Kansas suspends income tax refunds, may miss payroll

Income tax refunds and state employee paychecks could be late after Republican leaders and the Democratic governor clashed Monday over how to solve a cash-flow problem.

Payments to Medicaid providers and schools also could be delayed.

“We are out of cash, in essence,” state budget director Duane Goossen said.

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Posted in * Economics, Politics, Economy, Politics in General, State Government, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

6 comments on “Kansas suspends income tax refunds, may miss payroll

  1. William P. Sulik says:

    So much for the much ballyhooed Gov. Kathleen Sebelius…

  2. Bart Hall (Kansas, USA) says:

    At the suggestion of that same brilliant governor, Kansas went into the bond market and borrowed half a billion dollars so it could “invest” more money into its failing public employees pension fund.

    The borrowing was based on an 8.8% annual return on those stock purchases — for the next 30 years. But that, of course, was a piece of cake. Stocks always go up, at more like 11% per year. Forever.

    Don’t they?

    With our 2.5 million residents, the State of Kansas also has a $14 Billion budget, of which 70% goes to “education” excluding local school boards, which suck up about 60% of all property taxes. I’ve done substitute high school teaching here — it’s very expensive ignorance.

    Apparently all the way to the top.

  3. Eastern Anglican says:

    So if I were a resident and owed the state money would I be allowed to postpone my payment without interest and penalties until I had the money?

    Just wondering.

  4. John Wilkins says:

    Bart, so, most people thought that stocks always go up. That’s why we were going to privatize social security. You see, what we do is defund the government, and say that investing in mortgage based securities is the way to easy profits. Its the free market, after all.

    In any case, whatever they do, they should not raise taxes. They don’t need schools, since there won’t be any jobs. They can plant little gardens or ask rich people for hand outs directly.

    Prisons, however they should fund. And agriculture subsidies. And fund weapons to be used in Iraq.

    But granny on medicaid? She should have never started smoking and stopped eating junk food. She’s on her own. The legal system? nope. Roads? Nope.

    Whatever we do, we should not raise taxes. Perhaps Kansas and all those midwestern states should merge into one state. It would be a lot cheaper to have one government than so many, especially since a small percentage of the country lives there.

  5. Bart Hall (Kansas, USA) says:

    John, your straw-man sarcasm would be amusing if not so misguided.

    There are indeed certain things national government [i]must[/i] do on behalf of the country: defence, foreign affairs, customs and immigration, a sound currency, and a national legal system. Indeed, George Washington’s cabinet — with [i]four[/i] members addressed those issues and those alone.

    Because all other powers are reserved to the States, or (more importantly) to the [i]people[/i], there are a few additional roles that must be performed by state government, namely police, a state legal system, roads, and (arguably) education.

    Unfortunately, there are many things that government also [i]CAN[/i] do … and to the extent they get involved in such affairs, the things they [i]must[/i] do are often let go.

    Rather than argue specifics, I reject your fundamental premise, which is in essence that [i]government[/i] should somehow provide for a guaranteed equality of [i]outcome[/i]. From your premise your reasoning is understandable, but, again, I reject the entire premise of your comment.

  6. Juandeveras says:

    I just heard that Kansas, unlike California, just approved a budget.

    I understand Sibelius is a big fan of that third-term abortion doctor Kansas has become infamous for.

    Query: Does Mr. Wilkins do anything but sarcasm ?