January 13, 2024
Governor’s Budget
On January 11, 2024 Governor Laura Kelly released her budget for fiscal year 2025 to the Joint Committee of House Appropriations and Senate Ways and Means.
The presentation focused on many, though not all, of the themes from the Governor’s State of the State speech the day before.
The first was to spend $1 billion of the state’s surplus funds for one-time expenditures, those expenditures being split into the categories of capital projects, debt payoff, and community investment.
Second was targeted tax relief to help Kansans. The governor’s proposal would exempt Social Security income from the state income tax, increase the state income tax standard deduction, hasten the elimination of the state sales tax, double the childcare tax credit, and expand the residential exemption on 20 mills property tax. I will focus on the governor’s tax plan later.
Third, was the expansion of the Medicaid program in Kansas. Similar arguments were made in favor of the governor’s proposal, with some alterations, those being a work requirement for enrollees, a new hospital surcharge, and the coverage of health costs for incarcerated individuals in county facilities.
Fourth was education. The governor’s budget seeks to increase spending for early childhood care and education, increase spending for teacher mentor programs, expand pilot programs, and increase state funding for special education and post-secondary education.
Next was water, where the governor proposed fully funding the State Water Plan, establishing a Water Institute at K-State University, and increasing spending for small town infrastructure through KDHE.
Last was pay for state employees. The governor’s budget would increase pay for both entry level and management state employees.
State of the State
On Wednesday, January 10th, 2024, Governor Kelly delivered her State of the State speech in Topeka. In it she remarked on the improvement Kansas has seen in the past several years and her priorities for this session. Such improvements were greater business investment and increased infrastructure investment, both being accomplished with bipartisan support.
Regarding her priorities, Kelly spoke first on protecting Kansas rural communities. She remarked on the strong values of our rural areas, their importance in our economy, and the need to improve their quality of life, to which I agree heartily. Kelly then pivoted to Medicaid expansion, which is unlikely to move forward. Next was public education, focusing on funding for special education and opposition to school vouchers.
Kelly next moved to taxes, aiming at earlier elimination of the state’s sales tax and reducing others. Kelly’s final topic was water conservation, highlighting its importance and sustainability.
Governor Releases Tax Plan
On the first day of the 2024 Legislative Session, January 8, Governor Kelly released her plan for reducing taxes.
The first provision of her tax plan is to exempt the first $100,000 in state property taxes for all Kansas homeowners. Raising the exemption will cost $100 million.
The plan entirely eliminates state taxes on Social Security income. Eliminating the tax on Social Security income will save around $525 million for retired Kansans.
The tax plan increases the standard deduction many Kansans use to reduce their taxable income. The plan raises the standard deduction for single Kansans from $3,500 to $5,000, for those with head of household filing status from $6,000 to $7,500, and for those married filing jointly from $8,000 to $10,000.
The tax plan eliminates the state's sales tax on groceries and ingredients by April 1 this year, instead of waiting until 2025. It also eliminates the state sales tax on diapers and feminine hygiene products.
Additionally, her package doubles the Child and Dependent Care Tax Credit that parents can claim to help pay for child and dependent care while they work or attend school. These tax credits are estimated to save Kansas families $18 million over three years.
The plan creates a back-to-school state sales tax holiday, even though it has been proven that such does not work.
I find it ironic that the governor has introduced this plan with many components that would have provided tax relief last session had she not vetoed it, twice.
Contact Information
Anytime that you would like to participate and listen to the developments of committee hearings or discussion on the House floor, you can tune in by video or audio at www.kslegislature.org.
As always, if you have any concerns, feel free to contact me at 785-296-7672, follow on twitter at @waymaster4house, or email me at [email protected].
It is a distinct honor to serve as your representative for the 109th Kansas House District and the state of Kansas. Please contact me with your thoughts, concerns, and questions.
I always appreciate hearing from the residents of the 109th House District and others from the state of Kansas, as well.
Rep. Troy Waymaster is the House Appropriations Committee chairman and representative of the Kansas House 109th District which includes Ellsworth, Lincoln, Osborne, Russell, and Smith counties.