Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor
February 10, 2023
The Honorable Robert Olson, Chairperson
Senate Committee on Utilities
300 SW 10th Avenue, Room 548-S
Topeka, Kansas 66612
Dear Senator Olson:
SUBJECT: Fiscal Note for SB 88 by Senate Committee on Utilities
In accordance with KSA 75-3715a, the following fiscal note concerning SB 88 is
respectfully submitted to your committee.
SB 88 would require each of the Kansas Corporation Commissioners to stand for statewide
election and serve four-year terms. The first Commissioner would be elected in 2024, the second
in 2026, and the third in 2028. The bill would also establish a new Utilities Regulation Division
within the Office of the Attorney General which would be tasked with representing Kansas utility
customers in rate case proceedings.
Estimated State Fiscal Effect
FY 2023 FY 2023 FY 2024 FY 2024
SGF All Funds SGF All Funds
Revenue -- -- -- --
Expenditure -- -- -- $1,244,589
FTE Pos. -- -- -- --
The Office of the Attorney General indicates that SB 88 would increase the FTE position
count and expenditures for the agency by unknown amounts. The bill would transfer certain staff
from the Kansas Corporation Commission to the newly created Utilities Regulation Division
within the Office of the Attorney General and allow the agency to contract for additional
professional services necessary to carry out the Division’s responsibilities.
The Honorable Robert Olson, Chairperson
Page 2—SB 88
The Kansas Corporation Commission estimates that enactment of SB 88 would increase
agency expenditures by $1.2 million in FY 2024 and subsequent fiscal years. These expenditures
would be made to replace staff that would be lost to the Office of the Attorney General but are
necessary to fulfill the agency’s legal obligations. The agency notes that because current salaries
for legal and technical staff have fallen behind market rates, hiring replacement staff at competitive
salaries would lead to higher overall expenditures for salaries and benefits.
According to the Kansas Secretary of State, administration of the elections required by SB
88 would cost Kansas counties a total of $50,000 to $75,000 per year. The Citizens’ Utility
Ratepayer Board reports that SB 88 would not have a fiscal effect on agency operations. Any
fiscal effect associated with SB 88 is not reflected in The FY 2024 Governor’s Budget Report.
Sincerely,
Adam Proffitt
Director of the Budget
cc: Peter Barstad, Kansas Corporation Commission
Shonda Rabb, Citizens Utility Ratepayer Board
John Milburn, Office of the Attorney General
Statutes affected: As introduced: 25-101, 25-101a, 25-205, 25-4001, 25-4142, 25-4153b, 66-117a, 66-1, 66-1236, 66-1233, 66-1502, 66-1503, 66-2204, 74-601, 74-605, 74-630, 75-4318