In the Eye of the Kansas Tornedo

People of Kansas, I am not picking on you.  I am going to attack your leaders in your defense, however, because you need someone in your corner.  On Friday, Kansas legislators ended the longest legislative session in state history.  Every single day that Kansas legislators worked overtime it cost at least $43,000.   Mathematically, that was approximately $860,000 (yes, just south of a million dollars at a time when the state was dealing with a budget shortfall of $600 million.) This estimate does not include the expenses associated with paying for the capitol staff personnel who also worked overtime.

Now state leaders are balancing the budget by driving the taxation bus over all low-income Kansas taxpayers and their children.  The state cut funding for education by $127 million in the middle of a school year, an action that has been deemed unconstitutional repeatedly by state courts.  Safety nets, retirement benefits and funds for medication for the mentally ill were slashed.  Now, how much bang are Kansans going to be getting for their tax bucks?  The answer is obvious: Less than zero.

Rather than simply repealing the bad laws passed in 2012 and 2013, Kansas legislators decided to approve regressive taxes – sales taxes – to balance the budget.  General sales taxes were raised from 6.15 percent to 6.5 percent.  The sin tax on tobacco also was increased and will generate an estimated $384 million.  Ironically, when the cost associated with smoking increases significantly, many smokers (predictably) make the decision to kick the habit, thus reducing this potential revenue stream for the state.

While many states do not tax purchases of food, Kansas does.  If a Kansas family earns less than $30,615 annually, they can apply for a $500 tax credit.  Families earning more, however, will be paying an extra $700 per year just to put food in their mouths.  It is only plain to see that the families who have the least to spare will be harmed the most by the budget decisions that were signed into law.

Fortunately, the state budget bill partially reversed business tax cuts.  “Pass-through” businesses are small businesses like single-owner entities or limited liability corporations (LLCs).  Kansas Governor Brownback eliminated taxation of these entities.  As a result, many businesses reinvented themselves to save money.  The decision cost Kansas almost $207 million in 2013 alone.  The restoration of approximately eleven percent of the business tax could generate $23.7 million and will not significantly harm corporations or job growth in the state.  Although Brownback stridently claimed that he would veto this portion of the budget bill, in the end, that was a lie.  He was over a barrel and passing it was the only rational thing to do.

Certainly, extreme situations such as Kansas’s financial state of affairs called for extreme reactions.  Unfortunately, the actions taken by these legislators were extremely wrong.  A momentary, self-inflicted crisis has been averted.  But, as Think Progress writer Alan Pyke pointed out in his June 16 article, “lawmakers will face another $400 million projected gap in the following year unless revenues from Brownback’s slashed income tax system leap up at an unusual rate.”

Kansas, you need to clean your political house.  The Brownback administration has harmed and will continue to harm your state.  The economic ignorance of your governor, his stubborn adherence to the Laffer curve and Republican policies designed to favor the rich and corporations are now and will continue to result in life-threatening damage to people who are already living on the bubble.  After education, what is cut next? Funding for hospitals, police, fire and emergency response?   Can we predict that Kansas might experience a tornado?  What then?

Be bold, Kansas!  Be bold.  Start a recall effort now.