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April Revenue Report Complicates Kansas Budget

Associated Press - April 30, 2014 7:07 pm

Kansas collected about $3.7 million less in taxes than it expected in July, largely because of lower-than-anticipated revenues from its newly increased sales tax.

Kansas collected about $3.7 million less in taxes than it expected in July, largely because of lower-than-anticipated revenues from its newly increased sales tax.

Kansas House and Senate budget negotiators have begun working on a spending agreement, casting aside a bleak revenue report that could undermine a rosier economic forecast leaders are using to justify higher spending.

The talks began Wednesday evening, a few hours after the state Revenue Department reported that April’s tax collections totaled $92 million less than expected. Officials blamed changes in the federal tax code on capital gains and other income.

Two weeks ago, analysts raised their forecast for Kansas revenue over the next 18 months by $177 million.

Negotiators are considering spending increases for the remainder of the current fiscal year and the fiscal year that starts July 1, including $5 million more for health care services for disabled residents.

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