TOPEKA, Kansas (AP) – Legislative negotiators in Kansas have agreed on a proposal to authorize $1 billion in bonds to bolster the short-term financial health of the state’s pension system for teachers and government workers.
Three senators and three House members settled their differences Tuesday.
Both chambers could vote on the plan this week.
The proposal is less aggressive than one from Republican Gov. Sam Brownback to issue $1.5 billion in bonds. Budget Director Shawn Sullivan said the administration hasn’t seen the new plan.
Supporters of issuing bonds argue that it will give the pension system an infusion of cash and immediately narrow a long-term gap in funding for pension benefits. They believe the pension’s system’s investment earnings on the funds will exceed bond payments.
Critics see the move as risky.