COVID-19 yet to hit Kansas budget; March taxes 1.6% short

photo by: Associated Press

Empty parking spaces surround the Kansas Statehouse In Topeka, Kan., Wednesday, March 25, 2020. The Statehouse is closed to visitors. (AP Photo/Orlin Wagner)

TOPEKA — The coronavirus pandemic has yet to fully hit the Kansas state budget, with tax collections falling only $8.6 million short of expectations in March.

The state Department of Revenue reported Wednesday that tax collections last month were $523.4 million when the state projected collections of $532 million. The shortfall was 1.6%.

And the lower-than-expected revenues can be attributed largely to insurance companies paying the state tax on their premiums early. Premium tax collections were almost $20 million short of expectations for March, but since the 2020 fiscal year began in July 2019, they’ve been on target.

State officials expect job losses and a decrease in economic activity to cut into state revenues starting next month. State officials and university economists are set to issue a new fiscal forecast April 20.

Gov. Laura Kelly issued a statewide stay-at-home order in that is effect until April 19 and extended the state’s income tax filing deadline three months until July 15.

Tax collections had been ahead of expectations for 32 of the previous 33 months, ending with February. The state took in nearly $5.3 billion from July 2019 through March, or about $166 million, or 3.2%, more than expected, even with March’s monthly shortfall.


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