When Cuts Are Not Enough

The budget bill sent to Kansas Gov. Mark Parkinson last week contains $92 million in spending cuts for fiscal 2010 that may not be sufficient to balance the budget before the state’s fiscal year ends June 30.

The cuts would eliminate a shortfall expected when the latest official revenue estimate was developed in November, but the latest collections are $39 million below the earlier estimate. The state must end the year with a balanced budget.

The revised budget includes a 5% salary cut for all state elected officials.

The unexpected and steady decline in state revenue has required five rounds of cuts in fiscal 2010.

The next revenue estimate report is due in April, which will determine how much money the Legislature can appropriate in fiscal 2011. Expectations are that projected expenses will outstrip projected revenue by $416 million.

Parkinson said the budget cuts in fiscal 2010 would make additional reductions in the next spending plan even more difficult. Other means must be found to eliminate the projected revenue shortfall in fiscal 2011, he said.

“I expect all ideas to be on the table for responsibly balancing the budget,” according to the Democratic governor.

“However, I reiterate that after already cutting a billion dollars from the state budget, there is not $400 million left that we can responsibly cut, especially from our schools, public safety programs, and aid to the elderly and disabled,” Parkinson said.

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