Governor Ends Budget Impasse
Impasse Delays Income Tax Refunds, Threatens State Employees' Paychecks
POSTED: 12:37 pm CST February 17, 2009
UPDATED: 6:38 am CST February 18, 2009
TOPEKA, Kan. -- An impasse that held up Kansas income tax refunds and threatened to delay state employees' next paychecks ended Tuesday when Gov. Kathleen Sebelius signed a budget-balancing bill.
The signing fulfilled a key demand from Republican legislative leaders who had blocked the Democratic governor's plan to transfer $225 million into the state's main bank account from other accounts across state government. The state has too little money in its main account to pay its bills on time, and the internal borrowing addresses the cash crunch.
Leaders of the GOP majorities in the House and Senate argued the internal borrowing wasn't legal until the state had a balanced budget for the fiscal year ending June 30. They said the bill signing cleared the way for the borrowing, which is expected to take place Wednesday.
"I'm extremely pleased that she signed it, because that's what needed to happen," said House Speaker Mike O'Neal, a Hutchinson Republican.
Sebelius used her power as governor to veto line items in the budget-balancing measure. Among other things, she reduced a $32 million cut in state aid to public schools to just $7 million.
Sebelius signed the bill during a news conference at 4:30 p.m. -- a half-hour before a key payroll deadline. She said the state's 42,000 employees should receive their biweekly paychecks on time Friday.
Previous Stories:
* February 16, 2009:
Kan. Suspends Income Tax Refunds
Copyright 2009 by KCTV5.com. The Associated Press contributed to this report. All rights reserved.
