Topeka — Cuts in education spending and social services. Canceled highway projects. Closed minimum-security prisons.
Gov. Bill Graves took the unusual step of sharing the outlines of his proposed budget a month early, in mid-December, in hopes of convincing legislators that tax increases are necessary to prevent some of those bad things from happening.
But Graves hasn't sold legislators on tax increases yet.
Some legislators remain adamantly opposed to any tax or fee increase and believe state government should cut spending. They're skeptical that Graves has given the state a good picture of the alternatives.
Other legislators say the Legislature may consider increases in some targeted taxes, such as those on cigarettes and liquor, but they're not certain such proposals would pass. They also flatly rule out an increase in sales or income taxes.
Even Graves has expressed doubts that he'll be able to convince legislators who resisted tax increases last year to endorse them this year.
"I'm still not holding out, you might say, tremendous optimism that many of the attitudes will have changed," Graves said during a year-end interview.
$426 million gap
When he disclosed the outlines of the budget he plans to submit to legislators when they convene their 2002 session on Jan. 14, Graves said he wanted to make the seriousness of the state's budget problems clear. His staff estimates that the state has to close a $426 million budget hole.
That's the difference between the amount of tax money the state expects to collect in its general fund in fiscal 2003, which begins July 1, and the spending to which it is committed by Kansas and federal law. The general fund is the largest source of money for Kansas government programs and where the state deposits most of its tax revenue.
Graves' proposed budget must rely on existing revenues and no tax increases. He would cut aid to public schools by $158 per pupil, decrease university budgets, cut social services, cancel nine highway projects and close five minimum-security prisons.
He has said he'll propose tax increases to raise money, but not enough to close the entire budget gap.
But many legislators do not believe Graves' statements represent a serious attempt to do anything but scare them. The sentiment is especially strong in the House, where all 125 seats will be filled in November elections.
"This budget is kind of a delusion," said Rep. Carlos Mayans, R-Wichita. "We are not convinced that the proper cuts have been made in the proper places. We believe there are other avenues to correct this problem, but they have not been put on the table."
Senate plan due
In the Senate, President Dave Kerr, R-Hutchinson, and Steve Morris, R-Hugoton, chairman of the Ways and Means Committee, plan to outline their own budget plan this week. Kerr said it would close the gap without increasing taxes.
Kerr noted that many states are facing economic problems that have left them short of money for programs.
"The problems are more serious in a lot of other states," Kerr said.
Other legislators argue that increasing taxes when the economy is slumping and Kansans have less money is bad policy.
"We will try almost everything to not raise taxes," said Rep. Doug Mays, R-Topeka.
Graves said he won't propose an increase in income taxes, the largest source of tax revenue. He said he doesn't think such increases are possible politically and that Kansas income tax rates already are higher than those in other states in the region.
The other big, general source of revenue is the 4.9 percent sales tax. Most legislators don't see an increase as likely.
"I don't think there's any possibility of a general tax increase," Mays said. "What I think will receive the most serious consideration is targeted tax increases in the area of sin taxes."
However, Morris noted that senators rejected proposals last year to increase tobacco and alcohol taxes to raise extra money for public schools.
"I don't know if the support is there to get that passed," Morris said.
In addition, legislators said they want to go hunting for savings in the budget first. They are not convinced that Graves did a thorough job of looking.
"I haven't talked to anybody who's taking that budget very seriously," said Rep. John Edmonds, R-Great Bend, chairman of the House Taxation Committee. "There are lots of ways to have a current resources budget, and the governor has proposed one of them."
Finally, legislators point out that they have 90 days in which to discuss the state's budget problems.
"We have not even begun to fight that battle or define those issues," said Rep. Rocky Nichols, D-Topeka, a member of the House Appropriations Committee.
Legislators' sentiments mean that Graves has yet to begin to sell the idea of a tax increase.
No comments
Commenting is turned off for this story.