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Minutes for SB42 - Committee on Appropriations
Short Title
Authorizing payment of certain claims against the state.
Minutes Content for Tue, Mar 21, 2023
Chairperson Waymaster opened discussion on the amended SB42.
Representative Anderson moved, Representative Helgerson seconded, to amend SB42 by adding $910,000 SGF funds for HVAC replacement of the Great Bend Laboratory system in FY 2024. (Attachment 5)
Discussion on the motion followed.
Representative Anderson renewed the motion. Motion carried.
Representative Owens moved, Representative Helgerson seconded, to amend SB42 by adding language directing the Kansas Department of Aging and Disability Services (KDADS) to reimburse providers of opioid use disorder services for all allowable purposes under federal guidelines in FY 2024 and FY 2025. Motion carried.
Representative Corbet moved, Representative Helgerson seconded, to amend SB42 by adding language directing the Department of Wildlife and Parks to make available at least 10,000 antler or antlerless deer permits for the nonresident draw pool for 2023 regular firearm season.
Discussion on the motion followed.
Representative Corbet renewed the motion. Motion failed.
Back on the budget bill as amended.
Representative Landwehr informed committee members that based on further discussions with the Director of the State Fair Board it was supposed to be $600,000 for two years, a total of $1.2 million, to install motion-sensor lighting and cameras on state fairgrounds. She had received the diagrams of the lighting and camera project.
Representative Landwehr moved, Representative Turk seconded, to amend SB42 by adding a one-time $600,000 SGF to FY 2024 for installation of cameras and lighting on the Kansas State Fair Board grounds.
Discussion on the motion followed.
Representative Helgerson disclosed to committee members that he has a contract with the State Fair and is very uncomfortable voting for this motion. Each year the State Fair has come and requested additional items. His concern is the Kansas State Fair Board has a capital improvement plan and additional funding is being added. The amount of money necessary to bring it up to standards is unknown. He expressed hope that someone will take the lead and review what is needed and make the recommendations for the entire committee.
Representative Landwehr renewed the motion. Motion failed.
Representative Hoffman informed committee members about a proposal for the Build Kansas Matching Grant Funds in lieu of the $220 million put in the Governor's budget from the bipartisan infrastructure law's (BIL) funding for Kansas, to accomplish the same thing. BIL is a federal grant program. The proposed budget amendment would create legislative oversight and require review from the State Finance Council before funds are dispersed. It is about a 20 percent cost share and this $50 million provides matching grants for local government entities to apply for federal dollars, and $5 million for administrative costs. A community does not need to go through the Build Kansas Matching Grant Fund, they can apply on their own. (Attachment 6)
Representative Hoffman moved, Representative Francis seconded, that the new proposed amendment to SB42 designates a Build Kansas Matching Grant Fund in support of the federal Bipartisan Infrastructure Law (BIL) and used for communities to secure matching dollars needed for infrastructure projects; allocate $55 million in FY 2024, FY 2025, FY 2026, and FY 2027, that can be rolled over if unspent and at the end of FY 2028 unused funds return to the State General Fund; and provide oversight by the Legislative Budget Committee for review of grant fund requests, monies to be housed in the State Treasurer's office, the State Finance Council could approve increases over the $55 million annual cap, ensures the Kansas Economic Development Districts receive at least $10 million in each district; $5 million of the $55 million is to be used to assist smaller communities that do not have expertise for submission of a grant and any remaining funds used for cost-sharing of projects, funds would only be distributed if a project is awarded a federal matching BIL grant.
Representative Landwehr asked for clarification as to whether or not the omnibus items in excess of $40 million on the list for small community projects would stop with this program, and of the new Build Kansas Matching Grant Fund program would continue in the future. Chairperson Waymaster responded that the $220 million the Governor had was for just rural or small communities, now it is for any city or county across the state. Representative Landwehr hopes that going forward the state does not hand over dollars with no matching requirements at omnibus. Chairperson Waymaster duly noted this.
Representative Owens inquired committee members on whether or not there is any expectation that local cities and counties are paying anything to access the state matching funds for the federal funds. Representative Hoffman informed community members that a community can go straight to the federal government for these grants. They do not have to go through the state to request part of the $220 million. The funds are already in the budget moving forward and the amendment just makes sure the legislature has more input in the funds being distributed for the $220 million.
Representative Williams inquired about the matching ratios and drawing down of federal monies. Chairperson Waymaster informed committee members that the federal programs have not yet been initiated in most cases and therefore the match percentages are unknown. Representative Hoffman agreed with Chairperson Waymaster and is fairly confident that most of the $50 million available in 2024 will be unspent and roll into 2025. Some of the federal government programs' rules and regulations are coming out in the next couple of months, and some exist currently. Representative Williams inquired about the party responsible for approving funding that exceeds the $55 million annual cap. Representative Hoffman explained that if communities want more funds they must apply to the Legislative Budget Committee (LBC). LBC will decide if the community should receive any funds. Once the LBC makes a decision, the application would go forward to the federal government. Ultimately, the federal government decides whether or not to award the grants. The State Treasurer's Office is simply where the funds are housed. Representative Williams requested information about how the awards will be announced. Representative Hoffman responded the grants would probably be announced through the different agencies that help the recipient entities.
Representative Howe inquired if this funding is in addition to the small cities' Community Development Block Grant program which is administered by the Department of Commerce, or a different mechanism. Representative Waymaster responded that these funds are in addition, and were placed when the Governor made her budget recommendation for $220 million, for the purpose of drawing down federal funds to local communities.
Representative Estes reminded committee members that when they received the Infrastructure Hub presentation she asked if there was a means test for need and the answer was sort of, but was a good idea. She inquired if the maker of the motion would be open to adding language requiring a means test be developed and used as part of the guardrail system. Representative Hoffman stated the more information received in LBC, the better. Chairperson Waymaster confirmed from Representative Francis, who seconded the motion, was agreeable to the amendment, and then announced the language will be added into the amendment as well.
Representative Francis thanked the bringing of the amendment. One of the important aspects about this program that the federal government implemented is the very short turnaround, as few as 90 days, and these communities are going to struggle to get their proposals together and to bring them forward. Because the legislature won't be in session, the closest entity to the Appropriations Committee that meets regularly is LBC. It is made up of the House Appropriations Chairperson, Vice Chairperson, Ranking Minority Member, and one other member selected by the Speaker, and the Senate Ways and Means Chairperson, Vice Chairperson, and Ranking Minority Member and this approach will apply legislative oversight, a missing element and concern expressed from earlier processes. Many of the federal bipartisan infrastructure bill's programs are targeted at communities and regional groups across the state, and they are the ones making the applications, not the state. Hopefully, the state will be available with some of its experts to assist them with the grant process, to bring down these funds. He appreciated the recommendation of a means test. Once this program gets running, the LBC is going to have an influx of requests and will have to pick the winners and the losers.
Chairperson Waymaster noted that Kansas is poised to draw down $3.8 billion, and could possibly get more through this initiative.
Representative Carlin inferred there is a process already and stated there is no need to move the funds to the Treasurer's Office, and away from the Governor's Office, nor to move the process away from the Department of Commerce with the Lt. Governor in charge, nor for a needs test, since they scrutinize everything that is done.
Representative Helgerson informed committee members that when this was first proposed he had a series of questions and issues. He expressed concerns that counties and cities did not lobby or testify in committees due to this being a top-down proposal, which then in itself has some problems. There is a tremendous need in Kansas with bridges, roads, water pipes, and these funds are going to be used, plus everything else. Representative Helgerson expressed concerns of stepping into the administration, as opposed to oversight, about the way the Governor made the proposal, and the need for more guardrails.
Representative Francis responded that this committee is making this process too complicated. Local community and regional planning groups are going to request funding and may have inadequate local funds to the get grants. As the grantee, it is going to be their responsibility to manage their grant. The State is assisting them with their local match.
Representative Turk agreed that this is being overly complicated. Once the federal government bestows this grant, they will be the ones facilitating the grant requirements and will request the documentation that proves they are adhering to the grant. The state will not take over that responsibility and in essence what the state is doing is buying a coupon, that for $220 million Kansas gets $3.8 billion. The coupon gives the State more guidance, more guardrails to facilitate these funds.
Representative Curtis informed committee members that the BIL already has built-in requirements because 49 percent of the funds are mandated to be spent in disadvantaged communities, so that includes communities that have environmental justice, low-income communities, and communities of color. The local communities attending the KDOT consults and the infrastructure summit last summer were asking for matching funds because they may lack the necessary matching funds. It really affects disadvantaged communities and that is where the efforts should be made. Many local communities attending the summit voiced the issue of administering federal grants, because they didn't have the capacity which KDOT will provide. Many of the barriers the committee members have spoken about are easily addressed.
Representative Hoffman restated a modified motion to amend SB42 by designating a Build Kansas Matching Grant Fund in support of the federal Bipartisan Infrastructure Law (BIL) and used for communities to secure matching dollars needed for infrastructure projects; allocate $55 million in FY 2024, FY 2025, FY 2026, and FY 2027, that can be rolled over if unspent and at the end of FY 2028 unused funds returned to the State General Fund; and provide oversight by the Legislative Budget Committee for review of grant fund requests, monies to be housed in the State Treasurer's office, the State Finance Council could approve increases over the $55 million annual cap, ensures the Kansas Economic Development Districts receive at least $10 million in each district; $5 million of the $55 million is to be used to assist smaller communities that do not have expertise for submission of a grant and any remaining funds used for cost-sharing of projects, funds would only be distributed if a project is awarded a federal matching BIL grant, and a means test be developed for grant fund applications for Building Kansas Matching Grant Funds by community for infrastructure projects. Motion carried.
Back on the budget as amended.
Representative Ballard informed committee members that the senior nutrition services distributed through the Area Agencies on Aging for FY 2024, often referred to as Meals on Wheels, has not had an increase since 2009.
Representative Ballard moved, and Representative Mason seconded, to amend SB42 by adding $3 million SGF for the senior nutrition services distributed through the Area Agencies on Aging for FY 2024.
Representative Helgerson inquired about the average meal cost across all 11 area agencies, how the $3 million amount was derived, and whether or not the counties were putting in their maximum amount. He stated that in the past they used to provide an average meal cost, the amount they had received, and the deficit amount. He informed committee members that Sedgwick County decided not to raise their mill levy that was dedicated for aging services. He voiced concerns about whether or not the $3 million spread across Kansas meets the needs, exceeds, or is too little. He inquired if the $3 million was going toward inflation or serving more seniors. Representative Ballard responded that the low-cost meal was $2.50 in 2021. They requested $3 million to fund nutrition services for older adults and recommended that any and all future funds supporting older adult nutrition services be allocated to the designated Area Agency on Aging facilities. Funds were not governed by the old Americans Act and were distributed directly to the nutrition providers.
Representative Waymaster elaborated to committee members the pitfalls of federal dollars received for the pandemic. There were many increases made for the senior nutrition program that were funded by federal dollars. In order to maintain that level, the state either has to backfill reduced federal funds or not feed seniors. This is one of the casualties of receiving federal money and it stopping, the state is going to have to pick up the tab.
Representative Mason informed committee members that senior participation statewide ballooned during the COVID years, and home delivery went from 986,000 in 2015 to almost 2 million, which is part of the cost too. Representative Helgerson agreed with the Chairperson's previous statement and his questions were answered. The program went up to 2 million meals and to supplement the SGF portion, $3 million is needed. When this program was put in place, it helps the nursing home budget, because it lowers it. This program and the Senior Care Act are extremely important. Representative Helgerson noted the information being sought is if the deficit with the feds was population growth or cost of food.
Representative Ballard renewed the motion. Motion carried.
Since the Appropriations Committee was on the topic of federal money, Representative Waymaster informed committee members that one of the positive outcomes that happened during the pandemic was a statewide program that helped with tourism. The Sunflower Summer program allowed people to download an app that has various venues - zoo, parks, museum, historical venues - resulting in children and their families touring the state of Kansas and generating economic benefit to the communities. A ticket can be downloaded for a venue, and the money that was set aside is reimbursed back to the venue. The venue is getting the money, but it is free of charge for the those traveling, though they are fueling up, eating at restaurants, and generating economic development. This program was funded by federal money for the last three years and is going to go away. The proposal is to use some of the dollars negated from the Governor's recommendations in regards to economic development initiatives funding for this program, as it is an economic development tool. The Children's cabinet with the Department of Education instigated the program and funded with the federal Education Recovery Support Activity (ERSA) funds. It is strictly a summer program to get people out and moving around. Approximately $2.5 million was spent last year. Venues that do not have admission fees have to fundraise in order to maintain the venue and keep it open. It would probably be the Department of Commerce selecting the additional venues. This proposal is to move the app from the Department of Education to the Department of Commerce, because tourism is under the Department of Commerce.
Representative Waymaster moved, Representative Helgerson seconded, to amend SB42 by moving the app from the Department of Education to the Department of Commerce, add $3 million from the Economic Development Initiatives Fund to continue the in-state tourism for FY 2024 and FY 2025, with more venues being added to the Sunflower Summer program, namely the Home on the Range cabin in Smith County where the State song was written outside of Athol, and add a $5 donation for venues that do not have an admission fee. Motion carried.
Back on the budget, as amended.
Representative Mason stated the Social Services Budget committee desired to revisit some monetary requests that were set aside on KDADS. He and Representative Ballard, both have a few. Chairperson Waymaster surmised that the Appropriations Committee will continue working on the budget on Wednesday. Representative Mason yielded to Representative Ballard.
Representative Ballard provided more information about the set up of a crisis service for individuals with Intellectual and Development Disability (I/DD), referenced as number 15 on the Review Prior to Finalization of Budget sheet. The $2.1 million SGF request is for grants to fund pilot programs to develop standards and build capacity. This request is tied in with the (2022)House Substitute for SB19 that was passed. Part of that was investing money into looking at personal services and in-person crisis services. It will close the gaps and build a continuing care in Kansas to improve overall coordination of direct services during crisis and prevent future crises. With individuals with I/DD during a crisis, there really is no place that they fit. In the past they either go to jail, emergency rooms, or state hospitals. People cannot go to the Osawatomie State Hospital without a doctor order or the police. They will be cross-training with corrections and law enforcement to handle this population. It's the integration with 988 and developing a crisis plan for people with I/DD. The Community Mental Health Centers (CMHC) are not the ones that are going to deal with developmental disabilities. A system needs to be built to help individuals with I/DD, because not enough services currently exist. Some jails are looking in terms of developing a wing that they can put these individuals in, because they do not fit in with the other people. This is a new program and the staff person is going to be at the state level, in KDADS, managing grants of different organizations that are developing crisis services for individuals with I/DD will apply for. KDADS did not request this, but Interhab and other organizations did talk to KDADS about it.
Representative Ballard moved, Representative Mason seconded, to amend SB42 by adding $2.1 million SGF and 1 FTE position to administer a grant for organizations developing crisis services for individuals with intellectual or developmental disabilities (I/DD) for FY 2024.
Discussion on the motion followed.
Representative Ballard renewed the motion. Division was called. Motion passed from a vote of 11 for and 8 against.
Chairperson Waymaster informed committee members that the discussion will continue on Wednesday, March 22nd.
The meeting adjourned at 11:03 a.m.
The next scheduled meeting of the Appropriations Committee is March 22, 2023.
