KANSANS KNOW KANSAS BEST.
Kansas organizations and community leaders publicly oppose tax and expenditure limitations like TABOR.
Find out why.
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The prosperity of our state, our communities and our families depends upon a legislative budget process that encourages fiscal responsibility while allowing elected officials the flexibility they need to respond to changes and opportunities for growth in a timely manner. The importance of flexibility has been evident as Kansas legislators responded in the aftermath of the tornado that nearly destroyed the community of Greensburg … when the state Supreme Court, like courts in many other states, ruled that additional funding was necessary for our education system … and as the federal government stepped up homeland security requirements for states following the 9/11 terrorist attacks. How do TELs work? TELs involve a variety of formulas for restricting state revenues and spending. The formula used in the Colorado version of TABOR is one example, which is based upon the Consumer Price Index (CPI) and population growth. This type of formula is flawed for many reasons, namely because: (1) It equates the items purchased by the average Kansan to the large-scale goods and services purchased by government. Unlike everyday items that consumers purchase, the two primary budget items for government - costs associated with our education and health care systems – rise much faster than the rate of inflation; and (2) As many Kansas communities face a decreasing population, the quality of public structures in those communities - roads, schools, health care - would decline with their population rate.
We cannot anticipate these challenges - such as a public health emergency or a natural disaster; nor can we anticipate opportunities that may be presented by the development of new technologies or new industries interested in bringing jobs to Kansas. Without flexibility, our state and local leaders would be unable to respond to such challenges or opportunities in a timely manner.
What is TEL?
Tax and expenditure limitations (often referred to as “TEL”) are designed to unreasonably limit growth in state and local budgets through a formula of inflation. TELs are intended to replace a deliberative, legislative budget process with an inflexible mandate that is not designed to meet the changing needs of Kansas families and communities. TABOR is the most commonly-known type of TEL.
There are a number of ways that state and local governments impose tax and expenditure limits on themselves. However, TELs tend to fit into three broad categories: those requiring voter approval for tax increases, those requiring a legislative supermajority to approve tax increases, and those tying revenue growth to an economic growth indicator such as inflation or personal income growth. While some types of TELs are worse than others, all of them hinder the ability of elected officials to address the immediate and long-term needs of taxpayers and maintain strong public infrastructure.
What type of formula is utilized?
Who is most affected by TELs?
TELs can have a negative impact on all Kansans by affecting the quality of our schools, health care, transportation system, business climate and public safety. In particular, TELs do not account for Kansas’ aging population. By making it difficult for state and local leaders to respond to the growing health and care-taking needs of our older generations, TELs would either: (1) Force the state to reduce vital services that provide the foundation upon which Kansas families and communities can thrive; or (2) Increase the burden on already hard-pressed younger families.