Kansas lawmakers begin to confront decline in state revenues
By: Health Insurance
Submitted: 2009-10-19 23:10:40 | Word Count: 460
Bigger classes at public schools. A tax on nursing homes. A highway plan without any money behind it. A public pension system at the breaking point.
Another year of difficult budget decisions began Monday when some Kansas lawmakers returned to the statehouse to begin work on next year’s budget.
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The recession and its effect on state revenues prompted many to predict additional budget cuts are almost certain, even as demand for critical state services goes up.
First-quarter revenue for the state came in 5 percent below pessimistic projections. Lawmakers said they may have to slash $100 million from the current year’s budget before they even begin working on next year’s deficit — projected to be around $400 million.
“If our revenue continues to drop the way it has been dropping, we’re in for drastic changes to the way government is funded,” said Rep. Kevin Yoder, an Overland Park Republican who leads the House budget committee.
Last spring, lawmakers cut hundreds of millions of dollars in state spending. In response, public schools sliced $167 million and eliminated 3,700 jobs; public universities raised tuition; and correctional facilities were consolidated.
Lawmakers who work on the budget forecast that next year’s reductions could be just as dramatic. There’s no second round of federal stimulus money to help. Many lawmakers said they won’t consider general tax increases, which would affect taxpayers at the wrong time.
Legislators on the House Appropriations Committee who reviewed the situation discussed solutions. But here’s what they’re up against:
•Enrollment at universities and technical and community colleges is up as more unemployed workers go back to school. Last session, lawmakers cut funding to those institutions by $100 million. The schools are asking for $16 million next year to cover higher energy and health insurance bills.
•Demand for Medicaid and other social services is up, too, but there’s less money available to cover benefits.
•The state is due for a new long-term highway plan, but money is not set aside for it. Just keeping up with road maintenance costs $375 million a year.
•Additional cuts to public schools — the state’s single biggest expense — would mean more teacher layoffs, bigger classes and the risk of lower student proficiency.
