Governor Sam Brownback originally marketed to Kansans a unique solution: that a round of tax cuts would act like a giant adrenaline shot that would restart the Kansas economy. His plan, though, wasn’t about cuts, it was about complete exemptions for some and tax increases for others. By drafting his plan from a scene in Pulp Fiction rather than sane economic policy, he hoped that like Uma Thurman, Kansas would rise up from the floor renewed from a drug overdose.
Today, however, Budget Director Sullivan released a memo to the legislature letting them know the situation was quite dire — and that the new projections put Kansas nearly a quarter of a billion dollars short over the next two years.
Faced with serious problems in his own budget, Governor Brownback was asked how he might fix these issues. The adrenaline shot clearly wasn’t Vincent Vega saving Mia, it was far more akin to Vincent Vega accidentally shooting someone in the back seat of his car.
Governor Brownback however, was prepared for the question and answer, and his outlook on the budget? Well, you have a feeling the Wolf wants no part of that plan.
www.kansas.com/...
Brownback immediately responded with three options for balancing the budget, but focused on a preferred plan that strikes at revenue dedicated to pensions, higher education, highways and children. He said no consideration should be given to repealing an income tax break given owners -- not employees -- of 330,000 businesses in Kansas.
"I am prepared to take executive action to help reduce expenditures, however, the Legislature has a Constitutional obligation to balance the budget," the governor said in a statement. "I do not believe it would be useful to have a debate about raising taxes on small businesses or anyone else."
For Kansas teachers, schoolchildren and contractors in the trades the news from the State of Kansas is potentially devastating. The first location to recoup the loss of tax revenue isn’t to revisit a failing tax policy, it is instead a plan to raid the cookie jar, by pulling money out of funds designed at infrastructure maintenance and social services.
The Kansas Department of Transportation, will find projects delayed or taken off the table entirely, while the budget director looks at delaying payments into the pension program.
Despite repeated warnings and concerns from both Republicans and Democrats, Governor Brownback also sees another option: the state of Kansas should take out a payday loan.
Informing the press that Brownback believes selling off the tobacco settlement to banks on a chance to restructure their settlement, the Governor is looking into a program that would effectively require the state to keep people smoking to make payments on an upfront loan taking out through investment advisor CitiGroup.
The cost?
www.dailykos.com/...
If no securitization deal was struck, Citigroup projected the state would receive settlement payments of between $60 million and $70 million a year.
Under the residual plan, the state would receive a lump sum payment of $474.3 million, but its annual payments would drop below $40 million until 2032. That’s because a substantial portion of the state’s annual payment would be diverted to pay bondholders a total of about $806.7 million, nearly double the amount the state would receive in up-front cash.
With the state hemorrhaging revenue, and the adrenaline shot not providing a boost, it appears the state of Kansas has one real option left: creating mountains of IOU’s for a future generation in order to finance a program that provides no real service.
Kansas & Missouri Kossacks
Contact the Daily Kos group Kansas & Missouri Kossacks by kosmail (members of Daily Kos only).
Contact Chris Reeves with news, tips, and/or information by email. tmservo433@gmail.com
Follow Chris on Twitter @tmservo433.
If you would like to publish or republish a Daily Kos diary to the group Kansas & Missouri Kossacks, please let us know by kosmail or email.
If you have a location or story that needs support from Connect! Unite! Act!, please let us know by kosmail or email.