Even with tax increases, revenue will drop sharply

Revised state revenue estimates released last week project that the state will collect $115 million more in income taxes this fiscal year than previously projected. That’s primarily because the Legislature and Gov. Sam Brownback phased out several state income-tax deductions. The state is also projected to collect $168 million more in sales tax because lawmakers voted to set the statewide sales tax at 6.15 percent, rather than let it fall to 5.7 percent as previously promised. But even with this additional tax revenue, total receipts to the state general fund are expected to drop by $365 million this fiscal year, or 5.8 percent.