New State Forecast Shows More Money Coming In

Kansas officials have issued a new, more optimistic fiscal forecast for state government, and projected healthy cash reserves through June 2022.

The fiscal forecasters revised the state’s projections for tax collections during the current 2021 budget year, which ends June 30, upward by $304 million.

The forecasters also made a change in the projections for tax collections for the 2022 budget year, increasing the total to almost $7.7 billion.

Legislative researchers projected that, based on budget legislation drafted by the Legislature, the state will have $1.15 billion in cash reserves on June 30 and a cushion of $821 million at the end of June 2022.

The results give Republican lawmakers new ammunition in pushing for state income tax cuts over Democratic Governor Laura Kelly’s objections.

Republicans passed a bill cutting taxes for those who are paying more to the state because of changes in federal tax laws in 2017.

Kelly vetoed it last week, saying it was fiscally irresponsible.