Committee backs resolution to allow legislature to contract public debt backed by state—s full faith and credit

David Wiese of the reviser’s office told the Senate Ways and Means Committee that Senate Concurrent Resolution 16‑12 proposes amending Article 11 of the Kansas Constitution to authorize the legislature, beginning with the 2026 session, to contract public debt and pledge the state’s full faith, credit and taxing power for debt service if the legislature so provides by law. The amendment would permit the legislature to establish by statute the types of debt the state may issue (notes, general‑obligation bonds, revenue bonds or other instruments). Wiese said the resolution would be submitted to voters at the 2025 August primary election.

Senator Fagg, a proponent, described the current constitutional language as an 1861 cap on full‑faith general‑obligation debt that has been effectively navigated by using revenue bonds issued through entities such as the Kansas Development Finance Authority. He told the committee that general‑obligation financing could offer lower spreads compared with revenue bonds in some cases and cited what he described as the state’s outstanding debt figures during the hearing as context for why having that financing tool could save money on future projects.

Committee members asked technical questions about what the amendment would change, whether it would extend to political subdivisions and what increased responsibility the state would assume if general‑obligation debt were used. Reviser Wiese and proponents explained that the current constitutional cap on state‑backed debt is $1,000,000 and that long‑standing practice has relied on non‑GO revenue bonds; the proposed amendment would allow the legislature to create a statutory framework for issuing state‑backed obligations where appropriate.

After discussion, a motion to work and pass the resolution was made and seconded; the committee approved the motion by voice vote. Committee discussion included cautionary notes that issuing GO debt would increase the state’s direct responsibility for repayment because GO debt is backed by the state’s taxing authority and, if defaulted, the legislature would have to act to resolve payments.

Proponents said the amendment would place an additional financing tool in the state’s toolbox and that the legislature would still decide whether, when and how to use it; opponents did not appear at the committee hearing. The resolution, if passed by the legislature, would then go to the ballot for voter approval.