In One Year, Kelly Administration Saves Taxpayers Over $750M by Retiring Debt and Paying Cash for Projects
TOPEKA – Governor Laura Kelly announced today that actions taken by her administration in Fiscal Year 2022, including paying down debts incurred by the Brownback Administration and paying cash for projects, have saved Kansans $754.2 million in interest payments.
“By prioritizing fiscal responsibility, we have put Kansas back on track and ready for the road ahead,” Governor Laura Kelly said. “My administration has managed our budget wisely in order to save taxpayers hundreds of millions of dollars and axe taxes – all while making historic investments in our schools, infrastructure, and law enforcement.”
In Fiscal Year 2022 (July 2021 through June 2022), the Kelly Administration used the budget surplus to retire debt early and pay for projects with cash rather than through issuing bonds. The Administration paid down $1.6 billion in debt, saving $632.0 million in interest payments, and will pay cash for $203.0 million of new capital projects, saving Kansans more than $100 million in interest that would have otherwise accumulated through bonds.
These savings also include saving Kansans $22.2 million in interest by paying off the nearly $100 million of a $200 million transportation bond that was issued in 2012.
“Utilizing our surplus to pay down this level of debt in one year – while simultaneously building our reserves to record levels – is a transformative event,” Adam Proffitt, State Budget Director, said. “This will insulate our budget from potential future economic volatilities, which will provide fiscal stability, allowing us to continue to fund critical services for all Kansans for years to come.”
These savings include paying off debt to KPERS, for the KBI Lab at Washburn University, and for the National Bio and Agro-Defense Facility in Manhattan, among others.