The state of Kansas is facing a shortfall of $344 million for the fiscal year ending in June and nearly $600 million forecasted for the fiscal year starting in July, all thanks to the largest tax cuts in the state's history, signed into law in 2012 by Governor Sam Brownback.
One of the biggest cuts: The profits of small businesses and partnerships were made tax-exempt and companies not eligible for the 0% tax rate may be trying to reorganize themselves so they, too, get the tax break. The tax-free profits measure is a boon for plenty of entities -- such as partnerships and S Corps -- that are not really small businesses at all. And the tax-free break on profits is not tied to the numbers of jobs those entities create.
To dig the Sunflower State out of its hole, Brownback and the Republican-led Kansas legislature have to act fast. One of Brownback's proposals for cutting this year's shortfall is to reduce the state's contributions to the public employee pension fund for the next six months, a controversial move especially considering that the state pension plan is already underfunded.
The governor doesn't need the legislature's approval to temporarily reduce pension funding, but he will for his other big idea, which is to use $201 million in funds from other state programs, such as the state highway fund and its health and environment fund. In addition, Brownback has responded by cutting funding for public schools and higher education by a combined $44.5 million.
And what else is Brownback up to?
On Tuesday he issued an executive order, doing away with an order enacted by his predecessor, former Gov. Kathleen Sibelius. In 2007 Sibelius issued an order expanding workplace protections to include lesbian, gay, bisexual and transgender employees of the state.
With a swipe of his pen, Brownback wiped out protections offered to state employees facing discrimination on the basis of sexual orientation or gender identity.
(Sources: CNN, N.Y. Times)
Failed fiscal policy and discriminatory executive orders. How can anyone support this loser? Oh wait... businesses and corporations are paying no taxes while the highway fund, environmental fund, health fund, education and pensions all take it in the shorts to make up the shortfall.
Just one day more...