Archive for Thursday, September 1, 2016

Kansas tax collections more than $10M short of expectations in August

September 1, 2016, 4:05 p.m. Updated September 1, 2016, 5:07 p.m.

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Topeka — Tax revenues came in more than $10 million short for the month of August, the Kansas Department of Revenue said Thursday, putting the state closer to the point where Gov. Sam Brownback may need to order more spending cuts to balance the state budget.

Although individual income taxes, one of the big sources of revenue shortfalls in earlier months, came in nearly $15 million above estimates, that was offset by big shortfalls in retail sales and corporate income taxes.

“Individual income taxes beat estimates for the second month of the fiscal year, which is encouraging, but corporate, sale and use tax receipts continue to lag pulling down the overall totals,” Secretary of Revenue Nick Jordan said in a statement that accompanied the report.

Although the state had expected to take in about $10 million in corporate income taxes, it actually received only about $304,000, prompting many people to ask what had happened since corporate income taxes were not part of the controversial tax cuts that Gov. Sam Brownback championed in 2012 and 2013, cuts that Democrats have said are the major reason for the state’s persistent shortfalls.

Jordan, however, said the numbers in Kansas reflect a national trend, and he cited recent statements from Moody’s Investor Services saying most states that tax corporate income can expect to see declining revenues from that source.

Still, the report was bad news politically for Republican lawmakers who face re-election in a little more than two months, and Democrats were quick to pounce on the report.

“This is another indication that Kansans need to speak up by voting in November to replace those legislators who have rubber stamped Sam Brownback’s irresponsible agenda,” Senate Democratic Leader Anthony Hensley of Topeka said.

At the end of the 2016 legislative session, Brownback was forced to order $97 million in cuts to the budget bill he had just signed in order to balance the budget for this fiscal year.

State officials estimated at that time that if revenues came in as projected, the state would end this fiscal year on June 30, 2017, with a balance of $93 million in the general fund.

Since then, however, revenues have continued to come up short, missing the mark by $34 million in June, another $12.8 million in July, and now an additional $10.2 million in August.

That could put the projected ending balance as low as about $35 million as of this month, with two more months of revenue reports due to come out before the Nov. 8 general elections.

And between now and then, the Kansas Supreme Court will hear oral arguments Sept. 21 in a school finance lawsuit in which four plaintiff school districts are seeking an order for as much more than $500 million a year in additional funding for K-12 education.

The court is not expected to rule on that case until after the elections, but a decision could come before, or early into, the 2017 legislative session.

During that session, lawmakers are expected to write a new school finance formula to replace the one they repealed in 2015, and on Wednesday Brownback stood with top officials from the Kansas State Department of Education to solicit ideas from education groups and the public about what that formula should look like.

But Hensley said the August revenue report showed that the biggest question facing the state is not the formula, but where the money to fund it will come from.

Comments

Dorothy Hoyt-Reed 1 year, 8 months ago

This is like a broken record, isn't it? Why doesn't Brownback resign and go work for the Koch's directly. They can both move out of Kansas. Sure, we would lose jobs, but I'll bet we could gain a few with people moving back and companies moving in. People never had much a view of Kansas anyway, but now we are used as a perfectly example of how not to run a state.

Dustin Morris 1 year, 8 months ago

The estimate may be off. That's why it's called an estimate. Why is it not reported that total KDOR Tax Collections are up 1.1% over the same time last year and income tax collections are up 10.86% as well. That's $17 million.

Greg Cooper 1 year, 8 months ago

Cherry pick all you want, blame the estimate (which, by the way is the lawful figure on which the legislature has to base its budget), or whatever you want to, but: FACTS: the total last two months, or the first two months of the fiscal year, show a revenue shortfall of $10.5 million. This includes individual income tax increase of 8.95% above estimates, but retail sales tax downfall of $14 million, compensating use tax (most of which is internet) down $4.33 million, and corporate income taxes down by, get ready, $9.7 million, a whopping 97% below estimates.

So, Dustin, the total collections were off by enough that the dollars on which the budget is based are not there. That the collections are up very little, if any, above the rate of inflation is of no great joy. We still haven't got the money to run our state, even after massive cuts to many state-sponsored programs.

Put that in your pipe and smoke it.

Bob Summers 1 year, 8 months ago

Good news for people not on the government dole. Bad news for the Liberal.

Liberal people's life blood relies on the collective confiscating money from those that earn it. Is it any wonder why they're having a tizzy fit.

Alex Landazuri 1 year, 8 months ago

so schools, roads, police, fire, etc arent affected by this shortfall? you really do enjoy being nothing better than a troll dont you bob?

Jason Holcomb 1 year, 8 months ago

You must have the impression that somebody takes you seriously. Nobody does.

Larry Sturm 1 year, 8 months ago

Dumb A$$ wishful thinking does not bring in any money.

Richard Crank 1 year, 8 months ago

I'm sorry, Dorothy, but you and Toto are back in Kansas now!

Oz was a dream, Kansas is a nightmare ... thanks to its "wizard" who's anything but.

Derek Espinosa 1 year, 8 months ago

I am a liberal but I don't rely on other people's money. My spouse and I both have full-time jobs. I know a conservative or two that live off the government dole. Maybe you should say there are lazy people living off the government dole.

Mike Green 1 year, 8 months ago

Derek. BS is a kid just kind of spouts random fox news talking points. He/she probably also enjoys government services like roads, levies, educated professionals.

Dorothy Hoyt-Reed 1 year, 8 months ago

Where did you attend school school, Derek? Was it a public school? Were you being lazy when you attended that school? Didn't other tax payers provide that education for you? Why aren't you willing to provide the same for the next generation. I just don't understand the greed that the US has sunk into.

Michael Kort 1 year, 8 months ago

Put the government in the bath tub and drown it in debt is the best Stealth Libertarian Republican act of all time .

It is no accident that they keep predicting more monthly incomes than they recieve each month .

This just equates to their next big excuse to attack public K-12 and college education in Kansas .

The "we are just too poor in Kansas" line ! .......Yea, by design of our legislature and governor !

Give them an Oscar !

Well, with all of the college students moving in all over the state and regular back to school spending you would expect that income would have been higher in August ?

Could someone in Topeka be skimming tax money ?

If they are not outright stealing, they are certainly "giving away the store legally" to their LLC supporters and their influence purchasing donors "

Steve Jacob 1 year, 8 months ago

Looking at corporate numbers, retail was terrible nationally this summer. All the job gains are service industry related.

Bob Forer 1 year, 8 months ago

Kansas is going down the tubes while the billionaires laugh all the way to the bank.

Who elected these fools. Any confessors out there?

Richard Heckler 1 year, 8 months ago

People say business people make the best politicians. Where is the hard evidence?

Isn't is odd that conservative business people consistently come up short every month yet until such thinkers took over our state government there was not a problem.

People say business people make the best politicians......maybe this is hogwash?

Did we voters ask legislators to reduce funding for public education? NO we never ask them to do such a thing? So why did they start doing it? Why are they still doing it?

IF WE TAXPAYERS want public education and want to pay teachers well and want neighborhood schools then we should have it because it is our money. Our money does not belong to reckless legislators. OUR money and our school districts belong to we the taxpayers.

Where did these phoney republicans get the idea they have the right to shut down public education? Vote all of these phoney republicans out of office.

Governor Brownback should know by now what the taxpayers want for their public education system. If Gov Brownback does not know Gov Brownback perhaps has not been paying attention.

The taxpayers want the original formula reinstated. Taxpayers had been supporting that formula for decades which indicates they were willing to continue doing so. It has never been anywhere near a simple majority of taxpayers requesting a change.

It is politicians making the changes based on a personal agenda established by the American Legislative Exchange Council /ALEC which has pushed education vouchers which use public funds to pay for private schools. Our nation spends about $500 billion in local, state and federal funds on public schools. Some anti tax back door profiteers look at that number and want those tax dollars in their bank accounts.

Richard Heckler 1 year, 8 months ago

Reinstate Taxes

VOTERS should have learned a lesson which is the republican party is not the same and has not been for about 36 years. This will require holding their noses to vote democrat which is a fiscally smart choice. Why?

It is the GOP led by anti American libertarian right wing politicians that has effectively rendered Kansas bankrupt.

Next session just reinstating the Brownback tax cuts should be a no brainer. It does however require a ton of backbone and truck loads of ethical stamina.

Time to reward middle class real republicans and democrats for the pain and suffering extended to them by the Brownback administration and associated sheep.!

Then cut sales taxes on the following:

--- school supplies from kindergarten – college graduation

--- clothing like in Pennsylvania

--- shoes

--- groceries

--- all healthcare related purchases

Reinstate all of the mortgage interest deduction and estimated sales tax refund.

Again reward middle class real republicans and democrats for the pain and suffering extended to them by the Brownback administration and associated sheep.!

VOTERS should have learned a lesson which is the republican party is not the same and has not been for about 36 years. Republicans hold your noses to vote democrat and/or Green Party which are THE fiscally smart choices.

Kansas cannot go on with bank robbers in office.

Richard Heckler 1 year, 8 months ago

BTW how does the anti american libertarians spend OUR tax dollars?

Where is a federal audit?

New, whopping loss of jobs sabotages Gov. Sam Brownback’s tax-cut strategy 
Read more here: http://www.kansascity.com/opinion/opn-columns-blogs/yael-t-abouhalkah/article24965164.html#storylink=cpy

Richard Heckler 1 year, 8 months ago

Austerity,right wing tax cuts and terminating large numbers of state workers pulls money out of the economy which kills the economy. Shouldn't a governor know this?

GOP austerity is a disaster of Greek proportions: Sam Brownback, Bobby Jindal & the economic scam of the century. America isn't Greece, but we can see in Kansas and Louisiana the disastrous consequences of Greek-style austerity

http://www.salon.com/2015/07/02/gop_austerity_is_a_disaster_of_greek_proportions_sam_brownback_bobby_jindal_the_economic_scam_of_the_century/

Kansas Is Totally Screwed http://www.motherjones.com/politics/2015/01/sam-brownback-kansas-tax-cuts-failing

Richard Heckler 1 year, 8 months ago

Mussolini deregulated all Italian industry. Then privatized everything the government owned. It was the PATH to fascism which is exactly what the republican party is doing.

If the legislature decides to privatize many of the state services a 24/7 audit will be required to counteract fraud. The most reliable source of fraud against taxpayers is corporate America.

--- “What I got from the Legislature was a naked tax cut with none of the pay-fors,” Brownback said. “I took it because it was the best we were going to get.”

Some would call that galling.

Absolutely read more here: http://www.kansascity.com/news/local/news-columns-blogs/local-columnists/article23230965.html#storylink=cpy

--- More Proof Brownback Tax Cuts Are Not Working http://www.kansascity.com/opinion/editorials/article3209717.html

--- New jobs report shows Brownback tax cut promises still failing http://www.kansascity.com/opinion/opn-columns-blogs/yael-t-abouhalkah/article1246852.html#/tabPane=tabs-3eebbd11-2

--- Brownback Tax Cuts Now Full Blown Disaster for Kansas http://www.kansascity.com/2014/05/30/5056283/brownbacks-tax-cuts-now-full-blown.html#storylink=cpy

It seems to me this legislature had more than enough heads up that the 24/7 tax cut path is the road to ruin. Why did they bury their heads and keep screwing up?

Derek Espinosa 1 year, 8 months ago

Dorothy I am with you. Bob's post only mentioned liberals. I was pointing out that conservatives live off the government dole also. I think that most people whom need government assistance don't take it because they want to but because they have to. I don't know of anyone getting rich living on welfare but I have come across a couple of people who could work but prefer not to work and collect assistance.

I don't have a problem paying taxes for schools. I went to Chanute public schools then on to KU. I have one kid going to Chanute elementary school now.

For the record, Brownback has been the worst governor and his low approval rating even among republicans show that.

Shane Cheung 1 year, 8 months ago

Ask yourselves this Kansans. When was the last time you saw a surplus by Gov.Turdback? The saddest thing about his economic experiment is that it has come at the expense of all of you, hard working Americans just trying to get by and keep your families together. It is time to end the pain and just raise taxes a tiny bit just to stimulate the economy. The only people happy are the Koch Brothers, stop kissing their rear ends Turdback.

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