Kansas tax collections narrowly beat revenue projections in April, good news for lawmakers who passed a budget plan Monday morning to address a big budget shortfall.
Tax receipts were $2.6 million above estimates, according to the state Revenue Department. That result comes after the state’s revenue estimating panel last month revised projections downward.
Lawmakers worked late Sunday and into the early morning hours Monday to pass a budget bill to fix the state’s $290 million budget gap. The plan left much of the expenditure cutting to Gov. Sam Brownback.
Sales tax receipts came in $4.9 million above projections in April, and individual income tax receipts were $774,000 more than estimates, officials said.
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“We are happy to see individual income tax receipts increasing compared to last year, particularly withholding taxes. They are a good sign for the health of the economy,” said Revenue Secretary Nick Jordan in a statement. “We are also pleased to see use and sales tax receipts increase for the second month in a row.”
The budget plan passed by narrow margins in the Kansas House and Senate. It projected a $27 million ending balance for the rest of this fiscal year, which ends June 30, and $81 million reserve for the 2017 fiscal year.
Tax collections in March came in $1.7 million below projections for the month. That was a huge improvement over February, when tax receipts were $53 million shy of the mark, and Brownback ordered a 3 percent cut to the state’s university system.