Kansas taxes $47M less than expected in January, complicating already strained budget picture

TOPEKA, KAN. – Kansas collected $47 million less than anticipated this month, signaling that Gov. Sam Brownback and legislators may have to be more aggressive with spending cuts or other measures to balance the budget.

But the Department of Revenue said Friday that a key factor was greater-than-expected income tax refunds during the month, with the federal government processing returns more quickly than it did last year. Department spokeswoman Jeannine Koranda said the state waits on the federal government to process each set of returns first, so faster federal processing means more state refunds earlier in the tax season — and the possibility that refunds could "even out" later.

The Republican-dominated Legislature is working on proposals to eliminate a projected $279 million shortfall in the current budget, which ends June 30. Brownback's budget director has said if lawmakers don't pass a budget-balancing bill by Feb. 13, the state may not be able to pay its bills on time.

House Speaker Ray Merrick, a Stilwell Republican, said his chamber's Appropriations Committee would build unspecified "additional contingencies" into its budget plan. Brownback has proposed selected cuts, but his plan relies heavily on diverting funds from highway projects and special funds into the state's main bank account, where the projected deficit occurs.

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http://www.foxbusiness.com/markets/2015/01/30/kansas-taxes-47m-less-than-expected-in-january-complicating-already-strained/