Daily Archives: Feb. 16, 2009

House Speaker Mike O’Neal responds

Here is a response from House Speaker Rep. Mike O’Neal, R-Hutchinson, after he and Senate President Stephen Morris, R-Hugoton, rejected a proposal by the governor that the state borrow $225 million from itself to temporarily pay bills.

Republicans argue the move would be illegal until the Gov. Kathleen Sebelius, a Democrat, signs a budget bill that would cut $325.6 million from the current budget. The governor has not yet received the measure.

The disagreement means the state might not have money to cover state employee pay checks and Medicaid payments to providers such as hospitals and doctors which are scheduled to come out Friday.

Income tax returns could also be delayed. So far the state owes about $12 million in returns.

Here is the response:

“While we all can agree that these are trying times for Kansas families, seniors, and business owners the Kansas House of Representatives respectfully disagrees with breaking the law in order to gain political capital.

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Democratic Legislative leaders respond to money impass

Here is the response from legislative Democratic leaders on the State Finance Council after Republican leaders declined to let the state borrow money from itself to pay its bills Monday.

House Democratic Leader Paul Davis, D-Lawrence:

“The State Finance Council has issued at least one certificate of indebtedness in each of the last 10 years. It is a necessary cash management tool, especially at this point in the fiscal year.

“The argument that it is illegal for the State Finance Council to issue a certificate of indebtedness before Governor Sebelius considers Senate Bill 23 is simply false. These kind of political games are highly irresponsible when over 40,000 state employees are counting on receiving their paychecks later this week. Read More »

Gov. Sebelius’ response to the GOP

Here is Gov. Kathleen Sebelius’ response to news that Republican legislative leaders rejected her proposal that the state borrow $225 million from itself to temporarily pay bills.

Republicans argue the move would be illegal until the governor signs a budget bill that would cut $325.6 million from the current budget. The governor, a Democrat, has not yet received the measure.

The disagreement means the state might not have money to cover state employee pay checks and Medicaid payments to providers such as hospitals and doctors which are scheduled to come out Friday.

Income tax returns could also be delayed. So far the state owes about $12 million in returns.

“This is a difficult time for Kansas families, seniors, workers and business owners who are dealing each day with the economic challenges presented by this historic recession.

“Last week, I called a meeting of the State Finance Council to consider the issuance of a certificate of indebtedness – a routine action dealing with state cash flow, that allows us to move money from one account to another so we can pay our bills on time. The use of these certificates has been approved every year for the last decade.

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Kansas Organization of State Employees’ reaction to a possible delay in pay for state workers

Here is Kansas Organization of State Employees’ response to news that Republican legislative leaders rejected a proposal by the Gov. Kathleen Sebelius, a Democrat, that the state borrow $225 million from itself to temporarily pay bills.

The disagreement means the state might not have the $24 million to cover state employee pay checks scheduled to come out Friday.

TOPEKA – Today, House Speaker Mike O’Neal and Senate President Steve Morris announced that the state Finance Council would not take up a measure to address the state’s severe cash shortage until Governor Sebelius signed the deficit-reduction bill. As has been done in the past when the state has faced a similar cash shortage, the Governor had intended to request authority to borrow $225 million in order to issue payroll and income tax returns.

Without the loan, the state has halted the payment of tax returns and state employees may have to wait for pay day. “Once again, state employees are being used by the Legislature to balance the budget,” said Lisa Ochs, KOSE President.

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