Brief ⁽¹⁾

HB 2996 modifies the distribution formula for state community college operating grants under the Higher Education Coordination Act. The changes to the formula include determining a grand total for community college funding based on the total number of FTE students and allocating the grants based on each institution's percentage of previous year state funding, instead of determining state funding on an institution-by-institution basis, and by factoring in a funding adjustment phased in over four years equivalent to an increase in vocational funding from 1 to 1.75 times the regular credit hour rate for the 14 schools not currently receiving vocational funding at the rate of 2 times the regular credit hour rate.

Background

The formula modifications contained in HB 2996 were developed and unanimously recommended by the Kansas Association of Community College Trustees to provide a more equitable distribution of state funding for community colleges. The formula changes have been endorsed by the State Board of Regents, the Legislative Educational Planning Committee, and included in the Governor's funding recommendations for state community college operating grants for FY 2001.

The fiscal note prepared by the Division of the Budget on HB 2996 states the bill would decrease FY 2001 State General Fund expenditures by $1,048,392. These savings have been factored into the Governor's recommendations for community college funding. The savings are the result of eliminating the need for transitional grants for schools which would otherwise have a loss of funding in FY 2001 under the original formula.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html