Kansas misses tax estimates by $12.7 million; budget hole grows to around $75 million

Kansas revenue numbers fell short of estimates by $12.7 million for the month of October, adding to the state’s projected budget hole.

The figures released Tuesday by the Kansas Department of Revenue show that the state’s budget gap now is around $75 million.

Individual income tax collections pulled in around $9.4 million above estimates. But that wasn’t enough for the state’s larger revenue report to overcome drops in sales tax collections ($10.7 million below estimates) and corporate income taxes ($7.9 million below).

“We are very pleased to see individual income tax receipts continue to grow and particularly strong withholding tax receipts,” Kansas Secretary of Revenue Nick Jordan said in a statement. “We remain concerned by the larger national downward trend of corporate and sales tax receipts.”

After September numbers fell $44.7 million below estimates, the budget shortfall sat at more than $60 million.

Gov. Sam Brownback’s administration has criticized the revenue estimating process, which has shown the state falling short of benchmarks for much of the past year.

Critics of the governor’s economic policies have frequently pointed to his 2012 tax cuts as a reason for the state’s economic situation. Brownback has maintained that the tax cuts are working and has said that he thinks the state is in a rural recession.

The administration has said it doesn’t plan to order across-the-board budget cuts, even in light of the shortfall. Earlier this year, Kansas agencies sent in reports showing the possible impact of a 5 percent budget cut.

This story was originally published November 1, 2016 at 5:34 PM with the headline "Kansas misses tax estimates by $12.7 million; budget hole grows to around $75 million."