Topeka ? Gov. Sam Brownback told Republican leaders in the Kansas House and Senate Thursday that massive spending cuts will be in store if they don’t come up with a tax plan to balance next year’s budget before Monday.

And among the options on the table, his budget director Shawn Sullivan said, would be eliminating all state operating funds for the state’s six Regents universities, including Kansas University.

“I’m telling you, I don’t want to be the appropriations committee for the House and Senate,” Brownback said during a rare joint caucus meeting of House and Senate Republicans. “It says in the Constitution, if you pass this budget, you have to pass adequate revenues for this budget.”

The joint caucus meeting occurred just hours after the House rejected a tax plan that had been passed by the Senate. House Speaker Ray Merrick, of Stilwell, had warned his colleagues the Senate bill was “the last train out of here,” and that failure to pass it could result in the Legislature adjourning without a balanced budget.

Later Thursday, GOP leaders called the joint meeting so Brownback and his top budget officials could spell out exactly what that would mean.

Department of Administration Secretary Jim Clark said the Monday, June 15, deadline is based on the fact that his staff needs at least two weeks to program the state’s computerized budget and accounting systems with all of the appropriations, fund transfers, spending limits and other provisions contained in the budget bill.

If that doesn’t happen, he said, the governor has three options: veto the bill in its entirety, leading to a partial shutdown of state government; use line-item veto authority to strike provisions in the budget to make it balance with revenue projections; or sign it into law and use his statutory authority to make “allotment” cuts.

Targeting higher education

Under questioning from Rep. Ron Ryckman Jr., chairman of the House Appropriations Committee, budget director Sullivan said using line-item vetoes most likely would result in eliminating state operating grants to the six universities.

“The best options that we can come up with, among horrible options, are the higher education institutions,” he said.

That’s because money for K-12 education, which makes up more than half the state budget, was approved earlier in a separate bill, as was funding for the judiciary.

The other major areas of spending include Medicaid, which is a federal entitlement for those who qualify; and funding for the troubled Kansas Public Employees Retirement System.

“So the options are limited,” he said. “The universities would be able to use tuition accounts and non-(state general fund) accounts to pay staff. But I know they wouldn’t be able to do that for very long.”

Sullivan then went through the list of appropriations to each of the institutions, including $127 million for Kansas University; $99 million for Kansas State University; $63 million for Wichita State University; $33 million for Pittsburg State University; $32 million for Fort Hays State University; and $30 million for Emporia State University.

That adds up to about $384 million, roughly the same amount the state needs to balance the budget lawmakers approved earlier this month.

Andy Tompkins, president and CEO of the Kansas Board of Regents, said such a move would be unprecedented.

“To completely defund higher education will have a devastating and long-lasting effect on students, families, businesses and the entire economy of the state of Kansas,” Tompkins said.

Other options

Sullivan said that under state law, the governor also has authority to make allotment cuts if revenue projections show the state may not be able to fully fund the budget.

If those projections show the state ending the fiscal year with a negative balance, he said, the governor can make targeted allotments, which could include K-12 education but could not include either the legislative or executive branches of government.

And if projections show the ending balance will be above zero but below $100 million, the governor may make across-the-board cuts to all state spending, excluding bond payments.

“Then you are touching everybody,” Sullivan said.

Latest House plan

House leaders unveiled another plan Thursday night, which they said they intended to debate on the floor before adjourning. In preparation, the House waived its own rule prohibiting meetings between midnight and 8 a.m.

The plan was another variation on the mixture of taxes that has been voted down before: raising sales taxes and delaying future income tax cuts that have been scheduled. The bill also would modify some of the other policy positions included in the Senate proposal, including a proposed property tax lid for cities and counties.

House tax committee chairman Marvin Kleeb said the bill would raise about $300 million to $320 million in new revenue next year, meaning Brownback still would be asked to make about $30 million to $50 million in cuts, either through line-item vetoes or allotments.

Friday will be the record 113th day of the legislative session. Each day beyond the planned 90 days costs the state about $43,000, bringing this year’s total to about $989,000 so far.