A new Kansas Fiscal Forecast predicts that State Government will be flooded in more than enough cash to allow for the big tax cuts that Democratic Governor Laura Kelly and Republican Legislators already planned to pursue.
The new Forecast increased the projection for the State’s total tax collections by $1.3 billion for the current 2022 Budget year that began July 1. The new Projection of $8.9 billion is 17.1% higher than the $7.6 billion predicted in the previous fiscal forecast issued in April. The forecasters also predicted a 3.2% increase in tax collections for the 2023 Budget Year.
The new forecast suggests that the State’s Economy has recovered from last year’s early pandemic restrictions more quickly that state officials had expected, but also that inflation itself is fueling a rise in tax revenues. Kelly proposed eliminating the State’s 6.5% sales tax on groceries. Top Republicans also have embraced the idea. Lawmakers also remain interested in cutting income taxes again.
