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


January 15, 2020


The Honorable Steven Johnson, Chairperson
House Committee on Taxation
Statehouse, Room 185A-N
Topeka, Kansas 66612
Dear Representative Johnson:
SUBJECT: Fiscal Note for HB 2427 by Representative Murnan
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2427 is
respectfully submitted to your committee.
Calculations for Kansas income taxes are based on the Kansas adjusted gross income,
which is calculated by adding or subtracting certain types of income from the amount of federal
adjusted gross income. HB 2427 would allow the amount of any National Service Education
Award for service in an approved AmeriCorps National Service Program to be subtracted from
income for Kansas income tax purposes beginning in tax year 2020.
The Department of Revenue estimates that HB 2427 would decrease State General Fund
revenues by approximately $50,000 in FY 2021 and in each future fiscal year. To formulate these
estimates, the Department of Revenue reviewed data on Kansans receiving National Service
Education Awards. The Department indicated that 355 participants in Kansas received awards
totaling $1,061,770 from February 7, 2018, through February 6, 2019, and the fiscal note assumes
that similar scholarships will be awarded in future years.
The Department indicates that the bill would require $43,401 from the State General Fund
in FY 2021 to implement the bill and to modify the automated tax system. The required
programming for this bill by itself would be performed by existing staff of the Department of
Revenue. In addition, if the combined effect of implementing this bill and other enacted legislation
exceeds the Department’s programming resources, or if the time for implementing the changes is
too short, additional expenditures for outside contract programmer services beyond the
Department’s current budget may be required.
The Honorable Steven Johnson, Chairperson
Page 2—HB 2427

The Board of Regents indicates the bill has the potential to increase the number of
individuals choosing to participate in AmeriCorps programs; however, it is not possible to estimate
any potential fiscal impact on higher education institutions within the Board of Regents system
because it is unknown how many students would take advantage of the new income tax program.
Any fiscal effect associated with HB 2427 is not reflected in The FY 2021 Governor’s Budget
Report.


Sincerely,

Larry L. Campbell
Director of the Budget


cc: Lynn Robinson, Department of Revenue
Kelly Oliver, Board of Regents


Statutes affected:
As introduced: 79-32