The State of Kansas suspended paying $12 million in income tax refunds today and may not have enough funds to pay employee payroll on Friday, according to the Topeka Capital-Journal citing Budget Director Duane Goossen.
The state ran short in its main bank account to pay its bills. Governor Kathleen Sebelius proposed moving funds from other state accounts, which requires permission of the State Finance Council. The Republicans on that council are withholding consent until the Governor signs the 2009 budget bill.
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