Governor Brownback Reveals Proposed State Budget and Plan to Address Revenue Shortfall
Kansas Governor Sam Brownback revealed his budget proposal to address the $250 million shortfall in Fiscal Year (FY) 2015 and the projected $650 million shortfall in FY 2016. With regard to tax policy, the Governor proposes to delay any future income tax rate deductions by freezing the current income tax rates – 4.6% for the top rate and 2.66% for the bottom rate in 2016. In addition, the Governor’s plan would accelerate a haircut for itemized deductions, including the mortgage interest and property tax deductions, that were supposed to take effect in 2017 but would now take effect on January 1, 2015 to generate additional revenue fast. These deductions were supposed to mirror the annual income tax cuts in the statute but now will be phased out without any of the corresponding tax cut benefits. Below you will find a Power Point presentation on the Governor’s plan from Shawn Sullivan, the Kansas Budget Director.