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 16, 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 2647 by House Committee on Commerce, Labor and
Economic Development
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2647 is
respectfully submitted to your committee.
HB 2647 would create the Kansas Rural Downtown Revitalization Act. The purpose of
the Act would be to revitalize downtown areas in rural Kansas towns and improve the quality of
life in rural communities. The bill would also create the Rural Downtown Revitalization Fund to
be administered by the Department of Commerce. The fund would be used to provide grants to
eligible rural communities with a population of 40,000 or less. The grant would require a match
of nonstate money based on a $1 to $1 basis. The source of the non-state money could be from
private, local, or federal sources. The bill would also provide how communities would apply for
grants under the Act.
In addition, the bill would direct a transfer of $2.0 million from the State General Fund to
the Rural Downtown Revitalization Fund each fiscal year from July 1, 2024, to July 1,2029.
Beginning with the fiscal year ending June 30, 2025, the Department would be required to submit
an annual report to the Legislature on the Act’s effectiveness to revitalize the downtown areas in
rural towns and improve the quality of life in rural communities. The Act would expire on July 1,
2030.
The Department of Commerce indicates HB 2647 would increase its expenditures by $2.0
million in FY 2025 and FY 2026 and each year through the expiration of the Act. The expenditures
represent the awarding of the $2.0 million as grants as provided in the bill. The agency also notes
that it would absorb the costs associated with administering the Act within the agency’s existing
The Honorable Sean Tarwater, Chairperson
Page 2—HB 2647

resources. Any fiscal effect associated with HB 2647 is not reflected in The FY 2025 Governor’s
Budget Report.
The Kansas Association of Counties and the League of Kansas Municipalities indicate
enactment of HB 2647 would provide additional funding to counties awarded grants under the Act
to revitalize economic development in cities and counties. However, neither the Association nor
the League are able to estimate the fiscal effect.

Sincerely,

Adam C. Proffitt
Director of the Budget


cc: Sherry Rentfro, Department of Commerce
Jay Hall, Kansas Association of Counties
Wendi Stark, League of Kansas Municipalities