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Steve Rose

Steve Rose

Tax-cut legislation will be the end of Kansas as we know it

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Star columnist opinion

It’s been called the “nuclear option.”

Maybe that term’s not strong enough to describe the legislation just passed in Kansas.

If the $3.7 billion tax-cut legislation is signed into law by the governor, it certainly — not almost certainly, but certainly — will destroy Kansas as we know it. And Johnson County will not be immune to the radioactivity of this blast. That massive tax cut will result in a $2 billion hole in the state budget over the next five years.

I know. You’ve heard this all before. It was just a few weeks ago, I wrote about an impending bloodbath. But that was only a $1 billion hole in the budget. The latest legislation doubles that.

Sam Brownback, our ever cheerful pro-growth governor, must know that these cuts go too far, even for him. He has as much said so. But that does not mean he will not sign them into law. He has rationalized that Kansas will create so many new jobs, and the economy will grow so much, that the tax cuts will pay for themselves, with no pain.

How much growth do we need to pay for the astronomical cuts?

The Kansas Economic Progress Council has done some quick math. They have calculated that Kansas would need to produce a half million new jobs over the next five years to generate enough income and sales tax to cover the $2 billion hole. Therefore, Kansas jobs would have to grow 50 percent over the next six years.

The KEPC compared that to the most go-go state in America — Texas. Over the past decade, job growth there was up a total of nearly 15 percent.

Even if you fanatically believe in supply-side economics — that cuts in taxes pay for themselves by the growth those cuts generate — the scope of impending cuts must at least cause one to take a deep breath.

If we cannot grow our way out of the budget hole, guess what that leaves: Draconian cuts in expenses or new sources of revenue.

This is where the nuclear explosion will be felt right here.

Half the state’s budget goes to K-12 education. Unless the Legislature lifts the lid on local tax authority, which is highly unlikely, our schools are in for rough times, indeed. There is no way they can be immune to cuts of the magnitude required. But even if we were given total local authority to tax ourselves, we might have to tax ourselves massively to make up for anticipated shortfalls from the state.

If you have a child who will be or is attending a state university, you can prepare yourself for much higher tuition, as the state inevitably will be forced to cut back on funding for higher education. This isn’t something Brownback wants. It just will be inevitable.

The hundreds of millions of dollars earmarked for transportation projects, including the planned improvements at our Johnson County triangle at Interstate 35, Interstate 435 and Kansas 10 will be ditched. The entire transportation budget will be decimated. There will be no choice.

Cuts to local governments from the state are a virtual certainty. That will lead to higher local property taxes to make up the difference.

Funding for social services (the ones that always get cut) will be slashed.

And look for “tax loopholes” to be filled. The one Johnson Countians should fear the most is to allow sales taxes to be levied on services, such as accountants, lawyers and engineers. The western part of the state could care less about the Johnson County economy, based on the service industry, rather than agriculture or aircraft manufacturing.

This is just the tip of the iceberg.

A gaping hole of $2 billion is so gargantuan, it is almost incomprehensible. No one can even imagine the impact it would have on this state.

But the session is not over, and there may be a compromise budget yet.

Then, we can go back to a simple bloodbath, rather than the nuclear option.

| Special to The Star

Comments

  1. 1 year, 1 month ago

    Brownback and others of his republican ilk are laser-focused on totally destroying this country and selling off the pieces to the highest bidders, and the ultra rich will profit. We’ve seen this story before: Bane Capitol. It is the same gameplan played out on a country. They really don’t care about the middle class or jobs or anything, because the wealth is in the resources. They are already selling off Michigan, and Rich Parry is well on the way in Texas. With Palin’s unknowing help, Alaska will soon fall.

    Brownback has already sold Kansas to the wolves in sheeps’ clothing, the Koch Bruddas. Soon they will get control of the schools and every other asset of the state. The surest way to accomplish this is to strangle the state with no taxes. There is no “growth” realized from cutting taxes. Ronald Reagan can tell you that. Seven of his eight years in office he raised taxes after his disastrous tax cut.

    Realize who and what Brownback is: a tool for the super wealthy. An unwitting tool, or should I say fool?

  2. 1 year, 1 month ago

    What nonsense. ‘Destroy Kansas, as we know it’? Please. Kansas isn’t going anywhere. Maybe a lot of people will be weaned from the government teat but some consider that to be a good thing. Kansas prolifigate tax and spending ways are something that needs fixed.

    This only creates a deficit if spending does not decrease by the same amount OR if the tax cuts do not promote growth, as they are intended to do.

    Another thing: You don’t ‘pay’ for tax cuts. You adjust spending to match the revenue available. To assert otherwise is to declare that the state is entitled to the money more so than the person who earned it.

    FWIW, during Reagan’s tax cutting years, 8 of 10 economic health indicators improved and tax receipts to the government nearly doubled. Why does no one remember that?

  3. 1 year, 1 month ago

    Steve Rose has written an excellent explanation of why the tax cuts under consideration in the Kansas legislature are out-of-sight extreme. It is beyond unrealistic to think that our state could grow jobs by 50% in the next six years—especially if you include all of the teacher jobs and other jobs which will be cut by the state in the calculation. I had the opportunity to visit directly with Governor Brownback this last Saturday after my son’s graduation at Sterling College (the governor was the commencement speaker). Curious, I asked Governor Brownback about the possibility of significantly raising or removing the local option budget revenue cap as a safety valve, which is always the hope of Johnson Countians. Though increasing local tax authority was an element of his school finance proposal last January, he firmly dismissed it to me as a possibility now.
    There is still one remedy. I am going to purchase one of the $3 dollar yard signs which says “VOTE—Support Public Schools” that the Kansas PTA, and SMAC PTA are selling online. People need to be reminded to vote this summer, because too often our legislators are decided in the August primary election, not the general, and we need legislators with more reasonable judgment. Thank you, Steve Rose, for your well written editorial.

  4. 1 year, 1 month ago

    Unfortunately, Steve, this is exactly what you wanted. You’ve been an apologist for the Republican Party for decades, demonizing Democrats who have real solutions that will help the state, and this is the end result. Enjoy the bed you’ve made for yourself.

  5. 1 year, 1 month ago

    Charles, do you expect everyone to be able to afford private education?

    I do not understand why education is sacrificed. I don’t understand it at all.

  6. 1 year, 1 month ago

    Well, Yes. It’s math.

    And Charles, Kansas never had profligate spending or an unreasonable tax to be fixed.

  7. 1 year, 1 month ago

    Charles: You do remember Reagan had to RAISE taxes to do that right? Why is it your kind never seem to remember THAT part? Kansas is about to destory themselves and for once I feel sorry for them.

  8. 1 year, 1 month ago

    Lets see a little rough math here. From a quick Google I see that Kansas budget is roughly $15 bill per year - over 5 years that with NO revenue growth at all is $75 bill. $3.7 bill is less than 5% cuts over 5 years. Is the sky really falling. The increase in budgets over the last decade far exceeds these cuts. Was Kansas a wasteland in 2001 - NO! - Kansas Government has grown out of control for 10 years - look at state employees per capita - highest in the region. Look at spending per capita - highest in the region. Look at debt per capita - highest in the region! We spend plenty thanks to Rose friends - Sebilus and Graves.

    Rose a man that lived off daddy doesn’t understand simple economics and has probably never had a budget he had to balanced. Most Kansans have had to cut much more from their personal budgets than we see here. The sky is falling only when you believe that government can never be scaled back. A belief that Rose has had for all of his life!

  9. 1 year, 1 month ago

    The Kansas Legislature’s approval of a tax-reduction bill that will plunge the state general fund into the red beginning in 2014 could critically damage public education in Kansas. If Gov. Sam Brownback signs H.B. 2117 into law, local school districts will need to start planning immediately for huge reductions in state aid.

    This isn’t just a challenge for local school boards and school faculty. This is a challenge for our entire community.

    Public education is the foundation of our local economy. It generates the quality workforce that is essential to our prosperity. Like any other structure, the foundation must be sustained to keep everything else in place. If the foundation is eroded, everything else starts to crumble.

    Our options are very limited. If we want to maintain our current level of academic performance, we would have to replace the state dollars with local property taxes. That is an unacceptable alternative that would only mask the state’s failure to meet its constitutional responsibility to public education.

    Our only other option is to force dramatic cuts on our current education model. That means larger class sizes, the loss of hundreds of jobs, and the elimination of all but the most critical educational programs. Sports, music, the arts and all other similar programs will be at risk.

    The burden will be felt most by those who can least afford it. Economically challenged students will lose their only viable path to a productive life.

  10. 1 year, 1 month ago

    It strikes me as ironic that virtually all the hard core tax cutting individuals in Topeka are mostly people who received the benefits of a taxpayer funded Kansas education. And I’m not just talking Johnson County…the state has long had a reputation for quality education. Now those same individuals seem bent on reducing public education to the standards of Mississippi. Seems to me your motto is: “I’ve got mine, but I don’t give a damn about the rest of you”.

    It sickens me to think of our home-steading ancestors, whose first priority after a sod house, was to build a school. What would they think?

  11. 1 year, 1 month ago

    Charles, Reagan cut taxes once, then realized he had to raise them to get anything done. So, he raised them, seven times in eight years. When he left office, the amount of taxes collected during his eight years was almost identical to if he had never cut taxes at all. Yet, he still managed to explode the deficit and debt and the size and scope of government. The only thing Reagan was good at was blowing smoke up a bunch of ignorant Americans’ behinds and convincing them he was actually doing something to benefit the country. LOL!! What a joke! “I… I…uhhh…just can’t remember.” Sure, he forgot all those times he willfully ignored the Constitution when he wanted.

  12. 1 year, 1 month ago

    I applaud Gov.Brownback for reducing taxes. If it forces the state to cut services so be it. They spend too much already. I believe in quality education and it is why I live in Blue Valley School District. If BV kept all the taxes that were raised from the people that lived in the district instead of spreading it around, we would have no worries about any budget cuts.

  13. 1 year, 1 month ago

    Maybe ending Kansas as we know it is a good thing. Kansas has always faced the problem of being a large State with a small population. Thus, there has alway been a tax problem. We have tried it the other way for years and nothing much has changed. Why not try something new and see what happens? The fact that over 50% of the people getting degrees from Kansas Colleges are forced to leave the State within 24 months of finishing their degree to find a job shows the status quo is not working. I currently buy cigarettes, liquor, gasoline and major purchases in Missouri not Kansa because they are cheaper there.

  14. 1 year ago

    Cut big government and grow freedom, patriots. Starve the beast and force spending cuts.

  15. 1 year ago

    The math seems to be confusing a few folks. Over the next 5 years the legislation on the governor’s desk will cut $3.7 billion in tax revenue. The problem is that the loss is cumulative. Each loss of revenue each year adds to a shortfall that builds up over time. So in 2018 your budget is short $2 billion dollars of needed revenue for that year. If the state budget in 2018 is roughly $15 billion, it’s current level. That’s about a 13% loss for that year. Now that doesn’t sound so bad, until you realize that due to federal law and past state statutes only a portion of the state budget is discretionary each year, i.e. can be adjusted by the state government to balance the books. So things like schools and roads are where all of that loss will come out of rather than the entire budget. Furthermore, those cuts cannot be necessarily be replaced at the local level through local taxing efforts, once again due to past state statutes. So if you think you’ll be immune to a loss of government services, a drop in school performance, and a degrading of maintenance on your roads and infrastructure because you’re in south Johnson County, you’re in for a big surprise.

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