Budget cutting over?
By GAYLE WEBER
Local legislators are done cutting. That's the message they had for a group of about 40 assembled at Sternberg Museum of Natural History Saturday for the second installment of Eggs and Issues.
"We have considerably more people in the House that think the answer is to continue the budget cuts," Rep. Eber Phelps, D-Hays, said. "I personally believe that we are done cutting."
He said it's time the Legislature finds a way to start funding social service programs, as well as education, which have been through multiple rounds of cuts just in the 2010 budget.
Sen. Janis Lee, D-Kensington, who is a member of the Senate Ways and Means Committee that approved a draft 2011 budget Friday, said tax increases could be the way to go. So far, in correspondence with constituents and leaders of agencies hardest hit by the state budget cuts, about 75 percent have been in support of Gov. Mark Parkinson's proposed 1-cent sales tax increase, Lee said.
That might not be enough.
In order to close a projected $364 million budget gap next year -- which could be $450 million if the state wants to save programs such as the Medicaid home and community-based services waiver -- a sales tax increase alone can only raise a projected $310 million.
"I don't see how we get out of here this year without some combination because sales tax alone does not do it," Lee said.
However, Rep. Dan Johnson, R-Hays, who still hasn't returned to full action in the statehouse due to a medical condition, said correspondence with his constituents overwhelmingly has been negative in terms of tax increases.
Lee said she's heard some Senate leaders are looking at a combination of increases in sales tax, a surcharge on income tax and two or three mills on the statewide school mill levy.
"That would shock me if that passes, but I think it's a good place to begin our discussion," Lee said.
Phelps said he also has heard support for a sales tax increase.
"I think what we need to ask ourselves is 'what tax would pass,'" Phelps said.
His answer to that is a sales tax increase and a proposed increase to the tobacco tax.
"Sales tax isn't going to be a cake-walk," Phelps said. "It will take some time to do that."
But he said increases to income and property taxes likely wouldn't pass the legislature as it's made up now.
"While I do not like (a) property tax increase in any way, shape or form, if it can be done and becomes part of the formula, in most instances, rural schools actually get back more from that," Lee said.
But she said the legislature still is a long way from knowing what kind of combination of increases will be needed and supported.
"I would rather support a combination, but if the only option in the end is a sales tax, I'll probably end up supporting that," Lee said.