Bill Summary – FastDemocracy

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 12, 2019


         The Honorable Steven Johnson, Chairperson
         House Committee on Taxation
         Statehouse, Room 185-N
         Topeka, Kansas 66612
         Dear Representative Johnson:
                   SUBJECT:       Fiscal Note for HB 2367 by House Committee on Taxation
                 In accordance with KSA 75-3715a, the following fiscal note concerning HB 2367 is
         respectfully submitted to your committee.
                 Under current law, transfers from the State General Fund to the Local Ad Valorem Tax
         Reduction Fund (LAVTRF) are suspended for FY 2019 and FY 2020. HB 2367 would continue
         the moratorium on transfers from the State General Fund to the LAVTRF from FY 2020 to FY
         2030. During FY 2020 through FY 2030, a county may submit a plan for new construction of a
         road or bridge to the Secretary of Transportation. If the Secretary approves the plan, the county
         would receive the county’s share of the LAVTRF during the fiscal years necessary to complete
         the project. The bill would also eliminate the provision allowing transfers in certain fiscal years
         to be considered revenue transfers. Under current law, transfers from the State General Fund to
         the LAVTRF are considered demand transfers.
                 Current law also suspends transfers from the State General Fund to the County and City
         Revenue Sharing Fund (CCRSF) in FY 2019 and FY 2020. The bill would continue the
         moratorium on transfers from the State General Fund to the CCRSF from FY 2020 to FY 2030.
         During FY 2020 through FY 2030, a county may submit a plan for new construction of a road or
         bridge to the Secretary of Transportation. If the Secretary approves the plan, the county would
         receive the county’s share of the CCRSF during the fiscal years necessary to complete the project.
                From FY 2020 to FY 2030, the Secretary of Transportation would be required to certify to
         the Director of Accounts and Reports on June 15 of each fiscal year the aggregate amount of
         monies approved for local transportation projects. The Director of Accounts and Reports would
         be required to transfer from the State General Fund to the LAVTRF and CCRSF the certified
         amounts. Copies of the certification would be required to be sent to the Director of the Budget
         and the Director of Legislative Research.
The Honorable Steven Johnson, Chairperson
Page 2—HB 2367

        The precise fiscal effect on State General Fund revenues from HB 2367 cannot be
determined because the number of plans for new construction that would be approved by the
Secretary of Transportation; the cost of the projects; and the amounts that would be transferred
from the State General Fund to the to the LAVTRF and the CCRSF are unknown. Under current
law, State General Fund transfers to the LAVTRF and the CCRSF are set to resume in FY 2021.
For the November 2018 Consensus Revenue Estimate, it was estimated that $54.0 million would
be transferred from the State General Fund to the LAVTRF and $78.1 million would be transferred
from the State General Fund to the CCRSF in FY 2021. The Governor’s budget extends the
moratorium on transfers from the State General Fund to the LAVTRF and the CCRSF to FY 2021.
        The Department of Revenue indicates the bill would have no fiscal effect on property tax
revenues that school districts receive through the state’s uniform mill levy. Additionally, the bill
would have no fiscal effect on the two building funds, the Educational Building Fund (EBF) and
the State Institutions Building Fund.
        The Kansas Department of Transportation (KDOT) estimates it would need to hire 1.00
Public Service Administrator FTE position to manage the plans received for review by the
Secretary of Transportation. However, KDOT indicates that the salaries and wages and other
operating expenditures associated with the position could be absorbed within the Department’s
existing resources. Any fiscal effect associated with HB 2367 is not reflected in The FY 2020
Governor’s Budget Report.


                                                     Sincerely,

                                                     Larry L. Campbell
                                                     Director of the Budget


cc: Lynn Robinson, Department of Revenue
    Ben Cleeves, Transportation
    Jay Hall, Association of Counties
Statutes affected: 
As introduced: 79-2959, 79-2964