Governor Laura Kelly’s plan to restructure repayments for the states pension system has hit a major roadblock.
House Republicans voted down the plan to “reamortize” KPERS, including no payments for fiscal 2020. Gov. Kelly wants to essentially turn KPERS payments into a 30-year loan. Republicans have balked since this was announced shortly after the State of the State address last month, in part because they say it will increase interest payments by over $7 billion.
Kelly fired back, saying the state missed 15 scheduled payments to KPERS during the last nine years, eight of which were under Republican leadership. She says refinancing is inevitable to meet the state’s obligations.
Resetting KPERS payments has been a controversial — but vital — part of Gov. Kelly’s plan to both keep the budget balanced and increase spending in several areas, including K-12 education.
