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Session of 2025
SENATE BILL No. 140
By Committee on Education
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AN ACT concerning school districts; relating to school district budgeting
and accounting; requiring school district budgets to include
expenditures and the actual amount budgeted for the current, preceding
and second preceding years; requiring such information to be reported
at the object-level; requiring the board of education of a school district
to prepare and include a report when an item's expenditure deviates by
10% or more from the actual amount budgeted for such item or when
the amount budgeted for an item in the ensuing year deviates by 10% or
more from the amount expended upon such item in the current year;
requiring any such report to be published by the school district and the
state department of education; requiring school districts to account for
expenditures at the object level and further account for expenditures at
the sub-object level when possible; amending K.S.A. 79-2926, 79-2927
and 79-2927a and K.S.A. 2024 Supp. 72-1167 and repealing the
existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2024 Supp. 72-1167 is hereby amended to read as
follows: 72-1167. (a) This section shall be known and may be cited as the
Kansas uniform financial accounting and reporting act.
(b) As used in this section:
(1) "Budget summary" means a one-page summary of the official
budget adopted by the board of education of the school district, and shall
include, but is not limited to, graphs depicting the total expenditures in the
budget by category, supplemental and general fund expenditures,
instruction expenditures, enrollment figures, mill rates by fund and
average salaries. For purposes of this section, a one-page budget at a
glance format developed by the state board, and any successor format shall
be deemed a budget summary, provided it complies with the requirements
of this section.
(2) "Reporting system" means the uniform reporting system,
including a uniform chart of accounts, developed by the state board as
required by this section.
(3) "School district" means a unified school district organized and
operated under the laws of this state.
(4) "State board" means the state board of education.
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(c) The state board shall develop and maintain a uniform reporting
system for the receipts and expenditures of school districts. The
accounting records maintained by each school district shall be coordinated
with the uniform reporting system. Each school district shall record the
receipts and expenditures of the district in accordance with a uniform
classification of accounts or chart of accounts and reports as shall be
prescribed by the state board. Each school district shall record all
expenditures at the object level and further record such expenditures at the
sub-object level when possible. Each school district shall submit such
reports and statements as may be required by the state board. The state
board shall design, revise and direct the use of accounting records and
fiscal procedures and prescribe uniform classifications for receipts and
expenditures for all school districts. The reporting system shall include all
funds held by a school district regardless of the source of the moneys held
in such funds, including, but not limited to, all funds funded by fees or
other sources of revenue not derived from tax levies. The state board shall
prescribe the necessary forms to be used by school districts in connection
with such uniform reporting system.
(d) The reporting system developed by the state board shall be
developed in such a manner that allows school districts to record and
report any information required by state or federal law.
(e) The reporting system shall provide records showing by funds,
accounts and other pertinent classifications, the amounts appropriated, the
estimated revenues, actual revenues or receipts, the amounts available for
expenditure, the total and itemized expenditures, the unencumbered cash
balances, excluding state aid receivable, actual balances on hand and the
unencumbered balances of allotments or appropriations for each school
district.
(f) The reporting system shall allow a person to search the data and
allow for the comparison of data by school district.
(g) Each school district shall annually submit a report to the state
board on all construction activity undertaken by the school district which
that was financed by the issuance of bonds and which such bonds have not
matured. Such report shall include all revenue receipts, all expenditures of
bond proceeds authorized by law, the dates for commencement and
completion of such construction activity, the estimated cost and the actual
cost of such construction activity. The information provided in the report
shall be in a form so as to readily identify such information with a specific
construction project. Such report shall be submitted in a form and manner
prescribed by the state board in accordance with the provisions of this
section.
(h) From and after July 1, 2012, The board of education of each
school district shall record and report the receipts and expenditures of the
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district in the manner prescribed by the state board in accordance with this
section.
(i) (1) Each school district shall annually publish on such district's
internet website:
(A) A copy of form 150, estimated legal maximum general fund
budget, or any successor document containing the same or similar
information, that was submitted by such district to the state board of
education for the immediately preceding school year; and
(B) the budget summary for the current school year and actual
expenditures for the immediately preceding two school years showing total
dollars net of transfers and dollars per pupil student for each of the
following:
(i) Function 1000, instruction;
(ii) function 2100, student support;
(iii) function 2200, instructional staff support;
(iv) functions 2300 through 2500, administration;
(v) function 2600, operation and maintenance;
(vi) function 2700, transportation;
(vii) function 3100, food service;
(viii) functions 2900, 3200 and 3300, other current spending;
(ix) function 4000, capital outlay;
(x) function 5100, debt service;
(xi) the total expenditures which is the sum of the amounts in clauses
(i) through (x);
(xii) the spending allocated to function 1000, instruction, excluding
capital outlay and debt service expenditures, as a percentage of total
expenditures;
(xiii) the spending allocated to function 1000, instruction, excluding
capital outlay and debt service expenditures, as a percentage of current
spending, which is the sum of expenditures for functions 1000 through
3300 less capital outlay and debt service expenditures included in any of
those functions; and
(xiv) the revenue in total dollars net of transfers both in total and
disaggregated to show the amount of revenue received from local, state
and federal revenue sources; and
(C) any report prepared and included in the school district's budget
documentation pursuant to K.S.A. 79-2927a, and amendments thereto.
(2) For purposes of subsection (i)(1)(B), all per pupil student amounts
shall be calculated using the full-time equivalent enrollment of the school
district. All function categories and other accounting categories shall refer
to those same categories as established and required for financial
accounting purposes by the state board as published in the Kansas state
department of education's Kansas accounting handbook for unified school
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districts, interlocals and service centers , as published in August 2012, or
later versions as established in rules and regulations adopted by the state
board.
(3) Publications required by this subsection shall be made available to
the public at every meeting held by the board of education of each school
district when the board is discussing the district's budget or any other
school finance matter.
(j) The department of education shall annually publish on its internet
website:
(1) All of the publications required under subsection (i); and
(2) the following expenditures for each school district on a per pupil
student basis:
(A) Total expenditures;
(B) capital outlay expenditures;
(C) bond and interest expenditures; and
(D) all other expenditures not included in subparagraph (B) or (C).
(k) All reports prepared pursuant to this section shall be published in
accordance with K.S.A. 2024 Supp. 72-1181, and amendments thereto.
Sec. 2. K.S.A. 79-2926 is hereby amended to read as follows: 79-
2926. (a) Subject to the provisions of subsection (b), the director of
accounts and reports shall prepare and prescribe forms for the annual
budgets of all taxing subdivisions or municipalities of the state. Such
forms shall show the information required by this act that is necessary and
proper to disclose complete information as to the financial condition of
such taxing subdivision or municipality, and the receipts and expenditures
thereof, both past and anticipated.
(b) (1) From and after July 1, 2004 and Based upon recommendations
by the state department of education and in accordance with all applicable
laws pertaining thereto, the director shall prepare and prescribe forms for
the annual budget and a summary of the proposed budget of school
districts. The state department of education shall make such
recommendations after considering the best practices and standards
established by the government finance officers association and the
association of school business officials.
(2) (A) The school district budget form shall include a separate table
outlining the aggregate amount of expenditures for salaries and wages for
the following categories:
(i) Certified and noncertified administrators;
(ii) persons employed full-time as teachers;
(iii) other certified employees who are not employed full-time as
teachers;
(iv) classified employees;
(v) other positions designated by the state department of education;
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and
(vi) substitutes and other temporary employees.
(B) The school district budget form shall show the number of full-
time employee positions specified in paragraph (A) of this subsection and
the average salaries or wages for such positions.
(C) The school district budget form shall show any other information
recommended by the state department of education.
(3) The summary of the proposed budget form shall include:
(A) An overview of the proposed budget of the school district and the
budgetary process;
(B) a summary of the changes in the proposed budget from the
previous budget year;
(C) a summary of the estimated expenditures to be made and
revenues to be received in the ensuing budget year and the sources of such
revenue;
(D) the internet website address for school building report cards
compiled by the state department of education; and
(E) any other information specified by the state department of
education.
(4) Nothing in this subsection (b) shall be construed as limiting the
authority of school districts to develop and provide material or information
in addition to that required by the state department of education.
(5) The state department of education shall provide technical advice
and assistance to school districts to insure ensure compliance with the
provisions of this section.
(c) All such budget and tax levy forms shall be printed by the division
of printing in such quantity as required by the director. The director shall
deliver the forms for school districts to the clerk of the board of education
of each school district. The forms for all other taxing subdivisions or
municipalities of the state shall be delivered by the director to the county
clerk of each county, who shall deliver the same to the presiding officer of
the governing body of the respective taxing subdivisions or municipalities
within the county.
(d) Beginning in 2009, All such forms required by this section, shall
be in an electronic format to facilitate filing such forms electronically.
Sec. 3. K.S.A. 79-2927 is hereby amended to read as follows: 79-
2927. (a) The governing body of each taxing subdivision or municipality
shall meet not later than the first day of August of each year, and shall
prepare in writing on forms furnished by the director of accounts and
reports a budget itemized and classified by funds and showing amounts to
be raised by taxation and from other sources for the ensuing budget year.
Except as provided in K.S.A. 79-2927a, and amendments thereto, the
budget shall show in parallel columns all amounts and items to be
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expended for the ensuing budget year and the amounts appropriated for
corresponding or other items during the current budget year and amounts
expended for corresponding or other items during the preceding budget
year. The budget for each fund shall not include any item for sundry or
miscellaneous purposes in excess of 10% of the total. Except for school
districts, municipal universities and community colleges, the budget for
each fund may include a non-appropriated balance of not to exceed 5% of
the total of each fund.
(b) The budget shall show in parallel columns the amount of revenue
actually received from taxation and from other sources, with the amount
from each source separately stated for the preceding budget year and the
amount actually received and estimated to be received from taxation and
from sources other than direct taxation with the amount for each source
separately stated for the current budget year and also the amount estimated
to be received during the ensuing budget year, with the amount estimated
to be received from each source separately stated. Except as provided by
K.S.A. 79-2927a, and amendments thereto, the budget of expenditures for
each fund shall balance with the budget of revenues for such fund and that
portion of the budget of revenues to be derived from ad valorem property
taxation shall not exceed the amount of tax which that can be raised by
any fund limit or aggregate limit placed upon such fund.
Sec. 4. K.S.A. 79-2927a is hereby amended to read as follows: 79-
2927a. (a) When preparing the budget for a school district, the board of
education of the district shall budget to expend only the amount estimated
to be spent from each fund of the school district.
(b) (1) Except as provided by this subsection, any unexpended
moneys remaining in a fund of a school district at the end of the budget
year may be carried forward into such fund for succeeding budget years.
The provisions of this subsection shall not apply to the general fund or the
supplemental general fund of the school district.
(c) (2) Whenever unexpended moneys in a school district fund are
carried forward into such fund for the succeeding budget year, the budget
of the school district shall reflect the ending balance in such fund which
that the school district estimates will be carried forward to the succeeding
budget year.
(d) (3) If the board of education determines it is necessary to expend
moneys which had been budgeted to be carried forward into the next
succeeding budget year, the board shall amend its previously adopted
budget. Any amended budget shall be subject to the same publication,
notice and public hearing requirements as is required by K.S.A. 79-2929,
and amendments thereto, for the adoption of the original budget.
(c) On and after January 1, 2026, each school district budget form
shall include in parallel columns, for each fund that is subject to the
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budget law, the following:
(1) All amounts and items to be expended for the ensuing budget year
with such budgeted items listed at the object level by object name;
(2) the estimated expenditures for corresponding and other items for
the current year and the amount that was originally budgeted for such
items for such year listed at the object level by object name;
(3) the actual expenditures for corresponding and other items for the
preceding year and the amount that was originally budgeted for such
items for such year listed at the object level by object name; and
(4) the actual expenditures for corresponding and other items for the
second preceding year and the amount that was originally budgeted for
such items for such year listed at the object level by object name.
(d) (1) For each budget year that is required to be included in the
school district budget pursuant to subsection (c), if the estimated or actual
expenditures for any item exceeds $100,000 and such estimated or actual
expenditures deviate by 10% or more from the amount that was originally
budgeted for such item for such year, the board of education of the school
district shall prepare and include in the school district's budget
documentation a report that provides a description and explanation of
each such deviation. A separate report shall be prepared and included for
each applicable budget year in which one or more such deviations
occurred.
(2) On and after January 1, 2026, if the amount budgeted for any
item by the board of education of a school district for the ensuing budget
year deviates by 10% or more from the estimated expenditures for such
item for the current year, the board of education of the school district shall
prepare and include in the school district's budget documentation a report
that provides a description and explanation of the reasoning for such
budgeted increase or decrease. This paragraph shall only apply to those
items in which the estimated expenditures for such item in the current
budget year exceeds $50,000.
Sec. 5. K.S.A. 79-2926, 79-2927 and 79-2927a and K.S.A. 2024
Supp. 72-1167 are hereby repealed.
Sec. 6. This act shall take effect and be in force from and after its
publication in the statute book.
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