SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2040
As Recommended by House Committee on
Education

Brief*
HB 2040 would amend the Kansas School Equity and
Enhancement Act (KSEEA) to allow unified school districts
(USDs) to utilize current year enrollment for purposes of
determining State Foundation Aid.
Under current law, USDs are permitted to utilize
enrollment numbers from one of the two prior years for the
calculation of State Foundation Aid. An alternative calculation
method is also permitted for USDs that enroll military
students and receive federal Impact Aid. The bill would add
an option to permit school districts to utilize current year
enrollment.
The bill would amend the definition of “enrollment” within
the KSEEA to allow a district to utilize enrollment numbers for
all regularly enrolled students from kindergarten and grades 1
through 12 plus the district’s number of enrolled preschool-
aged at-risk students as of September 20 for the purpose of
calculating State Foundation Aid for the current fiscal year.
The bill would also make technical changes.

Background
The bill was introduced by the House Committee on
Education at the request of Representative Thomas.
____________________
*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
House Committee on Education
In the House Committee hearing, proponent testimony
was provided by representatives of the Gardner Edgerton
USD 231, Rock Creek USD 323, Spring Hill USD 230, the
Kansas Association of School Boards, and the United School
Administrators of Kansas. The proponents stated generally
that the bill will aid rapidly growing school districts by
providing them with additional resources based upon their
current enrollment levels. Additionally, many proponents
discussed how these additional resources would reduce the
funding burden on local property owners in rapidly growing
districts while not harming those in districts with declining
enrollment.
Written-only proponent testimony was provided by
representatives of Deerfield USD 216, De Soto USD 232, and
Pittsburg USD 250.
Written-only neutral testimony was provided by the
Kansas Policy Institute.
No other testimony was provided.

Fiscal Information
According the the fiscal note prepared by the Division of
the Budget on the bill, the State Department of Education
states the bill would increase State General Fund
expenditures by $19.9 million for increased aid to school
districts. The Department states the increase would be $17.5
million in increased State Foundation Aid and $2.4 million in
increased Local Option Budget State Aid. To calculate the
effect on State Foundation Aid, the Department indicates the
option of using enrollment from the current school year would
allow an additional 3,427 students in 104 school districts
(3,427 students X $5,103 BASE in FY 2024). Any fiscal effect
associated with the bill are not reflected in The FY 2024
Governor’s Budget Report.
2- 2040
Education; Kansas School Equity and Enhancement Act; school finance; schools;
enrollment definition


3- 2040


Statutes affected:
As introduced: 72-5132, 72-3712