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The following media release from the Governor's Office has been truncated. To view the press statement in its entirety, click here.

From the Office of the Governor, Topeka - To keep the state moving forward out of the economic recession, Governor Mark Parkinson signed House Substitute for SB 572, providing appropriations for Fiscal Year 2010 through FY 2015 for various state agencies.

“I could not be more proud of Kansas. After rounds of budget cuts to our state’s schools, public safety programs and aid to the elderly and disabled, we were faced with a critical decision – either keep cutting and do permanent damage to the foundation of our state, or pass a temporary one-cent sales tax to move our state forward,” said Parkinson. “We have seized the opportunity to put Kansas ahead of the curve in attracting jobs and stimulating the economy while other states continue to struggle. While challenges may still lie ahead, our biggest obstacle has been conquered. Now, Kansas is poised for the economic recovery that it deserves.”

Governor Parkinson put forth his vision of how to solve the challenging state budget crisis in his State of the State address, calling on the legislature to uphold its commitment to Kansas education, public safety and aid to vulnerable citizens. After cutting the budget more than any governor in Kansas’ history, Governor Parkinson urged lawmakers to pass a temporary, one-cent sales tax increase to help fund the critical services that make Kansas strong and strengthen the economy.

House Substitute for SB 572 also includes the Omnibus Appropriation Act and the Omnibus Reconciliation Spending Limit Bill for the 2010 regular session providing the State’s Fiscal Year 2011 budget bill. The bill takes effect upon its publication in the Kansas Register.

Governor Parkinson also signed Senate Sub for HB 2360, the necessary revenue package to fund the budget. The legislation enacts a state sales tax increase, amends the Kansas Taxpayer Transparency Act, expands the food sales tax rebate program, and expands the state earned income tax credit program (EITC).

First, the bill increases the state sales tax rate from 5.3 to 6.3 percent. The rate will be reduced to 5.7 percent on July 1, 2013 with the remaining .4 percent provided to the State Highway Fund. The bill also raises the eligibility ceiling for the food sales tax rebate program from $31,900 to $35,000, and provides that the Kansas EITC be increased from the current level of 17 percent of the federal EITC to 18 percent for tax years 2010-2012.

Finally, the bill amends the Kansas Taxpayer Transparency Act so the Secretary of Administration is required to include tax expenditure information provided by the Department of Revenue on a searchable website. The bill takes effect upon its publication in the Kansas Statute Book.

Governor Parkinson submitted his signature for House Substitute for SB 572 except for certain sections that were line-item vetoed. His message to the legislature regarding the vetoes is as follows:

Division of Post Audit—Financial Compliance Audit

That portion of Section 46(b) that reads as follows has been line-item vetoed:

“And provided further, That the division of post audit is hereby authorized to fix, charge and collect fees for the costs of financial-compliance audits under K.S.A. 46-1106, and amendments thereto: And provided further, That such fees shall be fixed to recover the expenses incurred for financial-compliance audits under K.S.A. 46-1106, and amendments thereto:”

This FY 2011 appropriation language for Legislative Post Audit was offered as an alternative to providing the Division with a State General Fund appropriation. Because the Legislature’s budget was enhanced by $639,522 beyond what was intended, I hereby line-item veto this appropriation language as an unnecessary assessment on the other state agencies that cannot afford to finance the statewide audit. From within the Legislature’s appropriation, funds could be transferred to Post Audit in order to finance this audit, once the actual costs are known.

Department of Education—Uniform Chart of Accounts

Section 79(l) has been line-item vetoed in its entirety.

At a time when school boards are making difficult budget decisions, including increasing class sizes, closing buildings, eliminating course offerings and imposing instructional and professional staff layoffs, the policy to require additional financial reporting causes a costly and unnecessary administrative burden. The Department of Education already requires a uniform chart of accounts for school district budgets. In fact, the State Department of Education already provides on its website a copy of the uniform chart of accounts, the complete budget for each school district, as well as the “Budget at a Glance” and a budget profile for each district in Kansas. As a result, I find it necessary to veto this section of the budget bill.