State receipts in October were $4 million less than expected, but the sag was caused by a large, unexpected income tax refund from previous years, the Kansas Department of Revenue said last week.
Collections had exceeded expectations for six months before October’s dip.
“Due to prior fiscal constraint and economic growth, Kansas was able to absorb the impact of a large one-time refund from prior years,” Revenue Secretary Nick Jordan said. “Except for the payout, Kansas would have exceeded estimates for the month.”
Jordan did not provide details on who received the large refund.
While October revenues of $457.5 million were lower than predicted, collections were up $123.2 million from October 2010. So far in fiscal 2012, revenue is $62 million above expectations.
“With uneven revenue patterns, it is important to be on the cautious side of spending,” Jordan said. “We need to continue to focus on fiscally responsible spending so the state is in a position to accommodate unanticipated revenue events.”
