Stephen Koranda file photo

Kansas could soon issue a billion dollars in bonds, but that idea isn’t getting a glowing review from Moody's Investors Service, one of the nation's leading bond-rating companies.

The state wants to borrow money to help shore-up the finances of the Kansas Public Employees Retirement System, or KPERS.

Moody’s pointed to the state’s recent budget troubles when giving the Kansas bonds what it calls a “below-average rating.”

Moody’s Investors Service says Kansas will need to make more spending cuts to offset tax cuts that have sharply reduced state revenues.

Moody's downgraded Kansas bonds last month on the same day the state announced April revenue collections fell $93 million below estimates. Moody’s says most of the state’s revenue shortfall was because less money was collected in individual income taxes.

State administration officials say they're confident that Kansas will retain a strong credit rating, despite a recent downgrade on bonds and concerns about the effect of state income tax cuts.