LEGISLATIVE INSIGHT Number 3, 2010

By: Shirley Palmer, 4th District State Representative

New State Library -
I attended the State Library Open House in its new location in the capitol on Wednesday. The new state librarian is from Ohio. The new location is Room 169 W., State Capitol, while the renovation is taking place. Public computers, newspapers, periodicals, audio books, legislative bills and statue books can be located there.

Kansas Day -
Kansas celebrated its 149th birthday January 29th. Hundreds of local elementary students joined Governor Mark Parkinson at the Kansas State Historical Society for the celebration. As we reflect on the history of our state, I am reminded of all the things that make Kansas the best place to live, work, and raise a family. I hope we will protect all of those priorities as we work our way through our budget crisis.

Budget Shortfall -
Budgets, Cuts, and Unemployment have been the topic for lots of discussion since the legislature reconvened in January. I have been hearing from lots of constituents with concerns and comments. Thank you for contacting me and I appreciate your input.

Every state in the union is experiencing budget shortfall issues due to the national recession. In the last 50 years, Kansas has not experienced two consecutive years of declining revenues more than one time. We are now in our third consecutive year, with a fourth year of declining revenue predicted.
As a result of this unprecedented decline in state revenues, the Kansas Legislature and Governor have cut the state budget by almost ONE BILLION DOLLARS in the past two years. Within our state, these cuts have closed 18 national guard armories, laid off over 4,000 K-12 employees, cut much needed at-risk, tutoring and after school programs at public schools, closed correctional institutions, eliminated supervised parole for former inmates, caused tuition increases at institutions of higher learning, swept funds from the state highway plan, caused a waiting list for services for the disabled that exceeds 5,000 people, cut services for the elderly and disabled on Medicaid and cut the pay or eliminated the jobs of countless workers employed in the above fields. I could add another 5 pages delineating what damage the cuts have done, but I think you get the picture.

According to Kansas Tax Facts, a non-partisan publication put forth by the Kansas Legislative Research Dept., Kansas taxes (both state and local) as a percent of personal income have remained fairly constant.

TAXES as PERCENT of PERSONAL INCOME
State Local Both
FY 2004 6.52% 4.59% 11.11%
FY 2005 6.76% 4.73% 11.48%
FY 2006 7.18% 4.92% 12.10%
FY 2007 7.12% 4.87% 11.98%
FY 2008 6.94% 4.82% 11.76%
FY 2009 6.11% 4.72% 10.82%

In addition, the Kansas tax burden continues to be at or below the national average, depending on which sources you choose to reference.

As legislators, we are hearing from our constituents, and the overwhelming majority do NOT want to see further cuts to already devastated programs that serve Kansans well. H.B. 2475 may not be the answer we are looking for to solve our budget crisis. However, further cuts alone will not be the answer either. In order to move our state forward, we will need to put all options on the table and come up with a multifaceted approach to solving this budget shortfall.

After hearing testimony last week in support of Governor Parkinson’s proposed sales tax increase, opponents got their say on Tuesday. Overall, opponents argue that a sales tax increase would have a negative impact on small businesses in the state and decrease economic activity. Discussion also focused on maintaining competitiveness with our border states, especially Missouri, noting that some business owners may consider moving their business out of the state if the sales tax increased.
Some suggested that the problem was with excessive spending and that deeper cuts are the solution to the budget crisis. Others emphasized that an increase in sales tax would be regressive, harming those on the lowest end of the income scale the most because they have the least disposable income to spend, especially on consumable goods like groceries.

The committee passed the bill out of committee unfavorably on Wednesday. It has not been heard on the house floor. I felt the move was both premature and irresponsible. Given the inactivity of the House Appropriations Committee, it is nonsensical to vote on possible revenue streams until we know how much money we need or what that money will pay for.
I am interested in your honest feedback on these discussions. Should we maintain state services or should we seriously consider a revenue package of some kind? Please contact me and tell me what you think.

It is a special honor to serve as your State Representative. You may e-mail me at Shirley.Palmer@house.ks.gov in Topeka or rspalmer1862@sbcglobal.net at home. My office telephone number is 785-296-4676 while my home number is 620-223-4105. You may also call the legislative hotline at 1-800-432-3924 to leave a message for me.