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Archive for Tuesday, November 4, 2008

State officials: Deeper cuts needed in budget

November 4, 2008

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— In a stunning announcement, state budget experts said Tuesday that when lawmakers return to session in January they could be staring into a $1 billion budget hole.

"The economy overall has taken a significant turn for the worse," said Alan Conroy, director of the Kansas Legislative Research Department.

Gov. Kathleen Sebelius' budget director Duane Goossen said when the legislative session starts, Sebelius will submit a revised budget for the current fiscal year, which is projected to be short by $137 million.

Then state officials have to start working on a budget for the next fiscal year that starts July 1, 2009. Under current circumstances, that budget could be $959 million below spending commitments, according to the new projection provided by the Consensus Revenue Estimating Group.

The group of state officials and budget experts provide estimates for lawmakers to use when they deliberate on spending plans.

Asked if the budget problem could be solved through cuts only, Goossen said, "It would have to go very deep."

Conroy and Goossen, both state government veterans, said the financial picture was worse than in 2001 and 2002 when then-Gov. Bill Graves had to cut budgets and push through a tax increase.

"It's going to be really, really, really challenging," said Goossen, who also served as Graves' budget director.

Conroy said the main culprit is that the worsening national economy will drag down income taxes. Revenue receipts are expected to remain flat from the current fiscal year to the next, he said.

Earlier in the day, Sebelius said Kansas is faring better than many areas of the country because farm commodity prices are up, oil and gas revenue is flowing and the airplane manufacturing industry remains strong.

But, she said, losses in the stock market and falling consumer confidence soon will affect the state.

"As the national economy worsens, the Kansas economy will follow," she said.

In June, Sebelius asked state agencies to cut spending by 2 percent for the current fiscal year and 5 percent for the next fiscal year. "Agencies are already on notice that we don't have any new money to spend," she said

But Goossen said more than that will have to be cut in the near-term to meet the revised revenue estimate.

Comments

budwhysir 6 years, 1 month ago

Yes we did have a chance to vote, just seems as though some of the voters might not have understood

Thinking_Out_Loud 6 years, 1 month ago

hawkperchedatriverfront wrote "Cuts can be made without layoffs."Which is drivel. Cuts of consequence must necessarily address the larget source of expenditures, which is salary and benefits.

Steve Jacob 6 years, 1 month ago

You know the gambling income disappeared in the 2009 budget.

budwhysir 6 years, 1 month ago

Does the town of lawrence get any tax breaks for operating a non profit bus line??????

6 years, 1 month ago

Of course you would know that....

Thinking_Out_Loud 6 years, 1 month ago

Man alive, the City Commission authorized the bus system. People complained that they ought to get to vote on whether or not there was a bus system. The Commission gave them that chance, and the citizens of Lawrence overwhelmingly agreed that this service is useful and appropriate. Why the continued complaints? Didn't we get what we wanted--a chance to vote on it?

doc1 6 years, 1 month ago

Hey look at it this way. Now they get to continue helping fund an empty bus system in Lawrence. No budget cut for that money guzzling service.

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