As Kansas has adjusted it budget in response to the worst economic recession since the Great Depression and the resulting drop in tax revenues, there has been considerable talk about the huge cuts to the state’s budget expenditures.

OVERVIEW

Without argument, there have been cuts to governmental services and education that have been painful. However, every citizen should know some additional information about overall government spending and budgets before coming to firm conclusions:

• Despite the recession, loss of jobs and the significantly lower income of Kansas’ individual and business taxpayers, the Governor’s proposed FY 2011 Budget would increase spending 7% over FY 2010. Under this budget proposal, State General Fund spending would be $1.14 billion higher than FY 2005.
• Due to the deterioration of the State’s economic condition over the past 2½ years, the private sector lost 57,900 jobs from December 2007 to December 2009 while local, state and federal government added 3,200 jobs. (U.S. DOL statistics)
• From FY 2005 to FY 2009, State General Fund spending increased from $4,690.1 Billion to $6,064.4 Billion. Total projected available revenue for FY 2010 is $5,393.5 Billion.
• At the beginning of FY 2008 (June 2008), Kansas had nearly $1 billion in reserves (excess taxes collected over expenditures).
• In Kansas 56.8% of K-12 funding comes from State dollars and 35.8% from local dollars. The national average is 46% State and 44.4% local. For other States in our region, it is 41.1% State and 47.5% local. This is important for Johnson County citizens to know because we are net losers in being able to support our local schools. We export the income, property and sales tax dollars paid by Johnson County citizens (we receive back only $1 out of every $3 sent to Topeka) and the effect is we pay higher taxes than we need to if we could keep out tax dollars locally.
• The breakdown of Kansas spending of General Fund tax dollars in FY 2010: Education $3.6 billion (66%); Human Services $1.2 billion (22%); Public Safety $368 million (7%); General Government $230 million (4%); Ag & Natural Resources $27 million (1%); Transportation $9 million (less than 1%).
• Of the projected $5,393.5 billion in FY 2010 revenue: 47% comes from Individual Income Taxes; 35% from Sales and Use Taxes; 5% from Corporate Income Taxes; 2% from Tobacco Taxes; 2% from Insurance Premium Taxes; 2% from Severance Taxes; 1% from Alcohol Taxes; and the balance from other taxes.