Updated revenue forecast shows deeper hole

According to the Kansas Center for Economic Growth a newly revised revenue forecast lowers expectations for future general fund receipts. The report published last week gives the following three key points and conclusion:

1. Revenue has fallen sharply, with no rebound in sight
2. The revised revenue estimate may not be low enough yet
3. The budget gap became larger for the 2016 fiscal year

Conclusion: To be financially healthy, the state needs $6.478 billion in ongoing revenue in order to spend $6.478 billion. If tax policy had been left alone three years ago, Kansas would now have enough income to fund the budget being considered. Instead, deep tax cuts have reduced the state’s revenue stream far below the amount needed to responsibly fund education and other key programs.