The Kansas House has adopted a bill that would dedicate revenues from state-owned casinos to support of the Kansas Public Employees Retirement System, which faces an $8.3 billion shortfall in promised benefits through 2033.
State law currently dedicates $10.5 million a year from three licensed casinos in Kansas City, Dodge City and Wichita to support engineering programs at state universities.
Total annual state revenue from casino operations is expected to reach $80 million in fiscal 2013.
The new measure would allocate 75% of the state’s remaining casino revenues to KPERS beginning in July 2014. Sponsors of the bill said it could bring in several billion dollars over the next 20 years.
The bill also replaces the current state employee retirement system with two options, including a 401(k)-style plan.