68-West–Statehouse | 300 SW 10th Ave. | Topeka, Kansas 66612-1504
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kslegres@klrd.ks.gov kslegislature.org/klrd
April 1, 2022

SUMMARY OF CONFERENCE COMMITTEE REPORT FOR
HOUSE SUB. FOR SUB. FOR SENATE BILL NO. 267
House Sub. for Sub. for SB 267, as recommended by the House Committee on
Appropriations and Senate Committee on Ways and Means Conference Committee, contains
FY 2022 supplemental funding, FY 2023 funding for most state agencies, and FY 2023 capital
improvement expenditures for certain state agencies. An overview of the Governor’s amended
budget recommendations for FY 2022 through FY 2023 and the Conference Committee’s
adjustments to the Governor’s amended recommendations are reflected below.
Provisions of the bill regarding the following subjects have been removed and are
included in separate legislation. These expenditures are included in the profile following this
summary to avoid distorting the State General Fund (SGF) ending balance assumptions:
● Senate Sub. for HB 2567 – Expenditures for K-12 Education; and
● SB 421 – Kansas Public Employees Retirement System (KPERS) layering
payments and other transfers to the KPERS Trust Fund.

Governor’s FY 2022 Recommendation
The FY 2022 budget approved by the 2021 Legislature totals $20.7 billion, including $8.3
billion SGF. The approved budget includes $193.5 million in SGF reappropriations from FY
2021.
The Governor’s recommendation totals $23.0 billion from all funding sources, with $9.3
billion financed from the SGF, in FY 2022. The recommendation increases total expenditures by
$1.2 billion, and increases SGF expenditures by $2.1 billion, above the FY 2021 actual
expenditures.
The Governor’s recommendation for FY 2022 is an all funds increase of $2.3 billion, or
11.1 percent, and an SGF increase of $994.0 million, or 11.9 percent, above the FY 2022
approved budget. The increase is primarily attributable to:
● Adding $460.0 million, all SGF, for the Residential Tax Rebate;
● Adding $332.2 million, all SGF, for early debt retirement in the Department of
Administration;
 ● Adding $20.0 million, all SGF, in the Department of Commerce to expand the
Moderate Income Housing Program;
● Adding $731.9 million, including $375.4 million SGF, to the Department of
Education, including:
○ Adding $199.6 million, all SGF, to eliminate delayed state aid payments;
○ Adding $253.9 million, all SGF, to eliminate the KPERS layering
payments; and
○ Adding $336.2 million, all from federal funds (ESSER and EANS), for
Emergency School Relief;
● Adding $64.9 million, including $48.5 million SGF, to the Department of
Corrections, including:
○ Adding $18.3 million, all from federal American Rescue Plan Act (ARPA)
funds, for the 24/7 pay plan;
○ Adding $21.1 million, all SGF, to restore Evidence Based Initiatives
funding; and
○ Adding $6.7 million, all SGF, for Pathways to Success;
● Adding $18.1 million, all SGF, for Highway Patrol aircraft;
● Deleting $184.7 million, all from the State Highway Fund, largely related to the
delayed construction of State Highway 69; and
● Deleting $72.5 million, including $173.2 million SGF, to implement revised human
services caseloads estimates, largely related to the extension of the enhanced
Federal Medical Assistance Percentage (FMAP) match.

Overview of the Governor’s FY 2023 Recommendations
State Operations—Agency operating costs for salaries and wages, contractual
services, commodities, debt service interest, and capital outlay. The Governor’s FY 2023
recommendation for state operations is $6.7 billion, which is an increase of $84.8 million, or 1.3
percent, above the FY 2022 revised estimate. The increase is primarily attributable to the
Department of Commerce grant programs and enhancements ($197.2 million SGF), state
employee pay adjustments ($145.5 million from all funds, including $56.8 million SGF),
Department of Corrections 24/7 pay plan and enhancements ($16.1 million SGF), partially offset
by considerable reductions due to one-time expenditures in FY 2022 and reductions in federal
funding.
Local Units of Government—Aid payments to counties, cities, school districts,
and other local government entities; may be from state or federal funds. The Governor’s
FY 2023 recommendation for aid to local units of government is $7.1 billion, which is a decrease
of $207.5 million, or 2.9 percent, below the FY 2022 revised estimate. The reduction is primarily
attributable to reduced education state aid ($195.9 million) and COVID-19 pandemic relief

Kansas Legislative Research Department 2 Summary of Conference Committee Report for
House Sub. for Sub. for SB 267 – April 1, 2022
funding in the Kansas Department of Health and Environment (KDHE). The reductions are
partially offset by an increase in the Board of Regents student financial assistance ($80.6
million), and $13.0 million for the State Treasurer to implement the proposed food sales tax
elimination.
Other Assistance, Grants, and Benefits—Payments made to or on behalf of
individuals as aid, including public assistance benefits, unemployment benefits, and
tuition grants. The Governor’s FY 2023 recommendation for other assistance, grants, and
benefits is $7.1 billion, which is a decrease of $128.2 million, or 1.8 percent, below the FY 2022
revised estimate. The decrease is primarily attributable to the resident tax rebate ($460.0
million), unemployment benefits ($48.2 million), and Department for Children and Families
funding for the Low Income Energy Assistance Program (LIEAP), Emergency Water Assistance
Program, and Child Care Provider Assistance ($42.0 million). The decreases are partially offset
by an increase in KDHE—Health for Medicaid expansion ($448.7 million).
Capital Improvements—Cash or debt service payments for projects involving new
construction, remodeling and additions, rehabilitation and repair, razing, and the
principal portion of debt service for a capital expenditure. The Governor’s FY 2023
recommendation for capital improvements is $1.8 billion, which is a decrease of $154.4 million,
or 8.0 percent, below the FY 2022 revised estimate. The decrease is primarily attributable to
accelerated debt retirement in FY 2022.

Conference Committee Adjustments for FY 2022
In House Sub. for Sub. for SB 267, the Conference Committee recommends
expenditures of $21.9 billion; including $8.2 billion SGF, in FY 2022. The recommendation is an
all funds decrease of $1.1 billion, or 4.6 percent, including an SGF decrease of $1.1 billion, or
11.7 percent, below the Governor’s FY 2022 recommendation. (These adjustments include an
increase of $53.6 million SGF associated with GBA No. 1.)
In addition to expenditure adjustments included in the bill, the following adjustments are
reflected in the profile at the end of this section:
● Senate Sub. for HB 2567 – Education: The Committee deleted $362.3 million to
reflect K-12 education in a separate bill in FY 2022;
● SB 347 – APEX: The Attracting Powerful Economic Expansion Act approved an
estimated $6.3 million in SGF expenditures for FY 2022;
● SB 421 – KPERS Transfers and Layering: The Conference Committee on SB
421 approved the transfer of $853.8 million from the SGF to the KPERS Trust
Fund in FY 2022. Included in this transfer is the retirement of $253.9 million in
KPERS Layering Payments, which reduces SGF expenditures; and
● 2021 SB 159 – Federal Funds Swaps: The 2021 Legislature approved the
Governor to swap federal funds for SGF moneys in certain circumstances, which
total $14.6 million in FY 2022.


Kansas Legislative Research Department 3 Summary of Conference Committee Report for
House Sub. for Sub. for SB 267 – April 1, 2022
 The SGF expenditure recommendation including the policies above totals $8.1 billion,
which is a decrease of $1.2 billion, or 12.7 percent, below the Governor’s FY 2022
recommendation.
The Committee deleted 12.5 FTE positions, including 14.5 vacant FTE positions at the
Kansas Historical Society, partially offset by the addition of 2.0 FTE positions at the Office of the
Attorney General for auditors within the Office of the Medicaid Inspector General.
Major FY 2022 expenditure adjustments included in House Sub. for Sub. for SB 267
include:
● Department of Education – Delete $362.3 million SGF to reflect the K-12 budget
in Senate Sub. for HB 2567, which includes $253.9 million SGF for KPERS
Layering payments;
● Department of Administration – Delete $792.2 million SGF; including:
○ Deleting $332.2 million SGF for the early payoff of Series 2015A/G bonds;
○ Deleting $460.0 million SGF in FY 2022 to not implement a one-time $250
tax rebate included in the Governor’s recommendation;
● Kansas Highway Patrol – Deleting $18.1 million SGF for aircraft replacement and
upgrade in FY 2022 and adding $20.2 million from the State Highway Fund for
purchase of two aircraft and replacement of the Executive aircraft;
● Kansas Water Office – Add $80.0 million SGF to pay off water supply storage
debt for Big Hill, Clinton, and Hillsdale reservoirs in FY 2022 and dedicate
revenue streams to retirement of storage debt in the future; and
● Kansas Secretary of State – Add $1.9 million SGF for the payment of settlements
regarding voter fraud litigation.

Conference Committee Adjustments for FY 2023
In House Sub. for Sub. for SB 267, the Conference Committee recommends
expenditures of $16.0 billion, including $4.6 billion SGF, for FY 2023. The recommendation is an
all funds decrease of $6.7 billion, or 29.6 percent, including an SGF decrease of $4.4 billion, or
49.0 percent, below the Governor’s FY 2023 recommendation.
In addition to expenditure adjustments included in the bill, the following adjustments are
reflected in the profile at the end of this section:
● Senate Sub. for HB 2567 – Education: The Committee deleted $6.4 billion,
including $4.2 billion SGF, to reflect K-12 education in a separate bill for FY 2023;
● SB 347 – APEX: The Attracting Powerful Economic Expansion Act approved an
estimated $6.3 million in SGF expenditures for FY 2023; and


Kansas Legislative Research Department 4 Summary of Conference Committee Report for
House Sub. for Sub. for SB 267 – April 1, 2022
 ● SB 421 – KPERS Transfers and Layering Payments: The Conference Committee
recommends the transfer of $271.1 million from the SGF to the KPERS Trust
Fund in FY 2022.
The SGF expenditure recommendation including the policies above totals $9.0 billion,
which is a increase of $68.0 million, or 0.8 percent, above the Governor’s FY 2023
recommendation.
The Conference Committee deleted a total of 26.5 FTE positions, including 8.0 FTE
positions for the Department of Revenue to not implement the Governor’s food sales tax plan,
14.5 vacant FTE positions at the Kansas Historical Society, and 5.0 FTE positions for the social
detox unit at Osawatomie State Hospital. The committee also added 1.0 FTE position for
communication access services in the Kansas Commission for the Deaf and Hard of Hearing.
Major FY 2023 expenditure adjustments included in House Sub. for Sub. for SB 267
include:

Education:
● Department of Education – Deleting $6.4 billion, including $4.2 billion SGF, to
reflect the K-12 education budget in a separate bill (Senate Sub. for HB 2567);
● Board of Regents – Deleting $1.6 million SGF, major adjustments include;
○ Add $10.0 million SGF to a new Demolition Account and designate
$750,000 for Washburn University;
○ Add $10.0 million SGF to the State Universities Facilities Capital Renewal
Initiative with a 1:1 match;
○ Add $11.4 million SGF to the Non-Tiered Course Credit Hour Grant;
○ Add $19.0 million SGF to the Comprehensive Grant Program with a 1:1
match of non-government funding;
○ Delete $15.0 million SGF from the Two-Year Colleges Special Projects;
○ Delete $20.7 million SGF from the Postsecondary Education Operating
Grant;
○ Delete $25.0 million SGF from the Kansas Access Partnership Grant; and
○ Add language to address overfunding of some community and technical
colleges and create a working group to review funding and formula
issues.
Staff Note: Federal ARPA funding added for universities, community
colleges, technical colleges, Washburn, and private institutions are in the
Office of the Governor.
● Wichita State University – Add $7.0 million SGF for the National Institute for
Aviation Research. This is the first year of five years of appropriations for this
purpose.

Kansas Legislative Research Department 5 Summary of Conference Committee Report for
House Sub. for Sub. for SB 267 – April 1, 2022
Human Services:
● Department for Children and Families – Add $7.5 million SGF for workforce
recruitment and retention incentives for child placing agencies and licensed
facilities, including qualified residential treatment programs;
● KDHE—Health – Delete $574.1 million and add $79.7 million SGF; major
adjustments include:
○ Delete $596.0 million, including the addition of $68.5 million SGF, to
remove funding for Medicaid Expansion;
○ Add $10.0 million; including $4.5 million SGF, to increase reimbursement
rates for Emergency Medical Services provider codes;
○ Add $3.5 million, including $1.4 million SGF, to increase the availability of
adult dental services provided through the State Medicaid program; and
○ Add $2.9 million, including $886,200 SGF, to raise provider
reimbursement rates for pediatric primary care services;
● KDADS – Add $224.0 million, including $91.3 million SGF, major adjustments
include:
○ Add $122.2 million, including $48.9 million SGF, to provide a 25.0 percent
reimbursement rate increase, excluding the T1000 code for specialized
nursing, for providers of Home and Community Based Services (HCBS)
Intellectual and Developmental Disability (I/DD) waiver services;
○ Add $65.2 million, including $26.2 million SGF, to provide for a full rebase
of the nursing facility daily Medicaid rate for FY 2023. This amount is the
difference between the amount to fully rebase the daily rate and the 3.0
percent increase already included in the Governor’s recommendation for
FY 2023;
○ Add $11.8 million, including $4.7 million SGF, to provide a 10.0 percent
reimbursement rate increase for providers of HCBS Frail Elderly waiver
services;
○ Add $12.5 million, including $5.0 million SGF, to provide a 4.0 percent
reimbursement rate increase for Medicaid behavioral health services;
○ Add $7.7 million, including $3.1 million SGF, and add language to
increase the reimbursement rate for the T1000 Medicaid code for
specialized nursing care from $43.00 per hour to $47.00 per hour;
○ Add $2.0 million SGF to assist with staffing at psychiatric residential
treatment facilities; and
○ Add $2.5 million, including $1.5 million SGF, to increase the amount
provided to community developmental disability organizations to fulfill
their role in assessing individuals for the HCBS I/DD waiver.


Kansas Legislative Research Department 6 Summary of Conference Committee Report for
House Sub. for Sub. for SB 267 – April 1, 2022
Public Safety:
● Adjutant General – Delete $21.0 million SGF for the State Defense Building
remodel pending outcome of the agency request for funding from the federal
ARPA Fund through the SPARK Executive Committee; and
● Kansas Highway Patrol – Add $1.4 million, all from special revenue funds, to
enhance the KHP Career progression Plan.

General Government:
● Department of Commerce – Delete $247.7 million; including $255.2 million SGF;
major adjustments include:
○ Delete $205.0 million SGF for University Grants;
○ Do not Adopt GBA No. 1, Item 1 – for rural housing and delete $50.0
million SGF;
○ Add $5.0 million to the Department of Commerce in federal ARPA funds to
support a new housing grant requiring a 1:1 match of non-State funding to
ac