Kan. starting to see effects of financial turmoil

TOPEKA, Kan. - Turmoil on Wall Street is trickling down to the Kansas Statehouse and appears to be tightening up the state's already difficult finances. The latest report on state revenues suggested Monday that Kansans are earning less income and businesses are making less profit than previously expected. The state collected 4 percent less than anticipated in income taxes from individuals and businesses during the first quarter of the state's 2009 fiscal year, which ended Sept. 30. Also, Gov. Kathleen Sebelius said she and other state officials worry about multiyear highway projects financed with bonds and the long-term health of the pension system for retired teachers and government workers. Even before Congress considered its $700 billion bailout of the financial industry, Kansas officials expected the slumping national... [read full story]