The Consensus Revenue Estimating group met today to revise revenue estimates for the coming years. They revised revenue estimates up slightly in this fiscal year, FY 2020 and FY 2021 by a total of $14.9 million. The revisions include the impact of legislation signed into law so far this year.
“Kansas has been on a rollercoaster for the last eight years and we must allow adequate time to recover and rebuild,” Kelly said. “It’s encouraging that revenue remains stable as a result of steady, responsible tax policy, but we must remain cautious.”
A recent survey by the National Association for Business Economists is predicting the U.S. economy will slow in the coming year and a possible recession in 2020.
“NABE outlook survey panelists believe the U.S. economy has reached an inflection point, with the consensus forecasting real GDP growth to slow from 2.9% in 2018 to 2.4% in 2019, and to 2.0% in 2020,” said NABE President Kevin Swift, chief economist. 74% of survey respondents believe the economy will slow due to trade policy and other global factors. [www.nabe.com]
“We have just begun the rebuilding process,” Kelly said. “We still have significant challenges in most of our agencies that must be addressed, including serious safety concerns in our child welfare system and at state prisons. These critical issues must be addressed immediately.”
The Federal Reserve also recently lowered its forecast on economic growth from 2.3% to 2.1% for 2019. The Fed Chair Jerome H. Powell said, “Growth is slowing somewhat more than expected.” [The Washington Post, 3/20/19]
“Kansans elected me to bring fiscally conservative and responsible principles back to our government,” Kelly said. “I take that responsibility very seriously.”