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Kansas The Latest To Suspend Tax Refunds

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And much like California, they may have to limit their employees from coming to work because they might not be able to meet payroll. In fact, it’s almost a certainty that they’ll have to make serious cutbacks immediately. And this was a crisis that is completely out of the control of any Governor’s control.

Still, that hasn’t stopped the GOP from essentially using this financial crisis to get their agenda pushed through.

From the Wichita Eagle:

The state doesn’t have enough money in its main bank account to pay its bills, prompting Democratic Gov. Kathleen Sebelius to suggest transferring $225 million from other accounts throughout state government. But the move required approval from legislative leaders, and the GOP refused Monday.

Budget Director Duane Goossen said that without the money, he’s not sure the state can meet its payroll. State employees are due to be paid again Friday.

Goossen said the state stopped processing income tax refunds last week.

GOP leaders are hoping to pressure Sebelius into signing a bill making $326 million in adjustments to the budget for the fiscal year that ends June 30.

What’s more, the shortfall would effect more people than just state employees…

Goossen said the state might also have to delay payments to public schools and to doctors who provide care to Kansans under the Medicaid program.

I don’t know, I think this is a losing strategy by Republicans. They might position this as fiscal responsibility but when you’re talking about money going to public schools and medical care for seniors, well, I think they’re playing with populist fire.

A side note, all of this is happening as Sebelius is being thought of for the HHS job. I’m thinking that this crisis will make it next to impossible for her to jump ship.

More as it develops…