DALLAS - Kansas will begin furloughs of state employees on June 7 if no budget is passed by then, state budget director Shawn Sullivan said.
Sullivan told Republican senators that they must pass and send to the governor budget legislation by 11:59 p.m. Saturday, June 6, or else agencies will have to furlough non-essential personnel.
Amid rancorous debate, the Legislature is considering tax hikes to close a $400 million deficit for the fiscal year beginning July 1.
The shortfall is widely attributed to steep income tax cuts enacted by the Legislature in 2013. At Gov. Sam Brownback's urging, the Republican-controlled legislature cut taxes under the theory that economic growth would surge sufficiently to offset the lost revenue.
"Our tax policy is working," Brownback said in a prepared statement to the legislature. "The proof of that can be seen in the number of working Kansans, our low unemployment rate and the fact that working Kansans have more money in their pockets to save or spend as they see fit."
To cover the pending deficit, Brownback called for reducing tax deductions, eliminating income taxes for 388,000 low-income Kansans, increasing taxes on cigarettes by 50 cents per pack and raising the sales tax to 6.65%.
"The plan outlined here will leave a projected ending balance of approximately $81 million in FY 2016 and $255 million in FY 2017," Brownback said. "One-third of the revenue generated by this plan comes from closing loopholes in the income tax. The remaining two thirds is from consumption taxes. This is the kind of balanced approach many legislators - and most Kansans - prefer."
Despite the political cover, lawmakers were unable to agree in Sunday debates that lasted until 2 a.m. Monday. After a brief break, they returned to Topeka about mid-day Monday.
