Kansas suspends income tax refunds, may miss payroll

JOHN HANNA
AP Mobile News Network
February 16, 2009

Kansas has suspended income tax refunds and may not be able to pay employees on time, the state’s budget director said Monday.

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The state doesn’t have enough money in its main budget account to pay its bills, prompting Democratic Gov. Kathleen Sebelius to suggest transferring $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. State employees are scheduled to be paid again Friday.

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

GOP leaders are hoping to pressure Sebelius into signing a bill making $326 million in adjustments to the budget for the fiscal year that ends June 30.

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