Kansas
Kansas Republicans send flat tax bill to Laura Kelly for likely veto. Can they override it?
Kansas Republicans got to work quickly on tax cuts this session, fast-tracking a package and sending it to the governor before the end of the second week.
But their efforts could be doomed by an expected veto from Democratic Gov. Laura Kelly and a likely inability to override that veto.
Republicans gutted House Bill 2284 in a conference committee and inserted in several tax policies, the biggest of which is a 5.25% single rate income tax, also known as a flat tax. That provision accounts for $706.6 million of the $1.59 billion in tax cuts over the next three fiscal years.
Kelly has vowed to never sign a flat tax into law, meaning the bundling of other income, property and sales tax relief could all be lost.
Who benefits from the tax plan?
Democrats argued that the flat tax amounts to a redistribution of wealth back to the highest earners, and that middle-income people would gain the least from the proposed changes to the tax code.
Rep. Adam Smith, R-Weskan, didn’t dispute that higher earners will get more, but said that it’s proportional to what is put in.
“I would argue that a single rate tax policy is fair,” Smith said. “It treats everyone proportionately. If you make twice as much income, you pay twice as much tax.”
He also pointed to the hundreds of thousands of Kansans who wouldn’t pay any tax with the removal of a “cliff,” referring to a threshold at which all wages would be subject to a certain tax rate. The plan that passed wouldn’t tax income under the $6,150 threshold for individuals or $12,300 for couples.
Americans for Prosperity-Kansas has been a major proponent of the flat tax, promoting it with a statewide campaign keynoted by Senate President Ty Masterson, R-Andover, and House Speaker Dan Hawkins, R-Wichita.
In a sponsored Facebook post paid for by Americans for Prosperity, AFP-Kansas said “switching to a single-rate tax system means an extra $400 in your pocket yearly.”
Past Kansas Department of Revenue estimates show $400 in annual savings don’t kick in under a 5.25% flat tax until around when individuals earn $125,000 or more, childless couples earn $175,000 or more and couples with two kids earn $175,000 or more.
The outlook for people earning a more typical Kansas wage is less optimistic.
Though every earner in Kansas is due for a cut, Rep. Tom Sawyer, D-Wichita, said more than half of the $260 million in tax relief Kansans will receive will go to the 48,000 filers earning more than $250,000. About $40 million in income relief from the tax cuts will go to out-of-state residents.
“The people making between $50,000 and $100,000 get $20 million out of the $300 million,” Sawyer said. “That’s the big middle, the people in Kansas that work hard and pay their taxes. There are 300,000 people in that group.”
Sen. Alicia Straub, R-Ellinwood, raised similar concerns in a Senate GOP caucus as she held up a graph on effective tax rate that was prepared by nonpartisan legislative staff.
“I’m just showing where the effect of this tax rate reduction, who it benefits the most,” Straub said, pointing to where the chart showed middle income earners would see nearly no benefit but higher and lower income earners see more benefit.
“That’s where the benefit actually of the single rate starts to take effect, is if you have an adjusted gross income of $70,000 to $80,000 or higher,” she said. “Otherwise … if you’re making between $40,000 and let’s just say $75,000, you’re essentially paying the same amount in income tax next year if this were to take effect.”
Sen. Caryn Tyson, R-Parker, acknowledged that “yes, there is a middle income that the effective tax rate is like tenths of a percent difference between this and current policy.” But she argued that such people would get the benefit of other pieces of the tax plan, including an inflation index for the standard deduction and personal exemption.
“The bottom line is … this is a tax cut for everyone,” she said. “I would hate to go home to my constituency and say I did not support this.”
Tyson reminded her colleagues that popular tax cuts like the property and sales tax pieces would be lost if the bill does not pass.
“You can look at just one target of this and pick on that part of the bill, but the overall bill is great policy for the average Kansas family,” she said.
People with middle incomes could benefit from other provisions in the bill.
Tying the standard deductions to the Consumer Price Index will guard Kansans from their standard deductions losing value, but will keep rates at pace with adjusted real dollars. And Kansans who have at least one dependent would see an additional $50 plus inflation adjustments in tax exemptions per dependent due to the bill.
Seniors who make over $75,000 in income will no longer have to pay income tax on their Social Security benefits.
Residential property owners will see their state property tax exemptions more than double from just over $42,000 to $100,000.
All Kansans would see their spending on groceries reduced with the final axing of the state sales tax on food that would start in April 1, rather than the currently scheduled Jan. 1, 2025.
Kansas budget would hit a deficit after five years of Republican tax plan
Kelly has said she wants tax cuts to be both “fiscally responsible” and “sustainable.”
Democrats have framed the Republican proposal as a return to Brownback-era instability. Republicans, however, maintain that the cuts are feasible.
“This is completely sustainable, we’ve got billions of dollars and a rainy day fund, and it pencils out,” Masterson said. “There’s absolutely no reason not to return these resources to the people we serve.”
Projections from the Kansas Division of the Budget suggest otherwise.
Under the budget division’s projections, HB 2284 would cut into the state general fund balance more than the governor’s tax plan.
“This is good policy; it is a bigger tax savings than the governor’s,” Tyson said.
By fiscal year 2027, the budget would no longer comply with a state law requiring a minimum ending balance, according to the Division of the Budget. By fiscal year 2029, the general fund would see a $514.6 million deficit.
More: A $15 minimum wage for state employees? Here’s what to know about Kansas budget proposals
Republicans don’t have a supermajority at this point
The Senate voted 25-11 on Wednesday on HB 2284. A supermajority is 27 votes out of 40 senators.
The House voted 81-37 on Thursday. A supermajority is 84 of 125 representatives.
The Senate is where Republicans have a problem.
More: Kansas Republicans are fast-tracking tax cuts, despite not having veto-proof majorities
Sens. Rob Olson, R-Olathe, and Dennis Pyle, a conservative independent from Hiawatha, both voted “no.” Absent was Sen. John Doll, R-Garden City, who has previously voted against a flat tax.
Republicans would need one of them to flip-flop while not losing the support of Sens. Straub and Carolyn McGinn, R-Sedgwick. Both voted “yes” this time around, but have previously waivered in their support.
While the House fell short of 84 “yes” votes on the bill, Republicans were missing four absent representatives who have previously voted in favor of a flat tax. As long as at least three of those four show up for a veto override and no one else flip-flops, House Republicans have a supermajority.
Rep. David Younger, R-Ulysses, was the only Republican to side with Democrats. Rep. Marvin Robinson, D-Kansas City, was the only Democrat to side with Republicans. Robinson has a track record of siding with Republicans on controversial votes, including veto overrides.
Will Republicans claim compromise or take credit?
Republicans have claimed that their tax package is a compromise with the governor and that the Kelly’s proposal was comprised of Republican ideas.
“Social Security (relief) has been around for a long time, property tax relief was in our bills we’re just arguing about the levels of it, those are all ideas that have percolated through the Republican Party,” Masterson said after Kelly’s State of the State speech.
Masterson and Hawkins have both referred to it as “our compromise plan” and said they “are hopeful the governor will meet us in the middle,” despite Kelly promising to never sign a flat tax into law.
Kelly has been sharing a similar message on her package of tax cuts, often touting that it is bipartisan. Olson and Pyle signed onto the governor’s proposal and voted against the Republican plan. Doll also co-sponsored Kelly’s plan but was absent during the vote on Wednesday.
Sen. Jeff Longbine, R-Emporia, asked how Republicans should be messaging to constituents on the bill.
“It is an election year, and it is really, really hard to outmessage the governor,” he said.
More: Here’s how $1M fundraising haul of Laura Kelly’s PAC could break supermajority in Kansas
Masterson said the message should include that the plan is a “compromise,” because many of the pieces are ones Kelly has publicly supported.
“We gave her a lot of stuff in this legislation,” Tyson said of the governor.
But some Republicans also want to take credit for it all.
“For the record, all these ideas came from this Legislature,” said Sen. Chase Blasi, R-Wichita. “It wasn’t Laura Kelly’s. None of these ideas are Laura Kelly’s. Property tax cuts, food sales tax, child care tax cuts, they’re all Republican policies.”
Legislative process was criticized
Republicans fast-tracked the bill, setting the Legislature up for atypical early session floor debates on final action on substantive policy. The bill passed through a conference committee, which doesn’t allow legislators to amend the text and limits terms of debate of the floor.
It also meant there were no committee meetings where the public could comment.
Pyle raised concern at the process, calling it a “gotcha bill” and likening it to leading sheep to slaughter.
“I wish I could propose today to motion to suspend the rules then divide this conference committee report and vote on it individually. That’s part of the problem, it’s put into a conference committee report for a reason,” Pyle said.
Sen. Marci Francisco, D-Lawrence, said she that she supports some of the proposals in the bill, but is troubled by the inability to amend the text and that it leaves no time to gauge how her constituents feel about it. Tyson defended the process by saying many of the ideas have been pushed around the Legislature for several years.
What’s in the tax cut plan
- A 5.25% flat tax on all earnings over $6,150 for individuals or $12,300 for married couples.
- Indexing the standard deduction to increase with inflation.
- An additional $50 to the $2,250 personal exemption tax credit per dependent plus an inflation index.
- Eliminating income taxes on Social Security benefits.
- Exempting the first $100,000 from state property taxes.
- Ending all state sales tax on food in July rather than January.
- Cutting the privilege tax on banking and financial institutions.
Kansas
Pilot of crop duster plane survives crash Monday in NE Kansas
KANSAS CITY, Mo. — The pilot of a crop duster aircraft appears to have survived without serious injury after a crash on Monday in northeast Kansas.
The Jackson County, Kansas, Sheriff’s Office was called around 12:30 p.m. Monday on a crash involving a crop duster aircraft south of Kansas Highway 9 near Whiting, Kansas, or about 80 miles northwest of Kansas City.
Jackson County Sheriff Tim Morse said that after the crash, the pilot was able to exit the aircraft before it caught fire. The pilot walked to a nearby farmhouse for help.
Several area fire departments responded to the location to extinguish the fire.
The cause of the crash is under investigation.
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If you have any information about a crime, you may contact your local police department directly. But if you want or need to remain anonymous, you should contact the Greater Kansas City Crime Stoppers Tips Hotline by calling 816-474-TIPS (8477), submitting the tip online or through the free mobile app at P3Tips.com. Depending on your tip, Crime Stoppers could offer you a cash reward.
Annual homicide details and data for the Kansas City area are available through the KSHB 41 News Homicide Tracker, which was launched in 2015. Read the KSHB 41 News Mug Shot Policy.
Kansas
Keystone Pipeline system’s operator agrees to pay $26.9M penalty over major Kansas oil spill
TOPEKA, Kan. — A proposed legal settlement with the U.S. government would require the Keystone Pipeline system’s operator to pay a $26.9 million civil penalty over a major oil spill in Kansas in December 2022 and spend about $40 million more to prevent future accidents.
The agreement would resolve allegations from the U.S. Environmental Protection Agency and Kansas that South Bow, based in Canada, violated U.S. and state clean water laws. The rupture dumped nearly 13,000 barrels of heavy crude oil into a creek running through a rural pasture in Washington County, Kansas, about 150 miles (241 kilometers) northwest of Kansas City.
The accident was the largest onshore crude pipeline spill in the U.S. in nine years and surpassed all 22 previous ones on the same pipeline system combined, according to a 2021 report from the U.S. Government Accountability Office. The total amount of oil spilled would have nearly filled an Olympic-sized swimming pool.
South Bow also would pay Kansas more than $3 million for environmental restoration projects under a proposed decree filed Friday in U.S. District Court in Kansas. A judge would have to approve the proposal after a 30-day public comment period.
South Bow also would pay Kansas more than $3 million for environmental restoration projects under a proposed decree filed Friday in U.S. District Court in Kansas. A judge would have to approve the proposed decree after a 30-day public comment period.
“The oil spill blanketed land and water, rendering the waterway lifeless and useless and requiring extensive cleanup and remediation,” Jeffrey Hall, the EPA’s assistant administrator for its enforcement office, said in a statement. “The substantial penalty reflects the seriousness of the environmental harm.”
South Bow officials did not respond immediately Sunday to a phone message and email seeking comment, but the company told The Canadian Press that it “proactively” began cleaning up the area before receiving directives from U.S. officials. The cleanup was completed early in 2024.
The company that built the pipeline, TC Energy, spun off South Bow as a separate firm in 2024, after the Kansas cleanup was done.
No pipeline workers or area residents were injured, and officials said public water supplies weren’t affected by the spill. However, a complaint filed Friday by the U.S. government along with the proposed settlement said more than 2,700 animals were harmed or killed. The area is home to an endangered species, the long-eared bat.
In a May 2023 report for the U.S. government, an engineering consulting firm said that a bend in the Keystone system where the spill occurred had been “overstressed” since its installation in December 2010 — likely because construction activity itself altered the land around the pipe. The complaint filed Friday in court said soil under the pipe had been “improperly compacted” and that while the company re-excavated the site in 2013, it did not replace that section of pipe.
The 2,689-mile (4,327-kilometer) Keystone system carries thick, Canadian tar sands oil to refineries in Illinois, Oklahoma and Texas.
In April, President Donald Trump gave the go-ahead for South Bow and another company to build a second pipeline from Canada to Wyoming, a smaller version of a massive $8 billion pipeline project known as Keystone XL blocked by former President Joe Biden’s administration in 2021 over environmental concerns.
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Kansas
Missouri homebuilders report housing construction slump — but not in Kansas City
The housing industry saw a sharp drop in construction starts nationwide in May, both compared with the previous month and with the same period a year earlier. The broader Midwest region showed resilience, but Missouri builders still reported weaker business activity during this time.
According to the U.S. Census Bureau, privately owned housing starts across the country fell 15.4% in May compared to April and 8.7% compared to May 2025. The collapse was driven largely by multifamily construction, which dropped 41.6% in a single month and 12.3% year-over-year, while single-family construction declined slightly, by 1.9%.
The Midwest appeared as the lone regional outlier, as housing starts rose 3.7% from April and 5.9% from a year ago. But, building permits in the Midwest fell 18.1% month-over-month, compared to a 0.7% national decline.
Missouri also has a mixed picture in terms of housing permits in metro areas. According to the Census Bureau, permits in the Kansas City metropolitan statistical area rose 5.7% from April and 66.7% from May 2025. St. Louis permits fell 10.8% from April but rose 14.1% year-over-year. In Columbia, there were 101 permits in May, up 2% from April but down 17.9% from a year ago.
The ground picture, however, doesn’t tell a clean growth story for the housing industry. Builders mostly reported significant declines in their business in recent months, compared to previous years.
What builders are saying
Jeff Hemme is the owner of Hemme Homes and Remodeling, which is based in Columbia and serves the mid-Missouri region. He said the company had a flying start to the year, but business has dropped off sharply in the subsequent months. When the mortgage rate briefly went below 6% earlier this year, his company sold 15 homes in just four weeks. Then mortgage rates climbed back up, and his business slowed down.
“If we don’t think buyers are out there, we’re not going to build,” Hemme said.
He said his company now builds about 25 homes a year in mid-Missouri, down from 50 to 60 just a few years ago. Hemme said this confidence crisis, as much as any cost pressures, shaped the conditions the housing construction industry found itself in this spring.
Shawn Woods, CEO of Ashlar Homes in Blue Springs, also had a similar experience.
“January and February, we started off the year incredibly well, so sales were way ahead of where they were in the previous year,” he said. “And then March, April, and May have kind of been lackluster.”
He estimated his company sold 20% to 25% fewer homes over the three months compared to the same period in 2025.
Parker Girard is a co-owner of Girard Homes, which has been constructing homes in Columbia and mid-Missouri for around 12 years. He also said his business was under strain. He said Columbia has strong underlying demand for housing, but high costs and interest rates make new homes hard to sell at the prices most buyers can afford.
Not every builder experienced similar market swings. Chris DeGuentz is the president of the Home Builders Association of St. Louis and Eastern Missouri and the vice president of Fischer and Frichtel Homes. He said his company saw a flying start this year.
“Relative to this time last year, we have seen an increase of 15% to 20% across all price points we offer due to the type and locations of projects we offer,” he said.
He, however, said many of these business trends may be company-specific.
“There are certain builders that maybe echo the Midwestern trend, and perhaps their growth is only 1% or 2%, which is on par with national data with some cases being flat growth, which may be tied to scarcity of land or poor locations,” he said.
He said he doesn’t see any builders losing ground as the demand is still present in the region.
Contributing factors
According to data from the Housing Affordability Institute, the median price for new homes in Missouri was $437,500 in Dec. 2025, roughly 73% more than the median existing home price at $253,000.
Nick Erickson, the executive director of the institute, said a new home purchase would have consumed 46.5% of Missouri’s median household income in mortgage payments at the end of last year, compared with less than 30% for an existing home. Housing that costs below 30% of income is considered affordable under standard mortgage lending guidelines.
A major reason behind the high cost is new building codes. Jeff Hemme said updated building requirements are adding more expense to each home.
“They are making us do so many things with energy, and making the houses so energy efficient, that they are adding tens of thousands of dollars to an average house every time they change the codes,” Hemme said.
Erickson pointed to Kansas City as a recent case study. The city adopted one of the most aggressive energy codes in the country, and “production in Kansas City ground to a halt for a few months because of this,” he said.
The energy conservation code, which was adopted by the city in 2023, required new homes to be more tightly sealed, better insulated and subject to additional inspections. In February 2026, the city rolled back portions of the code, easing some of the requirements.
Woods mentioned some other factors that are raising costs – stream setback ordinances, wetlands permitting and rising municipal fees.
“Municipalities continue to adopt more and more stringent codes that continue to increase pricing, most of which are not life safety codes but more things that should be left to consumer choice,” Woods said.
Alongside rising costs, Girard pointed to competition from existing homes.
“A lot of times you can go and buy a bigger home with more square footage, that’s an older home that was already built, for less money, than you can build a newer home with smaller square footage, at a higher price point,” he said.
What lies ahead
The season that, as builders say, was supposed to be the strongest one has ended in the red for many. Woods said the market may stay slow for another one or two months before stabilizing.
“For any large uptick or large increase, I think we’re going to have to wait till spring of next year, and see what the interest rates hold,” he said.
Erickson said that an uptick in homebuilding activity will depend greatly on whether government officials enact certain changes.
“Until we see real changes in housing policy at the state, local and federal level, we’re not really going to see much movement,” he said. “We do need to be building more housing, but until we see regulatory relief or a change in rates, there’s not going to be much change in housing production.”
DeGuentz downplayed the national volatility as being very subjective and tied to multifamily starts.
“Starts and permits always fluctuate and you can point to a lot of different things that may affect one builder over another, but overall as single-family home builders we recognize that there’s ups and downs,” he said. “However, builder and new homebuyer sentiment and demand in our region remains above national data.”
This story was originally published by Missouri Business Alert, a fellow member of the KC Media Collective.
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