TOPEKA | Facing a cash-flow crunch, Kansas officials dipped into other state funds for $250 million needed to pay the bills Tuesday.

The Kansas state Finance Council - comprised of top lawmakers and Gov. Kathleen Sebelius, a Democrat - authorized the state to borrow the money from some of its fiscally healthy funds. Earlier this month, the state could only afford to pay $165 million of its $220 million monthly payment to school districts.

The amount was less than the $400 million in loans that was proposed by Sebelius' administration, but state budget officials said they believe the $250 million will be enough to cover the state's bills through mid February - potentially enough time for lawmakers to consider cuts to state spending.

A steep decline in state tax revenue is to blame for the cash flow problem, and a potential $1 billion deficit in next year's budget.

Hoping to avoid the loan, outgoing House Speaker Rep. Melvin Neufeld, an Ingalls Republican, proposed $241 million in immediate cuts to the current year's budget. The finance council did not vote on Neufeld's proposal.

Sebelius said she plans to present lawmakers with her own proposed cuts next month.

Meanwhile, the folks who have long criticized the state's spending habits are shaking their heads. Alan Cobb, director of the Kansas chapter of Americans for Prosperity, blames Sebelius for not making cuts earlier this fall, and he blames Sebelius and the Republican-led Legislature for passing too many spending proposals.

"There are very few clean hands here," he said before the Finance Council meeting. "Everybody in this building knew that 9 percent (spending) increases were unsustainable."

Expect everyone's hands to feel a lot less pristine once lawmakers start cutting into the budget.