June 8, 2016
Budget update: A letter from governmental relations
The Kansas Legislature adjourned Sine Die on June 1. When the Legislature adjourned the Veto Session on May 2, the ending balances were predicted to be $27.3 million in Fiscal Year 16 and $69.8 million in FY 17. The FY 17 balance assumed the governor would issue allotments of $82 million. The governor announced those allotments when he signed the budget bill on May 18. The allotments for higher education totaled $30.6 million.
The legislative proviso requiring future allotments for state universities to be based on all funds was not vetoed by the governor. The allotments were based on all funds and ranged from 5.1 percent at K-State and KU to 2.7 percent at Emporia State. The allotment for ESARP was announced at 2.8 percent and College of Veterinary Medicine at 3.4 percent.
On June 1, the revenue collections for May were released and revenues were $76 million short for the month. The shortfall is expected to be made up by reducing the Children's Initiative Fund $16 million, school funding (extraordinary needs) $15 million, 4-year-old at risk students $11 million, transportation funding $6 million, freezing funds to online virtual schools $3 million and sweeping from cabinet agency fee funds.
The May 27 Kansas Supreme Court ruling on equity in the Gannon school finance suit was struck down. The answer to the ruling appears to require Governor Brownback to call the Legislature into Special Session and appropriate anywhere from $17 million to $40 million dollars for schools for the 2016-17 school year. The Governor has called a Special Session with no date set as of today. The upshot of adding any funding for schools is a hit to the ending balance for FY 17. The governor has already said "If the Kansas Supreme Court orders an additional $40 million or more in funding for schools, it could result in additional cuts to Medicaid and higher education."
If you have additional questions, please contact the Governmental Relations Office at email@example.com or 785-532-6227.