Kansas Governor Mark Parkinson and others in his administration are loath to publicly say they want a tax increase to address the state’s budget challenges.

Parkinson promised House Republicans he would make spending cuts, if needed after the 2009 Legislative session, in exchange for less contention over the budget at the end of the session. True to his word, Parkinson made the cuts. But take a look at some recent comments and consider what’s between the lines.

Parkinson addressed the semi-annual convention of the state’s AFL-CIO Thursday, Nov. 19. Here are a few of his comments from the event:

“I’m not sure the shared sacrifice of the state has truly been shared.”

“There were people last year who cut schools, but couldn’t cut tax cuts. People who continue to say we need to cut taxes have the wrong priorities.”

“There are no pressing labor issues in sight this year, but the big issues will require your help.”

“Protecting elementary and secondary education, higher education institutions, state employees, and state operations are labor issues. When people want to cut taxes in a time like this, well, that’s a labor issue, too.”

Parkinson’s press secretary, Beth Martino, said a transcript of the speech is not available but confirmed the accuracy of the quotes. She also said the governor had nothing more to add.

But Parkinson and his Secretary of Revenue, Joan Wagnon, have had more to say.

Monday Parkinson announced a wide range of cuts to balance the state budget and said there was nothing left to cut. He also said, “we cannot make it through this recession by cutting ourselves into an incurable position.  When the Legislature returns in January, together we must look towards building a solution for the years ahead or else we will permanently damage the foundation of our state.”

Wagnon, at several recent appearances, has blamed tax exemptions and cuts enacted since 1995 for the state’s current budget woes. KansasWatchdog obtained the spreadsheet used by Department of Revenue to calculate the cumulative effect of those changes since FY 1995, $9.8 billion through FY 2008.  Wagnon says those tax exemptions and cuts cost another $1.2 billion in FY 2009.  Department of Revenue and Legislative Research analysts acknowledge the calculations are static, making no compensation for enhanced economic activity encouraged by the tax reductions, or revenues that might have been lost if the changes weren’t made.

Also absent from Wagnon’s evaluation was any mention of taxes actually collected over recent years, which have in fact been significant.  For example, State General Fund (SGF) receipts increased 40 percent ($4.2 billion to $5.9 billion) from fiscal years 2001 to 2008, including an 83% increase in taxes paid by businesses.  If the State had also collected the $1.1 billion Wagnon says were ‘lost’ in FY 2008, total tax receipts would have increased 66% rather than 40%.

Wagnon also recently announced a new “Policy Evaluation Guide” (PDF) to guide Legislators and other government officials when considering tax policy in Kansas. Page five of the guide, under “Basic Principles of an Income Tax” calls for “Equity and Fairness – Taxes should be based on the ability to pay.”