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 16, 2023


The Honorable Francis Awerkamp, Chairperson
House Committee on Welfare Reform
300 SW 10th Avenue, Room 152-S
Topeka, Kansas 66612
Dear Representative Awerkamp:
SUBJECT: Fiscal Note for HB 2394 by House Committee on Welfare Reform
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2394 is
respectfully submitted to your committee.
HB 2394 would require the Secretary of the Department for Children and Families (DCF)
to develop a program for the Federal Low-Income Energy Assistance Program (LIEAP). The
Secretary of the Kansas Department for Aging and Disability Services (KDADS) would be
required to develop and implement a program for assisting individuals who are unhoused or at risk
of being unhoused to find and secure affordable housing. The bill would include requirements for
persons/families applying for assistance which must be met.
DCF indicates that HB 2394 could have a fiscal effect on federal benefits paid. Mandatory
employment and training are not allowed by the LIEAP program and the state would risk the loss
of federal benefits of as much as $58.0 million. The LIEAP program is a 100.0 percent federally
funded program providing assistance to eligible, low-income families to help with their energy
costs. Most benefits are paid directly to the service providers on behalf of the families. However,
in certain circumstances, such as when utilities are included in the family’s rent or when purchasing
firewood as a heating source, the benefits may be paid to the family.
LIEAP benefits require an annual application and benefit determination. For families
determined eligible, a one-time lump sum payment is issued to the service provider. A second
payment may be issued if federal funding remains after all initial applications are processed.
Kansas pays LIEAP benefits for about 40,000 families annually. Most of these families (about
90.0 percent) also receive Supplemental Nutrition Assistance Program (SNAP) benefits which
make them subject to SNAP work requirements. Of the remaining LIEAP families, it is estimated
that only a small percentage would meet the definition of an able-bodied adult without dependents
The Honorable Francis Awerkamp, Chairperson
Page 2—HB 2394

(ABAWD) working less than 30 hours per week which would require them to be enrolled in an
employment or training program through DCF.
DCF uses the 150.0 percent of the federal poverty level. The regulations also indicate
states “may give priority to those households with the highest home energy need or needs in
relation to household income.” States must submit, with their state plans, assurances the “state
will not exclude households” described in the above clause. Federal regulations do not include a
work requirement as proposed in the bill.
It should also be noted that LIEAP funds do not include an allowance for the use of these
funds to implement and operate an employment and training program. SNAP funds can be used
to operate an employment and training program for SNAP recipients. This bill would impact only
those individuals receiving LIEAP determined to meet the ABAWD definition who are not
receiving SNAP. These expenses would need to be paid with 100.0 percent from the State General
Fund.
KDADS indicates that HB 2394 would require KDADS to secure affordable housing for
individuals that are “able-bodied” or that do not have a mental or behavioral health diagnosis. The
agency does not have the proper staffing or expertise to have oversight and administration of this
program. This would take a considerable amount of time and resources for training, hiring,
program development, stakeholder engagement, and public input.
The bill would affect the providers KDADS contracts with by increasing their workload
(mostly the Certified Community Behavioral Health Clinics and Community Mental Health
Centers). They would need funding and the ability to hire and train staff to work these programs
as these are different from any type of housing support they provide to clients and consumers
currently. KDADS is not able to estimate the fiscal effect on expenditures for the agency or
providers. Any fiscal effect associated with HB 2394 is not reflected in The FY 2024 Governor’s
Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Kim Holter, Department for Children & Families
Leigh Keck, Department for Aging & Disability Services