Kansas Issues $840 Million Debt Certificate To Cover Brownback’s Trickle Down Catastrophe

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It is more than likely that there are very few Americans who still believe that the Republicans’ only economic policy, trickle down, is anything but a raging failure. Obviously, Kansas residents suffering a continued financial catastrophe still believe their governor, Sam “trickle down” Brownback, when he promises that the god-sent trickle down scheme to enrich the wealthy at the expense of the state’s budget, the poor and middle class, education, and social services will make the state the envy of the entire nation. Now, after a record-setting tax hike on the poor and middle class and truly Draconian social service cuts, the state is so broke that Brownback and Republicans had to resort to issuing a certificate of indebtedness to prevent the state from complete financial demise. It is the second year in a row that Brownback’s disastrous trickle down experiment resulted in going in debt to keep the state solvent while the rest of the nation not under Republican control is experiencing economic growth.

A certificate of indebtedness is a form of monetary obligation that is sometimes issued by a public entity or private corporations that are, for all intents and purposes, like a bond; except they are not secured. A certificate of indebtedness is, then, effectively what a normal American would consider an I.O.U., and depending on the person or entity issuing it, likely worthless as far as having any legitimacy for making purchases or paying debts.

One thing is certain; in the real world Republicans perpetually cite, no American family would even consider walking into a grocery store, or schedule their car to be serviced, and expect them to provide a product or service in return for an IOU. In fact, it is highly likely that no American would consider trying to make a purchase or schedule a service without having access to the available funds. Instead, they would seek a means, likely by taking a second job, to bring in enough revenue to pay their bills and buy their groceries.

This week, after yet another year of crushing debt due to severe revenue shortfalls borne of “fiscally-responsible” trickle down tax cuts for the rich and corporations, Kansas Republicans and Governor Sam “fetus” Brownback signed off on the state’s largest tax increase on the poor and middle class and issued a record $840 million certificate of indebtedness for the upcoming fiscal year.

The desperation move came as Kansas’ budget director verified what Sam Brownback, Republicans in the legislature, and most of America have known for three years running; due to Brownback’s failed repeat of Bush-Republicans’ 8-year failed trickle down experiment he said his god overwhelmingly approved, the state government would have insufficient resources to meet its obligated expenditures in the fiscal year starting tomorrow, July 1, 2015.

The new Kansas record for an IOU in lieu of paying its debts eclipsed the previous record that was set during the 2009 fiscal year after Bush-Republicans’ Great Recession crashed the state’s revenue and after deep cuts failed to stem the budget crisis. At the time, the Kansas State Finance Council issued three certificates of indebtedness to borrow a total of $775 million that foreshadowed a 1-cent, three-year increase in the statewide sales tax in 2010 to put the onus on the poor and middle class, again, to make up for another Republican (Bush’s) trickle down failure that contributed to the Great Recession. Just about one year ago the Finance Council approved another indebtedness certificate to the tune of $675 million for the currently-ending fiscal year that trickle down Sam had promised was the last time because he swore that Kansas’ fiscal fortunes would miraculously improve because tax cuts for the rich and corporations, and therefore less tax revenue, was certain to bear trickle down fruit and bring in much more tax revenue.

That is, after all, what Governor Sam Brownback promised throughout his re-election campaign while he held up the fetus card, but when the Republican-led legislature returned for work in January they were confronted with exactly what any sane human being should expect when tax cuts for the rich and corporations produce less tax revenue; another crushing revenue shortfall that required a series of mid-year budget cuts to education, government, and social services. Recently, when even drastic budget cuts failed, as expected, to bring in more tax revenue, Brownback and Republicans passed a record tax increase affecting the poor, middle class, and typical of Republicans, managed care facilities for the elderly and disabled. Still, like any American knows, slashing a budget or cutting expenses does not, and cannot, bring in more revenue.

Instead of even considering rolling back unfunded tax cuts for the rich and corporations, Republicans and their hero Brownback approved $400 million in tax hikes in an attempt to close the certain 2016 fiscal year budget deficit. Those tax hikes affecting the poor and middle class were general sales taxes on necessities like groceries, eliminating middle class citizens’ itemized deductions, and imposing a tax increase on managed care facilities. The tax hikes on the poor and harsh budget cuts were no solution for the Kansas revenue shortfalls and going deeper in debt was Brownback and Republicans solution of choice.

According to Brownback and Republican legislation, instead of ending tax cuts for the rich, the governor had to come up with $50 million in budget cuts and he naturally cut education, healthcare, and social service funding. It never entered Brownback’s mind to rescind even part of the tax cuts for the rich and corporations because he has promised for three years that cutting revenue by giving the wealthy and corporations tax cuts increases state revenue and allows wealth to ‘trickle down’ to the poor and middle class.

On Friday last when Democratic lawmakers gathered at the state capitol for ceremonial final day of the annual legislative session, they expressed exactly the same exasperation they have over the past two years with expansion of the state’s debt that must be repaid by June 30, 2016. Obviously their exasperation is due to increasing the state’s debt obligation after Brownback squandered the budget surplus he was left by his predecessor, but also because they are well aware there is no possible way the state’s revenue is going to increase as long as Brownback’s tax cuts for the rich and corporations stay in place and cut revenue.

The Kansas House Democratic Leader, Tom Burroughs, uttered the obvious and said this record-setting escalation in borrowing “illustrated the precarious financial condition of state government.” Burroughs also noted that the only reason the state budget is in freefall is because of the trickle down decisions in 2012 by Brownback and the Republican-led legislature that foolishly exempted 330,000 businesses from paying income taxes and slashed individual income tax rates primarily affecting the very rich. Burroughs’ said “This is a direct result of Governor Brownback’s failed fiscal experiment. Until members of the legislature take steps to implement a responsible and sustainable budget, the state will continue to be forced to borrow money to cover expenditures.” The Kansas Senate Minority Leader, Anthony Hensley, was more blunt and said that the state’s budget woes are entirely due to Brownback and Republican legislature’s “incompetence and mismanagement” of the budget. Hensley said that “Governor Brownback and the Republican Legislature are responsible for the largest tax increase in history and, now, the largest certificate of indebtedness in history.”

What neither Hensley nor Burroughs would say out loud is that unless Brownback and the GOP legislature rescind, or at least drastically roll back, tax elimination for corporations and tax cuts for the rich, next year at this time Kansas Financial Council will be forced to issue yet another, record setting, certificate of indebtedness while Brownback and Republicans make more drastic budget cuts, pass another tax hike on the poor and middle class, and then promise yet again that tax cuts for corporations and the rich will create a revenue bonanza the entire nation will marvel at; it is the same promise Brownback has made for the past three years and the results have been, and will continue to be, the same.

It was a mystery why Kansas voters re-elected Sam Brownback and a Republican-dominated legislature when everyone of the state’s residents were aware that the state’s financial catastrophe was due to Brownback’s failed trickle down ‘experiment.’ Still, Brownback knew that all he had to do to guarantee he would get four more years to completely decimate the state’s economy was drag out that tired old fetus to bring out the religious right vote. Maybe it will take resident’s seeing their state in bankruptcy, their roads crumbling before their eyes, and schools, hospitals, and law enforcement agencies closing down before they come to their questionable senses.

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28 Replies to “Kansas Issues $840 Million Debt Certificate To Cover Brownback’s Trickle Down Catastrophe”

  1. You mean $840M, I think – and to who are these certificates being issued? Any business keeping track of Kansas politics would be wary, I think, of accepting such an unsecured payment as legal tender, unless the state is telling them “it’s this or nothing”.

  2. Read this carefully: Your elected governor is your property manager, not your overlord. Your State governor does not have the authority to deny your Federal Constitutional rights. You are a resident, not a subject.

    Repeat as necessary.

  3. If ‘We, the People’ refuse to pay to educate ALL our citizens, someone else will. Have some favor-aid……

  4. If Americans felt that way, they wouldn’t have re-elected the Republicans. KS, MI, WI, LA…had budget problems, yet, these jackals incompetence were re-elected. Americans don’t know !/+?!

  5. Sorry, that was a very repetitious article. I kept thinking I was reading the same paragraph over and over. Kind of like Brownback’s repetitious tax cuts for the rich. Perhaps a graph would have been easier to understand. Sighting the loss for each year. Perhaps if the people of Kansas saw a graph they might vote differently too!

  6. I have no sympathy for the people of Kansas. They had their chance to get rid of Brownback and they re-elected him instead.

    They deserve whatever they get.

  7. This is no surprise to me because the only time GOP/TPers fake concern about debt and/or deficits is when there’s a democratic president or governor in office. I noticed how quickly they stopped talking about the U.S. deficit when the unemployment rate began to fall. They then pivoted to talking about their fake concern for the high unemployment rate among some Black Americans. If it wasn’t this, they were talking about the “reel” unemployment rate. These are not serious persons because their concerns are totally dependent upon which political party is in power. They didn’t have one word to say while GWB was running up the deficit, but they became overly concerned and began to rant after PBO entered office and began to clean up the mess GWB had created. Now 77% of them have recently said they’d vote for Jeb, which would be more of the same mess we got when his big brother was in office. SMDH.

  8. ‘Just Be Glad You Don’t Live In Kansas’

    “When we last visited the sorry state of Kansas, Gov. Sam Brownback—a former short-lived GOP presidential candidate—was showing us what happens when a right-wing ideologue tries to impose his utopian fantasies on the real world. Predictably, the result has been disastrous”.

    BROWNBACK: Why We MUST NOT Elect Another GOP President 2016!
    Until The GOP can straighten-up and Fly Right!

    http://www.gazettextra.com/20150612/dick_polman_just_be_glad_you_dont_live_in_kansas

  9. At this point Brownback wouldn’t mind a good tornado to blow through, and shower his state with federal disaster-relief handouts. It would give the state a little stimulus, without seriously inconveniencing wealthy Kansans.

  10. That’s Oklahoma Gov. Mary Fallin’s M.O.

    When in the U.S. Congress she voted against funding federal disaster aid every time it came up but as Gov. of Oklahoma since 2011 she has requested federal disaster aid for multiple weather-related disasters EVERY YEAR!

  11. Kansans, you got what you voted for. Now when all those fetuses are born into poor homes, who is going to make sure they are fed? You care so much for the fetus, but could care less about the child. Can you say hypocrite?

  12. The disaster relief money from the Feds is supposed to be just that, recompense for natural disaster, not to bolster their general fund or to save them from their ineptness. Republicans apparently consider earmarked disaster relief funds as their own to do with as they please, too bad about those poor displaced citizens. See also: Hurricane Sandy/Chris Christie for a typical example.

  13. It appears to me that Mr. Brownback’s God- either:

    A) Wanted America to have yet another well remembered example of Trickle Down.

    or

    B) Is in fact- Loki.

  14. Don’t think the rethugs will ever straighten up and fly right. Examples: all the red states that have re-elected the very ones who brought them to the brink of destruction. The ones elected, seem to be DRUNK on what they see as power. Power to do as they please. The Constitution means nothing. “Just another piece of paper” The Supreme Court means nothing. When you have republican’s after a Supreme Court decision, tell their population to disregard the decision, of the Court, you have (leaders) who are willing to bring their country to it’s own destruction. NONE OF THESE LEADERS ARE TRUE AMERICAN’S. they are TRAITORS!! should be treated as such.

  15. We should all pray for Kansas. We need lots of prayers for the poor and working class. Our state is headed for ruin with the current so called “leadership”.

  16. The strategy is simple: Republicans campaign on the theme that government doesn’t work, they get elected and prove the really can’t govern. Then the people realize the folly of GOP governance, vote a Democrat into office who then has to raise taxes to fix the morass and right the ship of state. Next election, Republicans campaign against the Tax and Spend Democrats, gets elected and starts the mess all over again. Voters never learn…and they count on it.

  17. To be perfectly honest, I don’t think the citizens of Kansas or them other red(BLEEDING) States can see at all. I have NEVER seen such a bunch of mindless fools in my life. I sure hope the Feds. do NOT give them any $$$$$. I say let the Bas&%$@s figure it out for themselves. They wanted that MORON, let em starve with him. Oh that’s right, he has the COCK BROS. to feed his dumb ass!

  18. Why don’t you folks can it! There are plenty of people who wanted this sick asshole out of office. In my neighborhood, which is a working man’s neighborhood, I see multitudes of homes for sale. A couple of these homes have been held by their current owners for a year. They are surly courting financial disaster but find it worth it to get out of here.
    There are plenty of dummies here and a lot of suckers who fell for the mind bending tactics used in reelecting this idiot. I agree that the suffering will eventually get to “them” but, so far they have been safe. That is changing as farmers are mad as hell because of cuts to KDOT which maintain the roads and bridges, which are critical to them. In the burbs outside of Topeka, a road and bridge project was suddenly shut down and the road closed. This is a main artery into town and people are angry. Tax hikes are now starting to kick in for these people and they are screaming as loudly as inter-city residents. We all want out!

  19. …I for one know what that’s like, on a lesser scale: I live in Wisconsin…our Koch-sucker Walker was elected, re-elected AND survived a recall solely due to a widespread apathy of folks who got disgusted by Teatard BS, and just stayed home…didn’t think voting was even worth a tinkers dam…

  20. Some of us who live in Kansas don’t believe that Brownback was actually re-elected. There have been whisperings since immediately after the election that it had been tampered with.

    I sure know I didn’t vote for the man. Even if the election results are accurate, realize that over half the voters went against him. He won with only 49.8% of the vote. Davis, the Democrat challenger, received 46.1% of the vote. Think about that. In a conservative, red state such as Kansas, nearly HALF of the voters preferred a Democrat over a Republican for Governor. Please don’t paint all Kansans with the same brush.

  21. Stealing from Peter (The American Working Poor and Middle Class) to pay Paul (the leeches known a the corporate oligarchy). Just one more example of G.O.t.P. incompetence and unbridled greed.

  22. How fascinating that Brownback got re-elected even though RealClearPolitics thought that he was going to be hosed, isn’t it?

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