This is what can happen if “growth” is your only objective and these are the solutions being touted by our LEP for our local Growth Point.
“After he became Kansas governor in 2011, Sam Brownback slashed personal income taxes on the promise that the deep cuts would trigger a furious wave of hiring and expansion by businesses.
But the “shot of adrenaline” hasn’t worked as envisioned, and the state budget has been in crisis ever since. Now many of the same Republicans who helped pass Brownback’s plan are in open revolt, refusing to help the governor cut spending so he can avoid rolling back any of his signature tax measures.
If Brownback won’t reconsider any of the tax cuts, they say, he will have to figure out for himself how to balance the budget in the face of disappointing revenue.
The governor argued that Kansas had to attract more businesses after a “lost decade” in the early 2000s, when private sector employment declined more than 4 percent.
The predicted job growth from business expansions hasn’t happened, leaving the state persistently short of money. Since November, tax collections have fallen about $81 million, or 1.9 percent below the current forecast’s predictions.
“We’re growing weary,” said Senate President Susan Wagle, a conservative Republican from Wichita. While GOP legislators still support low income taxes, “we’d prefer to see some real solutions coming from the governor’s office,” she said.
Last month, Brownback ordered $17 million in immediate reductions to universities and earlier this month delayed $93 million in contributions to pensions for school teachers and community college employees. The state has also siphoned off more than $750 million from highway projects to other parts of the budget over the past two years.
Lawmakers are worried about approving any further reductions in an election year. All 40 Senate seats and 125 House seats are on the ballot in November.
Democrats have long described Brownback’s tax cuts as reckless. Republican critics want to repeal the personal income tax break for farmers and business owners to raise an additional $200 million to $250 million a year.
Debate over the next budget will intensify after lawmakers return from a recess later this month. They could follow through on their threat by adjourning without making specific reductions and leaving the governor with the authority to do so. He faces fewer repercussions because he will not appear on the ballot again before leaving office in January 2019.
Brownback rejected earlier calls to scale back the tax cuts and shows no signs of backing down.
He declined to be interviewed about the lawmakers’ unusual demand until new revenue projections are released Wednesday. Spokeswoman Eileen Hawley said the governor will release proposals afterward for balancing the budget, but, “a plan to raise taxes on small businesses or anyone else will not be among them.”
Brownback blames the economic sluggishness — the state ranked 43rd in total personal income growth in 2015 — on slumps in agriculture, energy production and aircraft manufacturing.