NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Americans For Prosperity Legislative and Coalitions Director and Kansas Economist Michael Austin told Hutch Post that on December 13, the Kansas legislature got a grim holiday forecast. The state's nearly $2 billion surplus is set to vanish by 2029. Austin believes that the solution to that issue needs to come on both sides of the income and spending equation by implementing spending caps.
"Think of it like a financial thermostat for the government," Austin said. "Just like a thermostat might prevent your home from overheating, a spending cap can limit government budgets from spiraling out of control. It ties spending to sensible factors like inflation, population growth, private economic activity, all ensuring that the government lives within its means."
Other states have implemented such measures. As an example, the Taxpayer's Bill of Rights, is a Colorado constitutional amendment that limits the amount of revenue that state and local governments can collect and spend.
"If a Kansas politician promises you more tax relief, you need to respond by asking them this, where is the spending cap? Because without it, any promise of tax relief is as empty as a government office on a Friday afternoon," Austin said. "You have to keep the golden rule of fiscal policy, which is the private sector must grow faster than government spending. If it doesn't, then that means meaningful tax relief will vanish and Kansas families and businesses will be left footing the bill for tomorrow's tax hikes."
Taxpayers across Kansas are seeking property tax relief, but much of that rests in the hands of more local entities, like cities, school boards and counties, rather than the state government. One thing the state can do, though, is continue to put downward pressure on income taxes.
"The legislature's actions last year ultimately ended with a compromise going from three income tax brackets to two, but by all means, I think we need to finish strong," Austin said. "It goes to show that even, you know, even if we are to pass a bill to lower income taxes, or even if we can pass a bill to lower property taxes, none of it will be sustainable unless we get a spending cap, unless we get a spending limit."
It's up to the 2025 Kansas Legislature to craft a spending limit that allows for vital government services to continue, while slowing or stopping overall spending growth.