Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 larry.campbell@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Larry L. Campbell, Director Laura Kelly, Governor


February 4, 2019


The Honorable Carolyn McGinn, Chairperson
Senate Committee on Ways and Means
Statehouse, Room 545-S
Topeka, Kansas 66612
Dear Senator McGinn:
SUBJECT: Fiscal Note for SB 1 by Senator Denning
In accordance with KSA 75-3715a, the following fiscal note concerning SB 1 is
respectfully submitted to your committee.
Under current law, $45,000,000 is to be transferred from the State Highway Fund to the
General State Aid Transportation Weighting—State Highway Fund in FY 2019. The General State
Aid Transportation Weighting—State Highway Fund is a special revenue fund in the Department
of Education. The transfer is divided into four equal installments of $11,250,000 each, which are
to be transferred on July 1, 2018, October 1, 2018, January 1, 2019 and April 1, 2019.
SB 1 would appropriate $22,500,000 from the State General Fund to the State Foundation
Aid account of the Department of Education in FY 2019. The bill would also eliminate the January
and April transfers from the State Highway Fund, which total an amount identical to the
appropriation. If the January transfer is made before the effective date of the bill, the bill would
lapse $11,250,000 from the total amount appropriated from the State General Fund to the
Department of Education. If both the January and April transfers are made before the effective
date of the bill, the bill would lapse the total amount appropriated to the Department of Education
in SB 1. The bill would require that all costs associated with transportation weightings be funded
from the State General Fund and would prohibit using transfers from the State Highway Fund.
The bill would require the State Highway Fund to be reimbursed as a result of the FY 2019
transfers to the General State Aid Transportation Weighting—State Highway Fund of the
Department of Education. The bill would require $45,000,000 to be transferred from the State
General Fund to the State Highway Fund in FY 2019. If the January and April transfers are not
made prior to the effective date of the bill, the transfer from the State General Fund to the State
Highway Fund would be reduced to $22,500,000. If the April transfer is not made prior to the
The Honorable Carolyn McGinn, Chairperson
Page 2—SB 1

effective date of the bill, the transfer from the State General Fund to the State Highway Fund would
be reduced to $33,750,000.
The bill would become effective upon its publication in the Kansas Register.
As of January 2, 2019, the July 2018, October 2018 and January 2019 transfers from the
State Highway Fund to the General State Aid Transportation Weighting—State Highway Fund of
the Department of Education have been made resulting in a total of $33,750,000 transferred so far
in FY 2019. Given this information, the fiscal effect can be divided into two scenarios.
Scenario 1: SB 1 enacted before April 1, 2019.

Scenario 1 Estimated State Fiscal Effect
FY 2019 FY 2019 FY 2020 FY 2020
SGF All Funds SGF All Funds
Revenue ($33,750,000) ($33,750,000) -- --
Expenditure $11,250,000 -- -- --
FTE Pos. -- -- -- --
Under this scenario, $11,250,000 would be lapsed from the $22,500,000 appropriated to
the State Foundation Aid account of the State General Fund resulting in additional expenditures
of $11,250,000 from the State General Fund in FY 2019. There would be no change to all funds
expenditures because $45,000,000 would still be spent on transportation weighting: $11,250,000
from the State General Fund and $33,750,000 from the General State Aid Transportation
Weighting—State Highway Fund. Also under this scenario $33,750,000 would be transferred
from the State General Fund to the State Highway Fund.
Scenario 2: SB 1 enacted after April 1, 2019.

Scenario 2 Estimated State Fiscal Effect
FY 2019 FY 2019 FY 2020 FY 2020
SGF All Funds SGF All Funds
Revenue ($45,000,000) ($45,000,000) -- --
Expenditure -- -- -- --
FTE Pos. -- -- -- --
Under this scenario, the entire $22,500,000 appropriated to the State Foundation Aid
account of the State General Fund in FY 2019 would be lapsed leaving no additional expenditures
from the State General Fund. This scenario would require $45,000,000 to be transferred from the
State General Fund to the State Highway Fund.
The Honorable Carolyn McGinn, Chairperson
Page 3—SB 1

As reflected in The FY 2020 Governor’s Budget Report, the Governor recommends
eliminating the $45,000,000 transfer from the State Highway Fund to the General State Aid
Transportation Weighting—State Highway Fund of the Department of Education in FY 2020 with
a corresponding increase of the same amount from the State General Fund.


Sincerely,

Larry L. Campbell
Director of the Budget