42.6 F
Wichita
Thursday, February 25, 2021

Kansas tax revenue $62 million above estimate in October to sustain positive trend

Gov. Laura Kelly, revenue secretary warn of a fragile COVID-19 economy

Sports Headlines

Kansas to Host UTEP March 4 in Men’s Basketball

LAWRENCE, Kan. – Kansas men’s basketball has added a non-conference game and will host Texas-El Paso (UTEP), on Thursday, March 4, at 7 p.m.,...

Kansas Falls in Overtime to No. 14 Texas, 75-72

Courtesy of Kansas Athletics AUSTIN, Texas – In a game that couldn’t be decided in regulation, the No. 17...

McGuirl Sparks Senior Night Win Over 7/8 Oklahoma

Courtesy of K-State Athletics MANHATTAN, Kan. – Mike McGuirl scored 19 points (16 in the second half) to...

Kansas Adds Jake Schoonover to Coaching Staff

Courtesy of Kansas Athletics LAWRENCE, Kan. – Kansas football coach Les Miles announced Monday that Jake Schoonover has...

1A KSHSAA Sub-State Basketball Assignments Announced

CLASS 1A - DIV. II ASSIGNMENTS SUB-STATES (February 25, 26, March 4-6) #1 Attica – Clay McDaniel, Manager – Argonia, Attica, Cunningham, Hutchinson-Central Christian, Kiowa-South...
Derek Nester
Derek Nester was born and raised in Blue Rapids, and graduated from Valley Heights High School in May of 2000. He attended Cowley College in Arkansas City and Johnson County Community College in Overland Park studying Journalism & Media Communications.After stops at KFRM and KCLY radio in Clay Center, he joined KNDY in 2002 as a board operator and play by play announcer. Derek is now responsible for the digital content of Dierking Communications, Inc. six radio stations.In 2005 Derek joined the staff of KCFX radio in Kansas City as a production coordinator for the Kansas City Chiefs Radio Network, which airs on over 94 radio stations across 12 Midwest states and growing. In 2018 he became the Studio Coordinator at the Cumulus Kansas City broadcast center for Kansas City Chiefs Football.

By Tim Carpenter – Kansas Reflector

TOPEKA — Kansas’ individual income, retail sales as well as liquor and cigarette tax collections surged in October to deliver $62 million more than projected to the state treasury and offer a slice of budgetary optimism despite lingering concern of a revenue shortfall this fiscal year.

The haul last month left the state with $178 million or 6.6% more in revenue than expected through the initial four months of the fiscal year.

In April, Kansas’ official revenue forecasters said the state should prepare for a shortfall of $650 million by the end of June 2021 absent reductions in spending or increases in revenue. The state is constitutionally prohibited from running an annual budget deficit, but each month of positive tax revenue news shrinks the hurdle for the 2021 Legislature and Gov. Laura Kelly.

The economic impact of COVID-19 sparked rolling waves of unemployment and business disruption nearly impossible for forecasters to predict. So far, more than 1,000 Kansans lost their lives during the coronavirus pandemic.

“This revenue growth, while unmistakably positive, has to continuously be assessed against the backdrop of the COVID-19 pandemic and the uncertainty it causes for the economy going into the winter months,” said Mark Burghart, secretary of the Kansas Department of Revenue.

The Consensus Revenue Estimating Group, comprised of state analysts and university economists, is scheduled to meet Friday to update their official assessment of the economic outlook in Kansas and implications for the state’s general fund.

In October, state tax receipts were $595 million, which was 11.6% or $61.8 million above the forecast. The total was $43.6 million more than in October 2019.

Kelly, the Democratic governor, said the encouraging revenue report shouldn’t mask reality that Congress must adopt a federal rescue bill to help states, counties and cities come to terms with significant tax revenue problems tied to COVID-19.

“As the COVID-19 pandemic continues to impact Kansans and threaten our state’s economic uncertainty, Congress must pass an economic relief bill,” she said. “While the positive revenue trends are encouraging, the future of this revenue growth will be tied to the support we get from Washington and to every Kansas community using the tools we know work to slow the spread of COVID-19.”

The state’s October receipts for individual income taxes of the current fiscal year were $283.6 million, a 9.1%, or $23.6 million, increase from the estimate. That was $23.6 million more than collected in October last year.

Corporate income tax collections were 74% or $11.1 million more than estimated at $26.1 million for October. The new monthly total represented a $138,000 decrease from last October.

Retail sales tax collections climbed $12.9 million or 6.6% from the October estimate to $210.9 million. The figure for the month was $10.2 million greater than October one year ago.

Collection of compensating use tax, a companion of the sales tax, reached $50.7 million, an increase of 30% or $11.7 million above the October estimate. Payment of compensating use tax grew by $9 million compared to October of last year.

In October of this year, state tax collections on cigarettes was $10.2 million, or $276,000 above the projection. For liquor, $9.5 million in taxes surfaced in October, or $600,000 more than anticipated. The monthly severance tax on oil and gas was $1.8 million, double the estimate.

Kansas Headlines

Fraudsters Bilk Kansas Unemployment System For Up To $600M, Audit Concludes

By Sherman Smith - Kansas Reflector TOPEKA — A report issued Wednesday by the Legislature’s auditing division estimates up to $600 million in fraudulent unemployment claims may...

Kansas Law Enforcement Pushes Back On Legalizing Medical Marijuana

By Noah Taborda - Kansas Reflector TOPEKA — Gray areas in a bill legalizing marijuana for medical use in Kansas are raising concerns among law...

Kansas Customers Left To Pay The Price After Winter Storm Sends Natural Gas Prices Soaring

By Brian Grimmett - Kansas News Service WICHITA, Kansas — Last February, the city of Cheney, Kansas – located just west of Wichita – paid about $2 per...

U.S. Sen. Moran On Mission To Make Certain Kansas Vets Get Shot At COVID-19 Vaccine

By Tim Carpenter - Kansas Reflector TOPEKA — U.S. Sen. Jerry Moran met with military veterans Monday at Colmery-O’Neil VA Medical Center on a mission...

US Highway 36 Association Announces “Best Burgers” Contest Winners

The US Highway 36 Association is pleased to announce the winners of our “Best Burgers on 36” Contest. During the month of November voting...

Kansas News Service

Kansas Customers Left To Pay The Price After Winter Storm Sends Natural Gas Prices Soaring

By Brian Grimmett - Kansas News Service WICHITA, Kansas — Last February, the city of Cheney, Kansas – located just west of Wichita – paid about $2 per...

Kansas Foster Care Providers Say They’ve Gotten Better, But Critics Say They Need To Do Better

By Nomin Ujiyediin - Kansas News Service The long-troubled foster care system in Kansas got hit with yet another complication over the last year. Pandemic complications...

Ex-KU Med Center Official Pleads Guilty To Tax And Embezzlement Charges

By Dan Margolies - Kansas News Service A former administrator at the University of Kansas Medical Center pleaded guilty on Tuesday to bank fraud and...

How Elon Musk And A Mission To Mars Might Boost Internet Speeds In Rural Kansas

By David Condos - Kansas News Service GREAT BEND, Kansas — Joey Bahr walks out to the front of his yard along a blacktop county...

Kansas Hospitals Seek Help From Nearby States, But The Whole Midwest Faces A COVID Surge

By Celia Llopis-Jepsen - Kansas News Service Hospitals in Colorado and Nebraska are calling Kansas in desperate search of beds for coronavirus patients. But Kansas...