Kansas House Republican Caucus
RESPONSE TO THE GOVERNORS BUDGET PROPOSAL
Overall Spending; The governor\’s proposed budget policy for Fiscal Year 2008 puts total spending at $12.4 billion.
The governor\’s proposed budget for FY 2008 would increase State General Fund spending by $420.0 million or 7.7% – the largest one-year increase in state history.
Her budget recommendations for State General Fund expenditures exceed revenues by $327.9 million.
If enacted as proposed, the governor\’s budget will drive the state 128 million into debt in 2010.
The House Republican Caucus believes better budget policy is not to overspend as some of her proposed policies to create now spending would have the state do. We enacted the three year school finance bill last year with expectations of paying for it with existing and future resources. Most of us realized that this would require frugal spending for the next several years.
What\’s Missing; despite these proposed policies to increase state spending, the governor\’s budget fails to address several important items.
Her budget includes no money for estimated $850-900 in deferred maintenance at university campuses and community colleges.
The House Republican Caucus Agenda proposes schools submit a five-year comprehensive plan that lists project priorities and sets up a $75 million trust fund for future maintenance.
The House has already approved a plan that pays off the regents schools\’ last Crumbling Classroom Bond debt of $76.6 million. Te payoff will free up $15 million annually for Regents schools to use toward their deferred maintenance.
The budget assumes no tax cuts other than the $12 million recommended by the governor for businesses.
The House Republican Caucus Agenda proposes tax relief for Kansas businesses, property owners and Kansas seniors to help grow our economy and lessen the tax burden on all Kansans.
Fudged Factors; In addition to these notable omissions, her proposed budget policies use other fudge factors to hide the true size of the deficit
Her budget raids the highway fund for more than $60 million to pay for operations of the highway patrol in FY 2007 and FY 2008
The House Republican Caucus disagrees with the Governor\’s policy to take money from the highway plan to allow for increased spending in other areas.
Her spending policy drives the ending balance down to an unacceptably low level of $125 million in 2009 and then puts the state in debt by $128 million in2010.
Her budget policy has the state spending more than expected revenue receipts for 2008. The Consensus Revenue Estimating Group projects revenue receipts will increase by 1.9% in FY 2008. But to equal the governor\’s spending request, the state\’s revenue receipts need to increase by 7.8%
House Republican Caucus believes the better fiscal policy for the state is to live within it\’s means and be prepared for a possible downturn in our economy.