A sparkling state revenue report for May reflects the challenges of accurately predicting what will happen in a post-pandemic economy goosed by unprecedented streams of government stimulus. Even after a late-April adjustment to the state’s official revenue forecast, which provides the barometer lawmakers use to form tax deals and set spending levels, Kansas collected $509 million more than expected in May. The extraordinary one-month surplus of cash provides a cushion for the state as a new fiscal year approaches in July. Still, the inability to place the forecast within a half-billion dollars of actual revenue over a four-week period raises questions about what to expect in the coming months.
Source: LJWorld.com.
