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.
“Time marches on.” We have all heard this expression, and we understand its meaning. Time stands still for no one. It keeps moving forward, always forward. Our yesterdays are captured in our memories and our photographs. But time marches on. “In... [More]
Dear Editor, CONCORDIA SENIOR CENTER CONTINUES TO STRUGGLE FINANCIALLY Our Senior Center performs multiple services to our community. Not just to senior citizens, but to the general public too. For years, the Concordia Center has funded the Public Transportation Service... [More]
The Advisory board of the Leva and Frank Duclos Foundation awarded $54,600 in grants during its semi-annual meeting Tuesday at Citizens National Bank in Concordia. Grants awarded by the Foundation include: Republic County Resource Council, Belleville – C.A.R.E. (Community... [More]
Police Dept. Report Accident–On Nov. 30, at 5:10 p.m., officers investigated an accident which had occurred in the 400 block of East 6th involving a vehicle owned by Brittany Mills, Scandia and a vehicle driven by William Pauley IV of Lincoln, Neb. Investigation continues.... [More]
The Cloud County Community College board of trustees last night raised tuition rates by two dollars a credit hour for the 2017-2018 school year, while maintaining campus housing costs at the same levels as this year. Tuition for Cloud County residents will increase from $69 to... [More]
CHANUTE — Continuing to display resiliency on the road, the Cloud County Thunderbirds turned back the Neosho County Panthers 85-80 in overtime Wednesday night. Cloud County shook off an early flurry by Neosho County, erased a four point deficit in the final 45 seconds of... [More]
CHANUTE — It took the Cloud County Thunderbirds just over three minutes to turn a contest that was too close to call into a landslide victory. Leading by just 10 points in the second half, the T-Birds went on a 13-2 run over a span of 3:11 to pull away to an 85-52 Jayhawk... [More]