TOPEKA, Kan. (AP) — Kansas might not issue $1 billion in bonds to boost the long-term health of its public pension system even though state officials have given the final go-ahead.
Republican Gov. Sam Brownback and top GOP legislators signed off Thursday. It was a formal step required by a law enacted in April authorizing the debt.
But officials with the state agency handling the transaction told Brownback and the lawmakers that market conditions might prevent it.
The law says the state can’t issue the bonds if it would pay more than 5 percent interest to investors. State officials said they’d be able to obtain a rate of 4.95 percent now.
Backers of the move believe the pension system will earn far more on the new funds than it would pay on the bonds.