I am not a nervous person.
Yet, I envy the calm of Kansas legislators and their ability to “shake off” the news Kansas tax collections for April are $92 million less than projected.
The news caused Moody’s to downgrade the state’s bond rating from Aa1 to Aa2 because of what the investment service views as a higher risk for Kansas defaulting on its obligations.
Ty Masterson, Andover, and chairman of the Senate Ways and Means Committee, said not to worry. “This year we have plenty of money in the bank,” according to an Associated Press report.
That’s like spending all you have on a big screen TV, with no money for rent.
TWICE a year the state refigures its revenue estimates, in November and April. The next review comes, conveniently, after the fall election.
That the April 17 revenue estimate is so soon off the mark leads one to believe they were not dealing in reality from the get-go.
The fiscal year is on track to be $217 million short of what the State Revenue Report predicted.
Gov. Brownback is wont to blame the federal government for the sharp drop in tax receipts. It’s true, federal taxes on capital gains increased. But,
A), that should not have come as a surprise; and
B), had Kansas taxes on the wealthy not been cut so dramatically, we wouldn’t have been hit so hard.
Even with the increased federal tax, only 10 states reported declines in tax receipts. Kansas came on top, registering a 15.6 percent decline followed by 7.2 and 4.1 percent respectively by Wisconsin and Ohio.
The nation’s remaining 47 states are recording healthy receipts that are lifting them, finally, from the recession.
GOV. Brownback maintains the massive tax cut formula is a pro-growth recipe.
Methinks there’s something in the brownies. Pass the plate.
