Sign in Subscribe
Local government

Kansas Governor's Council on Tax Reform Urges Congress to Enact Second Stimulus Package

Strategic Insights

— 2 min read

Governor Laura Kelly has joined the Kansas Governor's Council on Tax Reform in calling on Congress to enact a second stimulus package, particularly provisions that would provide funding for state and local governments to backfill portions of receipts lost due to the COVID-19 crisis. The council, co-chaired by Janis Lee and Steve Morris, unanimously approved a motion to memorialize Congress and the Kansas delegation about the importance of the stimulus package, emphasizing the state's inability to operate with a negative budget balance. Without additional federal support, Kansas would face stiff and painful cuts to state and local budgets, leading to increased unemployment and a prolonged recession.

Key Takeaways:

  • The Kansas Governor's Council on Tax Reform urged Congress to enact a second stimulus package, specifically emphasizing the need for funding to support state and local governments.
  • The council warned that without federal aid, Kansas would face a litany of unattractive policy options, including significant budget cuts, accounting gimmicks, and dramatic revenue enhancements.
  • Governor Laura Kelly reiterated the call for Congress to act as soon as possible, emphasizing the growing likelihood of another recession in 2021 without a second stimulus package.
  • The council emphasized the importance of allowing Kansas to backfill a portion of receipts lost due to the COVID-19 crisis, citing the negative impact on the state's economy and the inability to operate with a negative budget balance.
  • Council member Chris Courtwright added that the stalemate in Congress would result in much worse budget cuts and "sleight-of-hand budget tricks" in Kansas if federal aid is not provided.
  • The Governor's Council on Tax Reform was created by Governor Kelly in 2019 to review the state and local tax system in Kansas and evaluate its adequacy and equity.
  • The council highlighted the need for state and local aid in the stimulus package to avoid significant budget cuts to public schools, infrastructure, and higher education.

Statistics:

  • Kansas faces a projected negative ending balance for FY 2022, leaving policymakers with unattractive policy options.
  • The state's economy could be damaged in the short and long term due to budget cuts.
  • The CARES Act provided a safety net for Kansas citizens and softened the blow of the COVID-19 crisis on the state's economy.
  • A second stimulus package would allow Kansas families to benefit from a second round of stimulus payments and extended unemployment compensation benefits.
  • Businesses would also benefit from a Paycheck Protection Program extension and liability protections.

Sources:

  • Topeka, Kansas, Dec. 5 -- Gov. Laura Kelly, D-Kansas, issued the following news release.
  • The letter to Senator Mitch McConnell, Senator Chuck Schumer, Speaker Nancy Pelosi, and Representative Kevin McCarthy, signed by bipartisan Co-Chairs Janis Lee and Steve Morris.
  • The Governor's Council on Tax Reform meeting in mid-November.
  • The CARES Act.
  • The Kansas Governor's Council on Tax Reform was created by Governor Kelly in 2019.

Read more