Income tax policy changes are in the state budget as passed by lawmakers over the weekend. Medicaid expansion is not.
Lawmakers adjourned well before sunrise Sunday after passing the budget. House Republicans were hoping to force a vote on Medicaid expansion after a bill failed to clear a Senate committee last week, but support faded as the weekend progressed. 17th District Senator and Senate Vice President Jeff Longbine of Emporia says concerns about fitting Medicaid into overall budget funding — which already increased money to education, prisons and transportation — pushed lawmakers to pass the budget tentatively in place without adding Medicaid.
Gov. Kelly, Democrats and moderate Republicans had favored expansion to as many as 150,000 residents, but conservative Republicans like 76th District Representative Eric Smith objected.
Senate Majority Leader Jim Denning says a committee will develop an expansion plan and bring that to a vote early next year. Longbine anticipates Medicaid reform will ultimately pass, and could pass as soon as later this year.
Lawmakers also passed a smaller version of an income tax adjustment vetoed by the governor earlier this session. Both chambers passed a tax package that would cut taxes close to $250 million over three years. The bill resembles an earlier effort to help Kansans wanting to itemize state income tax returns and also claim doubled standard deductions on federal returns, according to the Topeka Capitol-Journal, although the tax cut is roughly half the size of the original bill. It would also help multinational companies returning foreign income to the United States. On top of that, the bill would use a portion of internet sales tax revenue to push the food sales tax rate down from 6.5 percent to perhaps as low as 5.4 percent by 2022.
Kelly is likely to veto the bill. She has said the original plan cut too much in tax receipts at a time when revenues are finally stabilizing, so cuts would jeopardize progress over the past two sessions after tax cuts under former governor Sam Brownback.
Lawmakers are set to formally close the session May 29.
Longbine calls the session “one of transformation,” with lawmakers increasing funds to both K-12 and higher education and prisons while reducing money transfers out of transportation to other core services and raising pay rates for state employees. Smith agrees, especially when it comes to corrections and higher education.
6:15 am Monday: State budget passes with income tax adjustment, without Medicaid expansion
State lawmakers have tentatively adjourned the 2019 session with a budget in hand, tax policy changes pending and no expansion of Medicaid.
Lawmakers adjourned well before sunrise Sunday after passing the overall budget and at least one key component that may not get Governor Laura Kelly’s approval. Both chambers passed a tax package that would cut taxes close to $250 million over three years, although the tax cut is about half the size of a package vetoed by the governor earlier this session. The bill resembles an earlier effort to help Kansans wanting to itemize state income tax returns and also claim doubled standard deductions on federal returns, according to the Topeka Capitol-Journal. It would also help multinational companies returning foreign income to the United States. On top of that, the bill would use a portion of internet sales tax revenue to push the food sales tax rate down from 6.5 percent to perhaps as low as 5.4 percent by 2022.
Kelly is likely to veto the bill.
Medicaid expansion, however, did not move out of the Senate last week and efforts among House Republicans to force a vote on the issue faded over the weekend. Gov. Kelly, Democrats and moderate Republicans had favored expansion to around 130,000 to 150,000 residents, but conservative Republicans objected, saying the state had not put enough money into its plan and the federal government could withdraw funding at any time. Senate Majority Leader Jim Denning says a committee will develop an expansion plan and bring that to a vote early next year.
Lawmakers are set to formally close the session May 29. KVOE News has reached out to local and area lawmakers for comment.
