The Unified Government of Wyandotte County/Kansas City will have received $14.5 million less than expected in calendar 2009 due to cuts in state funding and declines in local tax revenues.
The combined city-county government said it expects a drop in property tax revenue of $5.5 million and $2.5 million in sales taxes, along with $6.3 million less in state aid from Kansas over the next two years.
If the local tax rate is not increased, officials said, the shortfall for fiscal 2010 will be $5.5 million.
The largest single loss came from the decision by the Legislature this year to withhold promised reimbursements to cities and counties that lost significant revenue when state lawmakers eliminated a property tax on business equipment and machinery in 2007.
Wyandotte was to receive $4.5 million in reimbursements, but they have been held up due to falling state revenues.
The combined government’s fiscal 2009 budget totaled $259.1 million. County commissioners are scheduled to approve the fiscal 2010 budget on July 30.
The budget, which will be presented to commissioners this week, will include significant spending reductions, said county administrator Dennis Hays.
The combined government’s general obligation bonds have underlying ratings of A2 from Moody’s Investors Service and A-plus from Standard & Poor’s. Fitch Ratings does not provide an underlying rating.
