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TOPEKA, Kan. -- Kansas is suspending income tax refunds and may not be able to pay its employees on time.
The state is strapped for cash in its main bank account. Republican legislative leaders blocked an effort by Democratic Gov. Kathleen Sebelius to transfer funds into the account.
Sebelius wanted to move $225 million from other accounts throughout state government, allowing the state to pay its bills. That move requires approval of legislative leaders, and Republicans balked.
Now Budget Director Duane Goossen said he's not sure the state can meet its payroll. State employees are due to be paid again Friday.
GOP leaders want Sebelius to sign 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.
Originally posted by MOFreemason
I have yet to file in the State of Kansas and am expecting a $55 income tax refund.
I'm sure there are a great many that are expecting lots more from the State. If they know their refunds are suspended, how many people even feel inclined to file?
Why file if they know the state isn't going to hold up their end?
State Republican legislative leaders Monday demanded that Gov. Kathleen Sebelius sign the budget cutting bill they passed last week before they will agree to issue inter-governmental loans to make state payments for payroll, public schools, health care and income tax refunds, officials said.
Democrats denounced the move by House Speaker Mike O'Neal, R-Hutchinson, and Senate President Steve Morris, R-Hugoton, calling it "blackmail" and "irresponsible."