Topeka ? Kansas leaders today approved borrowing $500 million to shore up the public employee retirement system.

The bonds will be issued within the month, under the resolution approved by the State Finance Council, which is chaired by Gov. Kathleen Sebelius and includes legislative leaders.

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The $500 million will go toward helping close an unfunded liability within the Kansas Public Employees Retirement System.

Payment of the debt will come from general tax dollars, although Sebelius said if the Legislature approves casino gambling, she will propose paying off the debt with monies from that, or from future funds from the state’s settlement of the tobacco lawsuit.

Under the proposal, KPERS will receive $500 million, and will re-invest that revenue, hoping to earn more than the interest rate on the loan.

The measure won bi-partisan approval from State Finance Council, passing 8-1. The lone dissenter was House Minority Leader Dennis McKinney, a Democrat from Greensburg.

For more on this story, pick up a copy of Tuesday’s Journal-World.