Public and majority of legislators ready for tax increases, governor says
Consensus is there to avoid more spending cuts
Senate leaders talked about the budget and taxes during a press conference Wednesday. Surrounded by reporters and seated left to right are Senate Majority Leader Derek Schmidt, R-Independence; Senate Pres. Steve Morris, R-Hugoton; and Ways and Means Chairman Jay Emler, R-Lindsborg. Senate Vice Pres. John Vratil, R-Leawood, took part via speaker phone.
TOPEKA — After seeing preliminary numbers on state revenues for the month of March, state officials said they were guardedly optimistic that the state's economy is on the mend.
"There are some bright spots out there," said Gov. Mark Parkinson.
For the first time since November, the state's monthly tax receipts exceeded projections. Instead of the expected $350 million, the state took in $362 million.
But that doesn't mean tax increases won't be needed when legislators return to Topeka for the wrap-up session that begins April 28, the governor and Senate GOP leaders said in separate press conferences Wednesday, marking the end of the Legislature's regular session.
State spending has been reduced by about $1.2 billion over the past two years in response to the economic downturn and the governor and his legislative allies say more cuts would devastate many essential programs.
Lawmakers took break without settling budget or tax questions but most went home understanding that another round of cuts would be too damaging to education, public safety and social service programs, according to the governor and Senate leaders. The only option left is to raise taxes, they said, repeating the message they started delivering when the Legislature convened in January.
"We've made as deep cuts as we can," said Senate Pres. Steve Morris, R-Hugoton.
Among legislators, House GOP leaders and some conservatives in the House and Senate are the only ones who continue to call for spending reductions to meet the state's constitutional requirement for a balanced budget. It remains uncertain how much support they will have for their budget plans, which as outlined by House leaders would significantly trim K-12 and highway spending.
The governor and Senate leaders said tax increases are on the way. The only big question left is what mix legislators will agree upon.
The governor said he still liked the idea of increasing tobacco taxes to match the national average and a 1 cent boost in the general sales tax. But he said he would consider whatever plan legislators sign off on, including more income taxes, so long as it doesn't involve additional cuts to schools or programs for the elderly or disabled.
Gov. Mark Parkinson said there is consensus for a tax increase.
Morris and other Senate leaders also said any type of tax increase was "still on the table," for consideration, though increased property taxes were the least likely.
"I wouldn't say anything is off the table," said Sen. Jay Emler, R-Lindsborg, chairman of the Ways and Means Committee. "But the most unlikely would be the property tax."
Senate Democrats last week promised to unveil their budget and tax plan before the end of the regular session, saying it would include some increase in income taxes. But Senate Minorty Leader Anthony Hensley said Wednesday that the plan wasn't ready yet.
Emler said his committee would return to work April 19 with the goal of having a budget crafted for consideration when the full Legislature comes back to town.
His committee earlier drafted a budget that would cut millions of dollars from early childhood and social service programs. But members agreed those cuts would be reconsidered during final budget making.
"The budget we have out there now is devastating," he said. "I think everyone on the committee favors restoring those cuts."
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