Kansas tax revenues yielded no surprises for October because the revenue estimators were right on target with their estimates. The tax receipts were $444.7 million, about $670,000 above their estimates. This information comes from the Kansas Department of Revenue and was released at the end of October.
Fiscal year-to-date receipts since July 1st are down about $867,000, which is just a drop in the bucket when compared to the $1.8 billion in receipts for the first four months of the fiscal year.
Oil and gas severance taxes brought in about $5 million more than expected for October, and corporate income taxes were $15.7 million above estimates, but individual income taxes were off $10.15 million and sales taxes were $6.1 million below estimates. When people make less they spend a lot less, this is not a good sign.
For the fiscal year to date, while corporate taxes are above the estimates, individual income taxes are nearly $30 million below estimates.
The Consensus Revenue Estimating Group met this week to put together the forecast for the next budget year. They determined the current fiscal year total revenues will be $211 million or 3.5 percent less than anticipated last session. Revenues show no growth for the coming fiscal year, which is the information the Legislature and the Governor will use to prepare budgets for FY 10.
Key to the drop was a predicted $180 million shortfall in personal income tax receipts, which Budget Director Duane Goossen and Legislative Research Chief Alan Conroy said is tied to capital gains, and not necessarily joblessness, which is creeping upward as well.
Goossen said Gov. Sebelius, who is now facing a roughly $137 million shortfall in the current budget year, will have to plan for the current year spending cuts to at least a few million dollars to keep us in the black on the financial statements.
What this means is that the budget committees along with the agencies will need to meet soon to discuss how the spending cuts are achieved. Traditionally programs are eliminated, funding is reduced and then everyone who had received money begins moaning that they cannot survive without the money. I think it is important to work with the agencies and listen to their recommendations. The Governor has requested everyone look at a five percent cut in operating budgets. This may not be enough.
From what I hear everyone is looking to find those “less necessary” expenses in their budgets and offer those as recommendations for consideration. When the money is not there and projections indicate the money will not be coming, we have no choice but not to spend any more than is absolutely necessary.
Don’t forget we have over $3.5 billion in debt that requires at minimum interest payments of at least $280 million.
My question to you is where would you cut expenses? I want to know what you, as the citizen taxpayer would do if you had to address this problem. Please send me your suggestions for cuts as well as your perception of what the impact of these cuts would be. This is not a pretty picture and it is not a time for finger pointing and finding fault with others. We need to take decisive action.
The election is behind us and the results show there are a few seat changes, in the Senate the Republicans added one seat bring the total of Republicans to Democrats ratio to 31-9. In the House five seats changed with the Republicans taking two and the Democrats three for a ration of 77 republicans to 48 Democrats.
We have indeed made history this election, especially at the national level; we have elected a young and talented African –American to be our nations leader and to represent us to the World. We need to offer our prayers and support, as he and his cabinet will face some very tough challenges. There will be disagreements, compromises, and some very tough decisions to be faced in the next four years. We should all work together to meet these challenges.
I have been invited to deliver the keynote address during the Celebration of Freedom activities on November 11th in the Middle School Auditorium. This week long celebration has a little of something for everyone and I hope you are able to participate in one or more of these events that pay honor to our Veterans. We owe a huge debt to those that have chosen to serve in our nations defense.
I consider it an honor and privilege to be your Representative in Topeka, I want to know what you think and hope you will contact me with your concerns and issues. My home address is 1115 Rim Rock Road, El Dorado 67042, my phone is 316-321-2087, my email is johng@carlisleinc.net, grange@house.state.ks.us, my previous updates are located at www.johngrange.net. Thanks again, John.
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