Kansas misses tax estimates by $31.7 million in September

The state of Kansas took in nearly $32 million less in tax revenue than expected in the month of September.

The state was 5.7 percent off tax estimates in September with a shortfall of $31.7 million. That puts the state $42.5 million off pace its estimates for the fiscal year, which began in July, and eats significantly into the projected ending balance for the year, which was originally projected to be around $78 million.

Those razor-thin margins raise concern that the state will have to make budget cuts in the coming months after already making a series of cuts in the past year.

Revenue Secretary Nick Jordan blamed the underperformance on low oil prices.

"Many sectors showed growth, but the dramatic drop in oil, gas and farm income experienced across the Midwest states, also affected Kansas revenue," Jordan said in a statement.

The state missed expectations in September in three key tax areas: individual income ($12.2 million below estimates), corporate income ($7.5 million below estimates) and sales tax ($7.5 million below estimates).

Senate Minority Leader Anthony Hensley, D-Topeka, predicted that “within the next month or so we’ll be in red...as this trend continues.”

The governor did not offer a statement on the numbers.

"We’ve got a governor who’s worried more about being prepared for zombies than he is about being prepared to manage the budget,” Hensley said referencing a “Zombie Preparedness Month” proclamation Brownback signed the previous day.

House Speaker Ray Merrick, R-Stilwell, said in an e-mail that the news “reinforces the timeliness of the efficiency study, which will soon begin identifying and evaluating budget savings and efforts to streamline state government." Lawmakers are hoping outside analysts will identify cost savings they can enact in the next legislative session.

Kansas has collected $1.35 billion of revenue in the first quarter of the fiscal year, the Department of Revenue said in a release.

This story was originally published October 1, 2015 at 4:08 PM with the headline "Kansas misses tax estimates by $31.7 million in September."