Gov. Brownback skips White House meeting of governors

Gov. Sam Brownback skipped a White House dinner and meeting for the nation’s governors this week, saying President Obama has moved too far to the left and he is no longer able to work with the president.

In an informal interview outside the Kansas House chambers Monday, the governor reflected on Kansas’ place in the national spotlight and theorized that his tax plan – despite controversy – would be copied by other states and possibly the nation as a whole.

He also voiced frustration with the president and explained his decision to stay in Topeka as the nation’s governors gather in Washington.

“He’s moved so far to the left it’s just hard to get anywhere. And it was hard to get anywhere before,” Brownback said about his decision to miss Sunday’s White House dinner for the National Governors Association and Monday’s policy meetings between the president and the nation’s governors.

Brownback said he has tried to work the president in the past.

The president emphasized bipartisanship and cooperation between the states and federal government in his prepared remarks for the dinner, which were released by the White House on Sunday evening.

“Our economy keeps improving. And I hope that we can seize on that momentum to keep improving the circumstances for every one of our citizens – keep building a country where every citizen can look around and see cause for optimism about the future,” Obama said. “Within this room, we’re not going to agree on everything, but I am committed to working with each and every one of you over the next two years to keep making progress.”

Brownback cited important business at the Statehouse as one reason for skipping the governor’s meeting. This week is the midpoint of the legislative session and the deadline for most bills to pass in their house of origin with exceptions for certain subjects, such as tax and appropriations bills.

One bill that has yet to surface is a proposal to revamp the state’s school finance formula, an ambitious policy goal laid out by Brownback in his State of the State address. Rep. Ron Ryckman, R-Olathe, said that he and Sen. Ty Masterson, R-Andover, the two budget chairmen, are working on the proposal and will introduce it soon.

“We’re talking with them,” Brownback said when asked how involved he was in crafting the legislation.

The governor emphasized a hands-off approach. “I try to put out here’s what we think you ought to do. The governor proposes. The Legislature disposes. And the legislative leaders, committee chairs, they’re going to chew on things and we try to stay back,” he said. “I try not to draw lines in the sand in the legislative process because it’s just the sort of thing that needs to work and to find its own will.”

Proposed business tax change

In that vein, Brownback said he would not draw a hard line against Sen. Jim Denning’s idea to tweak an income tax exemption for the owners of certain businesses, such as LLCs and S corporations, a cornerstone of the tax cuts Brownback signed in 2012.

Denning explained to The Eagle last week that he would tax the first $118,000 of business owners’ income and leave the next $150,000 untaxed so it could be reinvested in the business. He would tax income after that. Current law exempts income entirely for LLCs, S corporations and sole proprietorships.

Denning said his plan is a compromise that gives small businesses capital to grow but ensures that large corporations still contribute to state coffers.

“I want to hear Jim out before I say anything about it. I want to hear what he’s saying. That’s what I told (Senate) leadership,” Brownback said.

The Eagle reported Saturday that the number of business owners using the exemption is far higher than originally projected, about 280,737 compared to an estimate of 191,000. The number rises to more than 333,000 when farm returns are included.

The Kansas Department of Revenue credits the discrepancy to small-business growth, but critics say it is proof that the governor’s tax plan is unsustainable as lawmakers face a shortfall of almost $700 million for next year.

Brownback remains proud of the policy and pointed out that Gov. John Kasich is following his example.

“Ohio interestingly is following some of our small business tax (plan) … I think you’ll see others. I wouldn’t doubt if you’ll see it nationally, because we’ve been losing small businesses nationwide,” Brownback said. “And that’s a terrible thing for the country.”

“This is how you change America is some states try some innovation,” Brownback added.

Brownback served with Kasich in the U.S. House of Representatives during the 1990s. Brownback called Kasich a “smart guy.”

The governor also reflected on the large amount of national attention he continues to receive even after his re-election this fall.

“We’re doing a lot of things here. So a lot of people in the national liberal end don’t like it, and people in the national conservative end do (like) … so everybody takes their shots,” Brownback said. “But you know at the end of the day, we’re trying to grow the state. We’re trying to be a very pro-family state. So there’s no hidden agenda here. This is what we’re trying to do.”

This story was originally published February 23, 2015 at 1:33 PM with the headline "Gov. Brownback skips White House meeting of governors."