A Kansas House committee is reviewing Governor Sam Brownback's proposal to issue $1.5 billion dollars in bonds, to help lower the state's annual costs in funding pensions for teachers and government workers.
The House Pensions and Benefits Committee's focus today is on a bill authorizing the bonds if the state would pay interest of 5 percent or less to bondholders.
The Kansas Public Employees Retirement System, or KPERS, has a projected long-term funding gap of $9.8 billion dollars, and the state has committed to raising annual contributions to eliminate it by 2033.
The U.S Securities and Exchange Commission says Kansas violated federal law in 2009 and 2010 by not disclosing enough information when selling state bonds. The same announcement also says that while Kansas committed fraud, the state has taken steps to fix the disclosure issues.
The announcement says that when Kansas was selling bonds, the state didn't properly disclose the projected deficit in the Kansas Public Employees Retirement System, or KPERS.