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Kansas has collected $165 million more in tax revenue than expected nine months into the fiscal year, driven by a $200 million surge in individual income tax collections. This unexpected revenue boost has helped offset an $88 million decline in corporate income taxes and an $89 million drop in sales tax revenue due to the elimination of the state’s 6.5% grocery tax.
Despite the revenue surplus, concerns loom over the state’s financial outlook. The Legislature recently passed a budget that could leave Kansas with a $461 million deficit within three years. Gov. Laura Kelly has voiced strong opposition, comparing the plan to former Gov. Sam Brownback’s controversial tax cuts, which led to severe budget shortfalls.
The state’s Consensus Revenue Estimating Group will meet on April 17 to reassess economic conditions and adjust projections. Meanwhile, Republican legislative leaders are gearing up to override Kelly’s veto of Senate Bill 14, which would have frozen last year’s budget if a new agreement wasn’t reached.
As lawmakers prepare to reconvene on April 10, the battle over tax policy and spending continues, with both sides weighing the long-term implications for Kansas’ fiscal health.
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