Topeka ? Legislative leaders gave Gov. Kathleen Sebelius permission Wednesday to move up to $450 million among various accounts to ensure the state keeps paying its bills on time.

The plan from Sebelius, approved by the State Finance Council, is similar to a family transferring money from a savings account to its checking account to pay household bills until a paycheck arrives.

In the state’s case, money will go from various funds into its general fund, which provides aid to public schools, helps finance social services and supports general government operations. Kansas law requires the general fund to repay any transfer by June 30, 2005.

Sebelius plans to start the internal borrowing on July 1, when the state’s 2005 fiscal year begins. The plan had to be approved by the Finance Council, which comprises the governor and eight top lawmakers and handles financial matters for the state when the Legislature is not in session.

The internal borrowing has become common in recent years, and the Finance Council’s vote Wednesday was unanimous.

“We had to do that for cash flow purposes,” said Senate Ways and Means Committee Chairman Steve Morris, R-Hugoton, a council member.

While the state expects to deposit $4.7 billion in its general fund during its 2005 fiscal year, the flow of tax revenues and timing of big bills often are out of sync. When the economy is sluggish and the state has depleted its cash reserves, it can have trouble paying its bills on time.

In fact, Budget Director Duane Goossen said that in early April, the state could be $360 million short of being able to pay its bills on time, if it did not resort to internal borrowing.

“When a large school finance bill came due, we would simply have to delay it,” Goossen said after the council’s decision. Aid to schools consumes more than half of the general fund’s revenues.

The state can manage the internal borrowing because it also collects fees earmarked for specific purposes, such as university tuition, and receives grants and other dollars. The entire state budget is about $10.3 billion.

Such transfers have occurred in each of the past five fiscal years, including $450 million each of the past two years.

“It really is a methodology that allows us to pay our bills in a timely fashion because cash flow and the bills that go out don’t fall in precise order,” Sebelius said after the council’s meeting.