Weekly Update from the Third Week.

                      ​John Eplee

Kansas House of Representatives

Weekly Wrap-Up 

Week Three

January 23 – January 27

This past week the House Appropriations Committee and the budget subcommittees dug into Governor Brownback’s recommendations for adjustments to the budget for fiscal year 2017, which ends June 30.  The full appropriations committee held a hearing on the bill but has not yet passed it out of committee.  The state is currently facing a shortfall of $340 million in FY 2017, and the governor adjustments to end the fiscal year with a positive ending balance.  Here are the highlights:

· Freeze KPERS contributions at the reduced 2016 level, saving $86 million

· Fund adjusted human services caseload estimates (changes in cost of services and additional applicants), costing an additional $147 million

· $75 million due to Kansas schools was delayed in late FY 2016 into early FY 2017.  The governor proposes an identical delay in payments in late FY 2017

· Sell a $362 million long-term investment fund.  $45 million in capital gains would immediately go into the state general fund (SGF).  $317 million of principal would be considered an immediate loan to SGF and repaid at $45 million annually over seven years starting in FY 2018

· Increased SGF expenditures at Osawatomie State Hospital due to decertification and loss of federal funds

· Increased SGF expenditures at Larned State Hospital due to withholding of federal funds as a result of reconciliation of past cost control reports

When all the additions and deletions are accounted for, total SGF expenditures would be reduced by $24 million from the amount approved during the 2016 legislative session.