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

March 13, 2019


The Honorable Jim Kelly, Chairperson
House Committee on Financial Institutions and Pensions
Statehouse, Room 581-W
Topeka, Kansas 66612
Dear Representative Kelly:
SUBJECT: Fiscal Note for HB 2329 by House Committee on Financial Institutions and
Pensions
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2329 is
respectfully submitted to your committee.
HB 2329 would increase the Kansas Public Employees Retirement System (KPERS)
contribution rate for school district employees to 7.15 percent beginning July 1, 2019. Currently,
school district employees contribute 6.00 percent of compensation. The bill would only apply to
school districts in the KPERS School Group; it would not apply to technical colleges or community
colleges. Technical colleges and community colleges are also part of the KPERS School Group.
The bill would appropriate $40,056,781 in FY 2020 to the KPERS Employee Contribution
Enhancement account, which would be a new State General Fund account in the Department of
Education budget. The appropriation would be used to provide a 1.15 percent pay increase to
school district employees.
KPERS estimates the bill would decrease KPERS State/School Group employer
contribution rates by less than 1.0 percent beginning in FY 2022. The agency indicates there would
be administrative costs associated with implementing the bill. However, KPERS estimates the
costs could be absorbed within existing resources. Any fiscal effect associated with HB 2329 is
not reflected in The FY 2020 Governor’s Budget Report.


Sincerely,

Larry L. Campbell
Director of the Budget
cc: Jarod Waltner, KPERS
Dale Dennis, Education


Statutes affected:
As introduced: 74-4932, 74-4931, 74-4919, 74-49