updated 2/18/2009 6:57:53 PM ET 2009-02-18T23:57:53

Kansas has resumed paying income tax refunds after averting a cash crunch.

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Gov. Kathleen Sebelius and legislative leaders on Wednesday approved moving $225 million into the state's main bank account from other accounts throughout state government.

That gives the state enough cash to pay bills on time.

The state stopped paying income tax refunds last week. Budget Director Duane Goossen says the refunds resumed Wednesday, after the money transfer began.

Kansas won't have to delay paychecks for about 42,000 workers.

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