Fixing Kansas: Smarter Spending, Lower Taxes

Originally published at Kansas Policy Institute.

​Kansas policymakers must examine how the state compares to its peers in economic growth, taxation, job creation, and government spending. The Green Book 2025 from the Kansas Policy Institute provides critical data on these measures, offering a roadmap for improving the state’s competitiveness and economic well-being. The 2026 Responsible Kansas Budget (RKB) is the key tool to ensuring that spending is controlled, tax burdens are reduced, and economic growth is accelerated.



Kansas Falls Behind in Economic Growth
Kansas’ economy continues to underperform compared to its neighbors and the country. Over the period from 1998 to 2023, Kansas’ gross domestic product (GDP) growth was 199%, ranking it 26th in the country. This is far below  North Dakota (382%), Utah (376%), Texas (310%), and Colorado (260%), which have benefited from disciplined spending policies and pro-growth tax reforms. Kansas’ sluggish economic expansion is primarily due to excessive government spending, high tax burdens, and a lack of competitive business policies.

Additionally, private-sector job growth in Kansas has been relatively anemic. From 1998 to 2024, Kansas added just 129,600 private-sector jobs, an increase of 12.1%—well below states like Utah (75.2%),  Texas (62.5%), North Dakota (44.3%), and Colorado (44.0%). The slow pace of job creation limits economic opportunity and makes it harder for Kansas to compete for businesses and talent. The RKB would ensure that government spending remains controlled, freeing up resources for private-sector expansion.

Tax Burden and Government Spending: A Major Competitive Disadvantage
Kansas ranks 27th in the nation for state and local tax burden, with $6,321 per capita in tax collections. While this is lower than high-tax states like Illinois ($8,221) and New York ($12,818), Kansas remains uncompetitive compared to states with no income tax, like Texas, Florida, and Tennessee, which have significantly lower tax burdens and have consistently outperformed Kansas in economic growth and job creation.

One of the biggest factors driving Kansas’ tax burden is excessive government spending. The state government spends $5,428 per resident, ranking it 23rd. Worse yet, Kansas ranks 48th in local government efficiency, with one general-purpose government unit per 1,475 residents compared to a national average of 8,629 residents per unit. This inefficiency drives up costs, resulting in a heavier tax burden on Kansas families. The RKB would cap spending growth at population growth plus inflation (4.9%) to keep the government in check and prevent unnecessary tax increases.

Property Taxes: A Growing Concern
Property tax burdens in Kansas continue to rise, negatively impacting homeowners, businesses, and renters. Since 1997, property tax collections in most counties have more than doubled, even as populations in many areas have declined. This is a direct result of uncontrolled local government spending, which drives taxes higher despite stagnant population growth. Texas recently experienced a similar issue—despite putting $12.7 billion toward tax relief, local government spending still drove property tax burdens higher. Kansas must avoid this mistake by imposing strict revenue caps alongside tax cuts. That debate is very much ongoing in Topeka, and the prospects for improvement are fraught. 

Government Employment Bloat
Kansas has a higher-than-average government employment rate, contributing to excessive public spending. In many Kansas counties, government jobs account for more than a third of total jobs, and in some areas, more than half. The state ranks 48th in the nation for the number of general-purpose government units, meaning there are too many layers of bureaucracy for Kansas taxpayers to support. Senate Bill 99, which would eliminate long-vacant state government positions and lapse the associated funds, is a step toward addressing this bloat. Further action, such as tying employment growth to economic indicators, must be taken to sustain government employment.

The Responsible Kansas Budget: A Path Forward
Kansas must implement The Responsible Kansas Budget (RKB) to ensure sustainable spending growth. The RKB follows a proven formula:

State population growth (0.06%) + U.S. chained-CPI inflation (4.84%) = Total spending growth limit of 4.9%.
Applying this limit to the 2025 budget of $20.88 billion, the 2026 RKB is set at $21.91 billion.


By limiting spending growth to population growth plus inflation, Kansas can ensure that government does not expand beyond taxpayers’ ability to support it.

What the Responsible Kansas Budget Will Achieve
By adopting the 2026 RKB, Kansas policymakers can:

Control Spending – Preventing budget growth from outpacing taxpayers’ ability to pay.
Reduce Taxes – Using surplus revenue to lower the individual income tax rate, making Kansas more competitive.
Boost Economic Growth – Attracting businesses and workers by keeping government lean and efficient.
Ensure Fiscal Stability – Avoiding budget crises and reducing reliance on federal aid.
Kansas Must Act Now
Fiscal reform is urgently needed. The Kansas Policy Institute’s Green Book 2025 provides a valuable resource for economic and fiscal data to compare over time and with other states for improvement areas. One key area is the need for the Legislature to pass KPI’s 2026 Responsible Kansas Budget for lower taxes, more economic growth, and more jobs.