Kansas leaders approve $700 million in internal borrowing

TOPEKA | Kansas Gov. Mark Parkinson has permission for $700 million of internal borrowing to head off a government cash crunch.

Approval of the Democratic governor's plan came Monday from the State Finance Council, which is the governor and eight top legislative leaders.

The action will allow Kansas to keep paying bills on time.

It also will permit the state to pay tax refunds and make payments to school districts that had been delayed from June into July.

The $700 million will be transferred from various government funds into the state's main bank account, then repaid by the end of June 2010.