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Money Troubles For State Of Kansas

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Gov. Sebelius wanted to move $225 million from other accounts to allow the state to pay its bills, but Republican lawmakers balked. Gov. Sebelius wanted to move $225 million from other accounts to allow the state to pay its bills, but Republican lawmakers balked.

TOPEKA, Kan. (AP) -- Kansas is suspending income tax refunds and may not be able to pay its employees on time.

The state is strapped for cash in its main bank account. Republican legislative leaders blocked an effort by Democratic Gov. Kathleen Sebelius to transfer funds into the account.

Sebelius wanted to move $225 million from other accounts throughout state government, allowing the state to pay its bills. That move requires approval of legislative leaders, and Republicans balked.

Now Budget Director Duane Goossen said he's not sure the state can meet its payroll. State employees are due to be paid again Friday.

GOP leaders want Sebelius to sign a bill making $326 million in adjustments to the budget for the fiscal year that ends June 30. 

Legislators approved that bill last week, but it has not reached her desk.

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