House panel recommends income tax increase

$93 million annually would pay for building repairs at universities

? In a startling move, a House committee on Wednesday recommended a $93 million state income tax increase to pay for repairs of buildings at higher education institutions.

The Higher Education Committee voted 7-6 to recommend full House approval of a measure that would increase state personal income taxes by 3.65 percent. If enacted, the income tax surcharge would raise $93 million annually.

The surcharge was proposed by Rep. Bill Otto, R-LeRoy. “I walked around the campuses in my area and saw there are problems, and maintenance catches up to you,” Otto said.

He said if the state ignores the repair problems, it will cost more to fix in the future. “It’s pay sooner or later,” he said.

Rep. David Huff, R-Lenexa, argued the tax increase would hurt residents of larger, more affluent counties the most. Rep. Sue Storm, D-Overland Park, however, said most of the students in higher education came from the larger counties.

Other members said the Higher Education Committee should leave tax legislation to the House Taxation Committee.

But Rep. Julie Menghini, D-Pittsburg, who is also a member of the Taxation Committee, said, “My general feeling is that they are in the tax-cutting mode and not the tax-increasing mode.”

Committee Chairman Tom Sloan, R-Lawrence, didn’t vote on the measure, and said he doubted it had much likelihood of advancing in the tax-cut-hungry Legislature.

Sloan had offered increases in the statewide property tax to address the backlog of maintenance problems. But Otto’s measure won out.

Sloan, however, said the committee action keeps alive discussion on a looming problem.

The 7-6 vote was a nonrecord vote, but those voting for the tax increase were Otto; Sydney Carlin, D-Manhattan; Don Hill, R-Emporia; Deena Horst, R-Salina; Menghini; Eber Phelps, D-Hays; and Storm. Those voting against it were Barbara Craft, R-Junction City; Huff; Dick Kelsey, R-Goddard; Everett Johnson, R-Wichita; Jo Ann Pottorff, R-Wichita; and Stephanie Sharp, R-Lenexa.

The six public universities, including Kansas University, have identified $584 million worth of needed repairs, some crucial to maintaining safety standards. Recently, community colleges and technical colleges have also brought repair concerns to lawmakers.

The Kansas Board of Regents has proposed a plan that includes a one-tenth-cent statewide sales tax, a 1 mill property tax increase and the issuance of $150 million in bonds. But the proposal hasn’t been introduced yet as a bill during the session, and legislative leaders have said there is little support for the plan.

Another proposal would increase the statewide property tax by 2 mills for building maintenance and technology investments.

A mill is $1 in property tax for every $1,000 in assessed valuation.

Sloan said the committee-approved tax increase will now go to the full House. House leaders will decide whether there will be a vote on it, or it gets referred to another committee or simply dies from lack of action, Sloan said.

Sloan said that what is important is that there are now plans being discussed as alternatives to the regents proposal, which had gained little support.