What another state is doing:
TOPEKA, Kan. (AP) — Kansas has suspended income tax refunds and may not be
able to pay employees on time, state officials said Monday.
The state doesn’t have enough money in its main budget account to pay its
bills, prompting Democratic Gov. Kathleen Sebelius to suggest borrowing $225
million from other accounts throughout state government. But the move required
approval from legislative leaders, and Republican leaders refused Monday.
Budget Director Duane Goossen said that without the money, he’s not sure
the state can meet its payroll. About 42,000 state employees are scheduled to be
paid again Friday. He added that the state might also have to delay
payments to public schools and to doctors who provide care to needy Kansas
residents under the Medicaid program.
Goossen said the state stopped processing income tax refunds last week.
- Terri Hallenbeck