Issue Position: The Good News!

Issue Position

For the current time state revenues are up and the budget we passed looks stable. Revenues for April were up $66 Million; May up $101 Million, June $149 Million, July-September up $99.8 Million. That is about $413 Million above our budgeted spending. This is a sign of a recovering economy. It is also a reflection of fourteen months of Job Growth, and state pay raises to mental health nurses, prison guards, educators and state employees.

According to the Kansas Association of School Boards, "Kansas personal income increased at an annual rate of 4.7% in the second quarter of 2018, the 10th highest increase in the nation, according to new data from the Bureau of Economic Analysis (BEA). U.S. annual personal income growth was 4.2 % in the second quarter, a deceleration from the 5% in the first quarter.

It is the first time in a year that Kansas has exceeded the national average for quarterly income growth, and Kansas has trailed the national average every year since 2012.

Personal income growth is a key indicator not only of the state's economy, but also impacts tax revenue and ability to fund public education and other services. In April, the official state Consensus Revenue Estimate predicted that Kansas personal income would increase 3.9% in 2018.

The BEA defines personal income as the income received by, or on behalf of, all persons from all sources: from participation as laborers in production, from owning a home or business, from the ownership of financial assets, and from government and business in the form of transfers. It includes income from domestic sources as well as the rest of the world. It does not include realized or unrealized capital gains or losses." (Source: Kansas Association of School Boards, KASB)

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