Archive for Monday, April 17, 2006

Kansas economy fueling big tax revenue growth

April 17, 2006

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— State officials today forecast solid growth in tax revenues, signaling a strengthening economy.

"These numbers would reflect a good economic climate in Kansas," Gov. Kathleen Sebelius' budget director Duane Goossen said.

The Consensus Revenue Estimating Group, which is composed of state budget officials and university economists, met to revise its revenue estimates for the current fiscal year, which ends June 30, and the next fiscal year. The findings are used by the Legislature to write state budgets.

Bottom line -- state coffers are expected to increase $289 million over the last revenue estimate, which was made in November. The current fiscal year revenues will total $5.3 billion, a 9.7 percent increase over the last fiscal year.

"It reflects continued growth and strength in the Kansas economy," said Alan Conroy, director of the Kansas Legislative Research Department. "This is the largest single increase, in terms of dollars, that the consensus group has added at the April meeting," he said.

Lawmakers will reconvene the 2006 legislative session April 26 facing a court order to increase school funding and more equitably distribute those funds.

Sebelius issued a statement saying state officials "must work together to continue this prosperity by strengthening our schools and giving businesses a new incentive to invest and create jobs in Kansas."

The strengthening revenue picture reflects a continued economic rebound for Kansas, officials said.

Goossen said corporate income tax revenues have skyrocketed with a 60 percent increase last year, and an expected 46 percent increase this year.

Comments

Godot 9 years ago

I would imagine the buildup at Fort Riley has helped this growth spurt.

cutny 9 years ago

I would imagine the constant gouging of homeowners for ever-increasing property taxes has helped the tax revenue growth, as well.

trinity 9 years ago

give state employees a raise! a SUBSTANTIAL one!

not the folks who're already making an ungodly sum of money, but us peon types!

optimist 9 years ago

I think the effect of Fort Riley's growth as a boon to state revenues is highly over stated. The average solider earns in the neighborhood of $24K annually. After federal and state taxes (most of these soldiers are not Kansas residents paying state income tax) and other liabilities I estimate their net to be under $17K. Assuming half of that is subject to state sales tax then the added sales tax revenue would equal only about $4.5 million annually per 10,000 soldiers added to the Fort. Most soldiers do not register their vehicles in the state or own homes. Most will likely live on base.

Even if you include all of the ancillary benefits of the growth of the base it can't possibly be a significant portion of the $289 million in added revenue. Increased consumer activity is the culprit here.

I hope the politicos can refrain from spending any surpluses that occur. It's time to start cutting taxes in order to attract more industry here to Kansas and continue this growth. A good start would be a cut in property taxes.

Godot 9 years ago

Optimist, you might be right, but considering that the increase in tax revenues is coming from corporations, you have to consider that Kansas businesses benefit from the building and commerce that is generated from the massive increase in the size of the operations at Ft. Riley. Not all "corporations" are big. Some of them are just one guy and a backhoe.

Liberty 9 years ago

Looking past the Government spin machine:

The Federal Reserve has raised interest rates over 15 times and may stop raising rates by June, to try to support the dollar bill. Kansas comes out and says "The economy is great!" because we received more tax revenue. The tax revenue probably came from people cashing in their retirement to live on because their job doesn't pay them enough to make ends meet. These people had to pay extra tax fees (penalized while under hardship) for taking their own retirement money out to live on. (There is really something wrong with this tax logic). This is most likely why the tax revenue went up, not because the economy is great in an increasing interest rate environment.

KsTwister 9 years ago

The "Fueling" in the headlines is right.....gas taxes make things look so great. Right.

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