HEADLINES : Kansas

State awaits governor's tax plan

The Topeka Capital-Journal | by Andy Marso | January 8, 2012

When the state's Consensus Revenue Estimating group announced in November that tax revenues for fiscal year 2012 had exceeded previous estimates by $200 million, it spurred dreams of the long-missing "s-word" - surplus.

With the economy puttering toward recovery, the state's politicians are starting to talk about what should be done with increased revenue.

Gov. Sam Brownback wants cuts to state income taxes, which he said will spur growth, which in turn will allow more cuts.

House Minority Leader Paul Davis, D-Lawrence, has said he would like to restore funding to state programs that have been cut deep lately, such as mental health or education.

Senate Majority Leader Jay Emler, R-Lindsborg, encouraged a cautious approach, because $200 million is only about 3.5 percent of the total budget and that, by Kansas law, isn't a surplus at all.

"Under the law we're supposed to have 7.5 percent (ending balance)," Emler said. "What we've done for the last several years is waive that provision of the law for the ending balance."

The governor and Davis are aware of that, and in fact the governor's office released a statement recently on the "fiscal landscape of Kansas" that mentioned it.

 

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