SESSION OF 2022
SUPPLEMENTAL NOTE ON SENATE BILL NO. 341
As Amended by Senate Committee on
Education

Brief*
SB 341, as amended, would alter the calculation of local
foundation aid within the Kansas School Equity and
Enhancement Act (KSEEA) by removing federal impact aid
from the formula. It would also exclude the Forth
Leavenworth school district and virtual school students from
the capital improvement state aid determination.
The bill would amend the calculation of a unified school
district’s local foundation aid by removing the requirement
that 70.0 percent of a school district’s federal impact aid be
included in the calculation.
[Note: Federal impact aid is provided to school districts
that have lost property tax revenue due to the presence of
tax-exempt federal property or serve large numbers of
federally connected students.]
The bill would extend the statutory cap on the aggregate
amount of school district general obligation bonds approved
by the State Board of Education to June 30, 2027.
School districts that are not eligible to receive capital
improvement state aid or that have opted out of receiving
such aid would be exempt from the general obligation bond
cap.

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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
 For all general obligation bonds approved at elections
held on or after July 1, 2022, the bill would remove Unified
School District 207, Fort Leavenworth, from the determination
of the school district with the lowest assessed value per pupil
(AVPP).
The bill would also exclude all students enrolled in a
virtual school within a school district from the determination of
that district’s AVPP.
The bill would make various technical amendments.

Background
The bill was introduced by the Senate Committee on
Education at the request of Senator Longbine.

Senate Education
In the Senate Committee hearing on February 1, 2022,
proponent testimony was provided by Senator Pittman and
representatives of the Governor’s Military Council; USD 207,
Fort Leavenworth; USD 337, Royal Valley; and USD 475,
Geary County. The proponents generally discussed the
additional needs of districts that serve large military or Native
American populations and the purpose of federal impact aid
to help address those needs. Proponents also stated that the
inclusion of federal impact aid within the local foundation aid
calculation was viewed in a negative light by the United
States Department of Defense and could impact future
decisions regarding military investment in Kansas.
No other testimony was offered.
The Senate Committee amended the bill to exclude
USD 207, Fort Leavenworth, from the capital improvement
state aid determination, removal virtual school students from
a school districts AVPP calculation, and extend the cap for

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State Board of Education approval of new school district
general obligation bonds.
[Note: The provisions amended into the bill are similar to
provisions in 2021 SB 31].

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Kansas State
Department of Education states that enactment of the bill
would reduce local foundation aid by $13 million and would
require an additional $13 million in SGF be appropriated in
FY 2023 per the current school finance formula.
Any fiscal effect associate with the bill are not reflected
in The FY 2023 Governor’s Budget Report.
Education; Kansas school equity and enhancement act; federal impact aid; k-12;
local foundation aid; fort Leavenworth USD 207; virtual school students; capital
improvement state aid; general obligation bond


3- 341


Statutes affected:
As introduced: 72-5135, 72-5132, 72-3712
As Amended by Senate Committee: 72-5132, 72-5462, 72-3712, 72-5135, 72-5461