2017-2019 Appropriations Report

414 Pages·2017·2.67 MB·English

Kansas Legislature
201 -201 A R
7 9 PPROPRIATIONS EPORT
Kansas Legislative Research Department
August 2017
TABLE OF CONTENTS
General Budget Overview - Fiscal Years 2017, 2018, and 2019
All Funds..........................................................................................................................................................1-1
State General Fund........................................................................................................................................1-14
Agency Budget Briefs
General Government........................................................................................................................................2-1
Education......................................................................................................................................................2-140
Human Services...........................................................................................................................................2-201
Agriculture and Natural Resources...............................................................................................................2-250
Public Safety.................................................................................................................................................2-268
Transportation.................................................................................................................................................2-339
Tables
A1 Expenditures from the State General Fund for Capital Improvements.......................................................3-1
A2 State General Fund Debt Service for Capital Improvements......................................................................3-4
B1 Expenditures from the Educational Building Fund.....................................................................................3-10
B2 Status of Educational Building Fund..........................................................................................................3-11
C1 Expenditures from the State Institutions Building Fund.............................................................................3-12
C2 Status of the State Institutions Building Fund............................................................................................3-15
D1 Expenditures from the Correctional Institutions Building Fund..................................................................3-16
D2 Status of the Correctional Institutions Building Fund.................................................................................3-17
E1 Expenditures and Transfers from the State Water Plan Fund...................................................................3-18
E2 Status of State Water Plan Fund...............................................................................................................3-20
F Expenditures and Transfers from the Economic Development Initiatives Fund........................................3-21
G Expenditures and Transfers from the Children's Initiatives Fund..............................................................3-23
H Status of the Expanded Lottery Act Revenues..........................................................................................3-25
I Full-Time Equivalent (FTE) Positions by Function of Government............................................................3-26
Index by Agency..............................................................................................................................
V
BUDGET OVERVIEW – FISCAL YEARS 2017, 2018, AND 2019
Budget Overview – All Funds
The 2017 Legislative Session authorized expenditures of rate increase for providers of Home and Community Based
$16.0 billion in FY 2017 from all funding sources, an increase of Services under each of the waivers which added $20.3 million,
$851.1 million, or 5.6 percent, above the FY 2016 actual budget. including $9.1 million from the State General Fund. Funding of
The approved FY 2017 State General Fund budget totals $6.3 $10.5 million, including $7.0 million from the State General Fund,
billion, an increase of $186.6 million, or 3.1 percent, above the FY also was included for community mental health centers.
2016 actual State General Fund amount of $6.1 billion. The FY
2017 budget delayed a $75.0 million payment to K-12 education by The approved budget for FY 2019 authorizes expenditures
one year; funded the human services consensus caseload of $16.2 billion from all funding sources, an increase of $228.0
estimates adding $147.0 million, including $1.9 million from the million, or 1.4 percent, above the FY 2018 approved budget. The
State General Fund; reduced state contributions to KPERS-School approved FY 2019 State General Fund budget totals $6.6 billion,
by 17.0 percent from the statutory rate for a State General Fund an increase of $16.3 million, or 0.2 percent, above the FY 2018
decrease of $64.1 million to be repaid at $6.4 million per year approved State General Fund budget. Major adjustments include:
starting for FY 2018; and transferred funding from the Treasurer’s adding language to repay delayed FY 2019 employer contributions
Unclaimed Property Fund in KPERS to the State General Fund to of $194.0 million to KPERS via layered amortization beginning in
guarantee a $50.0 million ending balance in FY 2017, with the FY 2020, and a 4.0 percent rate increase for providers of Home
remainder of the $317.2 million to be transferred for FY 2018, to be and Community Based Services under each of the waivers was
paid back in six equal yearly payments starting for FY 2019. included, which added $48.1 million, including $21.6 million from
the State General Fund. Funding of $13.2 million, including $8.2
The approved budget for FY 2018 authorizes expenditures million from the State General Fund, for community mental health
of $15.9 billion from all funding sources, a decrease of $29.0 centers also was added.
million, or 0.2 percent, below the FY 2017 approved budget. The
approved FY 2018 State General Fund budget totals $6.6 billion, In 2017 SB 19, the Legislature increased the State General
an increase of $290.6 million, or 4.6 percent, above the FY 2017 Fund for K-12 education by $162.9 million for FY 2018 over FY
approved State General Fund budget. The approved budget 2017 and an additional $72.6 million for FY 2019 over FY 2018 by
increases the Governor’s recommended expenditures by $443.0 adopting a new school finance formula. The new formula multiplies
million, including $354.3 million from the State General Fund, for the base aid for student excellence (BASE) by the adjusted
FY 2018. enrollment of the district and deducts the local foundation aid of the
district. The formula also adjusts the BASE going forward using the
Major adjustments to previous budgets reflects: adding Consumer Price Index.
$26.7 million, including $12.2 million from the State General Fund,
for state employee salary adjustments for FY 2018 and the same Based on current financing, the State General Fund will
amount in FY 2019; adding $43.0 million to increase the finance 39.5 percent of FY 2017 expenditures, 41.3 percent of FY
reimbursement rate for all providers by 4.0 percent with the 2018 expenditures, and 40.9 percent of FY 2019 expenditures. All
increased revenue from the health maintenance organization other expenditures are financed from approximately 1,000 special
(HMO) privilege fee for FY 2018 and FY 2019 and a 3.0 percent revenue funds, dedicated building funds, and federal grants.
Kansas Legislative Research Department 1-1 FY 2018 Appropriations Report
Summary of Expenditures by Major Purpose – All Funds
State expenditures can be divided into four major areas of units (Medicaid payments, public welfare, and unemployment
expenditure: state operations expenses incurred in the direct insurance payments); and capital improvements (repairs and
operations of state government (salaries and wages, rents, and construction of State-owned facilities, including highways).
travel); aid to local units of government (payments to governmental
units that provide services at the local level and in most cases Table I summarizes the FY 2016 through FY 2019 budgets
have taxing authority); other assistance, grants, and benefits by major purpose of expenditure.
(payments to individuals and agencies that are not governmental
TABLE I
All Funds Expenditures by Major Purpose
(Dollars in Millions)
Actual Approved Approved FY 2017 – FY 2018 Change Approved FY 2018 – FY 2019 Change
FY 2016 FY 2017 FY 2018 Dollar Percent FY 2019 Dollar Percent
State Operations $ 4,736.2 $ 5,060.3 $ 5,015.9 $ (44.4) (0.9)% $ 5,010.9 $ (5.0) (0.1)%
Aid to Local Units 4,998.7 5,110.2 5,473.4 363.3 7.1 5,442.1 (31.4) (0.6)
Other Assistance 4,775.1 4,927.7 4,960.5 32.8 0.7 4,975.5 15.0 0.3
Subtotal Operating $ 14,510.0 $ 15,098.2 $ 15,449.8 $ 351.7 2.3 % $ 15,428.5 $ (21.4) (0.1)%
Capital Improvements 614.3 877.2 496.6 (380.7) (43.4) 746.0 249.4 50.2
TOTAL $ 15,124.3 $ 15,975.3 $ 15,946.4 $ (29.0) (0.2)% $ 16,174.4 $ 228.0 1.4 %
Note: Totals may not add due to rounding.
Approved operating expenditures, which consist of total units of government; 31.1 percent is for other assistance, grants,
expenditures less capital improvements, increase by $351.7 and benefits; and 3.1 percent is for capital improvements. For FY
million, or 2.3 percent, from FY 2017 to FY 2018 and decrease by 2019, state operations account for 31.0 percent; 33.7 percent is for
$21.4 million, or 0.1 percent, from FY 2018 to FY 2019. Approved aid to local units of government; 30.8 percent is for other
capital improvements expenditures decrease by $380.7 million, or assistance, grants, and benefits; and 4.6 percent is for capital
43.4 percent, for FY 2018 and increase by $249.4 million, or 50.2 improvements.
percent, for FY 2019. Of the total authorized budget for FY 2018,
The following chart displays expenditures from all funding
31.5 percent is for state operations; 34.3 percent is for aid to local
sources for FY 2018 and FY 2019 by function of government.
Kansas Legislative Research Department 1-2 FY 2018 Appropriations Report
All Funds Expenditures by Major Purpose
(Dollars in Millions)
FY 2018 FY 2019
Capital Improvements
Capital Improvements
$496.6
$746.0
Other Assistance
Other Assistance
$4,960.5
$4,975.5
State Operations
$5,015.9 State Operations
$5,010.9
Aid to Local Aid to Local
$5,473.4 $5,442.1
TOTAL: $15,946.4 TOTAL: $16,174.4
Kansas Legislative Research Department 1-3 FY 2018 Appropriations Report
State Operations – All Funds
All funds expenditures for state operations comprise 31.7 Agencies having significant decreases for state operations
percent of total expenditures in FY 2017, 31.5 percent for FY 2018, for FY 2019 below FY 2018 include Osawatomie State Hospital
and 31.0 percent in FY 2019. All fund expenditures for state ($7.2 million, or 22.5 percent) and the Kansas Water Office ($1.2
operations total $5.0 billion for FY 2018 and represents a net million, or 15.4 percent). The decrease for Osawatomie State
decrease of $44.4 million, or 0.9 percent, below the FY 2017 Hospital is primarily due to the absence of the funding added in FY
amount. The approved FY 2019 all funds amount is $5.0 billion and 2018 for increased operating expenditures and to replace funding
represents a net decrease of $5.0 million, or 0.1 percent, below the lost due to the decertification of the hospital. The Kansas Water
FY 2018 approved budget. In addition to specific agency changes, Office decreases were primarily due to decreased revenues in the
there also are statewide information technology and other savings State Water Plan Fund.
of $5.0 million for both FY 2018 and FY 2019.
The approved state operations expenditures included $26.7
Agencies having substantial increases in state operations million, including $12.2 million from the State General Fund, for
for FY 2018 from FY 2017 include the Kansas Insurance state employee salary adjustments for FY 2018 and the same
Department (KID) ($3.2 million, or 29.9 percent) and the Kansas amount for FY 2019. The salary adjustments included a 2.5
Department of Wildlife, Parks and Tourism (KDWPT) ($8.0 million, percent adjustment for all state employees with less than five years
or 13.4 percent). The substantial increases in state operations for of service (except for Highway Patrol law enforcement personnel,
the KID were due to the transfer of funding and positions of the legislators, teachers and licensed personnel and employees at the
Office of the Securities Commissioner to KID to consolidate those Schools for the Deaf and the Blind, employees at the Kansas
functions into one agency. For KDWPT, the increase was largely Bureau of Investigation who are part of the Recruitment and
due to including agricultural fund expenditures from the public Retention Plan, and other statewide elected officials); a 5.0 percent
lands division within the budget and dam repairs at the Woodson adjustment for state employees who have not had a pay
County State Fishing Lake and the Clark State Fishing Lake. adjustment in five years; and a 2.5 percent adjustment for judges
and non-judicial staff for FY 2018 and FY 2019.
Significant decreases in state operations include the
Sentencing Commission ($251,653, or 18.5 percent), Department Eligible employees will receive longevity bonus payments at
of Health and Environment (KDHE) ($36.6 million, or 14.9 percent), the statutory rate of $40 per year of service. Executive Branch
and the Office of the Governor ($477,019, or 12.7 percent). The employees hired or re-employed on or after June 15, 2008, are not
decrease in the Sentencing Commission was due primarily to lower eligible for longevity bonus payments. Funding for longevity
contractual services expenditures related to the payment of a third- payments totals $5.1 million from all funds, including $1.9 million
party utilization management company and the Office of the from the State General Fund, for FY 2018 and $4.4 million from all
Governor decrease was because of reduced salaries and wages funds, including $1.6 million from the State General Fund, for FY
and travel expenditures. The KDHE decrease was due to a 2019.
reduction in consulting contracts for large information technology
projects including the Medicaid Management Information System KPERS employer contributions were reduced by $64.0
and Kansas Eligibility and Enforcement System. million, all from the State General Fund, in FY 2017 and language
Kansas Legislative Research Department 1-4 FY 2018 Appropriations Report
was added to repay this delayed amount via layered amortization layered amortization beginning for FY 2020. Payments for the
beginning for FY 2018. KPERS employer contributions were KPERS Death and Disability Fund were suspended for the first six
funded in full for FY 2018. Additionally, employer contributions were pay periods of FY 2018, further reducing expenditures by $12.6
reduced by $194.0 million, all from the State General Fund, for FY million, including $10.1 million from the State General Fund.
2019 and language was added to repay this delayed amount via
FY 2018 State Employee Compensation
(Dollars in Millions)
State General Fund All Funds
Base salary increase. $ 12.2 $ 26.7
State employees with less than five years of service received a 2.5 percent
adjustment (except for Highway Patrol law enforcement personnel, legislators,
teachers and licensed personnel and employees at the Schools for the Deaf and
the Blind, employees at the Kansas Bureau of Investigation who are part of the
Recruitment and Retention Plan, and other statewide elected officials).
State employees who have not had a pay adjustment in five years received a 5.0
percent adjustment.
Judges and non-judicial staff received a 2.5 percent adjustment.
–– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –
Longevity bonus pay for current classified employees. The statutory rate for $ 1.9 $ 5.1
longevity bonus pay is $40 per year of service.
Employees hired or re-employed on or after June 15, 2008, will not be eligible to
receive longevity bonus pay.
–– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –
TOTAL $ 14.1 $ 31.8
FTE Positions. The FY 2018 approved budget includes positions, or 0.1 percent, above the FY 2017 number. The increase
37,172.7 FTE positions and represents a increase of 39.0 is largely attributable to adding 17.0 FTE positions in the Office of
Kansas Legislative Research Department 1-5 FY 2018 Appropriations Report
Information and Technology Services for implementation of the positions due to the merger of the Larned and Kansas Juvenile
Governor’s Cybersecurity Initiative, adding 13.0 FTE positions in Correctional Facilities. The FY 2019 approved budget includes
the Department of Agriculture with small adjustments in most 37,160.7 FTE positions and represents a decrease of 12.0
programs; adding 7.5 FTE positions in the Department for Children positions, or less than 0.1 percent, below the FY 2018 number. The
and Families for Child Welfare Compliance and Foster Home decrease is largely attributable to adding 4.0 FTE positions in the
Licensing; adding 10.0 FTE positions to maintain agency staffing in Office of the Attorney General Office for the transfer of the Office of
the Kansas Lottery; adding 4.0 FTE positions in the Office of the the Inspector General from the Kansas Department of Health and
Attorney General for the transfer of the Office of the Inspector Environment to the Office of the Attorney General and adding 2.0
General from the Kansas Department of Health and Environment FTE positions for MSA diligent enforcement and compliance with
to the Office of the Attorney General; and adding 3.0 FTE positions tribal nations in the Department of Revenue, partially offset by the
for Master Settlement Agreement (MSA) diligent enforcement and deletion of 17.0 FTE positions in the Office of Information and
compliance with tribal nations in the Department of Revenue. The Technology Services as the Cybersecurity Initiative is not currently
increases were partially offset by a reduction of a net of 14.0 FTE funded for FY 2019.
Kansas Legislative Research Department 1-6 FY 2018 Appropriations Report
Full-Time Equivalent (FTE) Positions
by Function of Government
FY 2018 FY 2019
Transportation Transportation
General Government General Government
1,846.0 1,846.0
4,797.8 Public Safety 4,785.8 Public Safety
Agriculture/Nat. Res. 4,706.0 Agriculture/Nat. Res. 4,706.0
783.1 783.1
Human Services Human Services
5,670.7 5,670.7
Education Education
19,369.1 19,369.1
TOTAL: 37,172.7 TOTAL: 37,160.7
Aid to Local Units of Government – All Funds
Approved expenditures in FY 2017 for aid to local units of 55.1 percent of State General Fund expenditures. For FY 2019,
government total $5.1 billion, including $3.3 billion from the State approved aid to local units of government totals $5.4 billion,
General Fund. For FY 2018, approved aid to local units of comprising 33.7 percent of total expenditures and 53.9 percent
government totals $5.5 billion, including $3.6 billion from the State of State General Fund expenditures.
General Fund, comprising 34.3 percent of total expenditures and
Kansas Legislative Research Department 1-7 FY 2018 Appropriations Report
Approved expenditures for aid to local units of government units of government, other than education, increases by $9.9
increase by $363.2 million, or 7.1 percent, from FY 2017 to FY million, or 12.9 percent, from FY 2018 to FY 2019. This is largely
2018 and decrease by $31.4 million, or 0.6 percent, from FY 2018 due to increases in mental health grants.
to FY 2019. The vast majority of local aid (over 90.0 percent) is
A complete table of state aid to local units of government
paid to unified school districts. The aid to local units of government
from the State General Fund for FY 2016 through FY 2019 and a
payment to school districts is estimated to increase by $290.9
table of state aid from selected other funds from FY 2016 through
million, or 9.5 percent, from FY 2017 to FY 2018 and decrease by
FY 2019 can be found later in this document in Tables X and XII.
$74.5 million, or 2.2 percent, from FY 2018 to FY 2019. Aid to local
Other Assistance – All Funds
Approved expenditures for other assistance, grants, and primarily attributable to increases in foster care and family
benefits total $4.9 billion in FY 2017, and comprise 30.8 percent of preservation services and partially offset by decreases in cash
total expenditures. For FY 2018 approved other assistance assistance and energy assistance payments. The Office of the
expenditures are $5.0 billion and comprise 31.1 percent of total Governor increased by $2.2 million, or 11.5 percent, largely due to
expenditures. Approved expenditures for FY 2019 total $5.0 billion increases in Victims of Crime Assistance (VOCA) and Domestic
and comprise 30.8 percent of total expenditures. More than 80.0 Violence Prevention grants.
percent of this amount ($4.2 billion, or 83.9 percent, for FY 2018
Within the Department of Labor, approved other assistance
and $4.2 billion, or 84.1 percent, for FY 2019) consists of
expenditures for FY 2018 decrease by $12.1 million, or 5.5
expenditures for public welfare, Medicaid, and long-term care
percent, and reflect lower budgeted unemployment insurance
programs of the Kansas Department of Health and Environment
payments. For FY 2018, the Department of Agriculture had a
(KDHE) ($2.3 billion, or 46.4 percent, for FY 2018 and $2.3 billion,
decrease of $2.6 million, or 41.2 percent, below the FY 2017 other
or 45.5 percent, for FY 2019); the Kansas Department for Aging
assistance amount, largely due to carry-forward State Water Plan
and Disability Services (KDADS) ($1.4 billion, or 29.8 percent, for
Fund expenditures that appear in the FY 2017 budget ($1.4 million)
FY 2018 and $1.5 billion, or 30.8 percent, for FY 2019); and the
and the one-time expenditure of the federal grant for the Biofuel
Department of Children and Families (DCF) ($382.9 million, or 7.7
Infrastructure Program occurring in FY 2017.
percent, for FY 2018 and $378.4 million, or 7.6 percent, for FY
2019). Another large component of this category of expenditures is From FY 2018 to FY 2019, approved expenditures
the Unemployment Insurance program of the Department of Labor increased by $15.0 million, or 0.3 percent. The largest change is
($208.8 million, or 4.2 percent, for FY 2018 and $210.7 million, or reflected in the Kansas Department of Aging and Disability
4.2 percent, for FY 2019). Services with an increase of $53.7 million, or 3.6 percent and is
due to a 4.0 percent rate increase for providers of Medicaid Home
Approved expenditures for other assistance from FY 2017
and Community Based Services. For FY 2019, the largest other
to FY 2018 increased by $32.8 million, or 0.7 percent. Approved
assistance expenditures decrease is $39.6 million, or 1.7 percent,
other assistance expenditures for KDHE increase by $30.0 million,
in KDHE, largely due to the anticipated resolution of the eligibility
or 1.3 percent, from FY 2017 to FY 2018, largely due to medical
backlog and the delay of KanCare renewal. The Office of the
program expenditures primarily to restore the 4.0 percent Medicaid
Governor increased by $2.8 million, or 12.8 percent, largely due to
rate reduction to hospital and non-hospital providers. For DCF,
increases in Victims of Crime Assistance (VOCA) and Domestic
other assistance increased by $14.4 million, or 3.9 percent,
Violence Prevention grants.
Kansas Legislative Research Department 1-8 FY 2018 Appropriations Report