Kansas suspends income tax refunds, may miss payroll

First California, now Kansas. Times are getting tough for the states.-Lou

Kansas suspends income tax refunds, may miss payroll

By JOHN HANNA
Associated Press Writer

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

The state doesn't have enough money in its main bank 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 the GOP refused Monday.

Budget Director Duane Goossen said that without the money, he's not sure the state can meet its payroll. State employees are due to be paid again Friday.

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

Read Article Here:
http://www.kansas.com/735/story/701750.html