Sebelius vows to distribute economic stimulus money

? Gov. Kathleen Sebelius on Friday said disbursement of $78 million in federal economic stimulus funds was a top priority and appeared impatient that a plan had not been developed yet to get the money into the hands of laid-off Kansans.

“We want a plan on the table,” Sebelius said. “It’s critical in a time when we have more than 14,000 laid off in Wichita and others around the state that we distribute those funds to the unemployed workers in Kansas. This really is a top priority for me.”

The money was part of a federal stimulus package to states and was sent to Kansas in March 2002. That’s when it became entangled in a political struggle between lawmakers and the administration of former Gov. Bill Graves.

The Graves administration wanted to use about $4 million of the $78 million to upgrade computers at the Kansas Department of Human Resources. Several lawmakers opposed the proposal.

A KDHR advisory committee studied how to use the money, but labor and business interests on the panel couldn’t reach agreement. The committee still is wrestling with the issue.

“Frankly, if the committee can’t develop a plan, we’ll develop a plan,” Sebelius said.

According to federal guidelines, the money can be used in several ways, including enhancing the administration of state unemployment insurance and increasing jobless benefits, by either raising compensation or expanding the pool of those eligible for benefits.

The money also can be used for employer tax relief. Due to the state’s inaction, that is how it is now being used.

The money is resting in the Kansas Unemployment Insurance trust fund where it is holding down premiums paid by the state’s employers. The trust fund provides jobless benefits.