Now that the Kansas Legislature has a clearer picture as to what they have to contend with when they return from the spring break on April 28, the question is ... what’s next?
On Friday, a new revenue forecast estimated a $70 million budget shortfall for the budget year that ends June 30, lending itself to mean that lawmakers will have to look at further cuts, payment delays and using additional federal stimulus dollars to balance the budget.
The news for 2011 wasn’t much better.
The projected gap for the 2011 budget, which opens on July 1, sits at approximately $450 million, but that could balloon to $510 million depending on how legislators solve the 2010 issue.
"The downward revision only makes the budget hole we have been working with larger," state budget director Duane Goossen told the Associated Press. "It's still a situation that can hopefully be managed."
Figures from Friday’s report also noted a downturn in current tax collections of $104.4 million from the November estimate.
Lawmakers have already begun to contemplate just what the solution is when they return.
“I do not believe there are any more significant cuts that may be achieved.” said State Sen. Jay Emler, R-Lindsborg. “That means the balance of the ‘budget hole’ will have to come from revenue enhancements. I believe there will be a combination of enhancements, not just one.”
Emler said that the only place to cut is education and he added that Kansas Gov. Mark Parkinson has deemed that unacceptable.
“The only portion of the state budget that has sufficient funds to fill the deficit is education and the Governor has indicated he will not allow further cuts to education,” Emler said. “That is why the Senate made such drastic cuts to social services and still was only able to generate $52 million, roughly one-eighth of what is needed.”
Sen. Chris Steineger, a Kansas City Democrat and member of the Senate Tax Committee was confident that lawmakers would pass a balanced budget when they return.
"We will pass a budget," Steineger said. "There are elements for a compromise that was coming together in March."
He said that the compromise may include more modest budget cuts, with exception to education as well as an inclusion to Kansas Gov. Mark Parkinson's proposed 1-cent sales tax increase.
Steineger said that some of the cuts may come from things like the state subsidy for Wichita's Mid-Continent Airport, which yields $5 million as well as state aid to cities that, he said, amounts to around $18 million.
He said that eliminating that aid to cities may cause a deeper look at a consolidation of cities and counties, similar to that of Wyandotte County.
Sen. Tom Holland, a Baldwin City Democrat, said that there may be some small, internal cuts needed to make a budget package work.
Parkinson's sales tax increase met with significant resistance in both the House and the Senate during the first 75 days of the Legislative session, but Holland said that was because the discussion was very preliminary.
"The opposition was in the beginning," Holland said. "Since that time, I think people have heard from their constituents ... I know I have."
Holland said that it was prudent for House and Senate leaders to wait for the April revenue projections from the Consensus Revenue Estimating Group before moving forward with discussion on a budget solution.
"With the difficult decisions that have to be made, the forecast is in those April revenue numbers," Holland said.
On the Web:
Kansas Legislature: http://www.kslegislature.org
Matthew Clark can be reached at matthew.clark@morningsun.net or at 620-231-2600, Ext. 140
