Kansas House passes bill to authorize $1.5B in pension bonds
Topeka The Kansas House has approved a bill authorizing $1.5 billion in bonds to help lower the state's annual costs in funding pensions for teachers and government workers.
The vote Wednesday was 67-57.
The bill goes next to the Senate. It passed a measure in February authorizing $1 billion in bonds.
Under both plans, the state could not pay interest exceeding 5 percent to bondholders.
The Kansas Public Employees Retirement System has a projected long-term funding gap of $9.8 billion, and the state has committed to raising annual contributions to eliminate it by 2033.
Supporters argue that issuing bonds would give KPERS an infusion of cash, boost its investment earnings and allow the state to its lower annual contributions of tax dollars.
Critics say the move is financially risky.