More debt and fewer services – that’s what budget offer Kansans
Gov. Sam Brownback and his supporters in the Legislature just won’t stop digging.
They are borrowing billions, delaying bill payments and cutting education. Rather than fix Kansas’s budget problem, such measures make it worse.
The problem is this: The state does not collect enough money in taxes, fees and federal funds to pay its recurring expenses. That means government doesn’t have sufficient funds to pay for education, road maintenance, upkeep at state parks, state police and laboratories, prisons, or such other things as medical care for the disabled and children living in extreme poverty.
It’s not a short-term problem. The state’s fiscal system has been out of whack since Brownback and legislators approved wide ranging tax cuts four years ago.
Rather than correct the problem, the governor and lawmakers have borrowed billions and cut services to come up with a “balanced” budget. The result is more expensive government that offers Kansans less and less.
Running up the debt while also reducing state programs and services is what passes as conservative in some circles. But more and more Republican lawmakers are balking.
This year, Republicans in the Legislature refused to pass any real budget. They just tossed the problem into Brownback’s lap and went home.
Brownback has since made about $100 million in cuts, most of which will end up costing the state and its residents far more than we would have paid had lawmakers conceded the need for fair and equitable taxes on businesses and residents.
Instead Brownback and his supporters continue to blame Barack Obama for the state’s budget shortfalls, while praising themselves for achieving so much in such tough times.
Here are a few of their achievements:
They delayed for up to two years payments to the Kansas public workers’ retirement fund. Kansas taxpayers will have to pay 8 percent interest on the unpaid contribution.
Eight percent. That’s more money Kansans will have to come up with down the road because legislators refused to pay the bills on time.
Legislators also cut funds to public universities and colleges, and then the governor cut even more. As a result, students will receive fewer scholarships and tuition will rise even higher. That means Kansas students and their parents will pay thousands more to get the educations they need to improve themselves, their communities and the state.
The cuts lawmakers authorized the governor to make also include lower payments to doctors and other health-care providers who accept patients on Medicaid.
So while the governor refuses to roll back income tax breaks because he argues that the private sector needs the money to create jobs and fuel the state’s economy, he has no problem shortchanging doctors and others who operate health-care businesses.
The state also is again raiding the Kansas Department of Transportation. Last year, lawmakers authorized the DOT to take on even more debt – so there would be more money they could take from highway projects to balance the budget.
Not only will Kansas taxpayers have to pay the interest on the DOT bonds, but they will lose the revenue generated by the construction jobs and projects that were supposed to be built.
The KDOT bonds are in addition to $1 billion in bonds that the Legislature approved for the Kansas Public Employees Retirement System last year. Lawmakers and the governor bet that they could borrow $1 billion and make enough money on investments to pay back the loan and make money.
So far, it’s a losing bet; taxpayers may end up repaying those bonds as well.
That’s on top of the higher sales taxes also approved by conservatives. The sales tax hits middle- and low-income families hardest, especially because Kansas taxes groceries at one of the nation’s highest rates.
Here’s what Moody’s Investment Services said as it again dinged Kansas for its fiscal policies: “By continuing to balance its budget with unsustainable nonrecurring resources, including pension underfunding, it is accumulating large and expensive long-term liabilities that it will be paying off for a long time.”
It’s time for Kansas officials to stop digging, and to start working to put government back on sound financial ground.