Topeka ? Businesses seeking state tax cuts may want to help lawmakers cut a deal on school finance.

Gov. Kathleen Sebelius and Senate leaders said Friday that until the Legislature approved a plan to fund public schools, hundreds of millions of dollars in proposed tax cuts for businesses could wait.

Lawmakers failed to reach agreement on school funding when the first part of the legislative session ended March 31. They will return for the wrap-up session April 26.

Sebelius said school finance was the top priority because of the Kansas Supreme Court order to equitably and adequately fund schools.

She supports phasing out the property tax on new purchases of business machinery and equipment, but said it would be better to pass a school plan first.

“It’s a responsible way to approach the budget issues we have before us. Until we resolve what kind of resources we’re going to need to meet the constitutional obligation that the Legislature has, I think that is step one,” she said.

Senate President Steve Morris, R-Hugoton, and Senate Majority Leader Derek Schmidt, R-Independence, agreed.

“We need to know where we are before we do very much with tax reductions,” Morris said.

Jim Gregory, a spokesman for the Kansas Chamber of Commerce, which has been pushing for the machinery and equipment tax cut, said he would rather it not be involved in the school finance debate.

“From the Kansas Chamber’s perspective, the business community would like to see the repeal move forward and quickly,” Gregory said.

But Schmidt said the Legislature couldn’t ignore school finance when considering tax cuts.

“It’s a matter of being fiscally responsible,” he said.

The House has approved a $630 million, three-year school plan and tax cuts. The Senate failed to approve a school plan.

During a news conference, Sebelius outlined what else needed to be approved during the Legislature’s wrap-up session.

Sebelius said she wanted increases in penalties for sex offenders, funding to guarantee health care for all Kansas children from birth to 5 years old and the business tax cut.