By JOHN HANNA, AP Political Writer
TOPEKA, Kan. (AP) — Gov. Laura Kelly on Wednesday proposed that Kansas set aside $600 million of its surplus revenues in a rainy day fund and spend nearly $1.8 billion more in cash reserves on a host of one-time projects.
Click here to read a transcript of Gov. Kelly's State of the State address
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The projects Kelly proposed in her spending blueprint for state government through June 2023 included paying off bonds early, undoing financial maneuvers lawmakers did in previous years to deal with budget shortfalls and one-time items such as a new state health department laboratory, renovation of a state office building and new Kansas Highway Patrol aircraft.
She also last month proposed giving a one-time $250 rebate to all Kansas residents who filed a state income tax return last year. Republicans have said they prefer ongoing tax relief.
The Democratic governor's budget director outline her proposals to the Republican-controlled Legislature's budget committees.
Repeated monthly surpluses in tax collections have left the state on track to have $3.9 billion in treasury reserves at the end of June 2023. Kelly's proposals would shrink that figure to $671 million.
Kelly's proposal to set aside $600 million in a rainy day fund would give the state an extra cushion in future years — something top Republicans have said they want to do.