Facing a budget meltdown, Kansas needs a better tax system, a child advocacy group contends in a report released Thursday.

“We know that one reason our state is facing such serious budget shortfalls is because our current tax system does not reflect the current economy,” said April Holman, director of economic policy for Kansas Action for Children.

“There’s no quick fix. But, an outdated system, combined with economic hard times, makes this the right time to address the root of the budget problem in Kansas,” Holman said.

The report comes out after state officials in the recently completed legislative session administered three rounds of budget cuts to public schools, higher education, social services and public safety. With revenues continuing to plummet below projections, more cuts are expected.

And the KAC argues against the budget problems being too much spending.

“Kansas taxes, as a percentage of personal income, have remained largely unchanged over the past 40 years, typically ranging from 11 to 12 percent,” the report said.

The KAC report says that the state loses a great deal of revenue by failing to apply the sales tax to services. In addition, sales tax exemptions have cost the treasury $4 billion in 2008 alone, it said.

And tax cuts approved by the Legislature over the past five years will reduce monies to the state by $1 billion through 2013, the report said. In addition, state policy allowing the diversion of tax dollars for economic development has become more prevalent in recent years and further depletes resources.

The KAC recommends the creation of a commission modeled after the federal military base closure commissions that would introduce tax modernization legislation for lawmakers to consider.