“Many sectors showed growth, but the dramatic drop in oil, gas and farm income experienced across the Midwest states, also affected Kansas revenue,” said Revenue Secretary Nick Jordan.

DALLAS — Kansas ended the first quarter of its fiscal year with revenues running $42.5 million or about 3% below estimates, according to Revenue Secretary Nick Jordan.

At $1.35 billion, the revenues for July through September were slightly ahead of the total of $1.3 billion collected in the same months of 2014.

But the ongoing shortfalls even after an increase in the sales tax rate caused concern. State sales tax receipts were $12.5 million below estimates. On July 1, Kansas raised the sales tax rate to 6.5% from the previous 6.15%.

“Many sectors showed growth, but the dramatic drop in oil, gas and farm income experienced across the Midwest states, also affected Kansas revenue,” Jordan said.

For September, the total of $523.8 million was $13.2 million more than receipts for the same month in 2014 but $31.7 million or 5.7% below estimates for the month.

Corporate income was $7.5 million less than expected while individual income tax receipts were $12.2 million shy of estimates for the month.

Kansas ended the 2015 fiscal year June 30 about $30 million short of projections that had been steeply reduced from optimistic forecasts embraced by Gov. Sam Brownback’s administration and state legislators in early 2014.

During the record 113-day legislative session, Brownback and lawmakers closed a $650 million deficit through spending cuts, fund transfers and tax increases.

In July Kansas budget director Shawn Sullivan closed a $62 million deficit through $24 million in cash transfers and $38 million in spending cuts.

House Bill 2135 authorized Sullivan to lapse appropriations or transfer funding from special revenue funds to the State General Fund, up to a total of $100 million, at any time during fiscal year 2016. Among the cuts was an $8 million reduction to the Kansas Department of Transportation that state officials said would not reduce highway construction.

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