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by Stephen Koranda, Kansas News Service
Kansas tax collections in June beat estimates — projections that already factored in tax hikes — by $144 million.
That capped off a fiscal year where the state topped projections every month, which is a sharp departure from some recent years.
Lawmakers use the projections when they craft the budget, so the boost in revenue means the state’s bank account ends the fiscal year with $318 million more than state officials anticipated.
“With tax receipts coming in above expectations every month during the last year, there’s optimism that this trend will continue,” Kansas Revenue Secretary Sam Williams said in a statement after the latest numbers were released on Monday.
Over the fiscal year, individual and corporate income taxes were $290 million above estimates. Sales taxes came in $12 million higher than expected.
Kansas Department of Revenue Economist Michael Austin said the Kansas economy is following some national trends, and that’s helping the state’s tax collections. Austin said federal tax reform and continued growth out of the 2008 recession could be playing parts.
“People’s incomes are definitely looking better than they had been last year,” Austin said. “Kansas is a part of that.”
In the coming days, legislative staff will crunch the new revenue numbers to determine exactly how much money the state will have left as an ending balance.
The latest numbers are a stark contrast to where the state was just a few years ago.
Lawmakers cut taxes in 2012. A couple years after the major policy overhaul, the state’s monthly tax collections were in a rocky situation. By the middle of 2015, Kansas was mostly missing the monthly forecasts.
That led lean to budgets and some mid-year cuts to state services. Then-Gov. Sam Brownback cut higher education $17 million in March 2016 after a bad monthly revenue report.
There was a change in November 2016. That’s when the group that creates the revenue forecast seemed to finally get a better handle on the state’s financial picture. Since then, the state has consistently met monthly targets and economic growth seems to have further brightened the state’s finances.
Lawmakers then reversed many of the 2012 tax cuts in 2017. Revenue forecast updates since then have taken into account the expected growth from the tax hike.
On Monday, politicians began weighing in on how the state should respond to the larger-than-expected tax collections shortly after the new revenue report came out.
“The additional revenue gives us a chance to restore education cuts, expand Medicaid and work towards lower food sales taxes in 2019,” Democratic state Rep. Brandon Whipple said on Twitter.
The financial news comes as lawmakers consider how to respond to the latest court ruling that said the state isn’t spending enough on schools.
Kansas Secretary of State Kris Kobach, a Republican running for governor, said lawmakers should not look at spending the revenue.
“Those dollars belong in the pockets of the people of Kansas,” Kobach said. “As governor, I will move immediately to reduce taxes.”
Stephen Koranda is Statehouse reporter for Kansas Public Radio, a partner in the Kansas News Service. Follow him on Twitter @kprkoranda.
Kansas News Service stories and photos may be republished at no cost with proper attribution and a link back to the original post.
See more at http://kcur.org/post/once-troubled-kansas-revenue-numbers-end-year-sustained-rebound
A heat advisory is in effect for most of the area today, the entire forecast area tomorrow, and then only the Kansas City metro area for Thursday, according to the National Weather Service.
The heat advisory begins at noon and ends at 7 p.m. Thursday, July 5.
Today, the high will be near 96 with a heat index as high as 105, the weather service said. Hot weather continues until Friday. There will be a chance of rain and storms Thursday and Friday.
Residents are advised to drink plenty of fluids, stay in an air-conditioned room, stay out of the sun and check up on relatives and neighbors during the heat advisory, according to the weather service. Reschedule outdoor activities to early morning or evening.
Moderate river flooding is continuing along the Missouri River from Brownville, Nebraska, through St. Joseph, Missouri, according to the weather service. Flooding of low-lying rural areas along the river that are not protected by levees is expected.
Today, it will be mostly sunny with a high near 96 and heat index values as high as 105, the weather service said, with a south southeast wind of 6 to 10 mph.
Tonight, expect mostly clear skies with a low of 76 and a southeast wind of 6 to 10 mph, according to the weather service.
Wednesday, Independence Day, it will be mostly sunny with a high near 94 and a heat index as high as 102, the weather service said. There will be a south wind of 7 to 10 mph.
Wednesday night, expect a low of 76 with a south wind of 3 to 8 mph, according to the weather service.
Thursday, there will be a 20 percent chance of showers and thunderstorms after 1 p.m., with a high near 94, the weather service said. A west southwest wind of 6 mph will become light and variable in the afternoon.
Thursday night, there is a 20 percent chance of showers and thunderstorms, with a low of 73, according to the weather service.
Friday, there is a 30 percent chance of showers and thunderstorms before 1 p.m., with a high near 87, the weather service said.
Friday night, the low will be around 68, according to the weather service.
Saturday, it will be sunny with a high of 86, the weather service said.
Saturday night, it will be mostly clear with a low of 65, according to the weather service.
Sunday, it will be sunny with a high of 87, the weather service said.
Sunday night, the low will be around 69 with mostly clear skies, according to the weather service.
Monday, it will be sunny with a high near 91, the weather service said.
