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University of Kansas Bond Issue Prompts Budget Move in Kansas House

TOPEKA, Kan. (AP) — A new legislative budget measure would limit the University of Kansas's ability to spend unanticipated tuition dollars and extra special funds. The provision approved Thursday by the Kansas House Appropriations Committee is a response to an arrangement that allowed the university to obtain $327 million in bonds to finance construction projects without lawmakers' approval. It would require the university to get legislative approval to spend unanticipated funds if collections exceed budgeted amounts during the fiscal year beginning July 1. The university formed a nonprofit corporation which then had Wisconsin's Public Finance Authority issue the bonds. University officials contend they complied with Kansas law. But Republican legislative leaders are upset. The House committee's budget provision is written narrowly enough to apply only to the University of Kansas.


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