Asked at a news conference if the state’s 42,000 state employees, including those at Kansas University, would be paid Friday, Sebelius’ budget director Duane Goossen said, “I don’t know.”
In addition to state employee paychecks, payments to schools, Medicaid, and income tax refunds are also in question.
The state’s general fund had $10.4 million in it Monday morning, Goossen said. The state’s payroll is $24 million, and state officials start processing those checks Wednesday for payment Friday. Last Friday, the state stopped paying income tax refunds because of the lack of cash.
The fireworks erupted after Sebelius requested a $225 million certificate of indebtedness to handle payments during the current low cash-flow period. Certificates of indebtedness, which have become almost routine during the past 10 years, allow the state to move funds around for cash-flow purposes.
Issuing the certificates requires agreement from legislative leaders, and the state has already issued $550 million worth during the current fiscal year.
But this time, House Speaker Mike O’Neal, R-Hutchinson, and Senate President Steve Morris, R-Hugoton, refused.
They demanded that Sebelius, a Democrat, cut the budget first to close an increasing revenue gap.
It's nice to know that even after the Bush Years, we can still blame the Republican party for pain and suffering.
Looks like I won't be paying my mortgage or renewing my auto insurance this week!