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Minutes for HB2121 - Committee on Appropriations
Short Title
Supplemental appropriations for FY 2019, FY 2020, FY 2021, FY 2022, FY 2023 and FY 2024 for various state agencies.
Minutes Content for Wed, Feb 13, 2019
Chairman Waymaster opened the hearing on the bill.
J.G. Scott, Kansas Legislative Research Department, presented an overview of the bill and the Governor's Recommendation for FY 2019 (Attachment 1). The approved FY 2019 budget was $17 billion from the State General Fund (SGF), and includes $47.6 million in SGF expenditure authority that was carried over. For FY 2019, the Governor's recommendation totals $17.2 billion from the SGF, which increase total expenditures by $194.9 million and includes $54.9 million from the SGF above the approved amount. He reviewed the additional SGF expenditures, which are listed as follows: the Department of Administration; Department for Children and Families; increased human services caseload, decreased human services non-caseloads primarily in Medicaid waiver programs; Kansas Department of Health and Environment state hospital revenue shortfall; Department of Corrections; and the Adjutant General's Department. The Governor recommended the elimination of the SGF transfer to the KPRS Trust Fund, recommended transfering $264.3 million for SGF to the Pooled Money Investment Portfolio PMIB), removes language regarding the transfer of 10 percent of the SGF ending balance to the Budget Stabilization Fund in FY 2021, and delayed expenditures from the Budget stabilization Fund until FY 2025. State tax receipts above the previous year's receipts would be retained or deposited as follows: the first 3 percent would be retained in the SGF; the next 1 percent would be deposited into the Budget Stabilization Fund; the next.05 percent would be deposited in the Debt Prepayment Fund. He responded that the percentages would be determined by aggregate totals. Any amount over 4.5 percent from the previous year's receipts would remain in the SGF. No deposit would be required when the Budget Stabilization Fund balance exceeds 15 percent of the prior year's state tax receipts. And, no deposits would be required when the Debt Repayment Fund exceeds 15 percent of the prior year's amount of principal bond debt service. A review of the withdrawal from the Budget Stabilization and Debt Repayment Fund followed (See attachment 1). Effective FY 2020 through FY 2024, the Governor's recommended revenue adjustments of a $264.3 million transfer to pay the PMIB loan in full, which would have an ending balance of $878 million in SGF expenditures. For FY 2020, FY 2021, FY 2022, FY 2023 and FY 2024, the budget director can approve withdrawls from the Budget Stabilization Fund and withdrawls from the Debt Repayment Fund would be approved by the State Finance Council, he noted.
JG Scott responded to questions from committee members. He stated that the newly created Debt Repayment Fund would stay in effect, but a proviso would be needed after FY 2024 to put money into the fund. Jill Wolters, Office of the Revisor of Statutes, stated that under current law moneys in the budget stabilization fund are expended pursuant to appropriation act or or action of the State Finance Council. She stated that the Governor's policy in HB 2121 repealed K.S.A. 2018 Supp. 75-6707, adopted in the appropriation bill last year, which stated that if actual tax receipts are more than the revenue estimates, of the excess: FY 2020 and FY 2021, 50 percent would go to the Budget Stabilization Fund and 50 percent to PMIB transfer; and FY 2022, 50 percent to the Budget Stabilization Fund and 50 percent to KPERS, applied to the unfunded liability. JG Scott stated that the Family First Prevention Program funds of $452,000 is being used to implement a quality program, a training program and the hiring of the staff members. Upon implementation federal dollars will be drawn down, he noted. Interest earnings from the PMIB, which is money that is in the State Treasury, earns approximately 2.5 percent interest, would go into the SGF and can only borrowed on a temporary basis. Chairman Waymaster stated that in FY 2017 money was borrowed from the PMIB to balance the budget. This was a zero percent loan that was to be paid back in 7 years. No payment made in FY 2018, which changed the timeframe for repayment to 6 years, and the first payment is due in FY 2019, he added. JG stated that the budget shortfalls within certain state hospitals was primarily due to over estimating federal reimbursements.
Chairman Waymaster closed the hearing on the bill.
