The Lawrence Chamber of Commerce on Tuesday threw its support behind tax increases to better fund public schools — a position that puts it out of step with the state chamber and most other pro-business groups.

A survey of the Lawrence chamber’s members showed they favored a higher state sales tax and an increase in state taxes on cigarettes, liquor and fuel to boost school spending, said Larry McElwain, chairman of the chamber’s board.

“The chamber would be supportive of state efforts to create new or increase current revenue sources for purposes of funding education at a competent level,” he said.

He outlined the chamber’s position on taxes and the organization’s top spending priorities — education and transportation — during a meeting at the Eldridge Hotel with about 100 county, school and city officials and area members of the Kansas House and Senate.

State chamber

When the 2004 session begins Monday, the Kansas Chamber of Commerce and Industry won’t join the Lawrence chamber in endorsing higher taxes for education.

The state organization’s board opposes expanding the state sale tax. It will push for more sales tax exemptions.

“The Kansas chamber calls for lowering the cost of doing business in Kansas,” said Jim Gregory, a public-relations consultant to the state chamber.

He wouldn’t discuss the merits of the Lawrence chamber’s position on taxes.

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“I’m not even going to address that question,” Gregory said.

McElwain said the Lawrence chamber generally opposed higher taxes. But the survey of its 1,300 members showed 63 percent would endorse “targeted” tax increases on cigarettes, liquor and fuel. Forty-nine percent of the membership surveyed indicated a higher state sales tax might be needed to improve funding to public schools.

“The chamber realizes that raising taxes is a very sensitive issue,” McElwain said.

‘Do no further harm’

Charles Jones, a Douglas County commissioner, told legislators they could help county government by striving to “cause no further harm and have the institutional courage to do what needs to be done.”

He added a plea for no additional cuts in state funding for roads and bridges, social service organizations or local governments.

“We are seeking no additional dollars for local services,” Jones said. “We simply urge the Legislature to do no further harm to the integrity of our budgets and programs.”

Jones said politicians in Topeka should quit pretending to hold down taxes by shifting costs to local government, raiding special reserve funds and stiffing government retirement programs.

Such tactics bring dishonor to government at all levels, he said.

His other suggestions to legislators:

• Reconsider laws that hinder consolidation of local units of government.
• Resist the temptation to force local government to absorb more of the cost of running community corrections and juvenile justice programs.
• Permit a surcharge for cellular telephone users to help fund emergency 911 systems.

Unfunded mandates

Pessimistic about the Legislature’s willingness to boost school funding, Supt. Randy Weseman said he intended to start work this month on a plan to cut district spending by at least $1.5 million.

“We’re up against a wall,” Weseman said. “We will cut the budget. It will be painful. This community will not like it.”

One way to save $1 million in the 2004-2005 budget would be to fire 27 classroom teachers, he said. Another way to cut spending by $1 million would be to eliminate all student activity programs, including sports and music.

Weseman said lawmakers must quit passing along unfunded mandates to school districts.

For example, some legislators have been talking about forcing districts to adopt a new method of preparing budget reports. It would cost about $70 million to put in place a new “school-based” budget system statewide, Weseman said. In Lawrence, he said, the computer software and personnel would cost the district $700,000.

“I would ask that you stop the bleeding, stop the madness,” Weseman told lawmakers at the meeting.

Quit squeezing cities

Lawrence Mayor David Dunfield also implored legislators to stop putting the squeeze on municipalities.

“We ask you not to cut any more,” he said.

During the 2003 session, legislators stopped providing Kansas cities with revenue-sharing dollars. That move helped the state budget but cost Lawrence more than $1.3 million.

Dunfield also said the City Commission was opposed to the state adopting restrictions on the city’s ability to tax and to allocate that revenue. That includes actions that would prevent local sales taxes to support education, he said.

“Local tax and spending decisions should be made by locally elected officials,” the mayor said.

Dunfield said lawmakers should continue the effort to extend sales tax collections to Internet and catalog transactions. Sales tax revenue is critical to funding police, fire and public works services in the city, he said.

Also, state controls on the city-operated youth recreation programs, legal advertising and investment of public funds should be lifted, Dunfield said.