Kan. group cuts revenue forecast $235M

Eds: UPDATES with revenue projections, budget shortfall; Will be led. Moving on general news and financial services.

By JOHN MILBURN

Associated Press Writer

TOPEKA, Kan. (AP) -- Estimates for Kansas tax collections for the remainder of the state's fiscal year are cut by $235 million as forecasters see continued weakness in the economy.

The reductions Thursday mean Kansas government will have 4.2 percent fewer tax dollars to finance services than previously estimated in April. Kansas began its fiscal year July 1.

Gov. Mark Parkinson says the news is a challenge, but manageable. He renewed his promise to legislators that he will balance the state budget by the time the 2010 session begins in January.

Forecasters did project a 2.5 percent increase in tax revenues for fiscal year 2011, but cautioned that the growth will be slow coming as Kansas continues to feel the effects of the recession.