House GOP negotiators set revenue target in budget talks

? Two House Republicans said Tuesday they want negotiations with senators to produce a budget that would require $200 million to $225 million in higher taxes. A key senator said such a tax increase would be too small.

The figures emerged after a conference committee of three senators and three House members began talks on a final, compromise budget for the fiscal year that begins July 1. The rest of the Legislature is in recess.

Senate Ways and Means Committee Chairman Steve Morris said a tax increase of $225 million would require too much cutting to close a projected $700 million budget shortfall.

Before recessing earlier this month, the House approved a budget plan that is $108 million out of balance while the Senate approved a budget that is $306 million out of balance.

The two chambers are also far apart on spending for higher education, social services and highway projects, with smaller differences on appropriations for many other government services.

Two of the House negotiators Kenny Wilk, R-Lansing, and Melvin Neufeld, R-Ingalls said they believed $225 million was the maximum tax increase likely to clear the House.

“I think that’s going to be very difficult, getting that amount of revenue passed,” added Wilk, who chairs the House Appropriations Committee. He and Neufeld did not identify specific taxes to raise.

The negotiators planned to spend three days drafting a compromise budget for consideration when the Legislature reconvenes May 1 for its wrap-up session.

Both chambers want to spend more than $4.3 billion in general revenue during the next fiscal year, down from the current budget’s $4.5 billion, and both want to dip into the state’s reserve funds for more than $100 million something Gov. Bill Graves opposes.

Awaiting Senate debate is a proposal from its Assessment and Taxation Committee to increase a wide variety of taxes by $335 million. The House has rejected numerous proposals to increase taxes.

“I think we’re going about it backwards,” said Sen. Jim Barone, D-Frontenac, a negotiator. “Most families and businesses find out how much money they have, then figure out how to spend it.”

Morris, R-Hugoton, said senators don’t have a target for new revenue, preferring to settle spending issues individually.