What could happen if HB 2745 is NOT vetoed by the governor
On Friday evening, the Kansas Legislature passed S Sub HB 2745 that allows voters (through a protest petition signed by 10% of voters) to effectively veto a budget with property taxes increased beyond the CPI (inflation index), or 3%, whichever is lower. If not vetoed by the Governor, a number of financial risks could arise for local governments, including ... Cumulative Revenue Erosion: Because the 3% cap acts as a bottleneck during years of high inflation (it was 8.0% in 2022), property tax revenue could quickly fall behind actual costs, creating a permanent ever-growing revenue gap. Loss of the “Gold Standard” [...]