
TOPEKA, Kan. (AP) — Gov. Sam Brownback’s budget director says Brownback doesn’t plan to divert funds from the state’s public pension system again to help close budget shortfalls.
Budget Director Shawn Sullivan told a legislative committee Friday that the diversion of nearly $41 million from the pension system for teachers and government workers to general government programs is a one-time event.
The Republican governor diverted the money to help close a projected $279 million shortfall in the current budget. The state also faces a $436 million gap in its budget for the fiscal year beginning in July.
The diversion sparked bipartisan criticism because the pension system’s benefits are only 60 percent funded through 2033. A 2012 law boosted contributions by both the state and workers to ensure that the system becomes fully funded.
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TOPEKA, Kan. (AP) — Top aides to Republican Gov. Sam Brownback are urging legislators to study major changes in the pension system for teachers and government workers that include privatizing it.
Budget Director Shawn Sullivan and Secretary of Administration Jim Clark on Friday outlined potential ideas for a study during a meeting a joint study committee on pensions.
Brownback said last week that he is working on proposals to improve the long-term financial health of the Kansas Public Employees Retirement System. His comments followed bipartisan criticism of his decision to divert nearly $41 million from KPERS to general government programs to help close a projected shortfall in the current budget.
Sullivan and Clark urged legislators to launch a study of converting the state’s long-term pension obligations into annuities managed by private companies.