TOPEKA – Today, Governor Laura Kelly visited Elmont Elementary School in Seaman School District to announce her veto of House Substitute for Senate Bill 169. The bill, which would overhaul the state’s tax structure to establish a flat tax rate, would cost the state $1.3 billion over the next three years and put public education funding at risk. Governor Kelly also announced her proposal to spend the one-time budget surplus on a tax rebate of $450 for individuals and $900 for married taxpayers filing jointly.

“Our public schools were one of the biggest victims in the legislature’s last tax experiment and are one of the many services that would take a hit should this bill become law,” said Governor Laura Kelly. “In my first term, I made a commitment to getting our state back on track. I’m proud of how far we have come, but we can’t risk turning back now. I’m calling on legislators to put this one-time surplus back in the hands of taxpayers — without risking our ability to continue fully funding schools and investing in roads, bridges, and essential services.”

Included in H Sub SB 169 is a 5.15 percent flat income tax – or a single tax rate applied to all taxpayers. Just like with the “tax experiment” under Governor Brownback, the flat tax poses risks to funding for public education, roads and bridges, and other essential services. Middle-class taxpayers would see less than $100 in annual savings from the flat tax, but it would cost Kansans their public schools. Already, legislators are proposing cutting money from public schools in this year’s K-12 Education budget in order to pay for this tax cut.

Governor Kelly’s proposal for a one-time tax rebate provides relief to all Kansas resident taxpayers without breaking the bank or jeopardizing funds for our public schools.

The following veto message is from Governor Kelly regarding her veto of House Substitute for Senate Bill 169:

“Kansans know all too well where irresponsible, costly tax experiments lead: to underfunded schools, to deteriorating roads and bridges, and to essential services being cut.

“This bill would upend our tax system and throw our state’s budget out of balance long-term. There is no question: Just like under my predecessor, this tax plan would be paid for by cutting funds from our public schools. Already, those same legislators have proposed cutting millions of dollars from public schools, and particularly rural schools. I won’t stand for cuts to our public schools, period.

“To be very clear, I want to cut taxes for everyday Kansans. That’s why I’ve proposed targeted, responsible tax cuts on groceries and Social Security, and it’s why I’m proposing a tax rebate, this year, of $450 for individual taxpayers and $900 for married couples filing jointly.

“Legislators should put this one-time surplus back in the hands of taxpayers – without risking our ability to continue fully funding schools and investing in roads, bridges, and essential services.

“Therefore, under Article 2, Section 14(a) of the Constitution, I hereby veto House Substitute for Senate Bill 169.”