In a Web speech last week, Kansas Gov. Mark Parkinson offered a lineup of spending cuts and revenue adjustments to avoid a looming deficit in fiscal 2010, which began July 1.
The state collected $126 million less in tax revenue than had been expected in fiscal 2009, according to the most recent Department of Revenues report.
Because some state payments due in fiscal 2009 were delayed until fiscal 2010, Parkinson said the $5.5 billion general fund budget approved in April would be $135 million in the red if no action is taken.
Revenues in May were $103 million less than predicted, with June revenue down $23 million from expectations.
Individual income tax collections in fiscal 2009 totaled $93 million less than expected when the budget was developed. Declines of $15.6 million in sales tax revenue and $14.7 million in corporate income taxes were also reported.
Tax revenue for fiscal 2010 is estimated at $5.4 billion, down $38 million from fiscal 2009.
“I said from the beginning that I would not make any budget cuts until it was absolutely necessary,” Parkinson said. “Unfortunately, that time has come and changes must be made.”
Parkinson said the proposed revisions do not include employee furloughs or pay cuts, and protect public safety.
“This current round of cutting budgets won’t be easy and it certainly won’t be fun, but it is very necessary,” he said. “The reasonable steps that we are taking right now will lead to recovery, and that is exactly the reason we are taking them.”
Parkinson listed $69 million in additional revenues, with federal stimulus funds and spending cuts expected to bring the total relief to $160 million.
The state delayed $31 million worth of tax refunds due in June until this week, as well as $73 million in state aid payments due in the last 11 days of June to local school districts.
Lawmakers earlier cut $700 million from the proposed fiscal 2010 budget. Kansas ended fiscal 2009 with only $17,000 in its reserve fund.