Unforeseen revenue makes projecting state’s economic health a challenge

Individual tax returns are booming thanks in part to federal stimulus.

By

State News

June 4, 2021 - 4:15 PM

Gov. Laura Kelly joined local leaders in Wichita on June 2, 2021 to break ground on the historic Dunbar Theatre Restoration Project. Photo courtesy of the office of the Governor.

TOPEKA — A sparkling state revenue report for May reflects the challenges of accurately predicting what will happen in a post-pandemic economy goosed by unprecedented streams of government stimulus.

Even after a late-April adjustment to the state’s official revenue forecast, which provides the barometer lawmakers use to form tax deals and set spending levels, Kansas collected $509 million more than expected in May. The extraordinary one-month surplus of cash provides a cushion for the state as a new fiscal year approaches in July.

Still, the inability to place the forecast within a half-billion dollars of actual revenue over a four-week period raises questions about what to expect in the coming months.

Related
April 5, 2021
April 2, 2021
April 2, 2021
April 23, 2015