why Kansas has suspended income tax refunds and may not be able to pay employees on time?
Missouri delays tax refunds BY DAVID A. LIEB THE ASSOCIATED PRESS 04/08/2009 JEFFERSON CITY — Missouri has delayed tax refunds and quietly borrowed $325 million from its cash reserves in order to pay employees, public schools, hospitals and other bills. If officials had not acted to keep the state afloat, Missouri would have been $100 million in the hole at the start of April, according to state financial documents obtained by The Associated Press. Gov. Jay Nixon’s director of budget and planning confirmed Monday that the delay in tax refunds and the borrowed money both were necessary for cash-flow purposes. Those actions come on top of about $180 million in spending cuts previously made by Nixon’s administration to keep the budget in balance. “We’re experiencing what we anticipated at this point of the year as far as revenues,” said Nixon’s budget director, Linda Luebbering. “They’re down consistent with the gloomy forecast that we’re going to have a 4 percent reduction in net revenue
Income Tax Refunds Temporarily Suspended Due to Budget Dispute in Kansas: The Associated Press is reporting that the state of Kansas has suspended income tax refunds for the time being, and may not have the money to pay state employees at the end of the week. Kansas is dealing with a budgetary shortfall, and state politicians can’t agree on how to make up the gap in funding. Governor Kathleen Sebelius (Democrat) wants to transfer approximately $225 million dollars from other state government bank accounts into its main budget account. Republican leaders in the state have agreed to sign off on such a transfer until Sebelius signs legislation that would “erase the state’s current year budget deficit”. (source: Kansascity.com). This would include statewide school funding cuts of $32 million dollars, as well as cuts to various other agencies in the state. If an agreement isn’t reached, then income tax refunds will continue to be delayed, as well as Medicaid reimbursements and payments to l
The Associated Press is reporting that the state of Kansas has suspended income tax refunds for the time being, and may not have the money to pay state employees at the end of the week. Kansas is dealing with a budgetary shortfall, and state politicians can’t agree on how to make up the gap in funding. Governor Kathleen Sebelius (Democrat) wants to transfer approximately $225 million dollars from other state government bank accounts into its main budget account. Republican leaders in the state have agreed to sign off on such a transfer until Sebelius signs legislation that would “erase the state’s current year budget deficit”. (source: Kansascity.com). This would include statewide school funding cuts of $32 million dollars, as well as cuts to various other agencies in the state. If an agreement isn’t reached, then income tax refunds will continue to be delayed, as well as Medicaid reimbursements and payments to local schools. The state is currently trying to deal with an increased budg
