TAX NEWS - JUNE 2010

Kansas Tax: Lobbyist spending in Kansas surges to more than $1.1 million so far this year

HUTCHINSON, Kan. | Lobbyist spending has surged in Kansas this year, particularly in April when there was an advertising campaign against legislation to tax sugary drinks. That legislation ultimately failed.

Kansas Governmental Ethics Commission data shows lobbyists reported spending more than $1.1 million for January through April.

"It's pretty far up there for this early in the year," Ruth Pile, lobbyist coordinator for the agency, told The Hutchinson News.

Even though two more spending reports will be due to cover the rest of the calendar year, Pile already was saying it is quite possible that 2010 could set a record. The state Legislature wrapped up its session in early May.

The surge in spending came as revenue shortfalls had legislators considering a range of options to generate money — everything from raising tobacco and alcohol taxes to possibly ending tax breaks. Lawmakers ultimately voted for a 1-cent state sales tax.

There was intense interest in this Legislative session from agencies that had experienced state funding cuts. This also was the year that both chambers approved a bill to ban smoking in bars, restaurants and other public places. Gov. Mark Parkinson signed it in March, and the restrictions take effect July 1.

Particularly costly was the campaign against a proposed penny-per-teaspoon tax on the sugar in soda and other beverages. The tax would have cost about 10 cents per 12-ounce can.

The American Beverage Association reported a "mass media" expenditure of $388,182, with Chris Gindlesperger, director of communications for the Washington association, explaining that the vast majority of the sum was spent on 3 1/2 weeks of radio commercials and two weeks of print ads.

Douglas Smith, a lobbyist in Topeka who represents various clients, said it probably amounted to "a perfect storm" for more lobbying activity this year.