TOPEKA — Corporate income tax collections in Kansas have almost halved since last year, while other sources trend above estimates, according to a new state revenue report.

At the end of May, tax collections totaled nearly $704 million, which was $42.5 million or 6.4% above projections and 7% higher than the same time last year.

Kansas Gov. Laura Kelly recommended the state “continue to prioritize fiscal responsibility to ensure Kansas remains financially sound.” But House Speaker Dan Hawkins said the most recent report should give Kansans confidence.

The competing messages have become familiar in the wake of state revenue estimates, as the Democratic governor and Republican-led Legislature spar over key budget processes and provisions.

“For months, Kansans have heard warnings of fiscal uncertainty and claims that the Legislature’s approach to budgeting would put the state’s future at risk,” said Hawkins, a Wichita Republican running for state insurance commissioner, in a Monday statement. “Instead, we continue to see a strong economy, stable revenues and a budget that is meeting the needs of Kansas while protecting taxpayers.”

State analysts wrote in a memo that corporate income collections have lagged behind estimates for months, and the margin widened in May. Corporate income taxes collections at the end of May totaled $16.2 million, which was nearly $9 million less than state analysts projected and down 44% from May 2025. Since July, the state has collected $810 million in corporate income taxes, almost $12 million less than predicted.

“While total May tax collections were in line with projections, Kansas continues to see corporate income tax collections miss the mark,” Kelly said in a Monday statement.

Individual income tax collections in May were above projections by $53 million and higher than the same time last year, totalling $368 million. Just as corporate income tax collections have trended downward, individual income tax collections have trended upward in recent months. A memo from state researchers said that higher-than-anticipated individual income tax collections could be attributed to strong withholding receipts and a drop in state refunds to taxpayers.

However, economists from state agencies and universities predicted in April that income tax collections over the next two years will fall below previous estimates. The economists projected the state will spend $702.7 million more than it collects this fiscal year.

The Republican-led Legislature has drastically altered its budget-making process in the past two years, foregoing the opportunity both years to make budget adjustments after the April release of the biannual revenue forecast, favoring an early end to the session.

Since the beginning of fiscal year 2026 in July, Kansas has collected almost $9 billion in taxes, which is about $74 million, or .08%, above projections.

• Anna Kaminski is a journalist with the Topeka-based news service Kansas Reflector.