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


February 13, 2023


The Honorable Sean Tarwater, Chairperson
House Committee on Commerce, Labor and Economic Development
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Representative Tarwater:
SUBJECT: Fiscal Note for HB 2368 by Representative Haswood, et al.
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2368 is
respectfully submitted to your committee.
HB 2368 would provide an incremental increase for the current state minimum wage. The
hourly minimum wage would be increased from $7.25 to $10.00 beginning January 1, 2024
through December 31, 2024; to $12.00 from January 1, 2025 through December 31, 2025; to
$14.00 from January 1, 2026 through December 31, 2026; and finally, to $16.00 on and after
January 1, 2027. The bill would also increase the hourly minimum wage to use for calculations
for employees receiving tips and gratuities from $2.13 to $3.25 beginning on and after January 1,
2024. The bill would state that the provisions would not apply to any employers and employees
covered under the Federal Fair Labor Standards Act if the hourly wage rate in the bill was greater
than the hourly wage rate prescribe by such federal law. The amendments contained in HB 2368
would be known as the Making Work Pay Act.
According to the Kansas Department of Labor, enactment of HB 2368 could result in an
increase in the number of wage claims, but the agency states that this can be absorbed within
existing resources. There could also be an increase in unemployment compensation taxes which
would impact the Unemployment Trust Fund, however, the agency could not estimate a fiscal
effect. The Department of Revenue estimates an increase in State General Fund revenues totaling
$500,000 in FY 2024, $2.1 million in FY 2025, and $3.3 million in FY 2026. The agency also
estimates administrative costs of $1,200 related to passage of the bill.
The Kansas Department of Administration notes the bill would not have a fiscal effect on
agency operations in FY 2023 or FY 2024. Legislative Services indicates enactment of HB 2368
would have a negligible fiscal effect on the Legislature’s budget as most session staff wage rates
are above the wages outlined in the bill through calendar year 2026. The Office of Judicial
The Honorable Sean Tarwater, Chairperson
Page 2—HB 2368

Administration states that the bill would not apply to the Judicial Branch. Any fiscal effect
associated with HB 2368 is not reflected in The FY 2024 Governor’s Budget Report.
The Kansas Association of Counties and the Kansas League of Municipalities note that
enactment of HB 2368 would increase labor costs for local governments for employees that fall
below the wages as outlined in the bill, but a total fiscal effect could not be estimated for counties
or cities.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Dawn Palmberg, Department of Labor
Tamara Emery, Department of Administration
Vicki Jacobsen, Judiciary
Karen Clowers, Legislative Services
Jay Hall, Kansas Association of Counties
Wendi Stark, League of Kansas Municipalities
Lynn Robinson, Department of Revenue


Statutes affected:
As introduced: 44-1203