TOPEKA – Governor Laura Kelly today announced that for the first time ever, debt issued by the Kansas Department of Transportation has been prepaid, saving $22.2 million in utility payments. interests.
The now retired Series C bonds issued to KDOT in 2012 originally had a principal of $200 million. This summer, KDOT was able to repay the remaining $97.8 million in principal of the 20-year bond, saving $22.2 million in interest. The bond was retired with current cash flows and with no negative impact on existing programs or construction projects under the Eisenhower Legacy (IKE) transportation program.
From 2014 to 2018, under the Brownback administration, the state transferred more than $1.7 billion from KDOT to other parts of the state budget – a practice known as the raid on the “Bank of the KDOT”. The state budget for fiscal year 2023, as approved by the Kansas Legislature and signed by Governor Kelly last April, did not include a transfer out of the agency and effectively closed the Bank. of KDOT.
“We are always aware that this is not KDOT’s money; it’s taxpayers’ money and we have a responsibility to manage it in a way that generates the most benefit for Kansans now and in the future,” said Transportation Secretary Julie Lorenz.
KDOT has had the power to issue debt to provide necessary cash flow since 1992. On a 20-year bond, refinancing or full payment can take place after 10 years. This was the first time the agency was able to refund a road deposit earlier. To date, KDOT has not issued any bonds during the IKE program.
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