State tax collections fare better than expected for MayScott Rothschild
State tax revenue exceeded projections for May but fell significantly below May 2019, another sign of the effects of the coronavirus pandemic.
In April, state budget experts downgraded revenue projections based on the shutdown of businesses and massive unemployment caused by the health crisis. The new revenue estimates show the state will fall $1.27 billion short of earlier projections over the current and next fiscal year, which starts July 1.
But for May, tax collections exceeded those lowered estimates by 6.6 percent, or $29 million, according to the Kansas Department of Revenue. Still, May revenues fell 20 percent or $114 million less than May 2019 revenues, reflecting the continued economic impact of the pandemic.
With school funding making up about half the state budget, education officials should remain aware about the developing budget situation. For a more in-depth look into how state budget problems could affect K-12 funding, please read the latest Tallman Education Report.