HUTCHINSON, Kan. — An economist with the Sandlian Center for Entrepreneurial Government at the Kansas Policy Institute sees an opportunity for the 2021 Kansas Legislature to have a large positive effect on the state budget and not even have to change the law.

"We'll have a $119 million shortfall in just two years," Austin said. "Come January, Kansas lawmakers have an opportunity to turn that shortfall into a surplus with just, honestly, one act. It would pave the way for tax relief and get Kansans out of the COVID economic slump that we're in. All it would take is for them not to suspend, not to waive the rainy day fund statute."

That statute requires a 7.5% ending balance in state coffers at the end of a given fiscal year. It has been set aside for the last several years under multiple governors.

"If the legislature can follow this state law and balance the budget under it, the state's ending balance would turn from $119 million shortfall to a $600 million surplus."

This would give enough cushion for if the economy takes awhile to recover post COVID, and policymakers could even decide to cut taxes in the out years, if balances get back to a healthy level.

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 </figure>By NICK GOSNELLHutch PostHUTCHINSON, Kan. — An economist with the Sandlian Center for Entrepreneurial Government at the Kansas Policy Institute sees an opportunity for the 2021 Kansas Legislature to have a large positive effect on the state budget and not even have to change the law."We'll have a $119 million shortfall in just two years," Austin said. "Come January, Kansas lawmakers have an opportunity to turn that shortfall into a surplus with just, honestly, one act. It would pave the way for tax relief and get Kansans out of the COVID economic slump that we're in. All it would take is for them not to suspend, not to waive the rainy day fund statute."That statute requires a 7.5% ending balance in state coffers at the end of a given fiscal year. It has been set aside for the last several years under multiple governors."If the legislature can follow this state law and balance the budget under it, the state's ending balance would turn from $119 million shortfall to a $600 million surplus."This would give enough cushion for if the economy takes awhile to recover post COVID, and policymakers could even decide to cut taxes in the out years, if balances get back to a healthy level.

Austin: Not setting aside rainy day fund law could turn budget around