TOPEKA, Kan. (AP) _ Kansas expects to rely less heavily on internal borrowing to pay its bills on time during the fiscal year starting in July.
Gov. Sam Brownback and legislative leaders on Tuesday unanimously approved $300 million in loans to the state's general fund from other accounts. By law, the loan must be paid by the end of June 2014.
The general fund is the state's main bank account. It is used to finance general government programs and provide aid to public school districts.
Because revenues don't flow in consistently, the state has resorted annually to internal borrowing to temporarily meet its cash needs.
But the state shifted $400 million into the general fund during the current budget year and $600 million during the previous fiscal year.
News release from the Governor's office:
The State Finance Council unanimously approved a certificate of indebtedness for Fiscal Year 2014 during its Tuesday morning meeting. The state issues an annual certificate to help manage its cash flow during the fiscal year when expenditures and obligations outweigh revenue.
The council consists of Governor Sam Brownback, Senate President Susan Wagle, House Speaker Ray Merrick, Senate Majority Leader Terry Bruce, House Majority Leader Gene Vickery, Senate Minority Leader Anthony Hensley, House Minority Leader Paul Davis, Senate Ways and Means Committee Chairman Sen. Ty Masterson and House Appropriations Chairman Rep. Mark Rhoades.
“We’ve made great progress in reducing the amount of certificate of indebtedness needed to manage the state’s cash flow since I took office – and since July 1, 2010 when the state had just $876.05 in the bank,” Gov. Brownback said. “However, we still have a long way to go and need to remain focused on responsible fiscal management in the coming year.”
FY 2014 is the 14th straight year the state has issued a certificate. During the Brownback Administration, the size of the annual Certificate of Indebtedness has decreased by $400 million.
The council also approved two tort settlements requested by the Kansas Attorney General.