Governor Laura Kelly announced today that for the first time ever, debt issued by the Kansas Department of Transportation has been paid off early, resulting in a savings of $22.2 million in interest payments. The Kelly Administration was able to payoff the debt due to strong State revenues and its work to close what many call “The Bank of KDOT”. From 2014 through 2018, under the Brownback Administration, the State transferred more that $2.7 billion from KDOT to other parts of the State Budget. A practice known as “Raiding the Bank of KDOT”
The now-retired C Series Bonds issued to KDOT in 2012 initially had a principal of $200 million. This Summer, KDOT was able to pay off the remaining $97.8 million in principal of the 20 year bond, thus saving $22.2 million in interest. The Bond was retired with current cash flow and without negatively impacting existing programs or construction projects as part of the Eisenhower Legacy Transportation Program.
