Five things a budget shortfall means for Kansas

A plummeting economy could leave Kansas is a budget shortfall of $650 million by the end of 2021. Filling that gap will be an arduous task for state lawmakers and Gov. Kelly.

By

State News

April 24, 2020 - 2:55 PM

Photo by Daniel Caudill / Kansas News Service / kcur.org

TOPEKA — Across the United States, the COVID-19 pandemic is triggering state budget crises. Kansas is no exception, with tax collections expected to plummet by $1.3 billion between now and June 2021.

“This is more than just a little bump in the road,” said Gov. Laura Kelly, who over the next 15 months (or longer) will have to hash out with the Republican-led Legislature how to stay in the black. That’s because the Kansas Constitution prohibits deficit spending.

Here are the five things you need to know about Kansas’ budget situation.

How bad is it?

When lawmakers left last month to shelter in their homes, Kansas was supposed to end the current fiscal year with more than $900 million in cash reserves. That’s all gone, plus policymakers will have to deal with a projected $650 million shortfall — approaching what Kansas saw after the 2008 financial crisis.

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