Rosey's Outlook


by J.D. Rosendahl

Thursday, January 6, 2011

Kansas Budget Shortfall Widens After Slow December

I say blame it on the weather, the public buys that rational:  Kansas budget shortfall widens after slow December

The Kansas budget shortfall rests somewhere between $510 million and $511 million after a disappointing December.

December tax collections came in about $19 million short of projections, which pushed the original estimated budget shortfall through December of $492 million to more than $510 million, according to figures from the Kansas Legislative Research Department.

This shortfall comes despite a 1-cent sales tax increase passed during the 2010 legislative session.

So, we've heard all December consumer spending was stronger compared to the prior year and Kansas had increased the sales tax but ended up with a short fall in tax collections.  There's something wrong with the math!  Either sales weren't that good or projections were to aggressive.

One of the many problems with state politicians is they keep forecasting for the best instead of living with reality.  They need to be very conservative in their estimates and set budgets accordingly, that way they end up with a surplus to store away for a rainy day.

Hope all is well.

J.D Rosendahl, Rosey