Brownback's Taxation Experiment

[shockmonster]

I just read the article in the Eagle this morning about Kansas' collection of taxes. The article said that we had another bad month and that some expected that either we would have to make more draconian tax cuts or that taxes would have to be raised (it didn't say but I would imagine that tax raises would be on the backs of the middle class again). I would bet on the draconian cuts. I came across this article that was written last year predicting what would happen while Brownback was talking about the "bright and sunny days" in Kansas on his election commercials (do you all remember?). LOL

"Sam Brownback, governor of Kansas, sincerely believes that he is going to perform a Kansas miracle. And I now accept that he is doing this for what he thinks is the good of the state, not just for self-aggrandizement.

His miracle, as he proclaims it, would happen by eliminating the income tax in Kansas. That plan is built on the notion that somehow, some way, Kansas can become a mini-Texas with dynamic growth. However, Kansas does not have the revenues from oil and gas to offset the elimination of income taxes.

So far, there is no denying the experiment has been a big flop. It is projected by non-partisan Kansas Legislative Research that the rest of the reserves will get eaten up next year to balance the budget, putting the state in a precarious position. And the state will be more than a billion dollars short in the next several years.

The day of reckoning is coming and coming soon.

Then will follow the inevitable budget slashing."

Read more here: http://www.kansascity.com/opinion/op...#storylink=cpy

[Aargh]

You might have mentioned that article is from a little over a year ago - before the 2014 elections.

Since that was written, KDOT has had a huge chunk of their money for repairing roads re-allocated to the state's general fund, federal ACA money intended to improve health care for children in poverty situations has been reallocated to the general fund, sales taxes have been raised - again, funding to state universities has been cut, funding for K-12 is getting more court challenges.

After all that and more (like borrowing $1 billion to bail out KPERS), the state is projected to end the year with $78 million in the bank. In the first 3 months of the year, the state is running over $40 million below the estimates. If that trend continues, there will have to be another $50 million or so in additional taxes or additional spending cuts.

The really interesting budget move was to cut off all funding for the judicial branch of state government if a law passed in the Legislature that violated the State Constitution was struck down in the courts. That little maneuver would have triggered a federal effort to withdraw statehood status from Kansas. There's a federal requirement that states have a judiciary branch.

[shockmonster]

You might have mentioned that article is from a little over a year ago - before the 2014 elections.

Since that was written, KDOT has had a huge chunk of their money for repairing roads re-allocated to the state's general fund, federal ACA money intended to improve health care for children in poverty situations has been reallocated to the general fund, sales taxes have been raised - again, funding to state universities has been cut, funding for K-12 is getting more court challenges.

After all that and more (like borrowing $1 billion to bail out KPERS), the state is projected to end the year with $78 million in the bank. In the first 3 months of the year, the state is running over $40 million below the estimates. If that trend continues, there will have to be another $50 million or so in additional taxes or additional spending cuts.

The really interesting budget move was to cut off all funding for the judicial branch of state government if a law passed in the Legislature that violated the State Constitution was struck down in the courts. That little maneuver would have triggered a federal effort to withdraw statehood status from Kansas. There's a federal requirement that states have a judiciary branch.

I did mention that the article was written last year (I believe that was in October of 2014) predicting the mess. As you point out, the state went out and borrowed to fill up their coffers (it was like they know how bad it's going to get and are covering themselves). This is going to get worse and my prediction is that the hole will get bigger. Cuts will continue but it will not be enough to dig out of the hole.

[Dave Stalwart]

Wait is borrowing a bad thing? I thought borrowing tons of money to cover ideas that probably won't work was how you are supposed to do it.

[wufan]

Wait is borrowing a bad thing? I thought borrowing tons of money to cover ideas that probably won't work was how you are supposed to do it.

Correct.