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
Adam Proffitt, Director Laura Kelly, Governor


February 5, 2021


The Honorable Rick Billinger, Chairperson
Senate Committee on Ways and Means
Statehouse, Room 545-S
Topeka, Kansas 66612
Dear Senator Billinger:
SUBJECT: Fiscal Note for SB 110 by Senator Pittman
In accordance with KSA 75-3715a, the following fiscal note concerning SB 110 is
respectfully submitted to your committee.
SB 110 would authorize the Kansas Development Finance Authority to issue bonds of up
to $17.5 million to finance the construction of a state veterans home facility located in Douglas,
Jefferson, Leavenworth, Shawnee or Wyandotte county. Proceeds of the bonds would constitute
the state’s required 35.0 percent match of the U.S. Department of Veteran Affairs State Veterans
Home Construction Grant Program. The maturity date on the bonds could not exceed 20 years
from the date of issuance. The debt service for the bonds could be paid from the State General
Fund or any appropriate special revenue fund or funds.
The Kansas Commission on Veterans Affairs Office estimates that bond proceeds of $17.5
million would allow it to obtain $32.5 million, or a 65.0 percent match, in federal funds for total
resources of $50.0 million for a new state veterans home facility. It is estimated that annual debt
service on the bonds could range from $1.1 million to $1.2 million. While the bill would become
effective on the first day of FY 2022, it is unknown if the bonds would be issued, federal funds
would be received, and construction would begin in FY 2022.
The Department of Administration indicates that any professional service, architectural,
bidding or construction administration costs the Department might incur from the project would
be recouped through internal service charges. Any agency costs associated with the issuance of
the bonds could be handled within existing resources.
While the design of the new veterans’ home facility is not yet known, it is likely that a new
veterans home facility would require an obligation from the State General Fund for operating
The Honorable Rick Billinger, Chairperson
Page 2—SB 110

expenditures. For example, total expenditures for the Kansas Soldiers Home and Kansas Veterans
Home have averaged $18.2 million from all funds, including $2.8 million from the State General
Fund, over the previous five fiscal years (FY 2016 to FY 2020). Any fiscal effect associated with
SB 110 is not reflected in The FY 2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Jeff Scannell, Department of Administration
Luke Drury, Veterans Affairs