Kansas In Fiscal Trouble

Kansas has joined California in having a budget crisis. The Sunflower State is out of money to pay income tax refunds, Budget Director Duane Goosen told the Wichita Eagle. Also threatened is the state’s payroll and medicaid payments.

The Kansas crisis appears to have many similarities to California’s, though on a much smaller scale. Kansas appears to be about $330 million in the red (compared to $41 billion in California). Republicans passed a bill that cuts $326 million from the current budget; it’s unclear whether Democratic Governor Kathleen Sebelius will sign the legislation. While there are funds in place in other Kansas accounts that could cover this weeks’ debts, Republicans won’t allow any more ‘IOUs’ to be issued (those IOUs allow money to be lent from one Kansas account to another).

I’ll keep you informed.

Hat Tip: Don’t Mess With Taxes

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