About a month ago, California officials announced that fiscal problems had prompted them to put a hold on state taxpayer refunds.
The Wichita Eagle reports that the state is suspending tax refunds and doesn't have enough money in its main bank account to pay employees.
According to the paper, Kansas Budget Director Duane Goossen said that the state stopped processing income tax refunds last week.
Democratic Gov. Kathleen Sebelius had suggested transferring the necessary money from other state accounts, but such a move requires legislative approval and the GOP refused Monday to allow it.
Rather, Republican lawmakers want Sebelius to sign a bill that makes adjustments to the Kansas budget for the fiscal year that ends June 30.