Kansas governor eyes tobacco bonds for budget fix

Reuters ^ | April 20, 2016 | Mark Kauzlarch

[C19fan]

Kansas Governor Sam Brownback offered options on Wednesday for dealing with sinking revenue for the state's current and next budgets, including the sale of tobacco bonds.

With the fiscal 2016 revenue estimated to drop by nearly $94 million and fiscal 2017 revenue expected to be $134.7 million less than previously projected, the Republican governor said Kansas could raise about $158 million through its first sale of bonds backed by its share of a 1998 multi-state settlement with U.S. tobacco companies.

[C19fan]

Gov. Brownback going to the budget gimmick route to balance KS' budget. Brownback a few years ago eliminated KS income tax for small businesses and other tax cuts encouraged by supply siders. That blew a hole in KS's budget and to make up the loss revenue spending has been cut and sin taxes increased. Looks like the fiscal ship is still sinking so now Brownback resorting to gimmicks.

[Gaffer]

Next to come? iPhone surcharges, Nike running shoes, Spanx, Starbucks blends, Sushi, co-partner sex gels, exotic condoms - what the hell ever else these slime bag bureaucrats figure they can tax to mask their gross incompetence, duplicity, inability to service the public and their all-round penchant for providing nothing at the premium price.

[buckalfa]

"That blew a hole in KS's budget and to make up the loss revenue spending has been cut - - "

However spending was not cut enough to balance the budget. Of course unfunded federal mandates are part of the problem, yet it appears so called fiscal conservatives have no desire to be called tight fisted and mean spirited. The fallacy behind supply side economics is the "spending" part of the equation.

[DIRTYSECRET]

My friends: He’s doing what we want. Presidential material. So why doesn’t the state economy grow? No spending cuts?

[lafroste]

IIRC the tobacco settlement was supposed to be used to off set higher health care costs due to tobacco use, and to fund smoking cessation programs. Nothing else. I guess once the lie was no longer needed it was forgotten about. Since the money is not going to its intended use, I think they should give it back to the tobacco companies (with extra to pay for the tobacco companies legal expenses, plus interest, at the time).

[Delta 21]

I think I am the only one in the state that thinks Brownback need to cut more and tell the Feds to PACK SAND!

[Texas resident]

The whole tobacco incident was about money.
The lawyers got the first cut, then they donated the rest to their favorite dimrat politicians.

[lafroste]

I know that. I was being “earnest but naive” as a bit of tongue in cheek.

[NelsonEddyFan]

Kansas’s fiasco has got nothing to do with the Feds.