Candidates see state revenue differently

Sebelius says increase due to job growth; Barnett says Kansans taxed too much

? A dramatic increase in state revenue during the first quarter of the fiscal year was interpreted differently Tuesday by opponents in the governor’s race.

Gov. Kathleen Sebelius, a Democrat seeking re-election, said a 9.5 percent increase in tax receipts signaled a growing economy, more people working and further assurance that the state would be able to fund the new $466 million, three-year school funding increase.

“Governor Sebelius believes our economy’s continued growth will help us fulfill our commitment to our children,” said her spokeswoman, Nicole Corcoran.

But Republican challenger Jim Barnett, a state senator from Emporia, said the new revenue figures show “too many tax dollars are being taken out of the pockets of Kansans.”

Even with the increased revenues, the state still won’t have enough to fund the out years of the school finance plan, in addition to funding other needs, Barnett said.

The economic health of Kansas has become a primary issue in the governor’s race.

In her re-election campaign, Sebelius has noted that when she took office the state economy was staggering from the post-9/11 recession, especially in Wichita’s aircraft manufacturing industry. During her administration, she says, Kansas has seen job growth, tax cuts and government cost savings.

But Barnett says the Kansas economy is lagging the rest of the nation, government spending on public schools will lead to deficits and his plan for tax cuts will spark investment and create jobs.

From July through September, the first quarter of the fiscal year, Kansas tax receipts were $92 million, or 9.5 percent more than the first quarter last year, according to new figures.

Corporate income tax receipts increased 51 percent and individual income tax receipts 25 percent from last year’s first quarter.

“Those are good numbers,” said Duane Goossen, Sebelius’ budget director. “Corporate income taxes reflect a good economy, and individual income taxes reflect more people working.”

He said budget experts will meet Nov. 3 to readjust their revenue predictions for the current and next fiscal year. Those estimates will be used by lawmakers writing a budget when the 2007 legislative session starts in January.