Statehouse Sticking Point

Kansas Senate leaders have reduced to $34 million the amount of bonds being sought for continuing restoration efforts at the state capitol.

The Senate’s version of the fiscal 2012 state budget originally included $55 million of new debt for the ongoing Statehouse project.

The House budget bill does not provide for additional bonds for the final phases of the restoration.

Sen. Carolyn McGinn, R-Sedgwick, said the Senate scaled back the proposal to keep the project going while deferring some more expensive options until the state’s revenue picture brightens.

House leaders did not accept the offer, which is still on the table, but said they would continue to consider it.

The Legislature has approved a total of $285 million of bonds for the project since work began in 2001.

The Kansas Development Finance Authority has issued 10 tranches of the Statehouse bonds since the project began. The last sale was $39 million of Build America Bonds in 2010.

The revised proposal would finance replacement of the Statehouse’s leaking copper roof and dome, but would not provide funds to build a visitors center in the facility’s basement, or to replace landscaping damaged during the construction process.

Lawmakers now hope to obtain private funds from a sponsor for the visitors center.

The Statehouse bonds are rated AA by Standard & Poor’s and Aa2 by Moody’s Investors Service.

Lawmakers have not agreed on a budget for the next fiscal year, which will begin July 1.

 Negotiations broke off late last week, with more than 100 budget issues still unresolved in the $14 billion spending plan.

The 90-day legislative session is set to end May 12.

The House budget bill would result in a $68 million surplus at the end of fiscal 2012, while the Senate plan would provide a $5 million surplus.

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Kansas
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