Kansas Suspends Income Tax Refunds, May Miss Payroll

By: Associated Press
By: Associated Press

TOPEKA, Kan. (AP) -- 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 budget account. Republican legislative leaders on Monday 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.

Now Budget Director Duane Goossen says he's not sure the state can meet its payroll. State employees are to be paid again Friday.

Goossen says the state stopped processing income tax refunds last week.

GOP leaders want Sebelius to sign a bill making $326 million in adjustments to the budget for the fiscal year that ends June 30.

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