(April 5, 2024) – Yesterday, the Senate voted 38-1 on a tax plan contained in Senate Substitute for House Bill 2036. The legislation reduces the top marginal income tax rate, exempts social security income from the individual income tax, increases the standard deduction amounts, increases the child and dependent care tax credit, reduces privilege tax rates, abolishes the Local Ad Valorem Tax Reduction Fund and County and City Revenue Sharing Fund, increases the amount of the appraised value of residential property exempt from the Statewide Uniform School Finance Levy, and reduces the mill levy, accelerates the elimination of the state sales and compensating use tax rate on food and food ingredients. After passing the Senate, the CCR went to the House, where it didn't pass on a voice vote.

The House had previously passed House Substitute for Senate Bill 300 that restructures the individual income tax brackets with reduced tax rates, exempts social security income from individual income tax, increases the standard deduction and personal exemption amounts and provides future increases with a cost-of-living adjustment, reduces privilege tax rates, reinstates the transfer from the State General Fund to the Special City and County Highway Fund and abolishes the Local Ad Valorem Tax Reduction Fund and County and City Revenue Sharing Fund, and increases the amount of the appraised value of residential property exempt from the Statewide Uniform School Finance Levy and reduces the mil levy, and accelerates the elimination of the state sales and compensating use tax rate on food and food ingredients. The legislation passed the House on March 27, on a vote of 123-0.

The topic, identified as a bi-partisan priority for the 2024 session, is now likely to be revisited in a conference committee and handled later in the veto session.

Also stalled, is the education funding legislation contained in the CCR for House Substitute for Senate Bill 387. The legislation, which makes changes for fiscal years 2024, 2025 and 2026, establishes the Education Funding Task Force, abolishes the Special Education Task Force, revises special education state aid, requires the Kansas State Board of Education to establish a special education state aid equalization distribution method, establishes a pilot program to require certain school districts to submit an at-risk accountability plan annually to the Kansas State Board of Education, prohibits the Kansas State Board of Education from substantially revising curriculum standards in English and math until 75 percent of all students achieve academic proficiency, allows certain students who do not reside in the school district to continue enrollment, limits instances of selling property without meeting certain requirements, changes determination of virtual school state aid and allows such students to participate in activities regulated by Kansas High School Activities Association. The Senate did not advance the measure on a vote of 12-26. Work on the legislation will continue in the conference committee.

The Senate voted 20-19 to reject an election reform bill included in CCR on SB 14. The legislation changes elections outside of presidential preference primaries to voter registration deadlines, the timeline the advance voting ballots must be mailed and received, and makes changes to advance in-person voting. The legislation, which had passed the House on a vote of 73-48, now goes back to the conference committee for additional work.

The Senate also voted to send the CCR for SB 423 back to the conference committee. The legislation, which changes oversight of the State Employee Health Plan to the Kansas Insurance Department and changes the make-up of appointments to certain boards, saw Chairman Jeff Longbine (R-Emporia) motion to send the report back to the conference committee for more work.