Archive for Thursday, October 1, 2015

Kansas tax collections $31M short of expectations last month

October 1, 2015

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— Kansas collected $31 million less in taxes than anticipated last month, prompting one of Gov. Sam Brownback’s most vocal legislative critics to predict Thursday the Republican will be forced into another round of budget cuts.

The state Department of Revenue reported the state took in $534 million in taxes, when its official fiscal forecast projected $565 million. The shortfall was about 5.5 percent.

Tax collections were almost equally as short of expectations in August, but the department attributed that month’s shortfall to larger-than-expected income tax refunds. Since the fiscal year began in July, tax collections have been $1.37 billion, about $67 million, or 4.7 percent, off of expectations.

The department attributed September’s lower-than-anticipated tax collections to the decline in energy prices, saying that reduced both taxes collected on oil and gas production and depressed income tax collections as well. The department said a dip in farm income affected tax revenues.

Department spokeswoman Jeannine Koranda said the department doesn’t yet know whether the softness in tax collections tied to those economic issues represents an ongoing trend.

“We know it’s occurring, but we don’t know whether it’s going to replicate,” she said.

The state increased sales and cigarette taxes in July, and Brownback’s administration later announced $63 million worth of budget adjustments to lessen the chances of a deficit in the state’s $15.4 billion budget.

But after August’s tax collections, the state was expected to have a cushion of roughly $50 million in cash reserves in July 2016. That cushion dwindles with September’s shortfall.

The state’s budget problems arose after the GOP-dominated Legislature slashed personal income taxes at Brownback’s urging in 2012 and 2013 in an effort to stimulate the economy. Democrats and other critics contend the tax cuts were reckless, but Koranda said their effects have been anticipated in the state’s official forecasts.

Senate Minority Leader Anthony Hensley, a Topeka Democrat who is one of Brownback’s leading political opponents, said the governor should expect to face more budget adjustments.

“Very quickly, we are going to be in the red,” Hensley said.

Comments

Steve King 1 year, 10 months ago

What's this month's excuse? The Blood Moon?

Michael Kort 1 year, 10 months ago

It's just the fault of liberal pinko commies who have sabotaged the magnanimous plans of our great & wonderful governor and his esteemed legislature !......all of which was aided by the fact that the blood moon was square the bird bath and trine the sewer manhole cover at Cedarcrest ! But never fear,... because there is a space ship hiding behind the moon which will soon be landing at the Capitol Building to drop off some cash that will pay our bills forever....but this will only happen if we all concentrate and believe just as hard as we can that " SAM IS THE MAN " Take a deep breath and just say it mindlessly " SAM IS THE MAN " . May the FARCE be with you .

Michael Kort 1 year, 10 months ago

Yes, I can feel it ! THE FARCE IS WITH US !..........AND WE HAVE BEEN FOOLED !

Lawrence Freeman 1 year, 10 months ago

I'll bet Missouri's sale tax collections are booming! brownback and company forgot smokers are not slaves and are free to travel across state lines. I wonder how much they will have to lose before they admit they made a mistake.

67 million short in 3 months and accelerating.

Fred Whitehead Jr. 1 year, 10 months ago

Why is this news? Is there not anything else to report? How is the Kasold destruction plan going?? Are there any new "bike paths" planned in the major streets in town?

This is an on going refrain, same song, same verse, not gonna get better, it is just going to get worse. caused by the idiot governor and his cronies who are controlled by the Koch Industries Regime that paid for the attack ads that got them elected.

The billionaires have profited handsomely from the tax "relief" they have received from the government of the State of Kansas, and this is not going to stop as long as the impeachment of a significant portion of the state legislature and governor is delayed.

So what you gonna do? Just stand by and watch the state go to hell?? I guess so.

Bill McGovern 1 year, 10 months ago

Brownback just hides in the governors mansion until his term is over.

Richard Heckler 1 year, 10 months ago

So why does the republican party campaign 24/7 for cutting the wages of the working class. They call it Right To Work legislation.

These republicans must be dumb beyond belief if they cannot understand that cutting wages does not boast the economy thus cuts into tax revenue generation. Most certainly providing more and more tax cuts for the 1% has yet to boost revenue,economic growth or job numbers for that matter.

Union busting is all about reducing working class wages also.

We must ask ourselves where do these "economic idiots of our time" get their information?

And why should the 98% pay for their tax breaks and their stupidity?

Lawrence Freeman 1 year, 10 months ago

Why is it brownback supporters never seem to comment?

Bob Forer 1 year, 10 months ago

Because they have no defense and are too cowardly to show their faces.

Richard Heckler 1 year, 10 months ago

Could it be because decreased tax collections is intentional,premeditated and part of the why the best public services should be sold off to reckless billionaires?

No this is not an accident no matter how dumb they pretend.

Thousands more will be without jobs as the personal bank accounts of the profiteers grow and grow and grow. This is the American Legislative Exchange Council ....... masters in the art of deception.

99% of the 99% best find time and necessity to go vote and VOTE NO to anyone running as a republican because ALEC and Koch dollars do not fund republicans only trained liars.

Lawrence Freeman 1 year, 10 months ago

I think you're reaching and overthinking this Richard. brownback and co. have no problem raising taxes and spending . . . as long as it'tsdone on the back of the 99%.

Carol Bowen 1 year, 10 months ago

There are two ways to increase a deficit - increase spending and decrease revenue. The challenge is to find a balance. A singular ideology will not accomplish the balance.

Tyler Palmer 1 year, 10 months ago

Here we are 4 years into Brownback's failed rightwing economics experiment in Kansas with pretty clear negative results year after year and the spokesperson's response is that we need to wait and see if this is trend or not?

Enough with the excuses, distortions, lies, and subterfuge. The budget and other economic problems in Kansas are always blamed on someone other than those that put together and enacted the changes to the state revenue and budget policies. They need to accept responsibility and make evidence-based, sensible, and reasonable changes to correct the shortfalls and problems they created for no good reason other than political ideology.

Phillip Chappuie 1 year, 10 months ago

A dip in farm income? I would figure most of the "farms" would be income tax exempt under the provisions of the doomed policies. Oil and gas has been depressed for some time now, nothing new there. It must be Obamacare that is causing this.

Dorothy Hoyt-Reed 1 year, 10 months ago

And a dip in fuel prices? If we are all paying less in fuel, you would think we had more money to spend elsewhere, and that would make up for the "dip". We all know who the "dip" is, and we are all getting dunked.

Dorothy Hoyt-Reed 1 year, 10 months ago

"Department spokeswoman Jeannine Koranda said the department doesn’t yet know whether the softness in tax collections tied to those economic issues represents an ongoing trend.

“We know it’s occurring, but we don’t know whether it’s going to replicate,” she said."

When was the last time that Kansas revenues didn't fall short? What does this stupid woman consider a "trend"? Is she paying attention?

I don't have the time or energy to do a chart, but you would think a good reporter could. I googled "Kansas revenue more than expected" and only got stories about how it was less than expected.

Paul Youk 1 year, 10 months ago

I would say the obvious step is to re-instate the old taxes you cut (you morons)...but lets face it, this is exactly the kind of on-going 'crisis' that will enable them to perpetually erode the public sector, something Brownback and Co. are perfectly fine with.

Larry Tucker 1 year, 10 months ago

Maybe it's time to implement the marijuana tax in Kansas. Nothing else seems to work!!

Chuck Holder 1 year, 10 months ago

Wow really?
Same thing every month, every quarter. So why don't they just "project" a lot lower taxes and then maybe some month they would be correct? Like next month our tax income projections are going to be $500.

Chuck Holder 1 year, 10 months ago

Then next month they can say Yes it's working. I told you all along it would work. signed sammy brownie.

Lawrence Freeman 1 year, 10 months ago

Nope that wouldn't work. Next month they would have to say they hit the projected tax. . .but they spent too much money, LOL

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