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SENATE BILL No. 14
AN ACT concerning the state budget; providing for a continuous budget until amended,
lapsed or eliminated by the legislature ; providing temporary reallocations;
establishing conditions and limitations therefor ; repealing section 1 of 2025 Senate
Bill No. 14.
Be it enacted by the Legislature of the State of Kansas:
Section 1. (a) Except as provided further, if the legislature does
not amend, lapse or eliminate any existing appropriation in the current
fiscal year on or before July 1 of any year, on July 1, such existing
appropriations provided for the previous fiscal year shall be in effect in
the new fiscal year and all subsequent fiscal years until amended,
lapsed or eliminated by the legislature. If the biennial budget for state
agencies listed in K.S.A. 75-3717(f), and amendments thereto, has not
been enacted on or before June 30 of any year, the department of
administration may, for accounting purposes, adjust its appropriation
account structure, beginning on July 1 of such year, to reflect the
appropriation account structure in the biennial state agencies budget.
(b) All appropriations to any state agency, expenditures from
which, by law, may be made only with the approval of the governor,
state finance council, secretary of administration or other entity, shall
be construed to be conditional appropriations, which shall become
available only as contemplated expenditures therefrom are approved by
the governor, state finance council, secretary of administration or other
entity as required by law.
(c) Whenever a continuing appropriation from any account or fund
has accomplished its purpose or is no longer deemed necessary for such
purpose, the secretary of administration is authorized to lapse such
appropriation balance or decrease the expenditure limitation, in whole
or in part, to the account or fund from which it was appropriated upon
consultation with the head of the state agency concerned. Prior to
taking any action under this subsection, the secretary of administration
shall consult with the director of the budget and the director of
legislative research. The provisions of this subsection shall not apply to
any continuing appropriation of the legislative branch or the judicial
branch.
(d) All continuing appropriations are subject to the specific
provision that, when and if the federal government funding of any
portion of a program is reduced or terminated, state participation in the
program may be reduced by the secretary of administration, in the same
proportion as such federal reduction, and such state reduction shall be
implemented by the responsible state agency. Prior to taking any action
under this subsection, the secretary of administration shall consult with
the director of the budget and the director of legislative research.
Notwithstanding any other provision of law, local units of government
are hereby authorized to make similar proportional reductions in such
local unit's support of such programs.
(e) If any continuing appropriation that is made to match or secure
federal funds is in excess of the amount required to match or secure
federal funds, the state agency that is responsible for the administration
of such funds shall promptly notify the director of the budget, who
shall promptly notify the governor and the state finance council. Such
funds shall not be expended unless first approved by the state finance
council. Such state finance council action on this matter is hereby
characterized as a matter of legislative delegation and subject to the
guidelines prescribed in K.S.A. 75-3711c(c), and amendments thereto,
except that such authorization also may be given while the legislature is
in session.
(f) (1) Except as provided in paragraph (2), all continuing
appropriations, accounts and special revenue fund balances within the
state general fund or any special revenue fund may be made
SENATE BILL No. 14—page 2
temporarily available for the purpose of allowing encumbrances or
financing expenditures of other state general fund or any special
revenue fund activities whenever there are insufficient moneys in the
funds or accounts from which the activities are financed if there are
accounts receivable balances or moneys anticipated to be received that
will be sufficient to repay the fund or account from which moneys are
transferred. The secretary of administration, in consultation with the
appropriate state agency head, director of the budget and director of
legislative research, shall determine the composition and allowability of
the accounts receivable balances and anticipated moneys to be received
for this purpose and, following approval by the state finance council,
shall specifically approve the use of surplus moneys from the state
general fund or any special revenue fund. Such funds shall not be
expended unless first approved by the state finance council. Such state
finance council action on this matter is hereby characterized as a matter
of legislative delegation and subject to the guidelines prescribed in
K.S.A. 75-3711c(c), and amendments thereto, except that such
authorization also may be given while the legislature is in session. The
secretary of administration shall reallocate available moneys from the
budget stabilization fund, established in K.S.A. 75-6706, and
amendments thereto, prior to reallocating moneys from any other
account or fund.
(2) (A) The secretary of administration shall limit the total amount
of any temporary reallocations to an account or fund other than the
state general fund to $400,000,000.
(B) The secretary of administration shall limit the total amount of
any temporary reallocations to the state general fund at any one time
during a fiscal year to an amount equal to 9% of the total amount
authorized to be expended or transferred by demand transfer from the
state general fund, calculated by the secretary as of that time and for
that fiscal year.
(C) In addition to the amount permitted for temporary
reallocations in subparagraph (B), the secretary may permit an
additional 3% of the total amount authorized to be expended or
transferred by demand transfer from the state general fund, calculated
by the secretary as of that time and for that fiscal year, to be used for
temporary reallocations to the state general fund but only if the
reallocation is for a period not to exceed 30 days. Reallocations may
not be made under this subparagraph for consecutive periods.
(D) This paragraph does not apply to reallocations from the
budget stabilization fund to the state general fund.
(E) Prior to taking any action under this paragraph, the secretary
of administration shall consult with the director of the budget and the
director of legislative research.
(3) If a continuing appropriation to an account within the state
general fund or a special revenue fund is transferred from an account or
fund that by law is an interest-bearing account or fund, then on or
before the 10th day of each month during any fiscal year of such
continuing appropriation, the director of accounts and reports shall
transfer from the state general fund to such interest-bearing account or
fund interest earnings based on: (A) The average daily balance of such
interest-bearing account or fund for the preceding month; and (B) the
net earnings rate for the pooled money investment portfolio for the
preceding month.
(4) The secretary of administration shall not exercise the authority
granted in this subsection if a temporary reallocation would jeopardize
the cash flow of any fund or account from which a temporary
reallocation would be made.
(5) If the secretary of administration exercises or proposes to
SENATE BILL No. 14—page 3
exercise the authority granted in this subsection, the secretary shall
publish and transmit a report to the members of the house committee on
appropriations and the senate committee on ways and means on a
monthly basis specifying the date, amount, source and use of any
outstanding temporary reallocation or proposed reallocation of moneys
for the period covered by the report.
(g) As used in this section, "continuing appropriation" means the
appropriation provided for in the previous fiscal year.
(h) If any provision or clause of this section or application thereof
to any person or circumstance is held invalid, such invalidity shall not
affect other provisions or applications of this section that can be given
effect without the invalid provision or application, and to the end the
provisions of this section are declared to be severable.
Sec. 2. On July 1, 2030, section 1 of 2025 Senate Bill No. 14 is
hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the Kansas register.
I hereby certify that the above BILL originated in the
SENATE, and passed that body
__________________________
SENATE adopted
Conference Committee Report ________________
_________________________
President of the Senate.
_________________________
Secretary of the Senate.
Passed the HOUSE
as amended _________________________
HOUSE adopted
Conference Committee Report ________________
_________________________
Speaker of the House.
_________________________
Chief Clerk of the House.
APPROVED _____________________________
_________________________
Governor.