DALLAS - Kansas ended its fiscal year June 30 with revenues running $338 million below projections.
Kansas House Minority Leader Paul Davis, the Democratic challenger to incumbent Republican Gov. Sam Brownback in this year's governor's race, called for a delay of Brownback's next phase of income tax cuts. Davis also proposed a bipartisan commission to analyze the state's tax law with a view toward reducing property taxes.
"It will signal to business, credit agencies and Kansans that we will not continue to blow a hole in the budget," Davis said. "We will get our fiscal house in order and restore our schools before we proceed with more cuts."
Kansas has already taken a downgrade from Moody's Investors Service to Aa3 from Aa2 as a result of the declining revenues. Analysts cited the state's weak economy and patchwork approach to balancing the state budget.
Brownback, so far, has not issued any statements about the May or June revenue figures that both undershot projections.
Nick Jordan, secretary of the Kansas Department of Revenue, predicted the June revenues would be $10 million to $20 million lower than estimates. Jordan issued no immediate comment on the $28 million figure.
In promoting income tax cuts in 2012, Brownback said he believed that lower tax rates would lead to higher revenues because it would provide an "adrenaline shot" to the state's economy. Credit ratings analysts have said the economy is relatively stagnant.
State revenue fell beneath projections by $93 million in April, $217 million in May and $28 million in June.
Over the fiscal year, tax collections were 5.8% or $338 million below projections.