By Murrel Bland
Some if not all of the newly elected 60 Kansas legislators may be asking the question What have I done?? At least that is the comment from Cathy Damron, a lobbyist who expressed that view at the monthly meeting last Friday, Jan. 13 of the legislative Committee of Kansas City, Kansas, Area Chamber of Commerce.
Legislators are scrambling to find $342 million to fill the budget hole for the current year and $582 million for the next Fiscal Year which will begin July 1.
Governor Sam Brownback has proposed his version of the budget. However, strong indications are that much of his proposals will be rejected. The Governor wants to securitize the tobacco settlement dollars that the state will receive?this is estimated to be about $530 million. Critics of this plan argue that these funds were supposed to benefit needy children.
The Governor has also proposed to increase the filing fees for nonprofit organizations and businesses by 500 percent. He also wants to hike the tax on cigarettes a dollar a pack and double the enforcement tax on alcohol.
The Governor has not called for any adjustment on the LLC Loophole which allows for small businesses to escape paying state income tax. This provision, promoted by the governor, was passed in 2012 as a way to promote economic development. Gov. Brownbacks critics have argued that it has not worked, but rather given small business owners a free ride.
The Governor continues to argue that his LLC exemption will work. He blames an economic downturn in three major Kansas industries?gas and oil, aircraft and agriculture. Once these industries recover, the exemption will show positive results, the Governor argues.
Legislative observers expect a combination of new moderate Republican legislators and veteran Democrats to form an alliance that will either eliminate or severely modify this LLC Loophole. This could produce an estimated $300 million annually.
The unknown factor that is expected to face legislators is the pending school finance decision that the Kansas Supreme Court will hand down soon. This could mean the Legislature would have to come up with another $500 million according to legislative watchers.
The Johnson County League of Women Voters will sponsor a legislative forum at 10 a.m. Saturday, Feb. 11 at the Main Library, 625 Minnesota Ave., Kansas City Kan. All members of the Wyandotte County Legislative Delegation have been invited.
Murrel Bland is the former editor of The Wyandotte West and The Piper Press. He is executive director of Business West.