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Minutes for HB2052 - Committee on Appropriations
Short Title
Appropriation revisions for FY 2017, FY 2018 and FY 2019 for various state agencies.
Minutes Content for Thu, Jan 26, 2017
Chairman Waymaster opened the hearing on HB 2052.
J.G. Scott, Legislative Research Department, provided a briefing on the bill, which included a Summary of Changes From the Approved FY 2017 Expenditures (Attachment 3). Approximately $87 million has been re-appropriated from FY 2016 to FY 2017, of which $75 million was the delay for school payments received in July for the June payment. The bill authorizes approximately $15.9 billion in total expenditures, of which $6.9 billion is from the SGF, $17 million less than the approved amount to be spent. The November Consensus Revenue Estimates were reduced by $350 million from available revenue. The Governor proposed to address the shortfall by the following recommendations: permanently delay the $75 million payment to K-12 Education for a fiscal year; freeze state KPERS contributions at the FY 2016 level; adds $147 million from SGF in FY 2017 for human services consensus caseloads; increase SGF transfers from various agencies; reduce agency earnings for the reduction in the value of the Kansas BioScience Authority portfolio sale; reduce State Highway Fund transfer to the SGF; and reduce the Extraordinary Needs Fund. Other adjustments include the following: sell long-term investment portfolio from KPERS and transfer capital gains earned to the SGF for annual repayment of the loan at $45 million over seven years beginning in FY 2018. This information also reflects current year adjustments by agency, which was reviewed.
J.G. Scott responded to questions from committee members. It was noted that the agency reductions include the KPERS payment, this amount could be adjusted after the April Revenue Estimates when the Omnibus bill is worked in committee. Regarding the Legislative Budget, it was noted that the amount appropriated but unused was carried over into FY 2017, A review of the liquidation of the long-term investment fund and the average balance of the short-term fund followed. Approximately $200 million in delayed payments to the schools has accumulated over the past few years and this bill will add approximately $75 million to this amount. Background information was provided on the Extraordinary Needs Fund, as was included in HB 2001.
Mark Tallman, Associate Executive Director of Advocacy, Kansas Association of School Boards, presented testimony in neutral position of the bill (Attachment 4) and information distributed last session which summarized the Alvarez and Marsal report on Proposal l. Reduce Excess Cash Carryover Balances (Attachment 5).
Mark Tallman responded to questions from committee members regarding contingency funds, It was suggested that determining use of reserve funds should be based on who determines the fund limit. A schematic reflecting Kansas personal income, employment costs and a comparison of teacher's salaries was requested by committee members. Mr. Tallman stated that this information will be forthcoming. School district cash balances included in the testimony was reviewed.
G.A. Buie, Executive Director, United School Administrators of Kansas and the Kansas School Superintendents Association, presented testimony in neutral position of the bill (Attachment 6). He stated that for those districts that do not have the reserve balance to off-set additional cuts, these cuts may result in fewer school days placing kids at risk, as well as other challenges.
