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Archive for Thursday, March 12, 2009

Kansas House approves bill to create reserve fund

March 12, 2009

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— The House passes a bill to squirrel away unanticipated state revenues in a special budget stabilization fund.

The 89-33 vote sent the measure to the Senate.

Some legislators complain that the state doesn’t prepare for bad economic times when revenues fall short of expectations.

Legislators and Gov. Kathleen Sebelius face a projected $682 million budget deficit for the fiscal year that begins July 1, and they appear likely to rely heavily on federal stimulus funds.

The governor and legislators are supposed to see that each annual budget leaves cash reserves equal to 7.5 percent of spending. But the rule is often violated in bad times.

Under the bill, if revenues exceed expectations and the state already has enough cash reserves, the money would go into the special fund.

Comments

SettingTheRecordStraight 5 years, 5 months ago

Why not simply limit the size of state government growth to inflation plus population growth? Then require a vote on all tax increases. Then eliminate the most wasteful, unnecessary 20% of all government expenditures.

Hmm, maybe I should run for office!

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Tristan Moody 5 years, 5 months ago

Who decides which expenditures are wasteful and unnecessary and which aren't, and what metric do they use?

Which people do you lay off? Which departments do you eliminate?

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