TOPEKA, Kan. — With Kansas facing a projected $279 million budget shortfall after enacting aggressive tax cuts, Republican Gov. Sam Brownback proposed Tuesday to trim spending and divert funds for highway projects and public pensions to general government programs.
The plan, which applies only to the current budget year, avoids reducing aid to the state's public schools, its Medicaid health care program for the needy, prison operations or state universities. Budget Director Shawn Sullivan outlined the details in interviews and said the administration believes agencies that do face cuts can find efficiencies to avoid hurting any programs.
"These first steps are a down payment in resolving the immediate budget issue," Brownback said in a statement, adding that his administration is addressing the shortfall with "good fiscal governance" while protecting education and public safety.
The plan drew immediate, bipartisan criticism from state Senate leaders because it would divert $41 million from the pension system for teachers and government workers. Obligations to retirees over the next two decades are only 60 percent funded, and that figure was expected to climb over time thanks to a 2012 law that increased both the state's and employees' contributions to stabilize the system's long-term health.
"It reneges on the commitment that was made," said Senate Minority Leader Anthony Hensley, a Topeka Democrat.
In his successful re-election campaign, Brownback pointed repeatedly to the pension fixes — which promised full funding of its obligations in 2033 — as a major accomplishment.
"Governor Brownback is threatening to undo all of the hard-fought gains that we have made," according to Senate Vice President Jeff King, chairman of his chamber's pensions committee.
The governor has the authority to order budget and pension-funding cuts to avoid a shortfall for the current fiscal year, which began in July. Major state departments will face a 4 percent cut in spending for January through June, including the Legislature.
