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Kansas Authorizes $1 Billion in Bonds for Pension System

TOPEKA, Kan. (AP) — Kansas Governor Sam Brownback has signed a bill authorizing $1 billion in bonds to bolster the state's pension system for teachers and government workers. The bill that Brownback signed Wednesday will give the pension system an infusion of cash and narrow a gap in funding for pension benefits. The state expects to earn more from investing the new funds than it would pay on the bonds. But some lawmakers have expressed concerns that it could be risky and the votes to pass it in the Legislature were relatively close. Democratic state Senator Laura Kelly from Topeka has said she believes the state made the move in order to lower its annual pension payments as it faces budget shortfalls of nearly $600 million in the fiscal year beginning July 1.

The AP is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers. AP is neither privately owned nor government-funded; instead, as a not-for-profit news cooperative owned by its American newspaper and broadcast members, it can maintain its single-minded focus on newsgathering and its commitment to the highest standards of objective, accurate journalism.