REVENUE ESTIMATES FALL SHORT

After several months of budget revisions, legislators received some difficult news on April 17th. After cutting hundreds of millions from the state budget previously in the session, the Consensus Revenue Estimators took a fresh look at the economy and projected an additional $328 Million shortfall in state revenue.

On April 29th, when legislators returned to Topeka for the wrap-up session, they were faced with having to make the largest set of budget reductions in state history.  The options were limited, as the legislative session had approximately 10 days available to complete its work before it was set to adjourn.

Previously in the session, legislators had already made reductions in the following amounts:

General Government:   10%
Human Services/SRS:  4.2%
Public Safety:   9.4%
Ag/Natural Resources: 22.7%
Higher Ed:   3.6%
K-12:    0.6%

OPTIONS DEBATED

To make a reduction of $328 Million in addition to the above cuts would require about 7% in additional across-the-board reductions (1% is about $50 Million).  Additional items on the table included: 
**Inclusion of $50 Million in gaming revenue from Casino fees, not yet under contract.
**Sweeping $30 Million from fee funded state-agencies (i.e. bankers, realtors, barbers).
**Furlough state workers 1 day a month, for a $50 Million savings.
**Sweeping $25 Million in local property tax transfers.
**Sweeping $30 Million in local liquor tax payments.
**Delay previously passed business tax cuts, approximately $30 Million.

A PARKINSON PROPOSAL PASSES

After long hours of floor debate and deliberation, the House was unable to come to a consensus as to what options above it would agree to combine to solve the budget crisis. The first vote on the floor on a proposal by the House Appropriations Committee had approximately 55 votes, about 8 short of what was needed to get to the magic 63 (out of 125 reps).   

Ultimately, the Senate was able to pass a budget with 21 votes (out of 40) that included 2.75% across the board cuts, $50 M in gaming revenue, some fee sweeps, the sweep in local property tax transfers, some tax revenue changes, and included some new proposals such as a sweep of roughly $25 Million in highway fund payments.  

This same bill then passed the House 64-60 on a procedural “motion to concur” (48 Democrats + 16 Republicans (64) for and 60 Republicans against).   

A majority of Republicans in both chambers, including Representative Yoder, opposed the Parkinson backed budget arguing that it did not solve the budget crisis and that it would lead to further more damaging cuts in the middle of the fiscal year particularly to schools, after teacher contracts had been signed in the month of May. Most felt that this was irresponsible budgeting and that we should tighten our belts, balance the budget and be clear with Kansans about our true revenue picture.  

At the end of the session the state was projected to have $17,000.00 in the bank after all expenses were paid.  This is far short of the $450 Million required by state law.