Group Reduces Revenue Forecast For State

By  | 

New revenue projections released late Wednesday afternoon show Kansas could face a tighter budget.

Forecasters met Wednesday to revise earlier projections for the current fiscal year. The group decreased its income projection for fiscal year 2014 by $29 million, or a half-percent from its previous estimate.

The group says the change reflects further phasing in of income tax reductions.

The numbers were closely watched as tax collections from July to October were $27 million less than anticipated. The group's revised estimate expects total revenue for FY14 to be $5.857 billion, which would be 7.6 percent below the FY13 receipts.

However, the group also issued its first projection for fiscal year 2015, which predicts a one-percent jump in revenue over the current fiscal year. The group said the amount of total tax revenue for FY15 was expected to increase 1.8 percent, following a 7.4 percent drop in FY14.

House Democratic leader Paul Davis, who is running for governor next year, issued an early reaction to the numbers, saying Gov. Sam Brownback would try to put them in a positive light, but that they show Brownback's "tax plan was fiscally irresponsible and damaging to our state."

"Not only did it make the cost of living in Kansas skyrocket for most families and seniors, it has stalled our economy and caused Kansas to lag behind the rest of the nation in job creation," Davis said. "Kansans understand that these revenue shortfalls will lead to increases in local property taxes and further cuts to our schools."