4 August 2005

Kansas economy continues to grow under Governor’s leadership
State ending balance, July revenue growth exceed expectations

The Kansas economy continues to grow at a healthy pace, creating jobs and resulting in higher than expected revenues, according to figures released today by the Kansas Division of the Budget. As a result, the state’s fiscal year 2005 general fund ending balance was higher than expected, and July tax receipts again exceeded projections.

“The dedication and entrepreneurial spirit of hard working Kansans continues to drive our economy forward.  Kansas businesses are hiring more employees, Kansas workers are earning more, and Kansas consumers are spending more. All of these are signs of a healthy economy and show our work to lower health care costs and run government with discipline and efficiency are paying off. Our new investment in schools and our continued work to bring new businesses to Kansas should help continue this growth,” Governor Kathleen Sebelius said.

Kansas is required to maintain a reserve fund, and the balance in the state’s general fund at the close of fiscal year 2005 was $480 million – about 10 percent of expenditures.  Fiscal year 2005 was the third straight year in which the state spent less than it took in. 

At the end of fiscal year 2002, these balances had been depleted to almost zero, but now have been built back up to a more prudent level thanks to strict budgeting and efficiencies put in place by Governor Sebelius that have saved taxpayers $159 million to date.

The Kansas economy has been fueled by continued job growth, with the state experiencing 16 consecutive months of over-the-year job growth as of June.

July general fund tax receipts totaled $376 million, coming in almost $9 million above projections.  Individual income tax receipts continued to be very strong, and sales and use tax receipts grew 9.3 percent over July 2004. 

More information is available online at the Division of the Budget’s website: http://www.da.ks.gov/budget/ .