The Garden City Telegram

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Lawmakers talk taxes

Published 3/8/2010 in Local News

By SHAJIA AHMAD

sahmad@gctelegram.com

With an estimated $400 million hole in next year's state budget, area legislators said coming up with revenue sources for at least three-fourths of that is a must, whether that's through increases in the state sales tax, elimination of some sales tax exemptions or higher taxes on tobacco and alcohol.

"We don't know what that combination will be yet, but we're looking at all our options," said Steve Morris, R-Hugoton, and president of the Kansas Senate.

Morris spoke to nearly 200 residents Saturday at the Pauline Joyce Fine Arts Building at Garden City Community College, during the second of three legislative coffees held during the Kansas congressional session. The higher-than-normal interest in face-to-face time with the state legislators traveling from Topeka may be due to the state's budget woes, organizers of the program speculated.

Saturday's program, also featuring Reps. Jeff Whitham, R-Garden City, Don Hineman, R-Dighton, and Gary Hayzlett, R-Lakin, was dominated by budget issues as it came at the heels of Gov. Mark Parkinson's Friday announcement for additional budget adjustments to bridge a $106 million imbalance in the current fiscal year, which ends June 30.

Continuing revenue declines over the last few years means legislators are working with a significantly lower state budget in 2010 — about $5.2 billion — than 2009's $6.5 billion budget, Morris said.

Morris added that even with revenue-producing measures for a $400 million hole, making a projected $100 million more in cuts will be difficult without affecting schools and other state programs: About 85 percent of the state's general budget is allocated to school districts and Medicaid, leaving an $800 million budget that benefits all other state departments.

"Decimating half of state government is what we're up against," Morris said Saturday.

Pleas from both educators and health-care providers in Saturday's crowd echoed sentiments of support with regard to tax-increasing measures, including a round of applause following Whitham's suggestion that the state raise the sales tax by 1 percent, a measure estimated to produce about $380 million.

Area business owners, however, spoke in opposition to an increase in sales tax, saying it would hurt their businesses and advocated instead for increases in alcohol, liquor and cigarette taxes.

Morris said a tobacco tax could generate between $30 million and $50 million, and alcohol and liquor tax increases could bring in an additional $70 million.

"Either way, it won't get us there," Morris said.

In addition, a proposal to raise taxes on utility bills, lottery tickets and churches is heading toward a vote in the Kansas House on Wednesday, Hayzlett informed Saturday's crowd.

The proposal, which would impose the 5.3 percent state sales tax on all electric, gas and water bills and repeal an exemption that allows churches to avoid the sales tax on their purchases, could generate about $150 million in revenue, Hayzlett said.

"In Kansas, we've gone into the recession later, but it also means we're coming out of it slower," Hayzlett said.

The next legislative coffee, hosted by the Garden City Area Chamber of Commerce, is scheduled for 10 a.m. April 17 and will return to its original location at the Wheatland's Conference Center, 1408 E. Fulton St.

Saturday's program was held in conjunction with the Southwest Kansas Economic Outlook Conference, hosted by the Finney County Economic Development Corp.

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