Brownback Administration Disputes Budget Gap Projections

By: AP (Posted by Melissa Brunner)
By: AP (Posted by Melissa Brunner)

TOPEKA, Kan. (AP) _ Gov. Sam Brownback's administration is disputing new projections from legislative staff showing that proposed tax cuts would create a budget gap of more than $700 million in 2018.

Revenue Secretary Nick Jordan said Wednesday he's confident an analysis by his office will show no shortfall if lawmakers pass a compromise tax-cut plan. Brownback has endorsed the plan.

Jordan and Brownback's budget director said they disagree with the Legislative Research Department's methods for calculating the cumulative effects of tax cuts in future years. The administration expects to have its own projections Thursday.

Lawmakers in both parties say they want to ensure that tax cuts don't create future budget problems.

The new figures from the Legislative Research Department circulated Wednesday, two days after the same agency projected that the tax plan would create a budget shortfall of $161 million by July 2018. The Associated Press obtained a copy of the projections from a legislative source.

Lawmakers in both parties say they need assurances that the tax plan they pass won't create a shortfall.

The plan, drafted by House and Senate negotiators, would cut the state's individual income tax rates, exempt 191,000 businesses from income taxes and reduce the sales tax to 5.7 percent in July 2013 from its current 6.3 percent.

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