Kansas Revenues $12.7M Below Estimates in October

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DALLAS – Kansas revenues fell $12.7 million short of official estimates in October, continuing a trend that has forced the state to reduce spending.

In the fourth month of the fiscal year, Kansas collected $10.7 million less in retail sales tax and $7.8 million less in corporate income tax than anticipated. On the positive side, individual income tax revenue surpassed projections by $9.3 million, according to state Department of Revenue Secretary Nick Jordan.

"We are pleased to see individual income tax receipts continue to grow," Jordan said. "We remain concerned by the larger national downward trend of corporate and sales tax receipts."

Kansas has faced chronic budget shortfalls since Republican legislators sharply reduced personal income taxes in 2012 and 2013 at Gov. Sam Brownback's urging to stimulate the economy.

Kansas collected $447 million in taxes last month. Compared to the projected revenue of $460 million, that represents a 2.8% shortfall.

Since the fiscal year began July 1, tax collections of $1.8 billion have fallen more than $80 million or 4.2% short of projections.

The projected shortfall for the $15.5 billion budget is at least $70 million.

State officials, legislative researchers and university economists will issue a new fiscal forecast two days after the Nov. 8 election.

Support for Brownback's fiscal policies cost more than a dozen lawmakers their seats in the Republican Party primaries in August. Newcomers to politics won with anti-Brownback rhetoric and promises to restore the state's economic balance.

In an effort to offset lost tax revenue, the Kansas Legislature in 2015 raised the statewide sales tax to 6.5% from the previous 6.15%. The fact that sales tax revenue fell short of projections in October is a sign of economic weakness.

Brownback and others have blamed a weak regional economy for Kansas' continuing shortfall.

 

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