The term “budget hit” seems inadequate after the Kansas Consensus Revenue Estimating Group revised its income projections through the next fiscal year to account for coronavirus and its impact on the state economy.
The Estimating Group lowered its revenue expectations by nearly $1.3 billion between now and July 2021. Tax collections could actually dip by close to $1.4 billion, although revenues from other sources could climb by around $93 million.
Fiscal 2020 ends in June, and the Estimating Group now expects revenues for the fiscal year to be down 11 percent, or by over $825 million, from the last official estimate issued in November. The $6.8 billion projected total is over 7 percent lower than the final fiscal 2019 receipts.
For fiscal 2021, the revised estimate is nearly 6 percent or $445 million short of the November 2019 estimate — but about 6 percent above the recently-revised fiscal 2020 figure.
Governor Laura Kelly called COVID-19’s impact “the rainy day we feared we could come.” She also says Kansas is better prepared to get through the current situation because of its emphasis on a strong ending balance, fiscally responsible tax policy and “proven economic boosters” like public schools and infrastructure. The governor has told state agencies to freeze non-COVID-related hires and to develop cost-cutting measures. She also plans additional discussions with her budget director to find more short-term options to manage cash flow.
