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Archive for Thursday, April 30, 2009

House speaker resists Parkinson’s budget proposals

More cuts would bring tuition increases, regents CEO says

April 30, 2009

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— So much for a honeymoon period for new Gov. Mark Parkinson.

On Wednesday as the Legislature reconvened for the wrap-up session, House Speaker Mike O’Neal, R-Hutchinson, said he would oppose efforts by Parkinson to delay the phase-out of tax cuts or decouple state taxes from federal tax breaks as a way to help fix a $328 million budget deficit.

Parkinson recommended both of those proposals as “modest revenue enhancements” during his first remarks after being elevated to the governor’s job Tuesday following the resignation of Kathleen Sebelius, who was made secretary of the U.S. Department of Health and Human Services.

And O’Neal continued to promote furloughing state employees, possibly one day per month. That would save the state about $72 million, he said.

But that idea got rough treatment from state personnel officials, labor representatives and higher education.

George Vega, director of the division of personnel services for the Department of Administration, said a furlough program should be considered only as a last resort.

Vega said in the private sector it may be easier to furlough workers because demand for products and services decreases in a weak economy. The opposite is true for many state agencies, he said, because demand for government services increases when the economy is hurting.

Furlough program

Officials also said implementing a furlough program would be extremely difficult because salaried, exempt workers must be paid a full week’s wages regardless of how many hours they work during a week, according to federal labor laws. And the U.S. Department of Labor has put states on notice that it will closely monitor furlough programs, they said.

Jane Carter, executive director of the Kansas Organization of State Employees, said a furlough program is shortsighted, unfair and usually doesn’t save that much money.

“With caseloads on a sharp rise, unemployment skyrocketing, and many Kansans becoming increasingly more dependent on the state, now is not the time to furlough employees,” she said.

But O’Neal said the savings from a furlough program would probably save some employees from being laid off.

Tuition hikes predicted

Meanwhile, higher education officials said budget cuts proposed by legislative committees to state universities would result in tuition increases.

“The prospect of a tuition freeze in this recommended budget context is really not doable,” Kansas Board of Regents President and CEO Reggie Robinson told the higher education caucus.

The increases, Robinson said, would depend on the individual universities. He added that the regents would try to keep the increases “as low as they possibly can.”

Because of shrinking revenue, the Legislature has cut higher education by 7 percent, or $63 million, in recent months. Even with the cuts, the regents had vowed to freeze in-state tuition for one year.

But the revenue picture continued to deteriorate, the House Appropriations Committee proposed another $29 million cut to higher education, while the Senate Ways and Means Committee recommended another $19 million cut.

Those proposed reductions, if enacted, would not allow the regents to freeze tuition, Robinson said.

And, Robinson added, a state-instituted furlough program could lower higher education below what is required for the state to get federal stimulus funds for the universities.

Bill Hall, who is head of Citizens for Higher Education, urged lawmakers to fight for more funding for the schools, saying the institutions are crucial in helping the Kansas economy rebound.

“If we don’t support our universities, who are the generators of those ideas, we are going to be left behind,” he said.

Meanwhile, the Kansas Chamber held a news conference to urge lawmakers to reject any tax increases.

“The bottom line is jobs will be lost if taxes are raised and promises made to reduce Kansas’ high tax burden are not kept,” said Amy Blankenbiller, president and CEO of the chamber.

Comments

bobberboy 4 years, 11 months ago

Oneal and repub croonies,small bus. etc., if your going to lay off State employees that are'nt doing any work go ahead - if you know of some - but stop holding the rest of the State employees hostage. No Furloughs, and continue to increase benefits & market wages. State employees are already last in benefits and 25-40% below market for the same jobs in the private (small business) sector !!!!

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SettingTheRecordStraight 4 years, 11 months ago

Allowing any tax relief to expire is a tax increase.

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TexiKan 4 years, 11 months ago

I still can't figure out why the Legislature wants to exempt out-of-state hunters from paying sales tax on hunting leases and for guided hunts. If they can afford to hunt they can afford the tax. It isn't because so many of our land owning Legislators lease their land out is it?

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solsken66 4 years, 11 months ago

Many in the private sector have had their hours reduced, pay reduced, or given a pink slip. Furloughs should be seriously considered during this economic downturn. Tax increases are not the answer when individuals and companies are feeling the economic crunch. My spouse had his wages reduced. I have a brother who has had one week a month off to offset lack of sales. I know of others who have been laid off or hours reduced. Also, there are a few people that are worried about layoffs. Furloughs allows people to still work, have benefits, and be productive members of society. That is better than being in the unemployment or bread line!

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texburgh 4 years, 11 months ago

The Kansas Chamber of Commerce is one of the most despicable anti-government groups in Kansas, controlled by the Koch brothers of Wichita. They and their partners, the Kansas Chamber PAC, Club for Growth PAC and Americans for Prosperity bully legislators and use enormous Koch contributions to crush any politicians who dare stand up for public schools, higher ed,, social services, etc.

And Mike O'Neal is their number one lackey.

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