Senator Roberts: What the President's Budget Means for Kansas

Press Release

U.S. Senator Pat Roberts today criticized the President's budget proposal due to provisions that will have negative consequences for Kansas and the rest of the nation.

"After wading through the President's budget proposal," Roberts said, "we learn that despite the rhetoric of budget freezes, it contains billions in new spending and at $3.83 trillion in total spending, represents an all time high. Kansans will pay the price in higher taxes, or through cuts to agricultural programs on which our rural communities rely.

"The Administration makes many assumptions especially in regard to health care reform and cap and trade proposals. As debate continues on these issues, I will continue to protect the interests of the state.

"Kansans ought to scrutinize a budget that finds $40 million in so-called savings over the next four years by "sleeping" or "hibernating" computers used within the Department of Veterans Affairs."

Senator Roberts noted the more troubling sections of the budget for Kansans:

* Repeals the tax incentive for small oil and gas companies (called percentage depletion) to raise $10 billion over ten years. This will have a huge impact on the Kansas economy given the fact that the oil and gas industry is nearly a $6.3 billion industry in the state, employing more than 7,300 Kansans directly and thousands indirectly. Nationally, Kansas ranks 9th among the 31 oil producing states and 9th among the 32 natural gas producing states;

* Limits to 28 percent the tax deduction that families earning over $250,000 and individuals earning over $200,000 may claim for deductions, such as the mortgage interest deduction and contributions to charities. Senator Roberts has heard from Kansas charities that they are very concerned that any limit on charitable contribution deductions will harm their ability to serve those in need;

* Cuts direct payments to producers, which in turn reduces money spent in rural communities;

* Proposes to cut $ 8 billion from the federal crop insurance program over 10 years on the unlikely assumption that the USDA's first draft of the Standard Reinsurance Agreement will go into effect;

* Includes $220 million for registration and inspection fees on food producers, increasing food production costs and costs for the consumer.

Senator Roberts is a member of the U.S. Senate Committees on Health, Education, Labor and Pensions (HELP), on Agriculture, on Finance, on Rules, and Ethics.

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