KWCH - Kansas News and Weather - Governor Signs Budget Bill

Governor Signs Budget Bill

Update 2/17 at 4:31pm

TOPEKA, Kan. (AP) - Gov. Kathleen Sebelius moves to end a budget impasse that is delaying income tax refunds and threatening to hold up state employees' paychecks by signing a bill to eliminate a deficit.

The Democratic governor Tuesday met a key demand from Republican leaders that she sign the bill before they allow her to take steps to ease a cash crunch. But Sebelius vetoed individual provisions in the bill to lessen cuts to public schools.

She also vetoed several other items.

- to protect public schools

- KPERS (State Retirement Program)

- Dept. of Education Reduction

- Healthcare Stabilization

- Bioscience Authority

Republican leaders said the budget needed to be balanced before they would approve a plan from Sebelius to borrow money internally to shore up the state's main bank account.

by Michael Schwanke (WICHITA, Kan)

State employees may not see a paycheck this week and thousands of other Kansans may have to wait for their tax refunds.

That's the latest as state lawmakers announce Monday they are suspending state income tax returns until Governor Kathleen Sebelius signs a deficit reduction bill.

"We're telling people not to panic about it.  A lot can change in five minutes," says H&R Block Advisor Susan Chacon who is fielding many questions from customers.

The state doesn't have the money so Gov. Kathleen Sebelius wants to transfer funds to cover the shortfall.  Republican legislative leaders blocked that effort.

Sebelius wanted to move $225 million from other accounts throughout state government. 

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

"Our staff says they will make payroll and we expect them to and if they don't I hope it's not to make the legislature look bad in the process," says Rep. Mike O'Neal.

The bill won't reach Governor Sebelius' desk until Tuesday night. 

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