The state’s revenue rose about $14 million in March over anticipated collections — and across the nation retail sales continue to show gains over last year. Unemployment has stopped growing. Employers are back in the market for workers. Housing prices seem to have stabilized. Interest rates may be in-creased a tad to nip in the bud any return of inflation.
Kansas lawmakers should take note of all of these positive signs and decide to help recovery along by eliminating at least $350 million of the projected budget deficit with new revenue.
New revenue means new taxes or increases in current taxes.
But won’t raising new revenue slow the economy rather than bolster recovery? Not necessarily. The choice facing the Legislature is whether to cut state spending still further or raise revenue to prevent even more drastic cuts in public school spending, highway maintenance, the court system and other state programs. When public school spending is cut, the effect is recessionary. Ditto for all other state spending.
Adding revenue to cover the projected budget would bolster the Kansas economy because every penny of additional revenue raised would be spent almost as quickly as it was made available. Spending by the state, by the state’s school districts and by all other units of state government makes the state’s economy stronger just as more spending in the private sector does.
Just as important to the future of Kansas is keeping the basic structure of our communities functioning. Further re-ductions in school funding will do damage it will take several years to re-pair.
With all signs now pointing to a steady, if slow, increase in the Kansas and the national economies, our lawmakers should return to Topeka at the end of this month determined to do their part to put their shoulders to the wheel — and push.
— Emerson Lynn, jr.
