Kan. regents: State needs to consider taxes

Eds: UPDATES with additional background on higher ed budget, state's budget problems; comments from regents, budget director, legislator. ADDS byline, On the Net section.

By JOHN HANNA

Associated Press Writer

TOPEKA, Kan. (AP) -- Two members of the board overseeing Kansas' higher education system said Wednesday that the state needs to consider raising new tax revenues because of its budget problems.

Board of Regents members Dan Lykins and Gary Sherrer made their comments after a top aide to Democratic Gov. Mark Parkinson met with the board. Budget Director Duane Goossen said not only is Parkinson planning to make cuts next week, but state spending might have to remain at reduced levels into 2012.

Education and social service advocates already have called for consideration of additional taxes. Many members of the Republican-controlled Legislature worry that any such measures will slow an economic recovery.

But Sherrer, a former lieutenant governor from Overland Park, said if state universities continue to face funding cuts, they may have to cap their enrollments -- and deny access to some prospective students.

"Without additional revenues, we are going to do serious and long-term damage to our educational institutions," Sherrer said.

Lykins noted that when state revenues were healthy in past years, legislators repeatedly approved tax breaks -- many for businesses and designed to stimulate economic activity. Also, the state has dozens of exemptions to its 5.3 percent sales tax.

"Maybe we ought to be looking at these," said Lykins, a Topeka attorney.

The state has had four rounds of cuts and other adjustments this year to prevent a budget deficit when its 2010 fiscal year ends June 30. The higher education system has lost $103 million, which is more than 12 percent of its state funding.

Earlier this month, officials revised Kansas' revenue projections, leaving the state with another looming budget shortfall in the current budget. Goossen said Parkinson plans to make $260 million in cuts and other adjustments by Thanksgiving.

But legislators expect to face another shortfall for fiscal 2011 -- even with federal stimulus funds that have lessened some of the state's pain. And, Goossen noted, those stimulus funds are gone by fiscal 2012.

"Immediate reductions are coming, and we're probably going to have to live with those reductions for a while and perhaps go even lower," Goossen said. "Some of the toughest decisions are still ahead of us."

Goossen's presentation to the regents came the same day that the Statewide Independent Living Council of Kansas had a forum at Washburn University. The group, which advocates better services for the disabled, hopes to build support for raising new revenues.

Parkinson has sent mixed signals, decrying the possibility of "crippling" cuts in government programs but saying he'd like to avoid a tax increase.

GOP leaders have said any move to raise revenues will hurt businesses just when the state needs them to create new jobs.

"Our goal needs to be 'How do we create more private-sector jobs so that we can get out of the recession as quickly as possible?"' said House Appropriations Committee Chairman Kevin Yoder, an Overland Park Republican.

But Sherrer said that universities train workers and do research that stimulates economic activity. As lieutenant governor in 2002, Sherrer was part of a GOP administration that successfully pushed for tax increases to lessen budget cuts.

"I think the people of this state will share a little bit each, in some way, to ensure that the things that they've invested in for years and have built up aren't torn down over the next three years," Sherrer said.

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On the Net:

Kansas Board of Regents: http://www.kansasregents.org

Kansas governor: http://www.governor.ks.gov

Kansas Legislature: http://www.kslegislature.org