FY 2024 Kansas Revenue Tracker
Each month, the Kansas Division of the Budget reports how much tax revenue the state collected for the previous month. Forecasts are released by the Consensus Revenue Estimating Group twice a year, which actual monthly collections are then compared to. These forecasts help lawmakers understand how much total tax revenue they can expect to see in the state coffers, which in turn helps them develop the state’s budget for the cost of government services and operations for the upcoming fiscal year.
KAC’s revenue tracker provides a visual snapshot of each monthly report and how the revenue side of the budget is being funded to achieve a balanced budget.
- Actual collections for August 2023 were 3.7%, or $24.4 million, below the estimate for the month and 1.9% lower than August 2022.
- Collections for the first two months of the new fiscal year are now about 0.8%, or $10.6 million, lower than what was expected.
- To date, Kansas has collected 12.9% of the $10.3 billion in total expected revenue for the current fiscal year.
For additional details, see the August State General Fund Revenue Receipt update.
Big Picture Takeaway — Keep Calm and Carry On
Lower-than-estimated revenues are not always a reason to assume the worst. A revenue setback that only puts the state less than 1 percent behind the cumulative estimate this early in the fiscal year can easily be made up within a month or two of stronger revenues. Though there are many possible policy solutions to improve the state tax system, the fact that Kansas does not rely on only one tax source absorbs some of the impact of revenue fluctuations throughout the year, allowing for more accurate forecasting and fiscal planning.
July revenue marks the start of the 2024 fiscal year and another month of strong collections.
Actual collections were $13.9 million, or 2.1%, higher than estimated.
Collections from July 2023 were $94.7 million, or 16.2 %, higher than July 2022.
With this first month of collections, Kansas has collected about 6.6% of the $10.3 billion in total budgeted revenue for FY 2024.
For additional details, read the Governor’s Office press release on July revenue collections.
Big Picture Takeaway — New Fiscal Year Buzz and Upcoming Checkpoints
The start of a new fiscal year brings not only nervous hope for the upcoming year’s revenue to meet the estimated budget, but also a guarded realization that unforeseen events in Kansas, across the nation, or even across the world could change the fiscal picture at any time. Although the first few months of the new fiscal year typically are strong revenue months (as reported quarterly income tax withholdings are reflected in individual income tax receipts and back-to-school shopping lifts sales tax receipts for an early boost), knowing that the state has a healthy rainy day fund and a surplus from FY 2023 provides some relief that only preparedness can provide.
Additionally, because the budget cycle never ends, the start of the fiscal year is also the start of the budget planning process for upcoming fiscal year 2025. In July, agencies receive guidance from the Department of Budget to begin forming recommendations and requests to fund the programs and services that impact our daily lives. In the coming months, agencies will be receiving input from legislative committees, staff, service providers, advocates, and the public to finalize priorities and ultimately decide what will be submitted to the Governor’s Office for inclusion in the Governor’s Budget Report – the formal proposed budget to the Legislature that serves as the starting point of the FY 2025 budget.
You can learn more about key budget process checkpoints and when/how you can get involved here.
We will be following the entire process with analyses and educational materials to help boost your knowledge (and confidence) about the budget and the important role it serves in the lives and quality of life of all Kansas children and families. Follow along on our State Budget page!
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