Posted on Wed, May. 06, 2009

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Kansas Senate approves 2.75% cut to budget

The cuts would be across the board, affecting all state agencies.

BY JEANNINE KORANDA

Eagle Topeka bureau

TOPEKA - The Senate narrowly approved $138 million in budget cuts across state agencies Tuesday.

But it still must resolve whether to delay promised tax decreases -- or take other action -- to make up another $70 million.

A mix of moderate Republicans and Democrats cobbled together enough support to pass Senate substitute for House Bill 2373 by a vote of 21-17. Conservatives opposed the proposal, saying lawmakers should cut more.

The measure calls for 2.75 percent across-the-board cuts to state government. Public education, which has largely been exempted from earlier cuts, would receive about $82.4 million less. That would decrease the amount of money schools receive per pupil by $116, to $4,284.

"It isn't pretty, but it moves us in the direction that we need to go," said Senate Majority Leader Derek Schmidt, R-Independence.

The state faces an estimated $328 million budget deficit by July 2010 if it does not make cuts now.

In addition to cuts, the Senate proposal would use revenue adjustments -- shifting funds -- to help close the gap.

It also would attempt to make up $70 million more, mostly through deferring business tax decreases. That proposal must work its way through the Senate Taxation Committee.

A plan that waives penalties for delinquent taxpayers if they send in what they owe could garner the state about $35 million in back taxes. It has strong support. But other ideas, such as decoupling the state tax code from the federal code, failed to move out of the tax committee.

Senators worked on the budget for about six hours, skipping lunch as they debated various amendments.

An effort by conservatives to fill the budget hole using only cuts to state government failed to gain enough support.

"This is our last opportunity to cut the budget and not increase taxes on Kansans," warned Sen. Susan Wagle, R-Wichita before voting on that amendment.

Senate Minority Leader Anthony Hensley, D-Topeka, predicted that if that proposal passed, it would prolong the legislative wrap-up session.

"The choice before us now is not a very good choice... and the choices we have in this budget are not very good," he said.

The House on Friday had debated a budget bill that relied only on budget cuts and did not look at delaying tax decreases. It also failed.

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