Kansas group revising revenue forecast

Eds: RECASTS; UPDATES with background on budget items, demands for new revenues for education, social services; ADDS byline, Internet links. Will be led from briefing scheduled after 4:30 p.m. CST. Moving on general news and financial services.

By JOHN MILBURN

Associated Press Writer

TOPEKA, Kan. (AP) -- Kansas policymakers met Thursday to evaluate how short revenue collections have fallen and determine and how deep a new round of state budget cuts might have to go.

The economists, researchers and other government officials were aiming to reach a consensus on the state's revenue picture for the next 18 months, from which Gov. Mark Parkinson and legislators will shape the state budget.

Tax collections for the first four months of the fiscal year suggest the new estimate will be significantly lower than the last estimate made in April.

According to the latest revenue report, Kansas missed collection estimates by $85 million in the period from July through October. Collections are down $242.5 million -- or 13.2 percent -- from the same period last year.

The state expected to receive almost $415 million in taxes in October and instead collected $400 million. Kansas already had a $67 million shortfall in tax revenues for July, August and September.

Parkinson has promised that he will make budget cuts before legislators return in January.

More than half of Kansas' tax revenues -- nearly $3 billion under the current budget -- go to the state's 293 school districts as aid. Republican legislators who draft the state budget say they don't see how Parkinson can cut the budget any further without taking a bite out of education.

The state has seen four rounds of cuts and other adjustments this year to keep the budget balanced, and the last revisions were imposed by Parkinson in July. Public schools have lost $130 million, and their base aid per student dropped by $215, or 4.8 percent.

Kansas law allows Parkinson to impose cuts when legislators are out of session, as they have been since early June. But he also could wait until legislators reconvene, then have them debate budget revisions. His predecessor, fellow Democrat Kathleen Sebelius, did that in 2008 and 2009.

Complicating matters are new estimates for how much the state must increase spending on education and social services to meet legal obligations, such as Medicaid payments, increased student enrollments and a decrease in property valuations. Combined, those increases amount to more than $124 million in new spending.

The education portion alone accounts for $100 million to maintain the current base per pupil spending level of $4,218.

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On the Net:

Kansas Legislature: http://www.kslegislature.org

Governor's office: http://www.governor.ks.gov