?  Tax revenues flowing into the state’s coffers fell $27 million below expectations in December, creating a risk that the state may not be able to fully fund its budget for the rest of this fiscal year. 

The Kansas Department of Revenue said Monday that a sharp drop in income tax withholdings, combined with lower-than-expected sales tax receipts, were the main cause of the shortfall. 

“It is the first time this fiscal year that individual income tax receipts have not grown compared to the prior fiscal year to date,” Revenue Secretary Nick Jordan said. “ It is too soon to tell if this is a one-time event or not.” 

According to the department’s monthly revenue report, the state took in $204 million in individual income taxes in December, nearly $26 million less than officials expected, and $39 million less than it collected in December 2014. 

Sales tax receipts, which actually reflect retail sales in November, came in at $187 million in December, up less than a percentage point from last December, but nearly $14 million less than anticipated. 

All told, for the first half of the current fiscal year, revenues have fallen $19.2 million short of estimates. 

That means even if revenues come in as expected in the second half, the state could be dangerously close to finishing the fiscal year on June 30 in red ink. 

In November, state officials sharply reduced their estimates of how much the state would collect, prompting Republican Gov. Sam Brownback to order $123.8 million in spending cuts and fund transfers, some of which still have to be approved by the Legislature. 

Even with those moves, however, officials projected at that time that the state would end the year with only about $5 million in its general fund. 

The state received a slight bump at the end of November when tax revenues came in about $8.1 million over estimates, but the $27 million shortfall in December now threatens to erase those gains and put the general fund about $14 million under water. 

The December revenue numbers are certain to embolden Democrats and some moderate Republicans, who have called for repealing, or at least scaling back, some of the large tax cuts that were enacted in 2012 and 2013.  But Brownback has said he does not want a tax debate in the upcoming 2016 session, insisting that his tax policies are succeeding in stimulating the economy and helping to create private sector jobs. 

“Kansas cannot continue on this path,” House Democratic Leader Tom Burroughs, of Kansas City, said. “ Our children need their schools to be adequately funded, our roads and bridges need to be maintained and repaired, and general government programs and services need to be properly funded.” 

But House Speaker Ray Merrick, R-Stilwell, downplayed the significance of the shortfall, and put the blame for the lackluster sales tax figures on the Obama administration. 

“The reality of the retail sales receipts is that it’s consistent with a national economy that continues to struggle under President Obama,” Merrick said. “ When the going gets tough, Kansas families pore over their household budgets.  That is why I am committed to an in-depth review of the state budget to ensure each tax dollar is being spent as effectively as possible.”