TOPEKA, Kan. (KWCH) Kansas budget director Shawn Sullivan detailed the ideas Gov. Sam Brownback has to handle the state's money troubles Wednesday morning.
It is just a proposal, but one that will shape the discussion as lawmakers develop a final budget.
The governor proposes restoring income taxes on passive income - things like rent and royalties. He also wants to increase the liquor tax from eight to 16 percent, and increase taxes on cigarettes and other tobacco products.
He also proposes eliminating the Children's Initiative Fund and funding those programs through the general fund.
The governor believes Kansas should borrow money from the state's long-term investment fund and pay it back over seven years. Plus, he thinks the state should sell 30 years of tobacco settlement payments.
The governor says he could also save money for schools by moving all district employees to state health insurance.
Lawmakers face a projected shortfall of $342 million in the current budget year and gaps in funding totaling more than a billion dollars through June of 2019.
The Kansas legislature must now debate what it likes and what would change before passing a final budget.