Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


March 1, 2021


The Honorable Sean Tarwater, Chairperson
House Committee on Commerce, Labor and Economic Development
Statehouse, Room 151D-S
Topeka, Kansas 66612
Dear Representative Tarwater:
SUBJECT: Fiscal Note for HB 2311 by Representative Clayton
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2311 is
respectfully submitted to your committee.
Under current law, the maximum workers compensation benefit that is payable by an
employer to an employee for permanent total disability is $155,000. HB 2311 would remove this
cap and require an employee who has suffered permanent total disability to be paid the employee’s
weekly rate of pay in effect on the date of injury, starting from the date of maximum medical
improvement and continuing for the lifetime of the employee.

Estimated State Fiscal Effect
FY 2021 FY 2021 FY 2022 FY 2022
SGF All Funds SGF All Funds
Revenue -- -- -- --
Expenditure -- -- -- $10,068,322
FTE Pos. -- -- -- --
The Department of Administration estimates the bill would increase expenditures from the
State Self Insurance Fund by $10,068,322 in FY 2022. The amount includes $2,467,618 for the
costs related to the current average number of state employees who are in permanent total disability
status. The estimate for current state employees assumes approximately two employees would
receive total annual benefits of $96,314 (2.1 employees X $882 average weekly wage X 52 weeks)
for 29 years. The total amount of lifetime benefits, $2,793,118 (96,314 annual benefit X 29 years),
is reduced by $325,500. The reduction reflects the amount that would be paid under current law.
The Honorable Sean Tarwater, Chairperson
Page 2—HB 2311

The Department’s total fiscal effect also includes $7,600,704 for the costs related to the
projected number of state employees who would be in permanent total disability status under the
bill. The estimate for future state employees assumes six employees would receive total annual
benefits of $275,184 (6 employees X $882 average weekly wage X 52 weeks) for 31 years. The
total amount of lifetime benefits, $8,530,704 ($275,184 annual benefit X 31 years), is reduced by
$930,000. The reduction reflects the amount that would be paid under current law.
The increase in State Self Insurance Fund expenditures would result in an increase in
workers compensation assessment rates for state agencies. This would increase agency
expenditures for employee benefits, which would be funded from a variety of funding sources
including the State General Fund. However, the fiscal effect on state agencies cannot be
determined because the rate increases that would occur under the bill are unknown. The bill would
have no fiscal effect on the Department of Labor. Any fiscal effect associated with HB 2311 is
not reflected in The FY 2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Dawn Palmberg, Department of Labor
Jeff Scannell, Department of Administration


Statutes affected:
As introduced: 44-510f, 44-511