Kansas cut its monthly payments to public school districts in December by 25% as state revenues were not sufficient to provide the full amount.
“We do not have enough cash in the bank,” said Duane Gossen, budget director for Gov. Kathleen Sebelius.
The 297 districts in the state received $165 million for December, some $55 million less than expected due to the decline in revenues. The state expects a budget shortfall of almost $1 billion for fiscal 2010.
The Consensus Estimating Group reduced the estimate for general fund revenue for fiscal 2009 by $211 million, or 3.5%. The group said Kansas will end fiscal 2009 with a shortfall of $136.8 million. That would result in available revenues in fiscal 2010 of $5.65 billion with expected expenses of $6.6 billion.
In addition, the Capitol Restoration Commission last week decided to delay the final phase of a $285 million renovation of the 142-year-old Kansas State Capitol until lawmakers return to Topeka in January for the 2009 session.
The project is financed with proceeds from appropriations-supported revenue bonds issued for state projects by the Kansas Development Finance Authority.
Republican House Speaker Melvin Neufeld asked for the delay. He said he supported the modernization effort but urged that additional bond sales be postponed until the state’s finances improve.
Democratic House Minority Leader Dennis McKinney, who will become the state treasurer in January, objected to the delay. He said the capitol project should be completed now while interest rates are low.
