Kansas House debating $13.6 billion bipartisan budget proposal for next fiscal year

Kansas House tables tax hike, tackles budget

TOPEKA, Kan. — A Kansas House coalition of Democrats and moderate Republicans turned back efforts Friday to amend their proposed $13.6 billion state budget for the upcoming fiscal year.

After the arduous process of getting its budget assembled on the House floor, the coalition insisted it wasn’t interested in making changes sought by House conservative Republicans.

“This budget is delicate,” said Rep. Jerry Henry, a Cummings Democrat and coalition member. “It’s balanced and I think we need to hold the line right where it is.”

More amendments were offered late evening, including efforts to reopen state prison beds to reduce overcrowding caused by budget cuts. Plans were rejected to reopen space at Stockton and El Dorado.

One amendment was added that requires the state to prepare a list of all assets, estimated to be more than $10 billion, and determine which ones could be sold.

House leaders planned to continue working into the night to finish the budget.

The coalition won approval of each of the 13 pieces of its budget plan Friday afternoon. Conservative Republicans responded with dozens of amendments, including some aimed at containing spending growth.

The bipartisan House budget is similar to one approved earlier this week by the Senate. Both would require new revenue to avoid a deficit in the fiscal year starting July 1.

The Senate has approved legislation increasing the state sales tax to raise about $314 million, but the House tabled that bill after brief debate Friday. The rate would go from 5.3 percent to 6.3 percent for three years.

Democratic Gov. Mark Parkinson has told the Republican-controlled Legislature he won’t accept further cuts to education funding or social services. But conservatives and many business owners and groups believe raising taxes will prolong the recession in Kansas by raising the cost of what people buy and depressing sales.

Under the Senate bill, the full sales tax increase would remain in effect through June 2013. Afterward, the tax would drop to 5.7 percent, with some of the revenues from the tax dedicated to highway projects.

House GOP leaders backed a budget-balancing plan that would have cut aid to schools by $86 million, though they said local districts could make up such a loss by tapping reserve funds or raising local property taxes. But that plan didn’t have enough support in the House, and proposals to cut education funding failed in the Senate.

After the coalition budget was assembled, conservatives tried to remove $8 million earmarked for bringing some state employee wages in line with the private sector under an agreement reached last year. The motion failed 70-44.

Supporters of that amendment argued that while state employees work hard, they’re still employed while thousands of Kansas residents have lost their jobs in the private sector. The Kansas unemployment rate is 6.9 percent with more than 104,000 people out of work.

“We need to help Kansans get back to work, not tax them more,” said Rep. Kasha Kelley, an Arkansas City Republican.

Senate tax plan is Senate Sub for HB 2360. House budget bill is House Sub for SB 572.

On the Net:

Kansas Legislature: www.kslegislature.org