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 27, 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 2386 by House Committee on Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2386 is
respectfully submitted to your committee.
HB 2386 would transfer a total of $45.0 million from the State General Fund to the Local
Ad Valorem Tax Reduction Fund (LAVTRF) in FY 2020. Under current law, the State General
Fund transfer to the LAVTRF is set to resume in FY 2021 with a total transfer amount of $54.0
million.

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. -- -- -- --

HB 2386 would reduce State General Fund revenues by $45.0 million in FY 2020 by
resuming the State General Fund transfer to the LAVTRF. Transfers from the State General Fund
to the LAVTRF have routinely been suspended in appropriations bills since FY 2004.
The Honorable Steven Johnson, Chairperson
Page 2—HB 2386

The League of Kansas Municipalities and the Kansas Association of Counties indicate that
the bill would provide additional resources to local governments for property tax relief. Any fiscal
effect associated with HB 2386 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
Chardae Caine, League of Municipalities
Jay Hall, Association of Counties


Statutes affected:
As introduced: 79-2959