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Minutes for HB2161 - Committee on Appropriations
Short Title
State finances; requiring the KPERS board to liquidate the pooled money investment portfolio investment pursuant to K.S.A. 2016 Supp. 75-2263; transferring money to the state general fund and to the pooled money investment portfolio; authorizing the pooled money investment board to invest idle funds available for long term investment.
Minutes Content for Mon, Feb 13, 2017
Chairman Waymaster opened discussion on the bill.
Jill Wolters, Office of the Revisor of Statutes, provided a briefing on the bill (Attachment1). The bill requires the Kansas Public Employees Retirement System (KPERS) board to liquidate the pooled money investment portfolio investments pursuant to K.S.A. 2016 Supp. 75-2263; transferring money to the State General Fund (SGF) and to the pooled money investment portfolio; authorizing the pooled money investment board to invest idle funds available for long term investment.
Jill Wolters, responded to questions from committee members. She stated that the bill gives more flexibility to move funds from long-term to short term investments, The State Treasurer would have authorization to liquidate funds, when necessary to maintain cash flow. It was noted that legislative action would be required to move money into the SGF, or when transferring money out the fund. Legislation would not be required to liquidate the funds for cash flow purposes. The bill authorizes the transfer of $317.1 million from the Pool Money Investment Portfolio to the SGF, with a $45.3 million transfer from the SGF to the pooled money investment portfolio over a seven year period, beginning FY 2018.
J.G. Scott, Legislative Research Department, stated that KPERS board has moved long term investments into short term investments, which protects the current capital gains and provides easier access to these funds when liquidated.
Chairman Waymaster reviewed an amendment regarding the repayment structure and expressed concern for the FY 2018 budget (Attachment 2).
Chairman Waymaster made a motion for an amendment that, dependent upon revenue streams, would alter the pay structure. The first PMIB payment of $52.8 million would be on July 1, 2019 and would be the same amount over the following six years. Representative Davis seconded the motion. Motion passed.
Discussion followed by committee members regarding prior use of these funds. J.G. Scott, Legislative Research Department, stated that in the past, proceeds from the PMIB were placed in the SGF for Capital Improvement Bonds, Department of Labor, and by statute could be used to pay KPERS Death and Disability benefits, if necessary. Concern was expressed regarding the need to fulfill the commitment for repayment to KPERS..
Representative Helgerson distributed information on the Governor's Proposed SGF Profile for FY 2017 - FY 2019 Major Policy Decisions, and eight scenarios when determining major policy decisions by Representative Helgerson, (Attachment 3). He reviewed prior legislation regarding the ending balance law. The concern was expressed for borrowing money for operating expenses. And, the impact on individuals and services if the money wasn't borrowed.
Discussion followed by committee members regarding borrowing versus additional budget cuts. Emphasis was placed on passing a stable revenue stream. Jill Wolters, Office of the Revisor of Statutes, stated that legislative action would be required for an amendment for prepayment of the loan, which could be done as a proviso, she added.
Representative Davis made a motion to pass HB 2161 favorable for passage as amended. Representative Hoffman seconded the motion. Motion passed.
Representative Helgerson and Representative Burroughs requested that their vote in opposition of the motion be recorded in the minutes.
