The House approved legislation this week to establish a new formula limiting state borrowing.  House Bill 2891 was approved in an effort to curb state debt.

House Bill 2891 creates a State General Fund debt ceiling by limiting debt accumulation to no more than 20 percent of the State General Fund revenue estimates. The bill would require the calculation be based on dividing the total estimated debt for the next fiscal year by the total estimated revenues for that same fiscal year, with the debt ratio cap to be estimated on or before December 4 of each year and published in the next Governor's Budget Report.

Issued State General Fund Debt currently totals $945 million, or 15.3 percent of the State General Fund. This bill is an important step forward to help reduce Kansas' debt service.  By setting reasonable limits on state debt, lawmakers will have more money to fund initiatives critical to Kansas' future such as education, health care or services to seniors.