What began as a $900 million surplus in July of last year evaporated to zero by end of June 2020.
The COVID-19 pandemic altered the state’s financial stability, just as it has for thousands of small businesses and individuals in Kansas.
Overall, we’ll see a $1.3 billion drop in our revenues that were committed for education, health care, tax reduction, road improvements and KPERS. It is estimated it will take Kansas five to seven years to fully recover — and in some areas we may never recover.
The federal government has $1.2 billion committed to emergency services for health care and aid to local governments. That money will not address the shortfall that’s projected in our state revenues.
Congress is still considering providing additional money to states to offset such budget shortfalls. However, because this is politically charged, I’m doubtful we’ll see any money come to Kansas to replace our lost revenues.