Kansas budget director prepares annual request to borrow money when revenue dips
By Bryan Lowry
By Bryan Lowry
The Wichita Eagle
TOPEKA (MCT) — The state's budget director will request the authority next week to borrow money to help cover the state's expenses when revenue is low.
Budget Director Shawn Sullivan said this move is typical, adding the state has done it every year since 2000.
A June 9 memo from Sullivan to Gov. Sam Brownback and the state finance council says the state will need to seek a certificate of indebtedness to cover expenses during parts of fiscal year 2015.
"With the way the revenues work throughout the year, when you get to when the state is paying out the tax refunds you get to where you need a certificate and then when payments start coming in from taxes in May and June that's when the revenues go back up," Sullivan said. "Just because of that cycle the state going back the last 15 years has needed those certificates in order to meet its cash flow and expenditure needs."
Last year the state borrowed $300 million. In 2009, during the depths of the recession it had to borrow $775 million. The money must be paid off before the end of the fiscal year for which it is borrowed.
Sullivan said his staff at the Division of Budget is reviewing the state's financial obligations and revenue estimates for fiscal year 2015, which starts in July. He said the loan amount he will seek has not been determined.