Kansas Suspending Income Tax Refunds

I was goofing off at work today, and saw the breaking news that Democrat Kathleen Sebelius, the Democrat Kansas governor, has decided that I won't be getting my tax refund anytime soon.

This pundit explains the situation:



Seriously though, the MSM has gone out of their way to make sure that everybody knows that Republicans are "blocking" the quarter-billion dollar transfer to the general fund to pay for refunds and payroll. You have to dig a bit deeper to find out why.

Apparently, the fund transfer that Gov. Sebelius wants may be illegal:

But GOP leaders said it's illegal under Kansas law to shift the funds around as long as the state continues to face a projected deficit in the budget for the fiscal year that ends June 30. The Legislature has approved a bill to eliminate the shortfall, but Sebelius hasn't received the bill yet and hasn't said whether she will sign it.

"We do want to dot our 'i's' and cross our 't's,"' said House Speaker Mike O'Neal, a Hutchinson Republican. "This is important work, and we do intend to comply with the law."

The Governor has apparently refused to sign-off on the 2009 budget which reduces spending by over 300 million dollars, so in retaliation, the Republicans (who control both houses of the Kansas Legislature) are blocking any transfer of funds and effectively holding the state income tax refunds hostage, until Sebelius signs-off on the budget. Like a Mexican Standoff, but we, the lowly Kansas taxpayer, have both guns to our head.

In the interest of fairness, here is a statement from the Governor.

Gov. Kathleen Sebelius:

"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."

On a personal note, I filed my tax return over three weeks ago, and I'm due a refund (because I made damn sure last year I would get a 2009 refund after having to pay out of my nose in 2008). Taxes are bad enough, but this is intolerable.

It will be interesting to see if our esteemed Governor will be offered a Cabinet post by Chairman Obama, now that her own house is falling apart. I doubt it.

-Masterson