Beat the clock on this one as I already got it back and spent it..... grin

Kan. suspends income tax refunds, may miss payroll
By JOHN HANNA Posted on Mon, Feb. 16, 2009
Associated Press Writer
TOPEKA, Kan. - Kansas has suspended income tax refunds and may not be able to 
pay employees on time, the state's budget director said Monday.

The state doesn't have enough money in its main bank account to pay its bills, 
prompting Democratic Gov. Kathleen Sebelius to suggest transferring $225 
million from other accounts throughout state government. But the move required 
approval from legislative leaders, and the GOP refused Monday

Budget Director Duane Goossen said that without the money, he's not sure the 
state can meet its payroll. State employees are due to be paid again Friday.

Goossen said the state stopped processing income tax refunds last week.

GOP leaders are hoping to pressure Sebelius into signing a bill making $326 
million in adjustments to the budget for the fiscal year that ends June 30.

Legislators approved that bill last week, but it has not reached her desk

Goossen said the state might also have to delay payments to public schools and 
to doctors who provide care to needy Kansans under the Medicaid program.

The state has transferred funds before when it has been short of cash in its 
main bank account. Most recently, the state issued the special certificates 
required in July and December for transfers totaling $550 million.

Each certificate requires the approval of the State Finance Council, which 
consists of the governor and eight top legislative leaders.

The council was scheduled to meet at 1 p.m. Monday, but Goossen said Sebelius 
canceled the meeting because Republican leaders told her that they would not 
authorize the internal borrowing.

Some Republicans question whether that borrowing would be legal. When the state 
issues a certificate, it must promise that the money can be paid back by the 
end of the fiscal year. But the state already is projected to have a deficit in 
the current budget.

The legislation approved last week is designed to fix that.

Goossen said Republicans told Sebelius they want her to sign that bill first. 
Senate Minority Leader Anthony Hensley, a Topeka Democrat, called the tactic 
"blackmail."

Republican leaders planned a news conference to discuss what happened.



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