DALLAS - Kansas revenues fell $21 million short of projections in September.
The Sunflower State has collected $1.3 billion in state general fund tax receipts for the first three months of fiscal 2015, 1.7% or $23.4 million behind expectations, according to the Kansas Department of Revenue.
Personal income tax collections fell more than $42 million short of the September target of $250 million, according to the department.
For the fiscal year that began July 1, individual income tax collections are running about 9% below last year's total.
On the positive side, corporate income tax collections exceeded forecasts in September by $21.5 million or 33%, suggesting the state's business climate is improving, officials said.
"We've worked hard to create a good business climate in Kansas, so it is encouraging to see corporate income tax receipts performing so strongly," said Revenue Secretary Nick Jordan.
The revenue shortfall is a major issue in an election year as Democratic state House Minority Leader Paul Davis challenges Republican Gov. Sam Brownback. Democrats say that Brownback's "experiment" with tax cuts has left the state with insufficient revenue for vital programs, particularly schools.
Brownback contends that the tax cuts he supported have improved the state's business environment. He blames President Obama's policies for causing the state's problems.
State budget director Shawn Sullivan, who works in the Brownback administration, recently announced plans to reduce spending by $101 million between now and July 2016 through increased efficiency.
"These efficiencies reflect a continued focus on fiscal responsibility and good governance practices of the Brownback administration," Sullivan said. "The savings are related to these practices and not from cutting programs or services."
Kansas Democratic Party chairwoman Joan Wagnon said in a prepared statement that "this continuing slide downward probably means more cuts to keep the state in the black."
Moody's investors service downgraded Kansas' general obligation debt to Aa2 from Aa1 on April 30, in part because tax cuts led to lower revenues. Standard & Poor's rates Kansas AA-plus with a stable outlook.
