It’s no secret, the state of Kansas is facing a budget shortfall.
Lawmakers and Governor Sam Brownback need to find a way to eliminate a $350 million shortfall by June. They also will need to find money to makeup for revenue decreases projected for the next fiscal year.
“We have no other choice. The Brownback tax plan just didn’t work,” said Duane Goossen, the former state budget director.
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On Wednesday Goossen was joined by ‘Rise Up Kansas,' a coalition of Kansas teachers, contractors and state workers who gathered under the rotunda to present their own proposals to fix the state’s budget problem.
This is 1st public plan tackling budget. @govsambrownback working on his own plan. KS facing $350 deficit for this fiscal yr @41actionnews pic.twitter.com/UBm3oxiAaK
— Ariel Rothfield KSHB (@arothfield) December 7, 2016
The plan would increase income and gasoline taxes but reduce the state’s sales tax on groceries. It would also undo massive income tax cuts lawmakers enacted in 2012 and 2013.
"The ultimate goal is to arrive at a long-term solution that doesn’t have us moving from crisis to crisis every legislative session,” said Annie McKay, president and CEO of Kansas Action for Children.
Under the plan, Kansans making $40,000 a year or more would see their taxes increase to 6.45 percent— similar to the tax rates in 2012.
The plan would also call for diverting 4/10 of a cent of the sales tax (currently dedicated to the highway fund) to the general fund for three years. To makeup the money for the Highway Fund, it would increase the gas tax by 11 cents a gallon.
Sales tax on food, according to this plan, would also be lowered from 6.25 percent to 1.5 percent.
"Sometimes I’m shocked. I think I have enough money. I get up there and I say ‘oh wow.’ I didn’t figure the tax,” said Dan Brenner of Topeka, who told 41 Action News he is supportive of this plan.
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The plan only addresses a long-term solution for the state. Coalition leaders say a short-term fix will need to be decided by lawmakers and Brownback, who is currently working on his own plan.
“We know this may not be the final place policymakers arrive at but we believe these package of things need to be included together,” said McKay.
"It is very, very important to have a long-term plan that fixes our balance problem and our fiscal situation before doing any kind of short-term fix,” later added Goossen.
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Ariel Rothfield can be reached at Ariel.Rothfield@KSHB.com.
