By Gene Meyer
December 8, 2009

(KansasReporter) OVERLAND PARK, Kan. - Kansas may need to consider either raising some taxes or reducing some current tax exemptions to avert cuts in spending next year, Gov. Mark Parkinson said today in Overland Park.

The governor, speaking to members of the Overland Park Chamber of Commerce, rejected one potential new tax revenue source. “I’ve never supported a sales tax on services and I never will,” he said, drawing applause from Chamber members.

But in a brief question and answer session with reporters after the meeting, cut short because of the snowy weather outside, the governor indicated some other forms of tax increases, new taxes, or reduced tax exemptions may be considered in order to prevent further budget cuts.

Recession in Kansas has caused a steep decline in tax revenues which has led Parkinson and other state officials to cut what he said today was about $1 billion out of an original $6 billion budget for the fiscal year ending next June 30.

Now the state is looking at another budget gap in fiscal 2011, which Parkinson estimated will likely be around $300 million. He also said that all the options for resolving that budget gap must be considered, including possible tax increases or in reductions of current tax exemptions.

“If anyone offers a way to deal with these problems, attention will be paid,” Parkinson said.

Despite saying that he would consider cutting tax exemptions, the governor later in the afternoon sent out a statement in support of the Kansas Department of Commerce's recent offer to Wyandotte County on a proposal for a new office complex for Cerner Corp. and a soccer stadium.

The department has offered the supplier of healthcare information technology nearly $85 million in state tax credits and cash incentives. Commerce Secretary Bill Thornton today tailored the proposal to allow Cerner to receive $48.5 million at the front end of the project, rather than in periodic installments over the lifetime of the project.

The intention is to get the proposed funds to Cerner quickly, Taylor said in a separate statement, so Cerner can begin work on their proposed office complex and create 4,500 new Kansas jobs.

Parkinson added that the offer is "aggressive," and designed to move the project forward. "I am optimistic that by making the resources available immediately, Cerner can create these jobs without delay," Parkinson said in the statement.

Brian R. Hook contributed from Topeka