Bureau of Labor Statistics, Kansas lost approximately 27,400 private sector jobs by the next year. Alarmingly, from 2002 to 2010, government jobs have increased by approximately 33,000.
To believe that a tax increase on Kansas citizens during this recession is responsible and necessary, you would have to believe at least three things.
First, that no other funds are available help satisfy a budget shortfall. But 2009 agency balance sheets show a balance of $1,955,000,862.00. While most of those dollars are committed, a portion could be used to fill budget shortfall holes. Additionally, according to the Department of Education and Legislative Research, the combined school districts had a carryover cash balance on June 30, 2010 of $1,135,790,681.00. While much of that money is obligated, the Kansas Department of Education stated that $500-$700 million of those dollars could be re-prioritized as schools deem necessary to help them get through any temporary general budget shortfall.
Secondly, you must believe that Kansas is getting the maximum benefit from all owned assets (estimated at $10-12 billion dollars in value). Selling one percent of unused or under-utilized property at market value would generate $100-120 million dollars that could have been used before raising taxes on Kansas citizens.
Finally, to believe that a tax increase was responsible and necessary, you must believe that government is operating as effectively as possible, that there is no waste, fraud, or duplication of any program, and that all government agencies are working at their maximum level of efficiency all the time on behalf of the taxpayers.
These other options were available to the legislature (including controlling our spending) and should have been implemented before increasing taxes on an already burdened populace, especially when over 100,000 members of our workforce are unemployed.
When Topeka or Washington takes even more money away from the private sector and out of the economy to grow government, it diminishes the road to economic recovery. We need to control our spending and encourage the private sector to grow by becoming a low tax state with a stable and predictable regulatory environment.
This recent tax increase to sustain an already bloated government was neither necessary nor responsible.
We need to focus on putting Kansans back to work. We need more taxpayers, not more and higher taxes…especially now.
State Representative Steven Brunk
Chairman, House Commerce and Labor Committee
District #85
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