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Kansas state budget

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Kansas state budget

Flag of Kansas.png
Budget calendar:  Annual
Fiscal year:  2014
State Credit Rating:  AA+ (as of May 2012)
Current Governor:  Sam Brownback
Financial figures
GF expenses[1]:  $6.2 billion (estimated for FY 2013)
All funds expenses:  $14.4 billion (estimated for FY 2013)
Spending % Change:  Green Arrow Up Darker.svg0.06%[2]
% from Federal Funding:  26.95%
State Debt:  $39,025,693,000
Per Capita State Debt:  $13,523
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This page contains information about budget processes and policy issues in Kansas, including:
  • A summary of the budget drafting process
  • Trends in expenditures and revenues
  • Current and past fiscal year budget developments
  • Financial transparency measures

Between fiscal year 2009 and fiscal year 2013, Kansas's total expenditures increased by approximately $0.45 billion, from $13.96 billion in 2009 to $14.41 billion in 2013. This represents a 3.22 percent increase, below the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[3][4]

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[5][6]

  1. Budget instructions are sent to state agencies in June.
  2. State agencies submit their budget requests to the Governor in September.
  3. Agency hearings are held in November.
  4. The Governor submits his or her proposed budget to the state legislature on the eighth calendar day of the legislative session. For new governors, this deadline is extended to the 21st calendar day of the session.
  5. The legislature typically adopts a budget in May. A simple majority is required to adopt a budget. The fiscal year begins in July.

The Governor may exercise line item veto and item veto of appropriations authority.[6]

The Governor is legally required to submit a balanced proposed budget. Likewise, the legislature is legally required to adopt a balanced budget.[6]

Expenditures

Definitions

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[7]

  • General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
  • Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
  • Federal funds: "Funds received directly from the federal government."
  • Bonds: "Expenditures from the sale of bonds, generally for capital projects."

2013 expenditures

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[7] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[7]
State General fund Federal funds Other funds Bonds Total Per capita expenditures
Kansas $6,198 $3,599 $4,193 $415 $14,405 $4,977.61
Iowa $6,231 $5,682 $7,539 $157 $19,609 $6,345.10
Minnesota $20,056 $8,637 $6,263 $810 $35,766 $6,598.43
Missouri $8,022 $7,209 $7,712 $0 $22,943 $3,795.89
Nebraska $3,590 $3,014 $3,559 $0 $10,163 $5,439.08
Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[8][9]
Source: National Association of State Budget Officers

Expenditures by function

Breakdown of expenditures by function in FY 2012.
Source: National Association of State Budget Officers

State expenditures in Kansas can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percents)[7]
State Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
Kansas 25.8% 16.9% 0.3% 18.6% 2.5% 8.8% 27.1%
Iowa 16.8% 25.0% 0.6% 19.6% 2.7% 7.5% 27.8%
Minnesota 23.8% 9.7% 1.4% 27.6% 1.5% 8.3% 27.7%
Missouri 22.6% 4.7% 0.7% 35.0% 2.6% 10.4% 23.9%
Nebraska 15.3% 23.5% 0.5% 16.7% 2.3% 7.5% 34.3%
Source: National Association of State Budget Officers

Expenditure trends

From 2008 to 2012, elementary and secondary education spending fell by 2.4 percent. During the same period, spending categorized as "other" rose by nearly four percent. The table below details changes in expenditures from 2008 to 2012.[7][10][11][12][13] Figures are rendered as percents, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)
Year Elementary and secondary ed. Higher ed. Public assistance Medicaid Corrections Transportation Other
2012 25.8% 16.9% 0.3% 18.6% 2.5% 8.8% 27.1%
2011 26.0% 16.5% 0.4% 18.2% 2.5% 10.3% 26.0%
2010 25.5% 16.1% 0.4% 18.8% 2.6% 8.3% 28.3%
2009 26.4% 16.6% 0.4% 17.4% 2.7% 11.5% 25.0%
2008 28.2% 17.5% 0.4% 18.7% 3.1% 8.8% 23.3%
Change in % -2.4% -0.60% -0.1% -0.1% -0.6% 0% 3.8%
Source: National Association of State Budget Officers

Revenues

2013 revenues

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[7] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[7]
State Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
Kansas $2,525 $2,931 $371 $0 $514 $6,341 $2,191.12
Iowa $2,109 $3,315 $448 $120 $645 $6,637 $2,147.61
Minnesota $4,817 $8,649 $1,165 $39 $2,786 $17,456 $3,220.44
Missouri $1,872 $5,489 $415 $0 $307 $8,083 $1,337.32
Nebraska $1,475 $2,102 $276 $1 $199 $4,052 $2,168.57
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[8]
Source: National Association of State Budget Officers

Revenue trends

The table below details the change in revenue sources in the general fund from 2009 to 2013.[7][10] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Kansas ($ in millions)[7][10]
Year Sales tax Personal income tax Corporate income tax Gaming tax Other taxes and fees Total Per capita revenue**
2013 $2,525 $2,931 $371 $0 $514 $6,341 $2,191.12
2012 $2,462 $2,908 $284 $0 $759 $6,413 $2,222.57
2011 $2,253 $2,710 $225 $0 $694 $5,882 $2,049.80
2010 $1,858 $2,418 $225 $0 $690 $5,191 $1,815.73
2009 $1,925 $2,682 $240 $0 $742 $5,589 $1,982.80
Change in % 31.17% 9.28% 54.58% 0.00% -30.73% 13.46% 10.51%
Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[8][9]
Source: National Association of State Budget Officers

State budgets by year

Fiscal year 2014

DocumentIcon.jpg See budget bill: SB 171

Kansas state budget -- 2014
Kansas State Legislature
Text:SB 171
Legislative History
Introduced:February 12, 2013
State House:March 26, 2013
Vote (lower house):122-0-3
State Senate:February 28, 2013
Vote (upper house):40-0
Conference:June 1, 2013
Conference Vote (upper house):21-15
Conference Vote (lower house):63-51
Governor:Sam Brownback
Signed:June 15, 2013

On June 15, 2013, Governor Sam Brownback signed into law a budget plan covering fiscal years 2014 and 2015. The budget included cuts to higher education spending, in spite of Brownback's resistance to any such cuts. The budget as passed also included significant cuts to the fiscal year 2015 budget for the Department of Corrections, which Brownback vetoed entirely.[14]

Brownback and Republican lawmakers argued that drafting a two-year budget would allow for better planning and encourage greater economic stability. The fiscal year 2014 budget totaled $14.5 billion and the fiscal year 2015 budget totaled $14.2 billion.[14]

Senate Democratic Leader Anthony Hensley blasted the budget as "the most irresponsible budget in years." Hensley added, "Sam Brownback has signed a budget that will result in cutting jobs essential to our state institutions, raising tuition on our students, and jeopardizing the public safety of our citizens.[14]

Fiscal year 2013

See also: Kansas state budget (2012-2013)

Fiscal year 2012

See also: Kansas state budget (2011-2012)

Fiscal year 2011

See also: Kansas state budget (2010-2011)

Fiscal year 2010

See also: Kansas state budget (2009-2010)

Historical spending

State budget historical spending below was compiled by the National Association for State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[7][11]

Historical state budget spending in Kansas ($ in millions)
Fiscal year General Fund Other funds Federal funds Bonds Budget totals
Total % of Budget Total % of Budget Total % of Budget Total % of Budget
2011-2012 $6,098 42.4% $3,737 26% $4,153 28.8% $408 2.8% $14,396
2010-2011 $5,667 38.6% $4,172 28.4% $4,472 30.5% $374 2.5% $14,685
2009-2010 $5,268 37.5% $3,926 28% $4,532 32.3% $318 2.3% $14,044
Averages: $5,677.67 39% $3,945 27% $4,385.67 31% $366.667 3% $14,375
General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.

State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Kansas had a state debt of over $39 billion. Its state debt per capita was $13,523. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.[15][16]

Total state debt in Kansas[17]
Type Totals U.S. rank
Total state debt $39,025,693,000 34
Per capita debt $13,523 28
State and other fund expenditures $9,835,000,000 26

Public pensions

See also: Kansas public pensions and Kansas public employee salaries

As of the end of 2012, Kansas public pensions had total estimated liabilities of $23.5 billion dollars, but had only 56.4 percent of those liabilities funded, resulting in unfunded liabilities of $10.3 billion.[18]

One of the contributing factors to this large unfunded liability is the state's failure to fully fund the Annual Required Contribution (ARC); since 2005, the state has allocated an average of less than 70 percent of the ARC. Additionally, Kansas assumes an 8 percent rate of return on its investments, which it failed to meet nine times between 2001 and 2012.[18][19][20]

Credit ratings

States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit ranking indicates lower risk for an investor, which in turn lowers costs for taxpayers.[21]

The table below lists the Standard and Poor's credit ranking for Kansas from 2001 to 2012 (grades from surrounding states are provided for additional context).[21]

S&P credit ratings from 2001 to 2012
Kansas Iowa Minnesota Missouri Nebraska
2012 AA+ AAA AA+ AAA AAA
2011 AA+ AAA AAA AAA AAA
2010 AA+ AAA AAA AAA AA+
2009 AA+ AAA AAA AAA AA+
2008 AA+ AAA AAA AAA AA+
2007 AA+ AA+ AAA AAA AA+
2006 AA+ AA+ AAA AAA AA+
2005 AA+ AA+ AAA AAA AA+
2004 AA+ AA+ AAA AAA AA+
2003 AA+ AA+ AAA AAA AA+
2002 AA+ AA+ AAA AAA AA+
2001 AA+ AA+ AAA AAA AA+

Federal aid to state budget

See also: Federal aid to budgets in the 50 states

The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.[22]

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[22]

Federal aid to state budgets in 2012
State Federal aid as % of general revenue Total federal aid National rank
Kansas 26.95% $4,061,217,000 41
Iowa 33.27% $6,073,376,000 25
Minnesota 28.13% $9,608,018,000 39
Missouri 39.42% $10,440,927,000 5
Nebraska 34.34% $3,141,413,000 22

Stimulus

Kansas received $2.1 billion in federal funding between February 2009 and June 2013.[23]

Budget transparency

Transparency evaluation
KanView Kansas Department of Administration, Purchasing
Searchability Y
600px-Yes check.png
Y
600px-Yes check.png
Grants Y
600px-Yes check.png
N
600px-Red x.png
Contracts N
600px-Red x.png
Y
600px-Yes check.png
Line item expenditures Y
600px-Yes check.png
N
600px-Red x.png
Dept./agency budgets Y
600px-Yes check.png
N
600px-Red x.png
Public employee salaries P
Partial.png
N
600px-Red x.png
Last evaluated in 2012.
See also: Evaluation of Kansas state website and Constitutional provisions regarding reading of bills

KanView is the state's online spending database. Legislation was passed in 2007 and 2008 that mandated greater financial transparency for Kansas state government.[24]

Article 2, Section 15 of the state constitution states that "no bill shall be passed on the day that it is introduced; dispensable in case of emergency as declared by two-thirds of members present in the House where it is pending."

Government tools

The table to the right is helpful in evaluating the level of transparency provided by KanView.

Multi-measure budget transparency profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Kansas, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[25][26]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Kansas tied for eighth in the nation with 12 other states, earning six out of eight possible points.[26]

Kansas - IGPA score for budget process, contents and disclosure
Budget transparency indicator Yes or no?
Performance measures
{{{1}}}
"Generally Accepted Accounting Principles" budget N
600px-Red x.png
Multi-year forecasting
{{{1}}}
Annual cycle Y
600px-Yes check.png
Binding revenue forecast N
600px-Red x.png
Legislative revenue forecast
{{{1}}}
Non-partisan staff Y
600px-Yes check.png
Constitution or statutory tax/spend limitations Y
600px-Yes check.png
TOTAL 6

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[26]

U.S. PIRG "Following the Money" report

See also: Following the Money 2014 Report

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[27] According to the report, Kansas received a grade of D- and a numerical score of 50, indicating that Kansas was "lagging" in terms of transparency regarding state spending.[27]

Accounting principles

See also: Kansas government accounting principles

The Kansas Legislative Division of Post Audit is the audit agency of Kansas government.[28] The Legislative Post Audit Committee is a bipartisan committee comprising five senators and five representatives. Audit reports are published online.[29]

Contact information

Kansas Division of the Budget
900 S.W. Jackson, Suite 504
Topeka, KS 66612
Telephone: (785) 296-2436
Fax: Fax: (785) 296-0231
Email: budget.info@budget.ks.gov

See also

External links

Additional reading

References

  1. Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
  2. This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
  3. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  4. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  5. National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting," updated April 2011
  6. 6.0 6.1 6.2 National Association of State Budget Officers "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  7. 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
  8. 8.0 8.1 8.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
  9. 9.0 9.1 United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
  10. 10.0 10.1 10.2 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  11. 11.0 11.1 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  12. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  13. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  14. 14.0 14.1 14.2 The Topeka Capital-Journal, "Brownback signs 2-year budget plan, vetoes DOC cuts," June 15, 2013
  15. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  16. Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
  17. State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  18. 18.0 18.1 KPERS, "2012 Valuation," accessed November 5, 2013
  19. Kansas Public Employee Retirement System, "2009 Valuation Report," accessed October 24, 2013
  20. Kansas Public Employee Retirement System, "2012 Comprehensive Annual Financial Report," accessed October 25, 2013
  21. 21.0 21.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  22. 22.0 22.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  23. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  24. KanView,, "What is KanView?" accessed April 17, 2014
  25. Institute of Government and Public Affairs at University of Illinois, "Home page," accessed February 21, 2014
  26. 26.0 26.1 26.2 Institute of Government and Public Affairs at University of Illinois, "Budget Transparency Profiles - All 50 States," September 2011
  27. 27.0 27.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  28. Kansas Legislative Division of Post Audit, "Home page," accessed August 16, 2013
  29. Kansas Legislative Division of Post Audit, "All LPA Audit Reports," accessed August 16, 2013