Pesan Hotel - Kansas’ budget deficit grew to $510 million Friday after newly released revenue projections showed that the recession’s effects on state finances will linger long into next year.
Hotel - The new revenue estimates predict a sluggish economic recovery, with individual and corporate tax receipts continuing to lag. The projections create more hard decisions for lawmakers struggling to balance the budget amid unprecedented revenue declines.
Previously, the deficit for the next fiscal year was pegged at $450 million.
“This estimate confirms what we have predicted since the start of the year — despite having already cut more than a billion dollars in state spending, Kansas still faces a $510 million budget shortfall,” said Gov. Mark Parkinson, a Democrat.
Lawmakers have proposed different solutions, from raising tobacco, alcohol and sales taxes to cutting school funding and instituting state employee furloughs. But so far, the Legislature has struggled to find consensus, instead putting off the hard votes until a brief wrap-up session begins April 28.
Lawmakers said they needed the updated revenue numbers before they could address the shortfall. Friday’s numbers, although not positive, at least give lawmakers a target.
Parkinson, many Democrats and Senate GOP leaders favor increasing taxes — tobacco, alcohol and sales taxes — to avoid the need for still deeper cuts to education and state programs.
“We cannot cut our way out of this,” said Senate Minority Leader Anthony Hensley, a Topeka Democrat.
But GOP leaders in the House say higher taxes would prolong the recession.
“Would a tax increase help small businesses start hiring again? I don’t think so,” said Rep. Kevin Yoder, an Overland Park Republican and chairman of the House Appropriations Committee.
The new projections predict that revenue for the rest of the current fiscal year — which ends June 30 — will fall by $46 million. Revenue for the next fiscal year is expected to be down by $83.8 million.
Legislative budget committees plan to meet next week to review the projections and continue work on the budget.
Hotel - The new revenue estimates predict a sluggish economic recovery, with individual and corporate tax receipts continuing to lag. The projections create more hard decisions for lawmakers struggling to balance the budget amid unprecedented revenue declines.
Previously, the deficit for the next fiscal year was pegged at $450 million.
“This estimate confirms what we have predicted since the start of the year — despite having already cut more than a billion dollars in state spending, Kansas still faces a $510 million budget shortfall,” said Gov. Mark Parkinson, a Democrat.
Lawmakers have proposed different solutions, from raising tobacco, alcohol and sales taxes to cutting school funding and instituting state employee furloughs. But so far, the Legislature has struggled to find consensus, instead putting off the hard votes until a brief wrap-up session begins April 28.
Lawmakers said they needed the updated revenue numbers before they could address the shortfall. Friday’s numbers, although not positive, at least give lawmakers a target.
Parkinson, many Democrats and Senate GOP leaders favor increasing taxes — tobacco, alcohol and sales taxes — to avoid the need for still deeper cuts to education and state programs.
“We cannot cut our way out of this,” said Senate Minority Leader Anthony Hensley, a Topeka Democrat.
But GOP leaders in the House say higher taxes would prolong the recession.
“Would a tax increase help small businesses start hiring again? I don’t think so,” said Rep. Kevin Yoder, an Overland Park Republican and chairman of the House Appropriations Committee.
The new projections predict that revenue for the rest of the current fiscal year — which ends June 30 — will fall by $46 million. Revenue for the next fiscal year is expected to be down by $83.8 million.
Legislative budget committees plan to meet next week to review the projections and continue work on the budget.
Kansas’ budget
![Kansas’ budget]()
Reviewed by Pakar Pupuk Tanaman
on
April 17, 2010
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