Brownback says higher sales tax needed in case state loses school finance lawsuit
Topeka — Gov. Sam Brownback continues to try to build his case for making the 6.3 percent state sales tax permanent, instead of letting it fall to 5.7 percent.
On Friday, Brownback said the state may need revenue from the higher levy in case of a ruling against the state from the Kansas Supreme Court on funding of public schools.link text
“We’ve got a lawsuit pending against the state right now that we have lost at the lower court on K-12 funding, and we don’t know when the Supreme Court is going to rule — it’s under mediation now — but I think you have got to also be also looking at that in the overall picture,” Brownback said.
In 2010, facing a revenue crisis, the Legislature approved a temporary, three-year increase in the state sales tax to 6.3 percent from 5.3 percent, and then decreasing it to 5.7 percent on July 1.
Brownback wants to keep the rate at 6.3 percent, saying the revenue is needed to balance the budget. He has said in recent days that the higher sales tax is required to prevent cuts proposed by the House and Senate to higher education.
Democrats oppose extending the higher rate because they say current budget problems are the result of Brownback signing into law last year income tax cuts, which they say benefit mostly the wealthy. link text In addition, they said that Brownback wants to use future sales tax revenue to cut income taxes even more. Conservative Republicans in the House have also voiced opposition to the higher sales tax rate, saying the budget should be cut more.
But on Friday, Brownback added the issue of school funding to the mix.
In January, a three-judge panel ruled that legislators must increase spending on schools by at least $440 million. The issue is pending before the state Supreme Court.
Brownback said legislators have to consider the impact that a possible final ruling against the state would have on the budget and how the state would come up with additional revenue for schools.
“You could get yourself where you’d be in a crisis position, and I don’t think that’s prudent,” Brownback said.