Estimated read time: 4-5 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
TOPEKA, Kan. (AP) — Kansas legislators returned Wednesday from spring break with top Republican legislators at odds with GOP Gov. Sam Brownback over raising income taxes to balance the state budget.
Legislators faced a crowded agenda before the scheduled end of their annual, 90-day session in mid-May. But House Speaker Ray Merrick, a Stilwell Republican, said his chamber would focus on budget and tax issues — and would not debate a Senate-passed religious objections bill aimed at protecting faith-based groups on college campuses seeking to limit their membership.
Top Republicans in the GOP-dominated Legislature believed they were close to settling the details of a proposed $15.5 billion budget for the fiscal year beginning July 1. The state constitution prohibits a deficit, and legislative researchers have said lawmakers' spending proposals would leave a $422 million shortfall.
Senate President Susan Wagle, of Wichita, and House Taxation Committee Chairman Marvin Kleeb, of Overland Park, said lawmakers will seriously consider revising an income tax break for business owners enacted three years ago. Brownback said he wants to preserve the policy, adding that the alternatives he'll push include eliminating income tax deductions.
"There'll be 30 iterations before something that everybody looks at is something we can do," Brownback told The Associated Press.
Here's a look at significant issues facing lawmakers:
___
TAXES IN SPOTLIGHT
The state's budget problems arose after lawmakers slashed personal income taxes in 2012 and 2013 at Brownback's urging, in an effort to stimulate the economy. The cuts included an exemption for 281,000 business owners and 53,000 farmers.
"We have had nice job growth taking place," Brownback said. "This has been helped by us not taxing small business. I don't want to do something that hurts the employment growth that we've had."
But Wagle said legislators are facing questions about the fairness of the policy, relating a conversation between her husband and their insurance agent.
"The agent said, 'I guess I don't understand how fair it is — I'm making sure taxes are paid on my secretary's salary, and I'm not paying anything,'" Wagle said.
Democratic legislators have made similar arguments since the policy was first debated in 2012. But Senate Minority Leader Anthony Hensley, a Topeka Democrat, said it represents Brownback's "pride and joy."
___
INCOME TAX DEDUCTIONS
The state is offsetting cuts in personal income tax rates by reducing most income tax deductions by 50 percent by 2017, including one for interest paid on home mortgages. To help balance the budget, Brownback proposed having the 50 percent "haircut" in place for this year.
The governor said Wednesday that he'll push lawmakers to consider eliminating deductions altogether.
But Kleeb said he doesn't see legislators embracing the idea because the deductions remain popular, particularly the one for home mortgage interest.
___
BUDGET ISSUES
Higher education spending is a key budget issue. Before lawmakers began their spring break early this month, House and Senate negotiators had agreed on a proposal to keep state funding for higher education stable while freezing tuition at state universities for two years.
But Kansas State University President Kirk Schulz said the proposal could hurt the university's ability to provide high-quality academic programs.
House Appropriations Committee Chairman Ron Ryckman Jr., an Olathe Republican, said Wednesday, "It may or may not be adjusted."
___
RELIGIOUS OBJECTIONS
Kansas legislators were considering a religious objections bill despite the backlash against recent measures approved by lawmakers in Indiana and Arkansas amid protests that they would allow discrimination against gays and lesbians. Advocates on both sides agree the Kansas measure is different.
It would prohibit state universities, community colleges and technical colleges from refusing to recognize or provide resources to religious groups for requiring leaders or members to profess certain beliefs or adhere to a faith-based code of conduct.
Supporters say it sets a clear legal standard and allows groups to control who leads them.
The American Civil Liberties Union and several other organizations opposed the bill had a Statehouse news conference Wednesday. They said colleges would be forced to provide taxpayer- or student-funded resources to groups that discriminate, even on the basis of race or gender.
Merrick said the news conference didn't influence his thinking, just the need to focus on fiscal issues.
___
Online:
Kansas Legislature: http://www.kslegislature.org
___
Follow John Hanna on Twitter at https://twitter.com/apjdhanna.
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
