Kansas revenue in stronger shape than expected, but worries remain
Dec. 2, 2020
Twice a year, the state projects what Kansas revenue will look like for the next two years.
In April, the first consensus revenue estimate (CRE) was crafted under unusual circumstances. Businesses were being shut down as the government grappled with the first wave of the COVID-19 pandemic. As a result, it showed extremely concerning budget shortfalls for the next two fiscal years.
However, an updated CRE was released last month with updated revenue estimates. While Kansas isn’t out of the woods, it shows a much better picture than what the state projected in April. Kansas will likely avoid a budget shortfall this fiscal year (FY 2021). But Kansas is still expected to face a budget shortfall next fiscal year (FY 2022) of $152 million.
Because the CRE was updated in November, it’s no surprise the total revenue collected this year closely tracks the estimate. Total taxes brought in (so far) this fiscal year are $3.41 billion, slightly above the estimate of $3.40 billion. The total receipts brought in for this fiscal year are $3.37 billion, slightly above the estimate by $3.36 billion.
For November, the total taxes brought in were $556.75 million, slightly above the estimate of $550.77 million. The total receipts brought in for November were $565.62 million, slightly above the estimate by $556.76 million.
While Kansas Action for Children is relieved to see more robust revenue numbers than expected, we remain concerned the most recent CRE shows a budget shortfall for the next fiscal year.
When legislators return in January, their focus must ensure the state can maintain the spending needed to keep schools funded, roads paved, and our natural resources protected. KAC welcomes the opportunity to discuss the potential policy solutions with lawmakers to move our state along on the road to recovery.< Back to the news list