Legislature left all big issues unfinished

Even sausage-making is prettier than this legislative session.

State lawmakers completed their regular session Friday and adjourned for a three-week break. They return May 1 for what traditionally is a relatively short veto session.

But this year, all the major issues remain unfinished – and the path forward is unclear.

Lawmakers finally approved last week a bill aimed at covering the current year budget shortfall, which is about $290 million. They are borrowing money from the state’s long-term investment fund.

Lawmakers had few viable options, given how late it is in the fiscal year. But the use of one-time money means next year’s budget shortfall will be even worse – likely more than $1 billion, counting a required increase in K-12 education funding.

Spending cuts and other efficiencies will cover part of that gap. But much of it will need to come from additional revenue. And there’s the rub.

The Senate debated a flat-tax bill last week that Gov. Sam Brownback said he could support. It also would have eliminated the tax exemption on pass-through business income – Brownback’s signature tax policy.

But the bill garnered only three votes on final action – uniting moderate Republicans, Democrats and far-right conservatives in opposition.

In contrast, 24 senators supported an earlier bill that would have rolled back most of Brownback’s tax cuts. But Brownback vetoed it, and an override attempt fell three votes short.

The state will release new revenue estimates on April 20. So when lawmakers return, they will have a more accurate idea of the size of the shortfall – and the size of a tax increase needed to help fill it.

Lawmakers also still have not approved a new school-funding plan. The Kansas Supreme Court ruled last month that the state is inadequately funding public education, and it gave lawmakers until June 30 to fix it or face potential school closings.

A House committee has completed a new school finance plan that it likely will send to the full House soon after lawmakers return. It is similar to the state’s previous finance formula – which Brownback and GOP lawmakers unwisely scrapped. But its proposed $150 million funding increase next fiscal year ($750 million increase over five years) is unlikely to satisfy the court – or most lawmakers.

Getting a majority of lawmakers – and Brownback – to agree on the funding total and the formula details will be a challenge, given the state’s budget problems and the differences between rural, urban and suburban school districts.

One thing is clear: The veto session won’t be short or smooth. Or appetizing.

This story was originally published April 9, 2017 at 5:05 AM with the headline "Legislature left all big issues unfinished."