Archive for Tuesday, November 2, 2010

Kansas revenues start to swing upward

November 2, 2010

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— After a historic drop in tax collections, spanning three years, the state’s revenue picture is looking a little brighter. But problems still remain.

State budget experts Tuesday announced that revenues were expected to increase during the current fiscal year by 11.4 percent over last year, which saw a 7 percent drop in revenues.

The increased tax collections are due to an improving economy and a 1-cent increase in the state sales tax that took effect July 1, members of the Consensus Revenue Estimating Group said on Tuesday.

“We’ve stopped dropping downward,” said State Budget Director Duane Goossen said. “That’s really good news.”

Alan Conroy, director of the Kansas Legislative Research Department, said, “We’re certainly headed in the right direction.”

The state collected $5.2 billion in revenue in the last fiscal year, and is expected to collect $5.8 billion in the current fiscal year, which ends June 30, 2011.

But the projected increase would only bring the state up to 2007 revenue levels — which is before the recession hit.

And state government still faces significant budget challenges because it’s estimated the number of Kansans who will qualify for Medicaid assistance will increase, and the loss of federal stimulus dollars, which are expiring.

The state is using nearly $500 million in federal stimulus funding this year and when legislators return in January they won’t have that money to spend in the next fiscal year.

Much of the stimulus money has been used to prop up education funding.

Comments

kansasmutt 4 years, 9 months ago

If you do the math, that 1% is the only thing that made the total number higher. This DOES NOT spell the end, it only says we are paying more taxes and has nothing to do with any recovery happening. I gues if your a state leader that is great news , because it gives you more money to waste.

Untill they can get unemployment back down to less than 5% and lower taxes , the end is not in sight !!!!!

If Sam B will repeal the smoking ban, we could see tax revenues jump up huge amounts very rapidly and it will give jobs back to those who have been let go due to businesses loosing customers.

cayenne1992 4 years, 9 months ago

In fact, the entire economic recession could have been prevented by repealing the smoking ban. The smoking ban caused the housing market collapse. I think almost every restaurant in downtown Lawrence has closed up due to the smoking ban.

It's so simple isn't it?

kansasmutt 4 years, 9 months ago

Nope, but it was a negative that is helping the downward trend. It also has killed many many businesses that were taking in tax revenue and now are not !!!!! By making it a choice of each business, you leave the revenue intake the same and people will get to know where to shop and where not to shop, very very simple for the human brain to figure out. With he ban being enforced, you drive ALL your out of state business out, thus dropping spending in Kansas and dropping tax revenue intake to run Kansas.

cayenne1992 4 years, 9 months ago

"It also has killed many many businesses that were taking in tax revenue and now are not !!!!!"

Explain how businesses take in tax revenue. I don't understand what this means--businesses profit on tax revenue? I think you're confused who receives taxes.

Also, if businesses are now not receiving tax revenues, that would make sense. They weren't receiving tax revenues in the first place--unless you're referring to businesses who receive government funds?

"By making it a choice of each business, you leave the revenue intake the same"

By repealing the smoking ban, revenue would've stayed the same? Very, very hard to measure, and there's no evidence (at least none you've cited) that indicates revenues were affected by the smoking ban.

If you want credit, learn to cite your sources. You're quick to make claims, but do nothing to validate them. It makes you appear uninformed, at best.

bender 4 years, 9 months ago

Gee, I did the math and got an 11.5% increase between FY 2010's 5.2 billion in revenue and FY 2011's projected 5.8 billion. How does that demonstrate that the 1% sales tax increase was the only thing that made the number higher? If all other things were equal, a 1% sales tax at best would have increased revenues by 1% (if sales taxes were the only source of revenue which of course it is not).

kansasmutt 4 years, 9 months ago

What is 1% of 5.2 billion ? Just about the diffrence from last year to nows numbers. Telling us the tax is covering the decrease in sales revenues.

If you looked at growth numbers as you point out, the actual numbers point toward a downward trend in spending still.

The above tells us we have less money in our pockets now, but the state has more tax revenues to waste on not needed new schools, study sessions on a road to noplace and so on.

Shardwurm 4 years, 9 months ago

Agree with Kansasmutt...the reason it's looking brighter for the state is because it's looking dimmer for the citizens. We're paying nearly 10 percent sales tax now.

And that money that is going into the coffers came right out of our pockets. Just what you want to do when you're trying to get out of a recession - take money out of the pockets of citizens that otherwise would have been spent on goods and services.

kansasmutt 4 years, 9 months ago

Raising what they take from us does no good, it just sends us back 3 steps for every step we went forward. Can you , wait, could you imagine ever, we would be paying 10% sales tax in Kansas ?

This is what Texas does and has no personal property tax and they are doing good in this downtime. We pay extream personal property and other taxes and huge sales tax and our leaders cant seem to keep us afloat.

avoice 4 years, 9 months ago

And just in case they're counting their chickens from business income taxes, they can kiss some of that good-bye next year, too. While our small business posted a loss in 2008 and a modest recovery in 2009, we're closing in on a 50% backward slide by the end of the current year.

kansasmutt 4 years, 9 months ago

Sales are down or at a stand still from 2008 now ( i know i own a business ) There are quite a few business closing now and before Jan 1 2011 in this area. I drove by a business in Eudora , the Flower Shop, it is out of business now. A few businesses have anounced it and i know another 5 that are keeping it under wraps until later this and next month. This is going to just keep the trend of dropping sales tax revenues sinking.

roachrebecca 4 years, 9 months ago

It'll be interesting to see if Kansans who will qualify for Medicaid assistance will actually increase this coming year, as retirement accounts for many have most likely not fully recovered yet. It may be that the national trend of delayed retirement will continue to some extent.

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