The income tax refunds, paychecks and the payments for Medicaid providers and schools may be delayed and in jeopardy as the Democratic governor of Kansas and the Republican-controlled legislation clashed on Monday and could not agree on the cash flow of the state.
The governor of Kansas Kathleen Sebelius wants to cut money from other state accounts to the main state account, reported NPR this morning. The Republican-led legislation.
The Wichita Eagle reports that "Republicans, who hold majorities in both chambers, blocked Gov. Kathleen Sebelius’ proposal to borrow $225 million from healthy state funds to cover shortages in accounts used to meet the state’s payroll and issue tax refunds.
"GOP leaders said they won’t approve the IOUs until Sebelius either cuts the current budget herself or signs the bill they passed last week slashing $326 million — including $32 million for education — to balance the budget.
Republican leaders said they had no choice, that by law the state can’t borrow any more money from itself."
Yesterday the governor warned in a statement about this situation and that the paychecks and the income tax refunds in Kansas are in jeopardy.
he following is a statement by Governor Kathleen Sebelius regarding efforts today by Republican Leadership to derail the State Finance Council:
“This is a difficult time for Kansas families, seniors, workers and business owners who are dealing each day with the economic challenges presented by this historic recession.
“Last week, I called a meeting of the State Finance Council to consider the issuance of a certificate of indebtedness – a routine action dealing with state cash flow, that allows us to move money from one account to another so we can pay our bills on time. The use of these certificates has been approved every year for the last decade.
“When the State Finance Council last met in December we reviewed the cash flow patterns for this year and asked for a certificate to cover the remainder of the fiscal year. A majority of legislative council members refused to approve a certificate to adequately meet obligations through the end of February.
“Today, the Republican leadership of the legislature told me they would not approve the February certificate, only necessary because of their actions in December, until I sign the 2009 budget bill.
“The problem is, due to the slow action by the legislature, the bill has not been delivered to my desk, so I have nothing to sign.
“Furthermore, because this bill deals with hundreds of millions of dollars affecting almost every Kansan – once it is delivered – it would be prudent for me to review it thoroughly with my staff to make sure there are no errors in the text of the bill, as there have been in the past.
“The certificate deals with cash flow and as legislative leaders all know, it has nothing to do with the revised 2009 budget. We will need a certificate to make our monthly payments, whether or not the budget work is completed.
“This political game the Republican leaders are playing affects real Kansas families.
“The state cannot pay tax refunds to families who are waiting for money they need to pay rent and utilities. State employee paychecks, due this Wednesday, are now in jeopardy. Payments to health care providers and school payments, due this month, could be delayed.
“Through their refusal to act today, the Republican legislative leadership is jeopardizing our citizens’ pocketbooks for no other reason than to play political games – games in which the only ones set to lose are Kansas families, workers and schools.”
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