FOR IMMEDIATE RELEASE:
April 23, 2015

Tax cut pothole: Highway Fund footing the bill for unaffordable tax cuts

TOPEKA – Plans for maintenance of roads and bridges in Kansas are on hold as lawmakers continue to use money from the Kansas Highway Fund to fill gaps in the state budget caused by counterproductive tax cuts, according to a new report from the Kansas Center for Economic Growth.

For fiscal years 2015, 2016 and 2017, Gov. Brownback has proposed transferring nearly $1.2 billion from the Highway Fund—and this comes after using the fund to pay for programs and services unrelated to transportation, such as mental health grants, emergency communications, K-12 spending and Statehouse renovation debt. In fact, after paying debt and transfers to cover the budget shortfall, less than half of total Highway Fund revenue will go to transportation.

“Kansans depend on high-quality roadways to get to work and school, and businesses need them to get their goods to market,” said Annie McKay, executive director of the Kansas Center for Economic Growth. “We’re putting their safety and our economy at risk by delaying maintenance efforts to pay for tax cuts. Unless we develop a real solution to generate revenue in the state, we will have to continue to rely on the Highway Fund to plug the holes.”

The entire report, “The Future of Kansas is Running on Fumes,” is available on the Center’s website, www.realprosperityks.com.

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Lisa OwenTax cut pothole: Highway Fund footing the bill for unaffordable tax cuts