One month into the
new fiscal year and six weeks after the end of the legislative session, the
state's tight budget situation is affecting school districts, which are
reporting layoffs, cuts to programs and local property tax increases.
new fiscal year and six weeks after the end of the legislative session, the
state's tight budget situation is affecting school districts, which are
reporting layoffs, cuts to programs and local property tax increases.
On Friday, the state
showed that tax receipts for July fell short of estimates by .9 percent or $3.7
million. June revenue was $22.5 million under projections. For the full fiscal
year up to July 1, the state missed lowered revenue estimates by $33 million.
showed that tax receipts for July fell short of estimates by .9 percent or $3.7
million. June revenue was $22.5 million under projections. For the full fiscal
year up to July 1, the state missed lowered revenue estimates by $33 million.
Just hours earlier,
Moody’s Investor Services noted some of the Kansas budget problems in reviewing
the state’s $1 billion pension obligation bonds proposal.
Moody’s Investor Services noted some of the Kansas budget problems in reviewing
the state’s $1 billion pension obligation bonds proposal.
The "stable
outlook" from Moody's "incorporates the significant level of
non-recurring budget solutions to balance the state's budget after successive
years of income tax cuts, significant unfunded pension liabilities,
inconsistent ending balances which were meant to act as a reserve buffer in
downside financial scenarios, and an economy that will continue to underperform
the nation due to sluggishness in key manufacturing sectors."
outlook" from Moody's "incorporates the significant level of
non-recurring budget solutions to balance the state's budget after successive
years of income tax cuts, significant unfunded pension liabilities,
inconsistent ending balances which were meant to act as a reserve buffer in
downside financial scenarios, and an economy that will continue to underperform
the nation due to sluggishness in key manufacturing sectors."
On Thursday, Gov. Sam
Brownback's administration implemented a wide-range of budget cuts, transfers and savings designed to prop up the state's ending balance.
Brownback's Budget Director Shawn Sullivan said the administration will
continue to carefully monitor the budget situation.
Brownback's administration implemented a wide-range of budget cuts, transfers and savings designed to prop up the state's ending balance.
Brownback's Budget Director Shawn Sullivan said the administration will
continue to carefully monitor the budget situation.
Meanwhile, school
districts across the state, which are working on their budgets and tax levies,
are facing increased expenses while their funding has been frozen under the
block grant school finance system.
districts across the state, which are working on their budgets and tax levies,
are facing increased expenses while their funding has been frozen under the
block grant school finance system.
A recent report by Mark Tallman, KASB’s associate executive director for
advocacy, shows state and local operating budgets for the school year that just
ended were at the same level as in 2009, although inflation has increased
nearly 10 percent. Meanwhile, enrollment also is increasing.
advocacy, shows state and local operating budgets for the school year that just
ended were at the same level as in 2009, although inflation has increased
nearly 10 percent. Meanwhile, enrollment also is increasing.
On Monday,
legislative leaders discussed the latest budget news.
legislative leaders discussed the latest budget news.
They were told by
legislative staff that August sales tax receipts would be a key figure to
determine the effects of Kansas’ increase in the sales tax to 6.5 percent from
6.15 percent.
legislative staff that August sales tax receipts would be a key figure to
determine the effects of Kansas’ increase in the sales tax to 6.5 percent from
6.15 percent.
In addition, the
committee was scheduled to discuss a request for proposal to hire a private
contractor to find efficiencies in state government. The GOP-dominated
Legislature set aside $3 million for the study.
committee was scheduled to discuss a request for proposal to hire a private
contractor to find efficiencies in state government. The GOP-dominated
Legislature set aside $3 million for the study.
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