Straight Talk from Rep. Knox

March 13, 2006

The Kansas House of Representatives is coming closer to considering several issues that will define the 2006 legislative session.  While the House has already approved Jessica’s Law, cut taxes on Machinery and Equipment, and raised the age of marital consent, there are other major issues set for debate.  This week, the franchise tax, workman’s compensation reform, private prisons, and concealed carry are among those likely to face floor action.

Immigrant in-state tuition - The House, in a 63-58 vote to gut the bill, failed to repeal the state’s illegal immigrant tuition statute this last week. This was hard for me to understand because our present statute breaks federal law, is the subject of lawsuits, and is disapproved by the vast majority of Kansans.

Justice confirmation crashes - The Senate rejected, 22-17, a resolution that would let voters decide whether the Senate should confirm nominees to the Kansas Supreme Court. A two-thirds majority of 27 votes was needed. The resolution had 28 original sponsors with six of them voting against it in the end. Though this will be unpopular with Kansans of both parties, the next senatorial election is two years away. They think we’ll forget.

A bill to phase-out the Kansas franchise tax is out of committee.  HB 2548 would eliminate the tax over a three-year period. The franchise tax is basically a tax on the capital of businesses, and it’s now $1.25 per $1,000 of capital. The phase-out will cost the state $14 million in lost revenues the first year, $28 million the second year, and finally the entire $42 million will disappear. The reduction and eventual elimination of the franchise tax in Kansas should encourage more businesses to establish franchises in Kansas and provide a further incentive to retain those currently located within the State. 

This last year state revenue was up about $300 million. This was not due to a tax increase but because of a thriving economy. When you and I make more money, we pay more taxes and we are happy to do it, it’s that simple. Much of legislation this year is aimed at stimulating the Kansas economy in the years to come. If we can do this, we will all be happy. The problem is that we are committing to less income on several fronts in the coming year, while proposed additional huge increases in school finance are staring us in the face.

May I point out that we added $300 million (I voted for $290 million of that) to schools last year? That was not a bonus but a raise – that is we will also give that $300 million to schools again this year, and the next, and so on. Also, we built in increases every year. That’s the $75 million additional this year called for in the Governor’s budget. This was the equivalent of a $500 million four-year plan, though we did not call it that. Now we are hearing about even more money, an additional $500 million three-year plan. All together, by the year 2009, with only our existing plan, we will add about $1.6 billion of new money to schools. With the proposed $500 million plan this will cost over $2.4 billion total. That additional $800 million is projected to be in the red. Did you get that? With our present law, over one and a half billion dollars of new money will go into Kansas schools over a four year period. Is that enough?  

I want to hear from you.  Please contact my office by phone at  (785-296-7678), by US Mail at (Docking State Office Bldg – 7^th Floor, 915 SW Harrison, Topeka, KS 66612) or by email at (knox@house.state.ks.us) during the Legislative session.