State issues $200M in debt certificates

? Like many Kansas families, the state experiences cash flow problems this time of year.

So on Thursday, state leaders approved issuing $200 million in what are called certificates of indebtedness.

This allows the state to use cash balances in its various funds to pay bills out of its all-purpose general fund until tax revenues increase later in the fiscal year.

For example, the state had $67 million in its general fund this week but had to make a $66 million payment for special education.

With the action by the State Finance Council, it now can make that payment without breaking into a sweat, said Duane Goossen, who is Gov. Kathleen Sebelius’ budget director.

The issuance of the certificates has become almost routine, but Republican legislative leaders blocked them in June, saying the growing economy would be more than enough to cover the state’s bills.

Although the economy is growing, it is still not enough to avoid the need for the certificates, Goossen said.

On Thursday, the Finance Council unanimously approved using them.