(KNZA)---Governor Laura Kelly ceremonially signed Senate Bill 1 Tuesday during stops in Hiawatha and Holton.

The Democratic Governor said the bill, which was passed during the Kansas Legisalture's June 18th one day special session, provides responsible tax cuts for all Kansans without threatening the state's long-term fiscal health.

“This tax cuts package provides meaningful relief for hardworking Kansans while preserving our ability to continue fully funding our essential services and infrastructure,” Governor Laura Kelly said. “Now, because we have responsibly budgeted, Kansans will see significant tax cuts without sending us back to an era of fiscal shortfalls.”

Kelly said Senate Bill 1, which passed with bipartisan support, provides nearly $2 billion in tax cuts for Kansans over the next 5 years. The bill reduces property taxes by increasing the residential property tax exemption to $75,000, saving residential property owners more than $236 million over 5 years.

The bill also eliminates state taxes on Social Security income, saving Kansas retirees $152 million in the first year alone. Additionally, the bill reduces income taxes and increases the standard deduction and Child and Dependent Care Tax Credit.

“Throughout my time in the Legislature, I have championed meaningful tax cuts for Kansans,” said Kansas State Senator Dennis Pyle, of rural Hiawatha. “Eliminating the state tax on Social Security income has been a long-time goal of mine. I am thankful this is finally a reality for seniors in Kansas thanks to Senate Bill 1.”

In response to a question from Hiawatha City Administrator Brad Scott, Kelly said she was aware of the dispute between the city and Kansas Department of Transportation regarding the traffic signals at the intersection of 1st and Oregon Streets. Kelly said the problem is the current signals don't meet federal regulations. She said she believes a resolution can be reached between the two sides.