DALLAS — Kansas revenues fell $23 million below projections in October, the last report before election day.
The shortfall was the fifth in seven months and the second in the current fiscal year that began July 1.
"The primary reason for the shortfall with individual income tax receipts were increased refunds and lower balance-due payments from extended returns," said Nick Jordan, the Kansas secretary of revenue.
In the last three months of the previous fiscal year, the state's revenue department reported $334 million less than projected. However, collection of income, sales and other taxes rebounded in July and August. The September report was $21 million less than the administration of Gov. Sam Brownback predicted.
Brownback's budget director Shawn Sullivan called the shortfall "certainly manageable through good fiscal governance."
Moody's investors service downgraded Kansas' general obligation debt to Aa2 from Aa1 on April 30, in part because tax cuts led to lower revenues. Standard & Poor's lowered the issuer credit rating to AA from AA-plus on Aug. 6 and retained a negative outlook.
Brownback has made tax cuts the hallmark of his administration, promising that revenues would increase as the economy improved.
Brownback's challenger, Democratic state House Minority Leader Paul Davis, campaigned on the theme that Brownback's "experiment" with tax cuts has left the state with insufficient revenue for vital programs, particularly schools.
The Department of Revenue's report for October indicated the state would spend reserve funds more quickly than planned and heightened concern about a nonpartisan analysis that Kansas could be facing a budget shortfall of more than $250 million in 2016.
Kansas lawmakers will consider the weakening budget scenario when they reconvene in Topeka in January.
