Chambers of commerce urge Legislature to consider tax increase, as well as budget cuts

Lawrence chamber not among 14 in state signing letter to leaders

? Fourteen chambers of commerce on Wednesday said they could support “rational state revenue enhancements” to fix the current budget crisis.

The position was detailed in a letter to Gov. Mark Parkinson and legislative leaders as the Legislature grapples with a nearly $500 million revenue shortfall in the next fiscal year.

The Legislature has been locked in a fight over whether to increase taxes or make more cuts, on top of nearly $1 billion in cuts made during the past year. So far, proposed tax increases and further cuts have failed to gain traction.

In the letter, the chamber officials said high-quality public schools, higher education and transportation were critical to economic development. Fixing the budget crisis through cuts alone would have a devastating effect, they argued.

“We urge the Kansas Legislature and governor to make cuts the state can withstand but also make the difficult decisions necessary to maintain our state’s quality of life for its citizens and for the future growth of Kansas.

“If revenues must be enhanced for basic government services, our chambers can support rational state revenue enhancements,” the letter stated.

The letter was signed by the heads of 14 chambers and represents a position opposite to the statewide Kansas Chamber, which is against any new sales tax.

Parkinson, who has proposed increases in the state sales tax and tobacco tax, praised the chambers.

“I appreciate their leadership in calling on the Legislature to do what is right for their communities during these difficult times,” Parkinson said.

“Local chambers of commerce are on the front lines of economic development and business recruitment, which is why they have a better understanding of the need for good roads, great schools and safe neighborhoods,” he said.

The Lawrence chamber did not sign the letter but has been involved in discussions with the other 14 chambers on trying to offer solutions to the budget shortfall.

“We are a part of the process and we are continuing to work with the group,” said Tom Kern, the Lawrence chambers’ president and chief executive officer.

He said local chamber officials didn’t sign the letter because they thought it was too general. He said the Lawrence chamber hasn’t decided whether to support tax increases on the state level.

These chambers signed the letter: Arkansas City, Dodge City, Emporia Area, Grant County, Greater Kansas City, Greater Topeka, Hutchinson-Reno County, Hays Area, Kansas City, Kan., Manhattan Area, Northeast Johnson County, Olathe, Overland Park and Saline Area.

Also on Wednesday, Rep. Anthony Brown, R-Eudora, brought an amendment to the House that contained Parkinson’s tax increase proposal. “This is your tax,” Brown said to Democrats in the House.

House Democratic Leader Paul Davis of Lawrence said it didn’t make sense to vote on a tax bill before the House approved a budget. “This is putting the cart before the horse,” he said. The amendment failed 0-115.