Editorial: Downward spiral

Kansans want solutions, not excuses, for the state’s continuing economic woes.

Last week’s actions of the State Finance Council confirm there is no reason for optimism when it comes to the Kansas economy.

Faced with almost-certain revenue shortfalls for June, the council was forced to approve several options to help the state balance its books on June 30, the end of the current fiscal year. Budget Director Shawn Sullivan said the estimated $40 million shortfall for the year would climb if June revenues fall below estimates.

To deal with the budget hole, the Finance Council gave the governor authority to take up to $16 million from the state highway fund, up to $45 million from the Medicaid fee fund and up to $3 million from the Department of Corrections. The state also will delay its final payment of the year to the public school districts due at the end of this month, rolling that obligation into next fiscal year.

“Obviously, we don’t’ like doing any of these four things,” Sullivan said, “but it’s the situation that we’re in for this fiscal year and what we have to deal with.”

That statement might be of some comfort to Kansas residents if there was any indication that state officials were taking reasonable steps to correct “the situation.” Unfortunately, that isn’t the case.

Even with those cuts, Sullivan expects the state will end the fiscal year with only $5 million to $15 million in its general fund. The meager reserve was one reason the Finance Council also approved borrowing a record $900 million from state idle funds to maintain positive cash balances through the next fiscal year. That’s $60 million more than the state swept into the general fund from various fee funds and agency assets this year.

Gov. Brownback places major responsibility for the state’s financial crisis on downturns in the aviation, agriculture and oil and gas industries. Job growth is just one indicator of economic health, but jobs numbers released last week feed doubts about Brownback’s claim. Kansas lost 5,000 jobs between May 2015 and May 2016. Are problems with the oil and gas industry any less severe in Oklahoma, which lost just 500 jobs in that time? Is the agriculture industry any less stressed in Iowa, which reported a gain of 18,600 jobs, or in Nebraska, which added 14,600 jobs? Missouri reported 20,300 new jobs and Colorado had a whopping gain of 62,500 jobs.

Kansans are tired of state officials’ excuses for an economy that continues to lag behind much of the nation, including our neighbors. Large business income tax cuts have had a devastating impact on state revenues. Those shortfalls have caused the state to drastically cut highway funding, which has a direct impact on construction jobs in the state. Reduced funding for state universities and K-12 schools also has an effect on jobs, as well as eroding the quality of an education system that once made Kansans proud.

Having cobbled together what they hope is an acceptable plan to fund K-12 schools for the next year, Kansas legislators have gone home, many of them to campaign for re-election. Voters who want the state’s downward spiral to end must ask the tough questions and make incumbent candidates accountable for the direction they are setting for the state.