State of Kansas expects federal policy to cost it $360M over 3 years


TOPEKA, Kan. (AP) — Kansas expects to lose a total of $360 million in tax revenues over three years because of a change in federal policies on COVID-19 relief for businesses.

That development complicates legislative debates over state spending and cutting income taxes and is a cloud in what for months has otherwise been a sunny state fiscal picture with tax collections exceeding expectations.

The expected loss was outlined in a short memo to six legislative leaders this week from the state Department of Revenue’s top administrator and Democratic Gov. Laura Kelly’s budget director.

The memo said relief legislation approved in December by Congress created a new federal income tax deduction for some businesses.

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