Taxing options

Gov. Bill Graves has a budget plan that’s bound to find detractors. If legislators can come up with something better, now’s the time.

The budget plan Gov. Bill Graves put on the table Friday almost certainly will draw fire from conservative Republicans in the Kansas Legislature, who don’t like the fact that the governor is willing to raise taxes to help solve the state’s budget crisis.

The message to those who criticize the Graves’ plan is simple: If you don’t like it, come up with something better. It’s time to put up or shut up.

The proposal outlined by Graves takes a balanced approach to the $700 million shortfall facing the state. It includes $365.5 million in spending reductions and $364 million in tax increases.

In his State of the State address in January, Graves proposed a state sales tax increase of 0.25 percent. He has raised that to 0.3 percent for a total of 5.2 percent and increased individual income taxes by 5 percent. Both of those taxes would be in effect for three years and be offset by increases for earned income tax credits and food sales tax rebates.

He also is standing by his plan to raise the taxes on a pack of cigarettes by 65 cents and is endorsing a Democratic plan to raise estate taxes for nephews, nieces and non-relatives who inherit property. He also would double fees paid by corporations and non-profit groups to do business in Kansas.

Despite the new revenue that would be raised, budget cuts would be required. Five minimum security prisons would close and cuts would be made in social service programs. A furlough plan requiring state employees to take unpaid vacation days wouldn’t be instituted in Graves’ plan, but those employees would receive no pay raises next year.

The governor made two other notable deletions from his State of the State budget. The plan released Friday does not include $7 million to increase operating grants for Kansas Board of Regents schools or $3.6 million in aid to cities and counties. Graves also reduced the allocation to the state court system from $4.1 million to $2.1 million.

The governor also endorsed a plan to save money by reducing the 2003 legislative session to 80 days from its current 90. The shorter session should be particularly popular with legislators who want to reduce governmental waste.

The governor has made a good-faith effort to try to move the budget debate forward to resolution. He has included proposals made by Democrats and others in the Legislature, and he has repeatedly expressed a willingness to consider other ideas, such as increased gaming, to produce more state revenue.

Graves has been criticized for not showing strong enough leadership for the state, but he has put forth a plan and dared to propose that taxes be raised to meet the state’s obligation to its residents.

That puts him ahead of a large contingent of legislators who refuse even to consider tax increases to fund the state’s most basic services. The lawmakers seem willing to dig an economic hole for the state that will put Kansas at a disadvantage for years to come. They say their constituents are unable to pay more taxes. Will that situation improve when government employees are furloughed from their jobs? Or when school districts have to fire teachers and other personnel to meet their slashed budgets?

It’s time to get realistic. Graves’ plan will be disappointing to many Kansans, especially those who support higher education. Some alterations almost certainly will be needed. But constructive action can’t take place until the options are on the table and the no-tax conservatives are willing to take their heads out of the sand and look at them.