|
 With the fiscal 2016 revenue estimated to drop by nearly $94
million and fiscal 2017 revenue expected to be $134.7 million less
than previously projected, the Republican governor said Kansas could
raise about $158 million through its first sale of bonds backed by
its share of a 1998 multi-state settlement with U.S. tobacco
companies.
Several states and local governments have sold tobacco bonds with
some using the proceeds as a one-time boost for their sagging
budgets.
Brownback said he would also divert $185 million in sales tax
revenue slated for the highway fund to the fiscal 2016 and 2017
general fund and continue a 3 percent university funding cut into
fiscal 2017.
 A second budget-balancing option outlined by the governor would
delay a fiscal 2016 fourth quarter pension payment until fiscal 2018
instead of selling tobacco bonds. A third option calls for a 3
percent to 5 percent spending cut for most state agencies in the
coming fiscal year.
“I am prepared to take executive action to help reduce expenditures,
however, the legislature has a constitutional obligation to balance
the budget and we are hopeful they will work with us on one of the
three options..," Brownback said in a statement.
[to top of second column] |
He added that he does not support a tax hike to patch up the budget.
The Kansas budget is feeling the effects from action taken by
Brownback and the Republican-controlled legislature to cut corporate
and other income taxes to help the state compete with bordering
Missouri and other states for business development and jobs.
Kansas' fiscal year begins July 1.
(Reporting By Karen Pierog; Editing by Andrew Hay)
[© 2016 Thomson Reuters. All rights
reserved.]
Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
