Thursday, January 10, 2013
Kansas is seeing its projected budget shortfall shrink because of better-than-expected revenue collections.
The Legislature's research staff issued a new projection Thursday of $267 million. The figure represents the gap between anticipated revenues and current spending commitments for the fiscal year that begins July 1.
The end-of-November figure had been $295 million. But the state saw a bulge in revenues in December, particularly in individual income tax collections.
Legislative researchers shared the new shortfall projection with The Associated Press before distributing their report to most legislators and making it public.
The shortfall results from massive income tax cuts approved last year to stimulate the economy. Gov. Sam Brownback and other supporters of the tax cuts have acknowledged that a boost in economic activity would lag, possibly causing budget issues.