Here’s some information from Americans For Prosperity — Kansas‘ Derrick Sontag. With a budget stabilization fund, Kansas can avoid the events of earlier this week. The bill referred to is House Bill No. 2320.
Earlier this week we learned that the state has suspended its income tax refunds and may not be able to pay state employees due to our poor state finances. We believe this indicates a budget stabilization fund is necessary.
Building reserves during times of tax revenue increases are crucial to weathering a drop in state revenue.
With a budget stabilization, or ‘rainy day’ fund, taxpayers win because it’s less likely a tax increase will be necessary to pay for government services during a downturn. Those who rely on government programs will know money has been saved to ensure state services will continue.
Only five states operate without a budget stabilization fund.
The budget stabilization bill has passed out of committee and will go to the House for floor debate.