FOR IMMEDIATE RELEASE – May 29, 2009
Contact: Jen Rezac (785) 354-4237

TOPEKA – The state’s financial situation continues to deteriorate with news today that state income tax refunds are to be delayed for a second time this fiscal year. Withholding tax refunds is simply the result of irresponsible budgeting practices in this session and years prior, said Americans for Prosperity-Kansas state director Derrick Sontag.

“For years, our state budget has grown beyond its means,” he said. “Just two years ago we had nearly a billion dollars in the bank, but our spending increases to the tune of 48 percent from 2004 to 2008, left us with an ending balance of just $17,000 for the 2010 Fiscal Year.

“Had a majority of our legislators thoroughly examined the budget, prioritized expenses and made the cuts necessary to rid us of wasteful spending, we wouldn’t be withholding this money that belongs to Kansas residents.”

Kansas is one of five states operating without a budget stabilization fund. Sontag said such a fund would have allowed our state to weather this economic downturn without drastic measures such as delaying income tax refunds, raising taxes, or slashing essential services.

“This year both chambers approved a version of the budget stabilization fund, but it did not receive final approval,” he said. “The latest development in our state budget indicates that a rainy day fund is vital to see our state through financial difficulties.

“We urge our state’s elected officials to correct this budget situation without dipping further into the pockets of Kansas taxpayers, and we will encourage them to create a state savings account in the next legislative session so we are not put in this situation again in the future.”