Governor Kelly Announces February Total Tax Collections Exceed Estimates by Nearly $37 Million

TOPEKA – Governor Laura Kelly today announced that total tax-only collections for February were $549.8 million. That is $36.8 million, or 7.2%, more than the monthly estimate. Those collections were also $47.3 million, or 9.4%, more than in February 2022.

“Revenues have exceeded estimates for 30 out of the last 31 months – a clear sign that our efforts to make Kansas a place where businesses and families want to call home is paying off,” Governor Laura Kelly said. “These revenues will continue to grow our historic budget surplus, making it possible for our legislature to pass responsible tax cuts that help every Kansan, like my ‘Axing Your Taxes’ plan.”

Consistently strong revenues were one of the reasons S&P Global improved Kansas’ credit outlook, which the firm announced yesterday. In its report, S&P cited Governor Kelly’s recommended budgets for fiscal years 2023 and 2024 as indicators of continued fiscal responsibility that could lead to a credit rating upgrade and warned against irresponsible tax plans that could lead to a credit rating downgrade.

Individual income tax collections were $211.3 million in February. That is $6.3 million, or 3.1%, above the estimate and $27.9 million, or 15.2%, more than February 2022.

“The positive trend in tax receipts continues with all of the major tax types, individual income tax, corporate income tax, retailer’s sales tax, and compensating use tax, performing well,” Secretary of Revenue Mark Burghart said.

Corporate income tax collections were $15.3 million, which is $324,000, or 2.2%, more than the February 2023 estimate. Those collections are $8.1 million, or 34.5%, less than in February 2022. It should be noted that February 2022 corporate income tax receipts were greater than February 2023 because of the higher-than-expected collection of nonrecurring corporate audit assessments that occurred that month.

Retail sales tax collections were $203.8 million, which is $13.8 million, or 7.3%, more than the estimate. Those collections are also $8.5 million, or 4.4%, greater than February 2022. Compensating use tax collections were $64.2 million, which is $849,000, or 1.3%, less than the estimate. Those collections were $4.7 million, or 8.0%, more than in February 2022.

Click here to view the February 2023 revenue numbers.

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TOPEKA – The Kansas Department for Aging and Disability Services today announced $66 million has been made available through the Strengthening People and Revitalizing Kansas (SPARK) Executive Committee and State Finance Council to close service gaps in the continuum of care by addressing statewide shortages of health and behavioral health services and the state’s increasing demand for a well-trained healthcare workforce.

The funds, approved by the State Finance Council in December, are available to service providers, educational institutions, local units of government, and non-profit organizations to specifically address three program areas: expansion of health care facilities; expanding the reach of current service providers; and workforce training expansion.

“The $66 million in SPARK funding allocated to KDADS can make a significant difference in expanding access to services by funding new facilities, program expansions, and workforce training,” KDADS Deputy Secretary of Hospitals and Facilities Scott Brunner said. “KDADS is excited to put these funds to use in communities across Kansas to meet the needs of people with mental illness, disabilities, and long-term care needs.”

Applicants must specify which of the following three program areas their proposal addresses:

Program 1: Expansion of health care facilities.  KDADS seeks applications from service providers, local units of government, established partnerships of providers, or non-profit organizations to expand health care facilities.  The facility expansion must result in more services being delivered within a defined geographic area or clearly increase service capacity through more licensed bed space, expanded treatment facilities, or additional credentialed providers.  Expanded health care facilities must deliver more services in one or more of the following areas:

• Behavioral health
• Services for adults or children in acute psychiatric crisis
• Forensic evaluation and restoration for criminal competency cases
• Community based services for individuals with disabilities that would otherwise require nursing facility level of care

Program 2: Expand reach of current service providers.  KDADS seeks applications from Medicaid enrolled service providers to deliver Medicaid services through innovative delivery models using technology to expand the reach of current service providers or to reach additional Medicaid eligible beneficiaries.  Grantees must describe how their proposed intervention expands access to services for underserved individuals or communities.

Program 3: Workforce Training Expansion.  KDADS seeks applications from providers, local units of government, educational institutions, or non-profit organizations to expand workforce training.  Workforce training expansion must result in an increase in students being trained to serve in the medical field.  Grantees must document the number of trainees and how they will impact the future health care workforce.

KDADS’s application process is open now, with submissions closing March 17 at 5:00 p.m. and awards announced March 29.

Applicants and any questions regarding the funding opportunity should be submitted to [email protected]. More information about this funding opportunity and the complete Request for Application can be found on the KDADS website: https://kdads.ks.gov/funding-opportunities.

TOPEKA – The Kansas Department of Commerce today announced $4.1 million in tax credits will once again be made available under the Community Service Tax Credit Program (CSP).

CSP assists private nonprofit organizations and public healthcare entities undertaking major capital campaigns for projects involving:

• Community service, including childcare
• Non-governmental crime prevention
• Youth apprenticeship and technical training
• Healthcare services.

Under this program, the state authorizes nonprofit organizations to offer tax credits to donors making contributions towards approved projects. Organizations are chosen through a competitive selection process. The application window is open from March 1 through April 30, 2023, at kansascommerce.gov/csp. Applicants may request up to $200,000 in tax credits.

Proposed projects should be unique or one-time in nature and create lasting value for charitable organizations. For example, projects might include a capital campaign, major equipment purchase, major renovation, capacity building, etc. As was the case in 2022, CSP has earmarked up to $1 million for childcare and early childhood development projects for services to those under the age of 5.

Applicant organizations in rural areas (less than 15,000 population) are eligible for a 70 percent credit. Applicant organizations in non-rural areas are eligible for a 50 percent credit.

If your organization is interested in applying for the CSP program, the Department of Commerce invites you to an introductory webinar at 1:00 p.m. Wednesday, March 1. Registration is required. For more information and to register, click here.

For questions regarding CSP Tax Credits, contact Community Development Specialist Sara Bloom at [email protected] or (785) 506-9278.

About the Kansas Department of Commerce

As the state’s lead economic development agency, the Kansas Department of Commerce strives to empower individuals, businesses and communities to achieve prosperity in Kansas. Commerce accomplishes its mission by developing relationships with corporations, site location consultants and stakeholders in Kansas, the nation and world. Our strong partnerships allow us to help create an environment for existing Kansas businesses to grow and foster an innovative, competitive landscape for new businesses. Through Commerce’s project successes, Kansas was awarded Area Development Magazine’s prestigious Gold Shovel award in 2021 and 2022, and was awarded the 2021 Governor’s Cup by Site Selection Magazine

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