Senator Marshall, Kansas State Senators Announce $41 Million Savings to Kansas Taxpayers

WICHITA, KS – U.S. Senator Roger Marshall, M.D., and Kansas State Senators Michael Fagg and Rick Billinger are pleased to announce more than $41 million in savings to Kansas taxpayers through a reduction in the state’s federal debt payments.

“I was honored to work with long-time friend, Senator Mike Fagg, to deliver important debt relief to Kansas taxpayers,” said Senator Marshall. “This was a simple but impactful change that will save the state millions of dollars.” 

“I’m excited and proud of how all of our federal and state officials worked together to guide this project through to a successful finish,” said State Senator Mike Fagg, R-El Dorado. “This is a great deal for Kansas and will financially help towards the water challenges in our state.” 

I would like to thank Senator Roger Marshall for leading the way in the Us Senate and making the forgiveness of the compounding interest his number one priority,” said State Senator Rick Billinger, R-Goodland. “I also thank Senator Jerry Moran for making the forgiveness of the compounding interest his number one priority. Thank you Representative Tracy Mann for leading the charge in the US House and voting for the bill. Thanks to Representatives Ron Estes and Sharice Davids, who both voted for the bill. I would like to thank Governor Kelly for having the Kansas water office write a letter asking forgiveness for the compounding interest. I would also like to thank Senator Mike Fagg for all his hard work in making this savings to the state of Kansas happen. Mike and Senator Marshall had worked together to have the compounding interest forgiven. They also worked on a loan at El Dorado lake a few years earlier.”

Background: 

The State of Kansas has a water storage agreement with the U.S. Army Corp of Engineers (USACE) for water storage at 14 Kansas reservoirs. However, Milford Lake and Perry Lake still have contracts that date back to the 1970s and require the state to pay compound interest to USACE. Through the 2024 Water Resource Development Act (WRDA) passed by Congress in December, Senator Marshall was successful in changing the compound interest payments to simple interest payments, saving the state more than $40 million over the course of the contracts. 

In 2022, Senator Marshall was successful in changing the City of El Dorado’s debt payment to USACE for water storage in El Dorado Lake from compound to simple, saving the city millions of dollars. Senator Fagg, who previously served as mayor of El Dorado, reached out to Senator Marshall’s office asking for assistance in making the same changes to the state’s debt agreements with USACE.