68-West–Statehouse | 300 SW 10th Ave. | Topeka, Kansas 66612-1504
(785) 296-3181
kslegres@klrd.ks.gov kslegislature.org/klrd
March 13, 2023

BILL EXPLANATION FOR SUB. FOR SENATE BILL NO. 155
Sub. for SB 155, as recommended by the Senate Committee on Ways and Means,
contains FY 2023 supplemental funding, FY 2024 funding for most state agencies, and FY 2025
capital improvement expenditures for certain state agencies. An overview of the Governor’s
amended budget recommendations for FY 2023 through FY 2024 and the Senate Committee’s
adjustments to the Governor’s amended recommendations are reflected below. The bill also
contains some FY 2025 appropriations for the Kansas Department of Education and the Kansas
Board of Regents.
SENATE WAYS AND MEANS RECOMMENDED EXPENDITURES FROM
ALL FUNDS BY MAJOR PURPOSE
(Dollars in Millions)
Actual Sen. Rec. Change Sen. Rec. Change
FY 2022 FY 2023 $ % FY 2024 $ %
State Operations $ 6,804.4 $ 6,854.5 $ 50.1 0.7 % $ 6,583.1 $ (271.4) (4.0) %
Aid to Local Units 7,084.5 7,595.6 511.1 7.2 7,367.5 (228.1) (3.0)
Other Assistance 6,682.6 7,663.2 980.6 14.7 7,436.1 (227.2) (3.0)
Subtotal - Operations $ 20,571.5 $ 22,113.4 $ 1,541.9 7.5 % $ 21,386.7 $ (726.6) (3.3) %
Capital Improvements 1,956.9 2,570.5 613.6 31.4 1,814.7 (755.8) (29.4)
TOTAL $ 22,528.5 $ 24,683.9 $ 2,155.4 9.6 % $ 23,201.5 $ (1,482.4) (6.0) %
Note: Totals may not add due to rounding.

SENATE WAYS AND MEANS RECOMMENDED EXPENDITURES FROM
STATE GENERAL FUND BY MAJOR PURPOSE
(Dollars in Millions)
Actual Sen. Rec. Change Sen. Rec. Change
FY 2022 FY 2023 $ % FY 2024 $ %
State Operations $ 1,882.3 $ 2,156.1 $ 273.8 14.5 % $ 2,035.2 $ (120.9) (5.6) %
Aid to Local Units 4,411.7 4,805.5 393.8 8.9 5,034.4 228.9 4.8
Other Assistance 1,482.0 2,028.6 546.6 36.9 2,229.5 200.8 9.9
Subtotal - Operations $ 7,776.0 $ 8,990.2 $ 1,214.2 15.6 % $ 9,299.1 $ 308.8 3.4 %
Capital Improvements 419.9 249.3 (170.6) (40.6) 121.5 (127.8) (51.3)
TOTAL $ 8,195.9 $ 9,239.5 $ 1,043.6 12.7 % $ 9,420.6 $ 181.1 2.0 %
Note: Totals may not add due to rounding.
Summary of Changes to Estimated FY 2023 Expenditures
The Governor's recommendation is an all funds increase of $1.4 billion, or 5.8 percent,
and an SGF decrease of $249.7 million, or 2.6 percent, from the FY 2023 approved budget. The
increase is primarily attributable to:
● Add $53.0 million SGF to retire water storage contracts in the Kansas Water
Office;
● Add $20.5 million SGF to modernize the Kansas Department of Labor
Unemployment system;
● Add $1.3 million SGF to adopt the Board of Indigents’ Defense Services revised
assigned counsel caseloads estimate;
● Delete $198.2 million SGF to implement revised human services caseloads
estimates; and
● Delete $65.5 million SGF to implement revised K-12 education school finance
estimates.
In addition to the SGF expenditure adjustments described above, the recommendation
makes several SGF revenue adjustments to FY 2023, including:
● Transfer $500.0 million from the SGF to the Budget Stabilization Fund. This
transfer would result in a balance in the Budget Stabilization Fund of
approximately $1.5 billion.
● Transfer $220.0 million to an infrastructure leveraging fund to assist local
governments in matching federal funds;
● Transfer $50.0 million from the SGF to a state agency federal grants matching
fund to assist agencies in meeting federal match requirements.

Summary of Adjustments to the FY 2024 Budget
State Operations—Agency operating costs for salaries and wages, contractual
services, commodities, debt service interest, and capital outlay. The Governor’s FY 2024
recommendation for state operations is $6.9 billion, which is a decrease of $44.8 million, or 0.6
percent, below the Governor’s FY 2023 recommendation.
The decrease is primarily attributable to the Department for Children and Families
exhaustion of pandemic assistance for child care and other programs ($143.3 million) and
decreases in Kansas Department of Labor unemployment operations and modernization ($46.8
million), Kansas Water Office early retirement of water storage debt ($57.1 million), and Kansas
Department of Health and Environment (KDHE) Health pandemic child care development block
grant enhancements ($26.4 million).
The decreases are partially offset by a 5.0 percent increase to state employee pay
($169.5 million) and increases in Kansas Lottery sports betting and revised expanded lottery
estimates ($39.9 million), Judicial Branch enhancements ($22.1 million), and increases to the
Board of Regents and Institutions ($14.8 million).
Local Units of Government—Aid payments to counties, cities, school districts,
and other local government entities; may be from state or federal funds. The Governor’s
FY 2024 recommendation for aid to local units of government is $7.5 billion, which is a decrease

Kansas Legislative Research Department 2 February 28, 2023
of $139.2 million, or 1.8 percent, below the Governor’s FY 2023 recommendation. The reduction
is primarily attributable to $240.8 million in the Office of the Governor for matching grants.
The increase is partially offset by the addition of $83.2 million for the Kansas State
Department of Education for the revised education school finance estimate, and $15.4 million in
the Office of the State Treasurer for acceleration of the Food Sales Tax exemption and the
addition of funding for the STAR Bond food sales tax reimbursement fund.
Other Assistance, Grants, and Benefits—Payments made to or on behalf of
individuals as aid, including public assistance benefits, unemployment benefits, and
tuition grants. The Governor’s FY 2024 recommendation for other assistance, grants, and
benefits is $8.0 billion, which is an increase of $381.2 million, or 5.0 percent, above the
Governor’s FY 2023 recommendation.
The increase is predominantly reflected in the State Hospitals, Kansas Department for
Aging and Disability Services, and KDHE-Health due to the expiration of the enhanced federal
medical assistance percentage (FMAP) match and revised human services caseloads estimate
($570.3 million).
The increase is partially offset by decreases in the Office of the Governor ($164.2
million) in matching funds, the Department of Commerce ($52.7 million) for a variety of housing
and small business tax credit initiative one-time expenditures, Department of Transportation
assistance ($25.3 million), and the Office of the Attorney General for the opioid settlement
distributions ($19.6 million).
Capital Improvements—Cash or debt service payments for projects involving new
construction, remodeling and additions, rehabilitation and repair, razing, and the
principal portion of debt service for a capital expenditure. The Governor’s FY 2024
recommendation for capital improvements is $1.8 billion, which is a decrease of $754.7 million,
or 29.8 percent, below the Governor’s FY 2023 recommendation. The decrease is primarily
attributable to accelerated debt retirement in FY 2023.

SENATE COMMITTEE ON WAYS AND MEANS ADJUSTMENTS

FY 2023 Senate Committee on Ways and Means Recommendations:
The Senate Committee on Ways and Means recommends expenditures of $24.7 billion,
including $9.2 billion SGF, in FY 2023. The recommendation is an all funds decrease of
$606,250, or less than 0.1 percent, and an SGF decrease of $584,242, or less than 0.1 percent,
below the Governor's FY 2023 recommendation, and is primarily due to the following:
● Delete $53.0 million SGF to not adopt the Governor's recommendation to pay off
water storage debt associated with the Milford and Perry Lake reservoirs in FY
2023. $52.0 million was added to the Office of the State Treasurer for investment.
● The recommendation also includes the following revenue adjustments:


Kansas Legislative Research Department 3 February 28, 2023
 ○ Delete the transfer of $50.0 million from the SGF to the Office of the
Governor in FY 2023 for state match for agencies applying for federal
grant programs.
○ Delete the transfer of $220.0 million from the SGF to the Office of the
Governor for communities to use as state match when accessing federal
Bipartisan Infrastructure Law funding.
○ Delete the transfer of $500.0 million from the SGF to the Budget
Stabilization Fund in FY 2023.
FY 2024 Senate Committee on Ways and Means Recommendations:
The Senate Committee on Ways and Means recommends expenditures of $23.2 billion,
including $9.4 billion SGF, for FY 2024. The recommendation is an all funds increase of $925.5
million, or 3.8 percent, and an SGF decrease of $70.7 million, or 0.7 percent, below the
Governor's FY 2024 recommendation, and is primarily due to the following adjustments:
● Attorney General. Add $650,296 SGF and delete the same amount from special
revenue funds for FY 2024 to restore a 10.0 percent SGF reduction implemented
in FY 2020 as part of a reduced resources budget.
● Judicial Branch. Delete $16.3 million SGF for the agency's salary adjustment
plan for FY 2024 and review at Omnibus.
● Department of Commerce. Delete $3.6 million in EDIF enhancements for the
International Division, Early Childhood and Care Initiative, Kansas Creative Arts
Commission, Salesforce Data, Research Division, and a Murals and Public Arts
Initiative.
● KDHE–Health. Add $659.1 million, including the addition of $76.4 million SGF,
for:
○ Delete $671.4 million, including the addition of $71.5 million SGF, to
remove funding for Medicaid Expansion for FY 2024. The all funds
deletion includes $703.4 million from federal funds and $39.4 million from
special revenue funds.
○ Add $6.6 million, including $2.6 million SGF, to increase the Medicaid
physician fee schedule by 3.0 percent for FY 2024.
○ Add $4.3 million, including $1.7 SGF, to increase emergency medical
service ground ambulance rates to 75.0 percent of the Medicare rate and
increase air ambulance rates to 100.0 percent of the Medicare rate for FY
2024.
○ Add $1.2 million, including $482,880 SGF, to extend Medicaid adult dental
coverage to include dentures and partials for FY 2024.
● Kansas Department for Aging and Disability Services. Add $19.7 million,
including $10.0 million SGF, for:


Kansas Legislative Research Department 4 February 28, 2023
 ○ Add $6.5 million, including $2.6 million SGF, to provide a 5.0 percent
increase to the reimbursement rate for providers of HCBS Frail Elderly
waiver services for FY 2024.
○ Add $2.7 million, including $1.1 million SGF, to increase the targeted case
management reimbursement rate to $62.00 per hour for FY 2024.
○ Add $3.0 million, including $1.3 million SGF, and add language to
increase PACE reimbursement rates by 5.0 percent for FY 2024.
● Board of Regents. Add language prohibiting postsecondary educational
institutions from expending funds to require an applicant, employee, student, or
contractor to endorse an ideology, including those of diversity, equity, or
inclusion, or to provide statements concerning commitment to such ideologies,
for FY 2024.
● Department of Education.
○ Delete $72.4 million SGF for Special Education State Aid for FY 2024 and
review at Omnibus.
○ Delete $1.9 million SGF for the enhancement to the Professional
Development program for FY 2024 leaving $1.8 million in the program.
○ Delete 3.0 million SGF for the enhancement in the Mental Health
Intervention Team Pilot program for FY 2024 leaving $10.5 million in the
program.
○ Delete $1.0 million SGF for the enhancement to the Mentor Teacher
program for FY 2024 leaving $1.3 million in the program.
○ Delete $1.0 million SGF for the enhancement to the Safe and Secure
School grant for FY 2024 leaving $4.0 million in the program.
● Department for Wildlife and Parks. Delete $2.5 million, all from special revenue
funds, to not adopt the Governor's recommendation allowing KDWP law
enforcement officers to join the Kansas Police and Firemen's retirement system
for FY 2024 and review at omnibus.
● Kansas Department of Transportation. Add $4.2 million from the Special City
and County Highway Fund, and transfer the same amount from the SGF to the
fund, for formula aid to local governments for FY 2024.
● State Employee Pay. Delete $169.5 million, including $65.5 million SGF, to not
implement a statewide 5.0 percent salary increase among state employees for
FY 2024 and review at Omnibus.


Kansas Legislative Research Department 5 February 28, 2023
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11:38 AM
COMPARISON OF FY 2022 - FY 2024 RECOMMENDED EXPENDITURES
Senate Ways and Means Profile
As of Monday, March 13, 2023

FY 2023: State General Fund All Funds FTE Positions
Governor's Recommendation $ 9,240,103,507 $ 24,684,484,851 44,272.8
SWAM Rec. FY 2023 Budget 9,239,519,265 24,683,878,601 44,272.8
Difference From Governor's Recommendation $ (584,242) $ (606,250) 0.0

FY 2024: State General Fund All Funds FTE Positions
Governor's Recommendation $ 9,491,277,660 $ 24,127,003,783 44,372.0
SWAM Rec. FY 2024 Budget 9,420,576,479 23,201,455,443 44,365.5
Difference From Governor's Recommendation $ (70,701,181) $ (925,548,340) (6.5)
Two -Year Change from Gov. Rec. $ (71,285,423) $ (926,154,590)

STATE GENERAL FUND RECEIPTS, EXPENDITURES, AND BALANCES
Senate Ways and Means Profile
As of Monday, March 13, 2023

Actual SWAM Rec. SWAM Rec.
FY 2022 FY 2023 FY 2024
Beginning Balance $ 2,094.8 $ 1,834.5 $ 2,296.2
Receipts (November 2022 Consensus) 7,935.9 9,701.2 10,124.4
Governor's Revenue Adjustments - (770.0) 183.0
Legislative Tax Adjustments - - (591.6)
Legislative Receipt Adjustments - 770.0 10.2
Adjusted Receipts 7,935.9 9,701.2 9,726.0
Total Available $ 10,030.7 $ 11,535.7 $ 12,022.2
Less Expenditures 8,196.2 9,239.5 9,420.6
Ending Balance $ 1,834.5 $ 2,296.2 $ 2,601.6
Ending Balance as a Percent of Expenditures 22.4% 24.9% 27.6%


State General Fund Profile Kansas Legislative Research Department
 3/13/2023
11:38 AM
State General Fund Revenue Adjustments
Senate Ways and Means Committee
As of Monday, March 13, 2023
Transfers
FY 2023:
Budget Stabilization Fund