Moody’s Investors Service says Kansas will need to make more spending cuts to offset tax cuts that have sharply reduced state revenues.
Moody's downgraded Kansas bonds last month on the same day the state announced April revenue collections fell $93 million below estimates. Moody’s says most of the state’s revenue shortfall was because less money was collected in individual income taxes.
A Moody’s report issued Tuesday suggests more spending cuts will be difficult to achieve because of court-ordered school funding, federal mandates in programs like Medicaid, and legal requirements to fund the state pension system.
Governor Sam Brownback blamed the revenue decrease on President Barack Obama and said wealthy taxpayers filed their capital gains income in 2012 tax year instead of 2013.