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March 30, 2022

Kansas tax policy and federal funding recommendations

Fiscal policy changes can begin to make Kansas more racially equitable: examining recommendations from the governor’s commission

This commentary originally ran in the Kansas Reflector on March 30, 2022. About the authors: Dr. Tiffany Anderson, superintendent of Topeka USD 501, and Dr. Shannon Portillo, associate dean and professor at the University of Kansas, served as co-chairs of the Governor’s Commission on Racial Equity and Justice; David Jordan, president and CEO of the United Methodist Health Ministry Fund, chaired the subcommittee on healthcare.

How our state government taxes, spends, and accesses funding demonstrates our values and our commitment to addressing racial equity in Kansas.

The Governor’s Commission on Racial Equity and Justice examined federal funding and tax policy, seeking to understand how to address systemic issues that affect education attainment, economic opportunity and health across Kansas. Recommendations to address racial equity through tax policy and maximizing federal funding were included in the commission’s final report.

Kansas ranks 46th in terms of accessing federal funding to support the state budget. Having less federal funding affects our ability to support critical health and safety net services, disproportionately burdening state and local budgets when communities need access to services and restricting access to programs that support health and economic opportunity.

To improve racial equity, Kansas should maximize federal funding. 

State restrictions are a barrier to accessing federal funding. Policy changes during the Brownback administration greatly increased restrictions to Temporary Assistance for Needy Families (TANF) and the Supplemental Nutrition Assistance Program (SNAP). Today fewer than 10 out of every 100 Kansas families in poverty are receiving TANF benefits, compared with more than 30 in 100 in 2006. People of color are disproportionately impacted by hunger; SNAP helps low-income households afford groceries. TANF and SNAP benefits provide basic support to families in need. The benefits may be more than financial. 

Beyond negatively affecting Kansans, these restrictions increase interaction with the child welfare system, costing the state money. According to a University of Kansas national study, states that enacted similar restrictions as Kansas have seen higher rates of child abuse and foster care cases. 

These restrictions should be repealed.

As federal COVID-19 relief dollars come to Kansas, it’s vital that the government entities distributing these funds consider the perspectives of people of color and communities most impacted. Relief funds should be targeted to help those most in need due to the pandemic.

Health equity should be a primary consideration when distributing relief funds. A broad definition of health should be employed, based on the social determinants of health. According to the Centers for Disease Control and Prevention, these are the “conditions in the places where people live, learn, work, and play that affect a wide range of health and quality-of life-risks and outcomes.” 

Kansas’ failure to expand Medicaid has left more than 150,000 Kansans without access to health care and resulted in more than $5.4 billion in lost federal funding. 

The effect of Kansas’ decision not to draw down federal dollars can be seen in our standing in America’s Health Rankings, which has fallen more than any other state in the nation since 1990. 

Kansas can maximize federal dollars to improve health outcomes through the state’s Medicaid program, KanCare. The social determinants of health should be a focus as Kansas begins the process of redesigning its Medicaid program during the upcoming contracting process. KanCare can begin addressing inequities by recognizing and paying for culturally competent care teams that include proven community-based providers such as community health workers and doulas. Improvements to patient-centered care teams and delivery models, and innovative models pioneered by other states that have improved health outcomes and reduced disparities should be a priority.

Kansas government entities must examine tax policy to improve racial equity and ensure that our most vulnerable neighbors don’t shoulder the burdens of an unfair tax system built on consumption taxes. 

A disproportionate number of low-income individuals are people of color. Some states tax low-income people at higher rates, which can worsen racial inequity. Kansas state and local taxing authorities should collect race and ethnicity data during both tax assessment and tax distribution. The data should be assessed and analyzed to determine the effect of the tax structure on all Kansans. 

Kansas is one of seven states that still fully taxes groceries. To reduce the burden on low-income Kansans, we should eliminate the food sales tax on groceries, which is the second highest in the nation. 

State and local governments, especially in the criminal justice system, should rely less on fines and fees to fund their work. Governments should seek more equitable funding streams, including drawing down federal funds. 

Taxes are rarely fun to talk about, but they are the foundation for how we fund government and services. We must ensure our taxing and budget structures reflect our values as Kansans and help create more equitable communities. The commission’s recommendations offer a path forward, but your time, leadership, and engagement are needed to realize change. 

Let’s get to work.

About the series

In June 2020, Governor Laura Kelly signed Executive Order 20-48, forming the Governor’s Commission on Racial Equity and Justice. The Commission studied issues of racial equity and justice across systems in Kansas, focusing first on policing and law enforcement and then on economic systems, education, and health care. The Commission developed recommendations for state agencies, the Legislature, and local governments. Through the end of 2022, Commissioners will dig deeper into the Commission’s recommendations in a monthly series.

Related resources

Governor’s Commission on Racial Equity and Justice reports
Governor’s Commission on Racial Equity and Justice webinar series
2022 opinion series on commission recommendations

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