Kansas last week halted the distribution of income tax refunds due to declining state revenues for the second time this fiscal year. Revenue Department officials said the cutoff could last for a month until finances improve.
A Revenue Department spokeswoman said most taxpayers have received their refunds, but late filers and those that made a mistake on their returns will be affected by the delay.
Preliminary revenue figures for May show that the state may take in $100 million less than expected when the current budget was prepared, according to budget director Duane Goossen.
A shortfall of $80 million to $100 million would mean the state would end fiscal 2009 on June 30 in the red, which is not allowed by the state constitution, he said.
Goossen said the state will delay this week’s scheduled $130 million payment to public schools for their special education program because of the budget crunch. A $52 million payment scheduled for later this month to the districts could also be delayed.
Gov. Mark Patterson said the refund and school payment delays are part of a strategy to get through fiscal 2009 without additional cuts to the budget.
However, he said, unless revenues rebound, significant cuts will be necessary to balance the fiscal 2010 budget the Legislature recently approved.
“We will begin fiscal 2010 with less money than we had planned,” Patterson said. “This means further reductions to the 2010 budget will likely be necessary.
“Times are tough, and the decisions that will have to be made will not be easy, but they are necessary,” he said. “Every group, every agency, and every program affected by our budget will be called upon to share in this solution, and I will make sure that the action we take is responsible and reasonable.”
