Tax revenue for September fell $31.7 million,
or 5.7 percent below estimates, continuing a trend of underperformance and
raising the possibility of more budget cuts.
The anemic tax collections exacerbated the
first quarter of the fiscal year, which started July 1. Now, the state is $42.5
million, or 3 percent below estimates.
That is more than half of the estimated fiscal
year ending balance of approximately $70 million, so if revenues continue to
fall below projections, budget cuts or tax increases may be a possibility in
the 2016 legislative session, as legislators gear up for election season.
Gov. Sam Brownback's administration blamed
drops in oil, gas and farm income on the lower collections. Democrats blamed
Brownback's significant income tax cuts.
House Speaker Ray Merrick, R-Stilwell, said
the weak performing tax collections show the need for the state to streamline
government through a recently approved efficiency study with a private
consultant.
The sobering September tax report came as
Wichita State University’s Center for Economic Development issued a report that
showed growth in the Kansas economy was lagging far behind the rest of the
nation.
or 5.7 percent below estimates, continuing a trend of underperformance and
raising the possibility of more budget cuts.
The anemic tax collections exacerbated the
first quarter of the fiscal year, which started July 1. Now, the state is $42.5
million, or 3 percent below estimates.
That is more than half of the estimated fiscal
year ending balance of approximately $70 million, so if revenues continue to
fall below projections, budget cuts or tax increases may be a possibility in
the 2016 legislative session, as legislators gear up for election season.
Gov. Sam Brownback's administration blamed
drops in oil, gas and farm income on the lower collections. Democrats blamed
Brownback's significant income tax cuts.
House Speaker Ray Merrick, R-Stilwell, said
the weak performing tax collections show the need for the state to streamline
government through a recently approved efficiency study with a private
consultant.
The sobering September tax report came as
Wichita State University’s Center for Economic Development issued a report that
showed growth in the Kansas economy was lagging far behind the rest of the
nation.
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