Bill Summary – FastDemocracy

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 C. Proffitt, Director                                                                              Laura Kelly, Governor


                                                    February 26, 2024


          The Honorable Sean Tarwater, Chairperson
          House Committee on Commerce, Labor and Economic Development
          300 SW 10th Avenue, Room 346-S
          Topeka, Kansas 66612
          Dear Representative Tarwater:
                    SUBJECT:      Fiscal Note for HB 2640 by House Committee on Commerce, Labor and
                                  Economic Development
                  In accordance with KSA 75-3715a, the following fiscal note concerning HB 2640 is
          respectfully submitted to your committee.
                   HB 2640 would create the Kansas Strategic Research Act. The purpose of the Act would
          be to increase and improve research capacity at Kansas public postsecondary educational
          institutions for the benefit of the Kansas economy. The bill would establish the Kansas Strategic
          Research Fund, which would be administered by the Kansas Board of Regents. All expenditures
          from the fund would be for grants to eligible institutions. Each grant would require a match of
          non-state monies on a $1-for-$1 basis from the eligible institution.
                  Beginning on July 1, 2024, and occurring each July 1 through July 1, 2033, $10.0 million
          would be transferred from the State General Fund to the Kansas Strategic Research Fund. The bill
          specifies that in each fiscal year that funding is authorized to be expended from the Kansas
          Strategic Research Fund, the Board would grant awards to eligible institutions.
                  Any eligible institution that would like to receive grant funding would be required to
          submit a plan to the Board detailing the institution’s proposed use of grant and matching funds,
          along with the institution’s explanation of how the proposed use meets the requirements outlined
          in the bill and any further requirements imposed by the Board consistent with the purpose of the
          Act. Plans would be submitted at times and on forms designated by the Chief Executive Officer
          of the Board.
                   Each eligible institution would be required to use all grant funding it receives and the
          required matching funds to recruit and retain research faculty. In expending the grant funds, the
          eligible institution would give priority to recruiting or retaining facilities whose research is in areas
          aligned with the economic development strategies of the Kansas Department of Commerce or
          whose research relates to high-demand industries. The decision to award funds to any eligible
          institution and the amount of an award would be within the Board’s discretion.
The Honorable Sean Tarwater, Chairperson
Page 2—HB 2640

        Beginning in FY 2025, and in each fiscal year funding is authorized from the Kansas
Strategic Research Fund, the Board would submit a report on the Act’s effectiveness in increasing
and improving research capacity at eligible institutions to the Legislature. The bill’s provisions
would expire on July 1, 2034.

                                  Estimated State Fiscal Effect
                                   FY 2024                 FY 2025                FY 2026
 Expenditures
  State General Fund                             --          $10,105,445            $10,105,445
  Fee Fund(s)                                    --                    --                     --
  Federal Fund                                   --                    --                     --
    Total Expenditures                           --          $10,105,445            $10,105,445
 Revenues
  State General Fund                             --                     --                     --
  Fee Fund(s)                                    --                     --                     --
  Federal Fund                                   --                     --                     --
    Total Revenues                               --                     --                     --
 FTE Positions                                   --                  1.00                   1.00
        The Board states enactment of the bill would authorize a transfer of $10.0 million from the
State General Fund to the Kansas Strategic Research Fund to fund grants to eligible institutions.
In addition to the $10.0 million transfer, the Board estimates additional expenditures of $105,445
from the State General Fund for an additional FTE position in FY 2025 and FY 2026 to administer
the grant program. Of the above amount, $97,445 would be for salaries and wages and $8,000
would be for other operating expenditures. The additional FTE would create the grant application
process, review applications, work with the Kansas Department of Commerce, send out grant
awards, monitor the grant process, and report on outcomes. Any fiscal effect associated with HB
2640 is not reflected in The FY 2025 Governor’s Budget Report.

                                                      Sincerely,

                                                      Adam C. Proffitt
                                                      Director of the Budget

cc: Becky Pottebaum, Board of Regents