Topeka ? Facing a severe revenue shortfall, Kansas leaders will meet next week to consider borrowing funds to fulfill the state’s December payment to public schools.

Gov. Kathleen Sebelius’ budget director Duane Goossen said Thursday the State Finance Council will meet Tuesday to consider issuing certificates of indebtedness.

Essentially, this allows the state to borrow money from balances in various state agencies to pay bills during times of low cash flow. The money has to be paid back within the fiscal year.

Goossen said the state approved $300 million in certificates of indebtedness in July.

“We hoped it would take us through December but given what happened to us economically, it didn’t take us through December,” he said.

Last month, budget experts said the state faced an approximately $140 million shortfall in the current fiscal year, which could skyrocket to $1 billion next year.

Earlier this month, the state was able to release only a portion of its monthly payment to Kansas’ 297 school districts. Instead of paying $220 million owed to the districts, the state paid $165 million, which was $55 million short.

Goossen said he will ask the State Finance Council to approve an amount of certificates of indebtedness “to hopefully get us through the rest of the fiscal year,” which ends June 30, 2009. But he said a definite amount had not been decided on yet.

The Finance Council is led by Sebelius and includes legislative leaders and chairs of the two budget committees.

Goossen said if the council approves the certificates of indebtedness, the state can make an immediate payment to the schools.