TOPEKA, Kan. (AP) — A new Kansas fiscal forecast is predicting that inflation will boost state tax collections more than previously expected.
Wednesday’s new forecast is intensifying the dispute between Democratic Gov. Laura Kelly and the Republican-controlled Legislature over how to cut taxes.
Legislators also are likely to face increased pressure to add new spending to what already is set to be a relatively generous, $22 billion-plus state budget for the 12 months beginning July 1.
The forecasters increased their projections for tax collections through June 2023 by $760 million. Kelly wants to eliminate the state’s 6.5% sales tax on groceries, while Republican lawmakers are proposing to phase it out over three years.