TOPEKA — The Kansas Senate engaged in protracted debate on a budget provision using state tax dollars for a $50 million low-interest loan to owners of Yingling Aviation to finance expansion of the Wichita company’s aircraft painting business.
The Senate narrowly defeated Tuesday a motion to block the deal with Yingling, an aviation maintenance, repair and overhaul company formerly known as Cessna Aviation. Owners of Yingling sold a majority interest three years ago to the private equity firm AE Industrial Partners of Boca Raton, Florida.
Under the deal buried by the Senate Ways and Means Committee in a 364-page budget bill, Yingling would receive the 10-year loan at an interest rate two percentage points below market…