TOPEKA - Today, Kansas State Treasurer Lynn Jenkins, CPA, filed an emergency motion with the Kansas Supreme Court to stay district court proceedings. Under an order issued by District Court Judge Terry Bullock, effective on June 30, 2004 the Treasurer's office has been ordered to "cease and desist" expenditures of funds "under all education funding statutes for the purposes of operating schools." The 'order of restraint' includes "capitol outlay funding provisions."
The State Treasurer's office acts as the bond-paying agent for 90% of municipalities, which includes school districts. During FY 2003, the office issued payments totaling $303,482,549.97* on Kansas school district's bond issues. Judge Bullock's decision, if implemented, will cause local school districts to default on their bonded indebtedness thus causing an adverse impact on the school district's bond ratings. Additionally, the State's bond rating could be adversely affected if school districts default on payments.
"The order has numerous financial consequences and this is one of them. If school districts default on their payments, bond ratings will fall and interest rates will climb, costing Kansans even more money in the long run," said Treasurer Jenkins. "I have a duty to serve the citizens of Kansas in my position as State Treasurer and am very concerned with the court's order. A stay of all District Court proceedings, must be issued by the Supreme Court to prevent permanent damage to the public schools of Kansas."
Earlier, the Treasurer was successful in receiving a summary judgment and/or dismissal from this lawsuit stating that she is no longer a party to the litigation. However, this order prohibits the Treasurer from fulfilling her duties under statue.
Jenkins, a former State Representative and Senator from Topeka, was elected as the 37th Kansas State Treasurer on November 5, 2002. A Certified Public Accountant and small business owner, she ran for the office with a pledge to expand Learning Quest, initiate a financial literacy program for young children and to make the office more accessible and user friendly to all Kansans.
