The Kansas House early today by a vote of 64-61 adopted the Senate’s plan for a 1 cent sales tax increase, solving the final piece of the budget-and-taxes puzzle that dominated this year’s legislative session.
Conservatives said the tax increase might close the anticipated budget hole for fiscal 2011, which begins July 1, but predicted that another tax increase would be needed next year because of the failure this session to reduce state spending.
The budget plan adopted by both the House and the Senate would increase spending over the current fiscal year by more than $200 million, an effort on the part of Democrats and moderate Republicans to make up for some of the major cuts ordered by the governor after state tax collections dropped due to the weak economy.
“We are spending too much money,” said Rep. Kevin Yoder, R-Overland Park, chairman of the House Appropriations Committee, “and until we rein in spending, we will have to raise taxes or cut budgets.”
House Speaker Mike O’Neal, R-Hutchinson, told fellow Republicans in a caucus meeting before the vote that even if the tax increase passed it wouldn’t solve the state’s problems.
“The tax debate is not ending tonight,” O’Neal said. “This is not a panacea. Even if it corrects the budget problem this year (fiscal 2011), we’re still underwater next year. The heavy lifting we should have done this year to put us in shape for next year wasn’t done.”
O’Neal and other House GOP leaders saw their preferred budget plan, which they said required no new taxes, rejected in large part because most legislators thought it did too little for schools. In any event, the governor had threatened to veto the conservatives’ budget bill had it passed.
After the Senate on Monday evening adopted the alternative House budget plan crafted by Democrats and moderate Republicans, there was no way to fund it except a tax increase.
“This is not a panacea. Even if it corrects the budget problem this year, we’re still underwater next year.”
-House Speaker Mike O’Neal, R-Hutchinson
Those in the House who supported the revenue bill that would take the state sales tax to 6.3 percent effective July 1, said people in their districts preferred it to cutting more government services.
“A lot of us have heard loud and clear from our constituents: ‘We don’t want anymore cuts,'” said Rep. Julie Menghini, D-Pittsburg.
Others acknowledged that the tax increase might be unpopular back home, but voted for it anyway.
“Perhaps I won’t be popular, but it’s my chance to do what’s right,” said Rep. Tom Hawk, R-Manhattan.
There was suspense to the vote for several hours because at first there were a few more red lights indicating “no” on the chamber’s tote board than there were green ones for “yes,” though House leaders had been assured before scheduling the tally that there were votes enough to adopt the tax bill.
A call of the House was ordered, which meant every legislator had to be in the chamber and accounted for before action on the measure could be concluded. The vote was 63-59 against adopting the tax plan for an interval before it switched for some time to 63-61 in favor. The call of the House lasted about four hours and was lifted about 2 a.m. after Rep. Virgil Peck, R-Tyro, drove back to the Statehouse from his home near Coffeyville to vote no.
But Peck’s long-awaited vote wasn’t enough to change the outcome.
A motion to reconsider the action could still be made later today.
After the tax vote, the House also adopted House Bill 2356, which would beef up child care regulations by requiring that every child care facility be licensed and regularly inspected.
Left undone when the House adjourned at 2:40 a.m., was an expected vote on a nursing home provider tax already approved by the Senate and a vote on a Senate-approved transportation plan.
The House resumes work at 2 p.m. today.
The Senate finished its work ahead of the House on Monday and with the House tax vote still dragging on near midnight, adjourned to return at 10 a.m. today.