DALLAS — Kansas revenues fell nearly $15 million below projections in October, marking the fourth straight month of revenues running below budget, according to Kansas Revenue Secretary Nick Jordan.
"Sales and use tax receipts have continued to follow the sluggish national trend and fell short of expectations, negating gains in individual income tax receipts," Jordan said in a statement accompanying the October report.
Individual income tax receipts beat estimates by $13 million for the month, but the gain was offset by lagging sale and use tax receipts that fell $20.9 million short
of expectations, Jordan said.
Total receipts for the fiscal year that began July 1 total $1.8 billion, Jordan said.
Revenue from the compensating use tax, paid on items purchased out of state, fell 16.4%, or $6.1 million short of expectations. The state missed estimates on oil and gas severance tax by about 49%, or more than $3.6 million.
Collections in the first quarter of the fiscal year were $61 million below official expectations, erasing a $70 million budget reserve built into the 2016 fiscal year budget.
Gov. Sam Brownback has authority to transfer cash between departments or ordering deeper cuts in spending before the 2016 Legislature convenes in January. After winning re-election in 2014, Brownback faced a deficit of more than $200 million and worked with the 2015 Legislature to close a remaining deficit of about $500 million.
Tax cuts enacted in 2012 and 2013 have had a direct impact on state revenues, according to ratings agency analysts.
Brownback wants to eliminate the income tax in Kansas, and rely more on sales tax. On July 1, the statewide sales tax rose to 6.5% from 6.15%.
