Governor Laura Kelly’s Council on Tax Reform Discusses Current Legislation & Federal Recovery Funds
Topeka, KS (STL.News) On March 5, Governor Laura Kelly’s Council on Tax Reform discussed the fiscal implications of tax legislation being debated in the Kansas Statehouse and recommended caution regarding how federal COVID-19 recovery funds are earmarked and spent.
“As we continue to recover from the pandemic, the last thing Kansas needs is another fiscally irresponsible tax experiment,” said Governor Laura Kelly. “My administration continues to prioritize pragmatic, strategic solutions to reinvest in our state’s foundation and strengthen our economy statewide.”
A Division of Budget presentation showed that Governor Laura Kelly’s proposed Fiscal Year 2022 Budget featured a positive ending balance of $600 million. At Senate Minority Leader Sykes’ request, legislative research provided a State General Fund profile that showed what the current “Senate position” would do to the ending balance. This profile includes the significant negative impact of SB 22 as it passed the Senate on February 9th, along with no enactment of Governor Kelly’s recommendations closing sales tax loopholes or Kansas Public Employee Retirement System (KPERS) reamortization. Even without the spending that has been added above what was recommended in the Governor’s Budget Report, SB 22 and these other policies would put Kansas in the red ink by more than $100 million by next year.