CUs Unmentioned, But $300M Tax Hike On Table
The tax threat would probably be best described as moderate. Our state faces some very real budget challenges at this time. The situation has been exacerbated by a Kansas District Court judge ruling that the formula the state utilizes to finance public schools was unconstitutional under the state constitution and should be revamped. A prior study commissioned by the state legislature stated that an infusion of as much as $1 billion in new taxes would be needed.
The Kansas governor has offered a plan that requires some $300 million in new taxes, including hikes in state property taxes, income tax surcharges, and sales tax increases. Republican legislative leaders are not supportive of the democratic governor's suggested plan.
There has been no public mention of instituting a tax on credit unions.
We haven't had to make any type of public response to this issue since it really hasn't been placed at the forefront. We are currently focusing on issues that would affect the day-to-day operations of credit unions. This includes working with the banking community on legislation of common interest.