Post by Logan on Apr 22, 2016 5:15:28 GMT -6
Gov. Sam Brownback orders budget overhaul to match $228 million revenue shortfall
State of Kansas revenue projections over the next 15 months were cut Wednesday by a quarter of a billion dollars to broaden the cash shortfall facing lawmakers and apply greater political pressure on Gov. Sam Brownback to deliver a road map to close the gap.
The Brownback administration responded with three options for balancing the budget, but focused on a preferred plan that strikes at revenue dedicated to pensions, higher education, highways and children. He said no consideration should be given to repealing an income tax break given to owners — not employees — of 330,000 businesses in Kansas.
“I am prepared to take executive action to help reduce expenditures, however, the Legislature has a Constitutional obligation to balance the budget,” the governor said in a statement. “I do not believe it would be useful to have a debate about raising taxes on small businesses or anyone else.”
The decision by the Consensus Estimating Group to again roll back revenue expectations in the fiscal year ending in June and the subsequent 12-month period was anticipated long before legislators left Topeka in March for a five-week recess. House and Senate members were aware an income tax exemption given to business owners and income tax reductions adopted for individuals, fused with troubling trends in the oil, agriculture and manufacturing sectors, signaled a need to soften the forecast.
Read more: cjonline.com/news/2016-04-20/gov-sam-brownback-orders-budget-overhaul-match-228-million-revenue-shortfall
State of Kansas revenue projections over the next 15 months were cut Wednesday by a quarter of a billion dollars to broaden the cash shortfall facing lawmakers and apply greater political pressure on Gov. Sam Brownback to deliver a road map to close the gap.
The Brownback administration responded with three options for balancing the budget, but focused on a preferred plan that strikes at revenue dedicated to pensions, higher education, highways and children. He said no consideration should be given to repealing an income tax break given to owners — not employees — of 330,000 businesses in Kansas.
“I am prepared to take executive action to help reduce expenditures, however, the Legislature has a Constitutional obligation to balance the budget,” the governor said in a statement. “I do not believe it would be useful to have a debate about raising taxes on small businesses or anyone else.”
The decision by the Consensus Estimating Group to again roll back revenue expectations in the fiscal year ending in June and the subsequent 12-month period was anticipated long before legislators left Topeka in March for a five-week recess. House and Senate members were aware an income tax exemption given to business owners and income tax reductions adopted for individuals, fused with troubling trends in the oil, agriculture and manufacturing sectors, signaled a need to soften the forecast.
Read more: cjonline.com/news/2016-04-20/gov-sam-brownback-orders-budget-overhaul-match-228-million-revenue-shortfall