Kansas beats November tax revenue estimates by $7.7 million

Kansas beat monthly revenue expectations for the first time since February, surpassing tax revenue estimates by nearly $8 million in November.

That comes after the state’s economists lowered revenue estimates for the fiscal year by $160 million last month. The state surpassed the less optimistic tax estimates by 1.7 percent or $7.7 million.

November numbers

The state took in $3.5 million more in sales tax revenue and $3 million more in individual income tax revenue than projected.

When non-tax sources are included, the state is ahead of estimates for the month by $14.6 million overall.

But that figure includes $6 million that was withheld from bioscience projects, according to the Kansas Legislative Research Department. Most of that represents a cut the governor made to the Kansas Bioscience Authority last month when he addressed a projected shortfall.

For the fiscal year

The state has taken in $2.25 billion in tax revenue since July, compared with $2.18 billion at this point last year. That’s after lawmakers passed a sales tax increase in June.

The governor’s budget moves last month left the state with projected ending balance of $5.6 million for the year. The higher than expected tax revenue adds some cushion to that.

What’s next

December will mark the halfway point in the state’s fiscal year. It is also the last month before lawmakers return to Topeka. If revenues beat expectations next month, lawmakers and the governor could have some breathing room as they tackle budget questions this session.

What they said

▪ “After Gov. Brownback and Republican legislators passed the largest tax increase in Kansas history last spring and with revenue projections lowered just last month, it makes sense that state revenue receipts would be higher than estimated,” said House Minority Leader Tom Burroughs, D-Kansas City.

▪ “Individual income tax receipts continue to reflect growth and a low unemployment rate,” said Revenue Secretary Nick Jordan.

This story was originally published December 1, 2015 at 5:13 PM with the headline "Kansas beats November tax revenue estimates by $7.7 million."