68-West–Statehouse | 300 SW 10th Ave. | Topeka, Kansas 66612-1504
(785) 296-3181
kslegres@klrd.ks.gov kslegislature.org/klrd
March 19, 2019

BILL EXPLANATION FOR 2019 SUB. FOR SENATE BILL 75
2019 Sub. for SB 75, as recommended by the Senate Ways and Means Committee,
includes adjusted funding for FY 2019, FY 2020, and FY 2021 for select state agencies, and FY
2019 and FY 2020 capital improvement expenditures for a number of state agencies. An
overview of the Governor’s amended budget recommendations for FY 2019 and FY 2020 and
the Senate Ways and Means Committee’s adjustments to the Governor’s amended
recommendations are reflected below.

FY 2019 - GOVERNOR'S RECOMMENDATION AND SENATE WAYS AND MEANS
COMMITTEE ADJUSTMENTS
The FY 2019 approved budget totals $17.0 billion, including $7.1 billion from the State
General Fund. This approved amount includes $47.6 million of State General Fund expenditure
authority carried forward. The approved budget includes 40,103.2 FTE positions.
In FY 2019, the Governor’s recommendation totals $17.2 billion, with $7.1 billion from
the State General Fund. The recommendation increases total expenditures by $194.9 million,
including $54.9 million from the State General Fund, above the approved amount.
In FY 2019, the Senate Ways and Means Committee recommendation totals $17.2
billion, with $7.1 billion from the State General Fund. The recommendation increases total
expenditures by $2.0 million, including $3.9 million from the State General Fund, above the
Governor's recommendation. The recommendation also deletes 80.0 FTE positions.

Major Governor Recommended Adjustments:
● Department of Administration
○ One-time payment to federal government for debt setoff settlement
agreement ($9.3 million)
○ Eliminates the unallocated information technology savings ($5.0 million)
● Department for Children and Families
○ Kansas Eligibility Enforcement System (KEES) upgrade ($1.6 million)
○ Family First Prevention Act ($452,516)
○ Child welfare positions ($802,296)
 ● Human services caseload increases ($54.6 million)
● Human services non-caseload decreases, primarily Medicaid waiver programs
($43.7 million)
● Kansas Department of Health and Environment
○ KanCare Clearinghouse ($2.2 million)
● State Hospital Revenue Shortfall
○ Osawatomie State Hospital ($3.1 million)
○ Larned State Hospital ($0.9 million)
○ Kansas Neurological Institute ($0.9 million)
○ Parsons State Hospital and Training Center ($1.0 million)
● Department of Corrections
○ Medical contract funding ($1.4 million)
● Adjutant General’s Department
○ Capital improvement armory and life, health, and safety projects ($1.4
million)
The Governor recommends eliminating the transfer from the State General Fund to the
KPERS Trust Fund of up to $56.0 million in the State General Fund receipts that are above the
April consensus revenue estimates in FY 2019. The Governor also recommends transferring
$264.3 million from the State General Fund to the Pooled Money Investment Portfolio and
eliminating scheduled transfers needed to repay the Pooled Money Investment Portfolio in FY
2020 through FY 2024 for the bridge loan.
The Governor also removes language transferring 10.0 percent of the State General
Fund ending balance to the Budget Stabilization Fund in FY 2021 and delays currently allowed
expenditures from the Budget Stabilization Fund until FY 2025. During that delay, the Governor
recommends the following adjustments to the Budget Stabilization Fund policy be implemented.
When state tax receipts increases are above the previous fiscal year's receipts, the first 3.0
percent would be retained in the State General Fund. The next 1.0 percent would be deposited
into the Budget Stabilization Fund. The next 0.5 percent would be deposited in the newly
created Debt Prepayment Fund. Any amount above 4.5 percent of previous years receipts
would remain in the State General Fund. No deposits would be required once the Budget
Stabilization Fund balance exceeds 15.0 percent of the preceding fiscal year's state tax
receipts. Additionally, no deposits would be required once the Debt Prepayment Fund balance
exceeds 15.0 percent of the preceding fiscal year's amount of principal of bond debt service.
The Governor also recommend various restrictions on when budget stabilization moneys could
be withdrawn.

Senate Ways and Means Committee Expenditure Adjustments - FY 2019
● Department of Health and Environment - Health
○ Delete $6.0 million, all from the Evidence Based Juvenile Programs
account of the State General Fund in FY 2019 and add the same amount
the Department of Corrections Evidence Based Juvenile account in FY
2019.
● Kansas Department for Aging and Disability Services

Kansas Legislative Research Department 2 March 19, 2019
 ○ Add $2.1 million, all from the State General Fund, in FY 2019 to provide
funding for Community Mental Health Centers (CMHCs) providing Crisis
Center services due to an estimated shortfall of revenue from lottery
vending machines.
● Department of Corrections
○ Add $1.5 million, all from the State General Fund, to fund Hepatitis C
treatment for the 100 inmates within the correctional facilities that the
agency's health care provider is capable of providing treatment to in FY
2019.
● Department for Wildlife, Parks, and Tourism
○ Delete $3.4 million, all from special revenue funds, for cabin site
preparation, trails and shooting range development, river access, wetland
acquisition, boating access, Coast Guard projects, and land and water
conservation. These reductions are partially offset by $418,972 for the
2018 Legislative pay plan that was not included in the agency's budget.
Senate Ways and Means Committee Revenue Adjustments - FY 2019
The Senate Committee approved SB 9 which transfers $115.0 million from the State
General Fund the KPERS Trust Fund. The transfer is intended to restore a $97.4 million
reduction with interest from employer contributions from FY 2016.

FY 2020 GOVERNOR'S RECOMMENDATION AND SENATE WAYS AND MEANS
COMMITTEE ADJUSTMENTS
The Governor’s recommendation for FY 2020 totals $18.5 billion from all funding
sources, with $7.6 billion financed from the State General Fund. The recommendation increases
total expenditures by $1.2 billion, including $440.2 million from the State General Fund, above
the FY 2019 revised estimate. The recommendation includes the State’s new estimates of
expenditures for state aid to K-12 schools of $198.6 million in State Foundation Aid, which
increases the Base Aid for Student Excellence (BASE) from $4,165 per pupil to $4,436. The
recommendation also increases KPERS-School contributions by $284.2 million to bring the
State back to the FY 2020 statutory level after the $194.0 million KPERS delay in FY 2019. This
increase is largely offset by the recommendation to reamortize KPERS for FY 2020, which
decreases $160.1 million from all funds.
The Senate Ways and Means Committee recommendation for FY 2020 total $18.1
billion, including $7.7 billion from the State General Fund. The recommendation is an all funds
reduction of $391.8 million, and a State General Fund increase of $129.9 million from the FY
2020 Governor's recommendation. The Senate Ways and Means Committee also deleted 103.0
FTE positions.

Major Governor Recommended Expenditure Adjustments:
● State employees 2.5 percent pay increase
○ Excludes Judicial Branch and legislators $22.3M
● Judicial Branch pay plan

Kansas Legislative Research Department 3 March 19, 2019
 ○ Judges 21.3% $7.9M
○ Non-judges 2.4% to 18.6% $10.3M
● Kansas Department of Health and Environment
○ Provide 313.00 FTE positions for the KanCare clearinghouse $4.9M
○ Children’s Health Insurance $12.4M
○ Medicaid expansion $14.2M
● State hospital revenue shortfall $5.8M
● Department for Children and Families
○ 55.00 FTE positions and other initiatives $13.2M
● Regents institutions
○ Restore Regents allotments $8.9M
○ Restore KSU global food systems research $4.0M
● Department of Corrections and correctional facilities
○ Medical contract $2.6M
○ Reduced shrinkage / hiring $3.0M
○ Sentencing Commission - HB 2458 $1.2M
● Human services caseloads $(20.0)M
● While not included in this appropriation bill, the Governor's recommendation also
includes:
○ KPERS-School increase to the FY 2020 statutory level $284.2M
○ K-12 Supreme Court remedy $104.5M
○ School finance caseload (current law) $89.3M
○ SGF to replace State Highway Fund to schools $45.0M
○ KPERS amortization $(145.3)M
The Governor’s recommendations for FY 2020 would result in an ending balance of
$686.0 million at the end of FY 2020. Recommended receipts for FY 2020 are equal to the
consensus revenue estimates with the exception of certain transfers, adjustments, and revenue
proposals recommended by the Governor, which increase projections by $302.9 million for FY
2020.
Some of the Governor’s proposed revenue adjustments include the following changes:
● Use additional State General Fund tax receipt revenue to repay the Pooled
Money Investment Board (PMIB) loan in FY 2019, eliminating transfers in future
fiscal years;
● Transfer $238.0 million from the State Highway Fund to the State General Fund
in FY 2020; and
● Transfer $21.4 million from appropriated special revenue funds, including $17.9
million from the Economic Development Initiatives Fund, $2.2 million from the
Expanded Lottery Act Revenues Fund, and $1.3 million from the State Water
Plan Fund. In addition, reduce the statutory transfer from the State General Fund
to the State Water Plan Fund by $2.3 million.

Kansas Legislative Research Department 4 March 19, 2019
Senate Ways and Means Committee Expenditure Adjustments - FY 2020
● KPERS Reamortization - Add $160.1 million, including $145.4 million from the
State General Fund, to reject the Governor's proposal to reamortize the KPERS
Trust Fund starting in FY 2020.
● State Employee Pay - Delete $63.5 million, including $22.3 million from the
State General Fund, for a 2.5 percent state employee pay adjustments for FY
2020.
● Judicial Branch - Delete $20.5 million, including $20.1 million from the State
General Fund, for Judicial Branch requested salary adjustment, 11.0 additional
FTE employees, funding to fill vacant district court clerk and court services officer
positions, and capital improvements for FY 2020.
● Kansas Dept. of Health and Environment - Health
○ Add $1.8 million, all from the State General Fund, for primary health
projects for FY 2020.
○ Delete $509.3 million, including $14.2 million from the State General
Fund, for Medicaid expansion and add the same amount of State General
Fund to the Health Care Access Improvement Program Fund for FY 2020.
○ Delete $6.0 million, all from the Evidence Based Juvenile Programs
account of the State General Fund, and add the same amount to the
Department of Corrections Evidence Based Juvenile Programs Account
for FY 2020.
○ Delete $11.8 million, all from special revenue funds, for contractual
services for Maximus for FY 2020.
● Kansas Department for Aging and Disability Services
○ Add $6.7 million, including $2.8 million from the State General Fund, to
provide a 1.0 percent increase in the reimbursement rates for providers of
Home and Community Based Services (HCBS) waivers for FY 2020.
○ Add $6.0 million, including $2.5 million from the State General Fund, to
reduce the wait lists for Medicaid HCBS waivers for individuals with an
intellectual/developmental disability ($5.0 million all funds) and individuals
with a physical disability ($1.0 million all funds) for FY 2020.
○ Add $5.5 million, all from the State General Fund, for Community Mental
Health Center grants for FY 2020.
● Department for Children and Families - Delete $1.0 million, including $976,394
from the State General Fund, and 16.0 FTE positions for additional child welfare
staff for FY 2020.
● Board of Regents - Add $5.5 million, all from the State General Fund, for
performance grants, Non-Tiered Course Credit Hour Grants, Postsecondary
Tiered Technical Education State Aid, the Municipal University Operating Grants,
and the Comprehensive Grant Program for FY 2020.
● KSU-ESARP - Add $1.5 million, all from the State General Fund, for the new Fire
Suppression/State Forest Service Fund for FY 2020.
● Department of Education - Add $1.8 million, all from the State General Fund, to
provide funding for evidence-based reading programs, and add language
governing the distribution of the funds for FY 2020, and review at omnibus.


Kansas Legislative Research Department 5 March 19, 2019
 ● Department of Agriculture - Add $865,690, including $516,657 from the State
General Fund, for K-State IT Cloud, Cattletrace, an interstate water engineer,
and the water appropriations program for FY 2020.
Senate Ways and Means Committee Revenue Adjustments - FY 2020
The Senate Committee of the Whole approved SB 22, which reduces State General
Fund revenue by $205.6 million in FY 2020. The Senate Ways and Means Committee further
recommends expenditure reductions of $1.4 million from a reduced transfer from the Economic
Development Initiatives Fund and increased transfers to the State Water Plan Fund.


Kansas Legislative Research Department 6 March 19, 2019
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9:56 AM
COMPARISON OF FY 2019 - FY 2020 RECOMMENDED EXPENDITURES
Senate Ways and Means Profile
As of Wednesday, March 20, 2019

FY 2019: State General Fund All Funds FTE Positions
Governor's Recommendation $ 7,125,859,392 $ 17,222,301,988 40,915.7
SWAM Rec. FY 2019 Budget 7,129,734,338 17,224,340,669 40,835.7
Difference from Governor's Recommendation $ 3,874,946 $ 2,038,681 (80.0)

FY 2020: State General Fund All Funds FTE Positions
Governor's Recommendation $ 7,566,102,873 $ 18,453,033,195 40,949.9
SWAM Rec. FY 2020 Budget 7,692,091,561 18,059,171,422 40,846.9
Difference from Governor's Recommendation $ 125,988,688 $ (393,861,773) (103.0)
Two -Year Change from Gov. Rec. $ 129,863,634 $ (391,823,092)

STATE GENERAL FUND RECEIPTS, EXPENDITURES AND BALANCES
Senate Ways and Means Profile
As of Wednesday, March 20, 2019

Actual SWAM Rec. SWAM Rec.
FY 2018 FY 2019 FY 2020
Beginning Balance $ 108.5 $ 761.7 $ 559.1
Receipts (April 2018 Consensus) 7,302.3 7,309.7 7,271.3
Governor's Revenue Adjustments - (3.3) 250.0
PMIB Bridge Funding Gov Rec. - (264.3) 52.9
Legislative Receipt Adjustments - (115.0) (207.0)
Adjusted Receipts 7,302.3 6,927.1 7,367.2
Total Available