Letter to the Editor 6-12-14
Lots of people are buzzing about headlines that appeared in newspapers across the state this past week. Finally, the worsening fiscal condition of the state seems to be getting widespread attention.
Former state budget director Duane Goossen, in a talk with the League of Women Voters, forecasted that the State will be in the red in one year. The following day Revenue Secretary Nick Jordan attacked Goossen’s credibility and denounced his revenue projections as untrue.
Duane Goossen is one of the most credible people who has served our state. He worked as budget director under three governors – Democrat and Republican – and served 14 years in the Kansas House of Representatives as a Republican, mostly on the budget-writing committee. He served as one of the six revenue forecasters for 12 years. Duane’s numbers and projections are consistently accurate and reliable.
Remember, state tax revenues fell $217 million short of projections in May. The drop in revenues for both April and May puts tax revenues $310 million below estimates for the fiscal year with only one month left. That is an undisputed fact.
But Jordan said it wasn’t the fault of Governor Sam Brownback’s tax plan but was due to changes in federal tax policy that caused many taxpayers to take capital gains the prior year. Jordan also quoted a Rockefeller Foundation study to support his position.
This claim did not hold up under scrutiny.
Several newspapers reported that an analyst with the Rockefeller Foundation said that Kansas leaders misrepresented her research on the cause of the state tax revenue drop and that Kansas could be forced to make cuts in the near future. “In Kansas it’s really not of that much importance,” the analyst said, referring to the capital gains tax changes in a phone call to a reporter at the Wichita Eagle.
So, why are Brownback revenue officials misleading the public? It boils down to the November election.
Brownback made his income tax reduction plan the centerpiece of his administration’s accomplishments – putting Kansas on a “glide path to zero” in order to grow the state. However, study after study shows that cutting taxes, especially the way it was done in Kansas, doesn’t produce economic growth. And the severity of the cuts is eating away at the things Kansans hold dear – good public schools, quality roads, and services for vulnerable populations. Without these, our quality of life suffers and growth will elude Kansas.
Goossen is right about the revenue forecasts leaving the Kansas budget in the red in a year.
The Rockefeller Foundation analyst is right about the cause of the downturn in revenues being attributable mostly to Brownback’s tax plan, not changes in federal tax policy.
Last year the revenue department estimated that the drop-off in revenues attributable to the treatment of capital gains was approximately $30 million, not $217 million. Even if no one reported capital gains for 2013, the fiscal note would only be about $100 million – not $217 million, the actual size of the shortfall.
In the eight years I served as Secretary of Revenue, (2003-2010) I always gave straight-forward, honest answers. It is sad for me to see revenue officials misleading Kansans about the fiscal condition of the state in order to sway public opinion prior to the election.
Remembering the smoke-filled rooms . . . “The Atlantic” recently ran a lengthy commentary by Jonathan Rauch. It was “How American Politics Went Insane.” He got into history with the party bosses, smoke filled rooms, deals made and carried... [More]
Dear Editor, Voting!! As I was lying awake last night, thinking about the day and what Ted Cruz said at the Republican Convention. I realized I had to agree with him. Yes, I agree his timing and choice of place to present his feelings was probably not the best, but... [More]
A ribbon cutting in Concordia yesterday marked the merger of Peoples Exchange Bank with American State Bank & Trust Company of Great Bend. The two banks are owned by American State Bancshares of Wichita. The merger was effective July 11. James Koch, who currently is... [More]
Determining there is a need for additional grain storage space, the Concordia Terminal LLC board of directors approved an $11 million expansion project during a meeting on Thursday afternoon. Concordia Terminal LLC, owned by Cloud County Co-op Elevator Association Inc., Central... [More]
Sixty dedicated children from the north central Kansas area and even beyond have been busy every day this week learning the ins and outs of acting from instructors from the Missoula Children's Theatre, Missoula, Mont. Results of their commitment and hard work can... [More]
OSBORNE — Winning a matchup of two Concordia teams, the American Legion advanced to the championship game of the Kansas State Pee Wee Baseball Tournament. The American Legion shut out 16th Street Car Wash 5-0 in the tournament semifinals on Thursday night. Advancing to... [More]
KISSIMMEE, Fla. — Seven gymnasts representing the Concordia Gymnastics Center competed in the 2016 AAU Gymnastics National Championships at ESPN Wide World of Sports. There were 72 gymnasts from 22 gyms presenting the Missouri Valley District among the 1,539 total gymnasts... [More]