At least disclosure violation is in the past

capitoldomeIt’s disconcerting that the state of Kansas violated investment disclosure laws when it sold bonds several years ago, though it’s good that the problem appears to be in the past. The U.S. Securities and Exchange Commission announced this week that the state had failed to adequately disclose the poor financial condition of its pension plan when issuing bonds in 2009 and 2010 to pay for state projects. The SEC issued a cease-and-desist order against the state. To its credit, Gov. Sam Brownback’s administration already had changed how the state handles the disclosures. Brownback and the Legislature also reformed the Kansas Public Employees Retirement System to improve its solvency.