“The Budget Director’s recommendation to transfer money to the state general fund was not about spending or about the budget bill. This was about ensuring that the state can continue to pay its bills until our account balances improve with tax returns in April.

“By failing to act on the recommendation of the state budget director to shore up balances in the general fund, legislative leaders put our reputation as a reliable bill payer and our credit rating at risk.

“This is taking a budget fight one step too far. Through inaction legislative leaders have put in jeopardy the state’s ability to make payments for payroll, public schools, health care and income tax refunds.

“The budget director has no partisan agenda in today’s proposal to bolster the state’s general fund balance. If the State Finance Council had approved his initial recommendation in December, we would not be in the situation we are in today.”

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The following is a statement from Governor Kathleen Sebelius regarding efforts today by Republican Leadership to derail the State Finance Council:

"This is a difficult time for Kansas families, seniors, workers and business owners who are dealing each day with the economic challenges presented by this historic recession.

"Last week, I called a meeting of the State Finance Council to consider the issuance of a certificate of indebtedness - a routine action dealing with state cash flow, that allows us to move money from one account to another so we can pay our bills on time. The use of these certificates has been approved every year for the last decade.

"When the State Finance Council last met in December we reviewed the cash flow patterns for this year and asked for a certificate to cover the remainder of the fiscal year. A majority of legislative council members refused to approve a certificate to adequately meet obligations through the end of February.

"Today, the Republican leadership of the legislature told me they would not approve the February certificate, only necessary because of their actions in December, until I sign the 2009 budget bill.

"The problem is, due to the slow action by the legislature, the bill has not been delivered to my desk, so I have nothing to sign.

"Furthermore, because this bill deals with hundreds of millions of dollars affecting almost every Kansan - once it is delivered - it would be prudent for me to review it thoroughly with my staff to make sure there are no errors in the text of the bill, as there have been in the past.

"The certificate deals with cash flow and as legislative leaders all know, it has nothing to do with the revised 2009 budget. We will need a certificate to make our monthly payments, whether or not the budget work is completed.

"This political game the Republican leaders are playing affects real Kansas families.

"The state cannot pay tax refunds to families who are waiting for money they need to pay rent and utilities. State employee paychecks, due this Wednesday, are now in jeopardy. Payments to health care providers and school payments, due this month, could be delayed.

"Through their refusal to act today, the Republican legislative leadership is jeopardizing our citizens' pocketbooks for no other reason than to play political games - games in which the only ones set to lose are Kansas families, workers and schools."

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State Treasurer comments on State Finance Council inaction:

The following are remarks by State Treasurer Dennis McKinney regarding the refusal of legislative leaders to take action to shore up dwindling state funds.

"The Budget Director's recommendation to transfer money to the state general fund was not about spending or about the budget bill. This was about ensuring that the state can continue to pay its bills until our account balances improve with tax returns in April.

"By failing to act on the recommendation of the state budget director to shore up balances in the general fund, legislative leaders put our reputation as a reliable bill payer and our credit rating at risk.

"This is taking a budget fight one step too far. Through inaction legislative leaders have put in jeopardy the state's ability to make payments for payroll, public schools, health care and income tax refunds.

"The budget director has no partisan agenda in today's proposal to bolster the state's general fund balance. If the State Finance Council had approved his initial recommendation in December, we would not be in the situation we are in today."