By JOHN HANNA – Associated Press
TOPEKA – Kansas officials and economists issued a new, more optimistic fiscal forecast for the state Friday, and its prediction that tax revenues will grow by almost 5 percent during the next budget year was certain to intensify a debate over cutting income taxes.
The forecast projecting state revenues through June 2013 came only hours after a group began a two-day, five-city bus tour to build public support for eliminating the state’s income tax.
Republican Gov. Sam Brownback and many of his allies in the GOP-controlled Legislature are already receptive to the idea, believing it will stimulate the economy and spur offsetting growth
in sales and other taxes.
The new fiscal forecast is important because governors and legislators use the numbers in their budgeting. Brownback’s administration also is developing proposals to overhaul the distribution of aid to public schools and the state’s Medicaid program, covering health care for the needy.
The forecasters acknowledged uncertainty about the economy’s future, but their predictions remained positive. They increased their estimate of tax collections for the current fiscal year,
which runs through June, by 3.5 percent. They also predicted tax revenues would grow again during the fiscal year that starts July 1.
The forecast updates one issued in April that predicted tax collections through June. It now estimates the state will bring in a little more than $6 billion, $205 million more than previously
expected.
It also projects the state will take in $6.3 billion in taxes during the 2013 fiscal year, an increase of $293 million over the current fiscal year.
The forecast was issued by Budget Director Steve Anderson and members of his staff, Department of Revenue officials, legislative researchers and economists from the state’s three largest universities. Neither Brownback nor legislative leaders participated in its creation.
Brownback didn’t hint about how the numbers would affect the proposals his administration is developing. Earlier this year, he successfully pursued cuts in spending that included a reduction in aid to public schools.
“The latest revenue projections show the power of economic growth and controlling spending,” he said in a statement. “It proves the long-term solution for our state involves more jobs and
limited government.”