Statehouse Live: Senate approves $314 million tax increase
Topeka ? The Kansas Senate on Thursday approved a $314 million tax increase that would raise the state sales tax rate one cent, from 5.3 cents per dollar to 6.3 cents per dollar for three years.
The 23-17 bipartisan vote came after five hours of sometimes dramatic debate. Douglas County’s senators Marci Francisco of Lawrence and Tom Holland of Baldwin City, both Democrats, voted for the measure.
Supporters said the tax increase is necessary to avoid devastating cuts to schools, social services and public safety during one of the worst tax revenue shortfalls in state history.
Gov. Mark Parkinson, who listened to the debate while he worked in his office, praised the vote.
“Tonight, 23 Senators — some Republican, some Democrat, some from our rural districts, some from our urban cores — put politics aside and came together for the common good,” Parkinson said. Parkinson has vowed to veto any plan that cuts more out of education or social services.
But opponents of the increase said it would hurt the economic recovery and everyday Kansans who are struggling financially.
“Our economy is not working, so why would we raise taxes?” said state Sen. Karin Brownlee, R-Olathe.
State Sen. Susan Wagle, R-Wichita, said shoppers will go to neighboring states that have lower state sales taxes. And Wagle warned, “There is going to be a brochure that is going to say you voted for the highest sales tax in the region.”
But state Sen. Ralph Ostmeyer, R-Grinnell, voted for the tax increase, saying that in meetings with constituents, he would argue against tax increases, but they were telling him to raise taxes to help schools. “I got the message,” he said.
The Legislature faces a $500 million revenue shortfall after cuts of nearly $1 billion over the past 18 months.
The tax increase proposal now goes to the House where a coalition of Democrats and Republicans have unveiled a budget proposal that will require an approximately $300 million tax increase. That budget plan and one approved by the Senate also rely on additional federal funds and other financial maneuvers to balance.
The bipartisan plan in the House would maintain current spending on schools, restore a 10 percent Medicaid cut and keep state employee salary levels even. An earlier no-new-tax proposal pushed by House Republican leaders would have cut schools by another $86 million, and state employee pay 5 percent. But that was roundly rejected.
Under the Senate tax plan, the increase would take effect July 1 and then the rate would decrease to 5.7 cents in 2013, at which time some of the revenue would go toward highway construction.
Francisco said the tax revenue is needed after so many cuts to the budget. And she pointed to a recent study that indicated a sales tax increase would be less harmful than cutting the budget another $350 million.
“The concern is to keep as many Kansans employed,” she said.
During debate in the Senate, a proposed business tax worth $17 million was dropped from the package. Later, a vote to increase the state cigarette tax by $1 per pack was defeated, as were proposals to have a sales tax holiday for the sale of guns, and remove the sales tax exemption on abortions.
The Senate did approve an increase in the income tax credit for working, low-income families.




