Wink Hartman: Put off tax cuts and review tax-exempt groups
First and foremost, we must maintain a stable business climate.
We cannot play “tug-of-war” with our tax structure in Kansas. If we need to freeze the additional tax cuts — which are scheduled to be implemented over the next three years — to help stabilize our budget, I could support that and then let the tax cuts occur when our economy starts growing at a faster rate.
Also, there are four areas I would start working on to find the additional revenue:
1. The Legislature should examine our Kansas tax exemptions. As I understand it, there are thousands of organizations that pay no taxes whatsoever. Many of these exemptions are worthy, and I'm not advocating for removing. But this should be evaluated, and the Legislature should create a sunset provision like the state of Texas has, which requires organizations to file for the exemptions and show their value to the state.
2. I’m a strong supporter of education, and we must make sure it’s protected. However, I do think there are efficiencies that could take place. We have over 280 school districts in Kansas, and the Wichita school district has more than 10 percent of all Kansas public school children. This means some of the districts have less than 100 kids. We need to look at strategic efficiencies that won’t close one school in Kansas. These savings could be found through a merging of administration, IT, food service, transportation and other school functions that wouldn’t touch a teacher or the classroom.
3. Prescription drug revision for Medicaid could save more than $100 million annually. Kansas has a preferred drug list for those on Medicaid (KanCare). Many states used to have these lists; however, they have moved away from them as generic prescriptions are increasingly affordable and effective. My family and I personally use generic drugs when available, and if the state of Kansas would move in that direction, some estimates show we could save up to $130 million annually.
4. Some states have started moving toward convenience fees for state offices and functions. Kansas should start offering driver’s license renewals online as well as tag renewals. Many people would pay to avoid the headache of the license or tag office. Other state functions could be moved online as well.
It’s true the Kansas Legislature has difficult decisions to make; however, businessmen like myself have to make tough choices daily without the luxury of increasing taxes or printing money.
Gov. Brownback recognized that in order for Kansas to grow and prosper we had to be competitive. Otherwise, Texas and Oklahoma would continue to grow while we were languishing.
We have so much to offer as a state, and while the short-term economic outlook is unsettled, long-term Kansas is going to be a major player in the national economy.
This story was originally published November 27, 2014 at 2:56 PM with the headline "Wink Hartman: Put off tax cuts and review tax-exempt groups."