Why Kelly wants to extend Kansas pension obligations and pay down other debt

Kansas Gov. Laura Kelly’s $7.8 billion budget calls for an extension of pension obligations while paying down other debt and boosting reserves.
For the second consecutive year, Kansas Gov. Laura Kelly is seeking to refinance the state’s pension debt, pushing maximum annual debt service of $1 billion in 2032 to a decade later.
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Kelly’s goal is to lower annual payments by $130 million to $160 million over the next four years as the state builds budget reserves and restores funding for schools. The pension payments would still top $1 billion, but not until 2041.
“Kansas’ re-amortization of KPERS to make smaller payments in the short term is akin to making the minimum payment on a credit card bill,” according to the nonprofit Kansas Policy Institute. “In other words, the lower the contributions Kansas makes today, the higher contributions must be tomorrow."

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