On May 2, 2007 the Kansas Legislature adjourned after passing a state
general fund (SGF) budget of almost $6.1 billion, an increase $456
million from the prior year. This represents increased spending of
more than 8% despite the fact that inflation plus Kansas population
growth combined were only about 3.5% over the last year. I voted
against this budget because I do not believe that Kansas can sustain
such spending growth. At the outset of the 2007 legislative session
the big news was that revenues were up substantially. At the end of
the legislative session the big news should be that even in a year
where state tax receipts were strong the Kansas Legislature was unable
to pass a budget that lives within our means. Indeed, the most recent
estimates from the Kansas Legislative Research Department suggest that
state expenditures will exceed available revenue by $526.6 million in
FY 2008. In fairness it should be noted that this number reflects some
$200 million set aside to fund ongoing increases in K-12 education
funding and the statewide maintenance and disaster relief fund;
however, that still leaves spending of well in excess of $300 million
more than available revenue for FY 2008.
By law the State is required to maintain an ending balance of 7.5%.
Under the budget just passed the ending balance will fail to meet this
statutory requirement. The projected ending balance for FY2008 (the
budget just passed) is 5.3%. Of even more concern are the projections
for the next 2 years when ending the ending balance is projected to
plunge to 0.6% in FY 2009 and negative 4.2% in FY 2010. This negative
ending balance for FY 2010 would equate to placing the state some
$272.8 million in the red. As bleak as that may seem these numbers may
in fact be optimistic when one considers that they are based upon
estimated spending increases of only 4.2% in FY 2009 and 1.9% in FY
2001. The likelihood of such spending restraint appears unlikely given
recent practice. Indeed over the past 2 years SGF spending has
increase
$949.7 million, or 18.47%.
Given these budget figures I could not in good conscience vote for the
FY 2008 SGF budget. Throughout the legislative session I, along with a
group of other fiscally conservative legislators, consistently
expressed
a willingness to vote for a budget that kept SGF spending at or below
$5.9 billion. Consistent with that pledge I did in fact vote in favor
of an initial House budget that was passed in March. While still
higher than I would have liked, that initial budget bill represented a
step in the right direction, holding the growth in SGF spending below
5%. Unfortunately, over the last 6 weeks of the legislative session
the SGF budget grew by about $190 million from the initial proposal
that I supported. The result is that Kansas is continuing along a path
that leads to fiscal crisis.
To see the budget numbers provided to Kansas legislators in advance of
the May 2nd budget vote look here:
State Receipts and Balances
Back to "Media Releases"
