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 6, 2019


The Honorable Richard Proehl, Chairperson
House Committee on Transportation
Statehouse, Room 581-W
Topeka, Kansas 66612
Dear Representative Proehl:
SUBJECT: Fiscal Note for HB 2364 by House Committee on Transportation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2364 is
respectfully submitted to your committee.
HB 2364 would create the Kansas Aerospace Commission within the Executive Branch of
government on July 1, 2019. On the same date, the bill would abolish the Division of Aviation in
the Kansas Department of Transportation (KDOT). All powers, duties and functions of the
Division of Aviation would be transferred to the Kansas Aerospace Commission. The Kansas
Aerospace Commission would be the successor in every way to the Division of Aviation. All
employees of the Division of Aviation would be transferred to the Kansas Aerospace Commission.
The Kansas Aerospace Commission would be the official agency of the State of Kansas
for the development and coordination of the aerospace industry. The Commission would be
administered by the Director of the Kansas Aerospace Commission, who would be appointed by
the Governor and subject to confirmation by the Senate. The bill lists the powers and duties of the
Kansas Aerospace Commission.
The bill would create the Kansas Aerospace Commission Fund. Monies to the fund would
be from appropriations by the Legislature and any gifts, grants or donations from private or public
sources.
The FY 2020 Governor’s Budget Report includes expenditures totaling $8,120,319 for FY
2020 for the Division of Aviation within KDOT. Of this amount, $5,000,000 is from the Public
Use General Aviation Development Fund, $2,870,319 is from the State Highway Fund, and
$250,000 is from the Other Federal Grants Fund. The Division of Aviation budget for FY 2020
also includes a total of 9.00 positions, including 8.00 FTE positions and 1.00 Non-FTE
The Honorable Richard Proehl, Chairperson
Page 2—HB 2364

Unclassified Permanent position. KDOT indicates the bill would result in a reduction of all
Division of Aviation expenditures and positions in FY 2020. It is assumed that all Division of
Aviation expenditures and positions would be added to the Kansas Aerospace Commission.
KDOT anticipates the $5.0 million transfer from the State Highway Fund to the Public Use General
Aviation Development Fund that occurs under current law would continue. The fiscal effect
associated with shifting the Division of Aviation’s budget to the Kansas Aerospace Commission
is not reflected in The FY 2020 Governor’s Budget Report.


Sincerely,

Larry L. Campbell
Director of the Budget


cc: Ben Cleeves, Transportation


Statutes affected:
As introduced: 3-605, 3-606, 75-5061, 75-5010, 75-5011