November 8, 2012– The state will need either a big economic boost or some serious cuts to government in order accommodate the income tax cuts Gov. Sam Brownback and state lawmakers approved earlier this year, according to estimates released Tuesday. The consensus revenue estimates show the state will have to make up for a $327 million projected shortfall in its 2014 fiscal year. That’s assuming the state spends down all of its reserves, keeps base state aid to students steady and allows a 6/10ths of a cent sales tax to expire on time in July 2013. It also assumes that the state doesn’t get a boost in revenues as a result of the income tax cuts. Brownback’s budget director, Steve Anderson, officials with the nonpartisan Legislative Research Department and three university economists agreed on the new projections after hours of discussion Tuesday. The estimates come as state agencies have been asked to show how they would handle a 10 percent cut in funding.
Link to Full Article: http://www.kansas.com/2012/11/06/2558769/state-tax-cuts-may-lead-to-327.html