State Water Plan Fund
The State Water Plan Fund (SWPF) is a statutory fund (KSA 2023 Supp. 82a-951) created by the 1989 Legislature for the purpose of implementing the State Water Plan (KSA 2023 Supp. 82a-903, et seq.). The SWPF is subject to appropriation acts by the Legislature and may be used for the establishment and implementation of water-related projects or programs and related technical assistance. Funding from the SWPF may not be used to replace full-time equivalent (FTE) positions or for recreational projects that do not meet the goals or objectives of the State Water Plan.
Revenue
Revenue for the SWPF is generated from the following sources:
- Water Protection Fees: A water protection fee of $0.03 per 1,000 gallons of water is assessed on the following:
- Water sold at retail by public water supply systems;
- Water designated for industrial use; and
- Water designated for watering livestock;
- Fertilizer and Pesticide Fees: A tonnage fee on fertilizer and a fee for the registration of pesticides is assessed and transferred to the SWPF in the following amounts:
- Inspection fees are imposed on each ton of fertilizer sold, offered, or exposed for sale or distributed in Kansas. Of that fee, $1.40 per ton is credited to the SWPF; and
- Every agricultural chemical distributed, sold, or offered for sale within the state must be registered, with an annual fee assessed for each registration. From each registration fee, $100 is credited to the SWPF;
- Sand Royalty Receipts: A fee of $0.15 per ton of sand sold is deposited in the SWPF;
- Pollution Fines: Certain fines and penalties are levied by the Kansas Department of Health and Environment (KDHE) for water-related pollution and are credited to the SWPF, including:
- Violation of permit terms or conditions relating to public water supply systems or wastewater treatment systems; and
- Violations of law governing the disposal of solid and hazardous waste;
- Clean Drinking Water Fees: A clean drinking water fee of $0.03 per 1,000 gallons of water is assessed on retail water sold by a public water supply system and delivered through mains, lines, or pipes. Since July 1, 2007, revenue from the clean drinking water fee has been distributed as follows:
- 5/106 to the State Highway Fund;
- Of the remaining 101/106, no less than 15.0 percent shall be utilized to provide on-site technical assistance for public water supply systems; and
- The remainder to renovate and protect lakes used for public water supply;
- State General Fund Transfer: By statute, $6.0 million is required to be transferred annually from the State General Fund (SGF) to the SWPF; however, the Legislature may decrease the amount of the transfer through an appropriations bill. The 2023 Legislature approved the full statutory transfer from the SGF to the SWPF in FY 2023 and FY 2024; and
- Economic Development Initiatives Fund Transfer: By statute, $2.0 million is required to be transferred annually from the Economic Development Initiatives Fund (EDIF) to the SWPF; however, the Legislature may decrease the amount of the transfer through the appropriations bill. The 2023 Legislature approved the full statutory transfer from the EDIF to the SWPF in FY 2023 and FY 2024.
2023 Senate Sub. for HB 2302
The 2023 Legislature passed and the Governor signed Senate Sub. for HB 2302, which authorizes a transfer of $35.0 million SGF to the SWPF in FY 2024 and recommends the same transfer be made every successive year through FY 2027. This amount is in addition to the $6.0 million SGF transfer already authorized in statute, resulting in authorized transfers from the SGF to the SWPF totaling $41.0 million in FY 2024. The bill also transfers $5.0 million SWPF to a newly-created Water Technical Assistance Fund in FY 2024 and $12.0 million SWPF to a newly- created Water Projects Grant Fund in FY 2024. If the Legislature approves the appropriation of $35.0 million SGF to the SWPF in future years, the $5.0 million SWPF transfer to the Water Technical Assistance Fund and $12.0 million SWPF transfer to the Water Projects Grant Fund would occur. Both funds are administered by the Kansas Water Office (KWO).
State Water Plan Fund Receipts and Transfers*
| Receipts and Transfers In | FY 2022 Actual | FY 2023 Approved | FY 2024 Approved | |||
| State General Fund | $ | 4,005,632 | $ | 6,000,000 | $ | 41,000,000 |
| Economic Development Initiatives Fund | 1,719,264 | 2,000,000 | 2,000,000 | |||
| Municipal Water Fees | 3,098,059 | 3,167,209 | 3,189,304 | |||
| Industrial Water Fees | 720,340 | 850,000 | 850,000 | |||
| Stock Water Fees | 557,940 | 375,000 | 439,609 | |||
| Pesticide Registration Fees | 1,524,100 | 1,365,000 | 1,488,892 | |||
| Fertilizer Registration Fees | 4,370,338 | 3,829,194 | 4,049,921 | |||
| Pollution Fines and Penalties | 60,841 | 200,000 | 70,000 | |||
| Sand Royalty Receipts | 13,430 | 25,000 | 15,000 | |||
| Clean Drinking Water Fees | 2,830,759 | 2,738,890 | 2,872,301 | |||
| Total Receipts/Transfers In | $ | 18,900,703 | $ | 20,550,293 | $ | 55,975,027 |
Expenditures
Expenditures from the SWPF are based on priorities of the State Water Plan. The State Water Plan is developed and approved by the Kansas Water Authority. The following table summarizes recent actual and approved expenditures from the SWPF.
State Water Plan Fund Expenditures
| Agency/Project | FY 2022 Actual | FY 2023 Approved | FY 2024 Approved |
| Department of Agriculture | |||
| Interstate Water Issues | 445,668 | 791,882 | 514,664 |
| Water Use Study | 27,387 | 216,144 | 100,000 |
| Basin Management | 460,322 | 1,169,439 | 650,174 |
| Water Resources Cost Share | 1,149,752 | 4,023,581 | 2,834,714 |
| Nonpoint Source Pollution Assistance | 1,550,065 | 2,291,809 | 1,863,636 |
| Aid to Conservation Districts | 2,223,373 | 2,473,373 | 2,502,706 |
| Water Transition Assistance/CREP | 339,680 | 979,867 | 550,727 |
| Watershed Dam Construction | 688,285 | 550,000 | 650,000 |
| Water Quality Buffer Initiative | 1,167 | 635,432 | – |
| Riparian & Wetland Program | 43,670 | 666,194 | 154,024 |
| Streambank Stabilization | – | – | – |
| Irrigation Technology | 266,070 | 408,976 | 550,000 |
| Lake Restoration | 583,697 | 1,084,589 | 750,000 |
| Crop and Livestock Water Research | 250,000 | 250,000 | 350,000 |
| Soil Health Initiative | – | 100,000 | 400,000 |
| Subtotal – Department of Agriculture | 8,029,136 | 15,641,286 | 11,870,645 |
| Kansas Water Office | |||
| Assessment and Evaluation | 536,457 | 1,156,180 | 834,078 |
| MOU – Storage Operation and Maintenance | 532,589 | 530,464 | 736,160 |
| Technical Assistance to Water Users | 298,682 | 367,709 | 425,000 |
| Streamgaging | 413,580 | 423,130 | 448,708 |
| Reservoir Surveys and Research | 252,553 | 583,724 | 450,000 |
| Watershed Conservation Practices Implementation | 359,422 | 1,190,578 | 1,000,000 |
| Milford Lake RCPP | 24,878 | 605,122 | 884,176 |
| Water Vision Education | 1,865 | 472,910 | 250,000 |
| Water Technology Farms | 48,598 | 326,402 | 850,000 |
| Equus Beds Chloride Plume | – | 50,000 | 50,000 |
| Arbuckle Study | – | 210,000 | 150,000 |
| Water Injection Dredging | – | 2,000,000 | – |
| Flood Response Study | – | 200,000 | 200,000 |
| HB 2302 Projects | – | – | 18,000,000 |
| Subtotal – Kansas Water Office | 2,468,624 | 8,116,219 | 24,278,122 |
| KDHE-Environment | |||
| Contamination Remediation | 1,020,958 | 1,163,792 | 1,095,978 |
| Local Environment Protection Program | – | – | 250,000 |
| Total Maximum Daily Load | 270,426 | 459,722 | 384,916 |
| Nonpoint Source Program | 224,334 | 506,806 | 414,893 |
| Harmful Algae Bloom Pilot | 656,182 | 766,429 | 150,547 |
| Watershed Restoration and Protection (WRAPS) | 590,000 | 1,140,884 | 1,000,000 |
| Stream Trash Removal | – | – | 50,000 |
| Drinking Water Protection Program | 286,230 | 863,770 | 800,000 |
| Subtotal – KDHE-Environment | 3,048,130 | 4,901,403 | 4,146,334 |
| Department of Wildlife and Parks | |||
| Aquatic Nuisance Species | – | 224,457 | 224,457 |
| University of Kansas | |||
| Geological Survey | 26,841 | 26,841 | 26,841 |
| Governor’s COLA | – | – | 75,459 |
| GRAND TOTAL EXPENDITURES | 13,572,731 | 28,910,206 | 40,621,858 |
Kansas Water Authority
The Kansas Water Authority is a 24-member board that provides water policy advice to the Governor, the Legislature, and the Director of the KWO. The Authority is responsible for approving water storage sales; developing the State Water Plan; and approving federal water contracts, proposing rules and regulations, and legislation by the KWO. The Authority meets quarterly and consists of 13 voting members and 11 ex officio members.
The voting membership of the Authority includes:
- One member appointed by the Governor (serving as chairperson);
- One member appointed by the President of the Senate;
- One member appointed by the Speaker of the House;
- A representative of large municipal water users;
- A representative of small municipal water users;
- A board member of a western Kansas Groundwater Management District (including Districts 1, 3, and 4);
- A board member of a central Kansas Groundwater Management District (including Districts 2 and 5);
- A member of the Kansas Association of Conservation Districts;
- A representative of industrial water users;
- A member of the State Association of Watershed Districts;
- A member with a demonstrated background and interest in water use, conservation, and environmental issues; and
- Two representatives of the general public.
The ex officio membership of the Authority includes:
- The State Geologist;
- The Chief Engineer of the Division of Water Resources of the Kansas Department of Agriculture (KDA);
- The Director of the Division of Environment of the Department of Health and Environment;
- The Director of the KWO (also serving as secretary of the Authority);
- The Director of the Agricultural Experiment Station of Kansas State University;
- The Chairperson of the Kansas Corporation Commission;
- The Secretary of Wildlife and Parks;
- The Secretary of Commerce;
- The Executive Director of the KDA Division of Conservation;
- The Secretary of Agriculture; and
- The State Biologist.
A primary responsibility of the Authority is to consider and approve policy for inclusion in the State Water Plan. The State Water Plan includes policy recommendations that have specific statewide or local impact and priority issues and recommendations for each of the 12 river basins in Kansas.
Budgetary Process
Historically, the Division of the Budget has assigned allocations to each agency for the expenditure of SWPF moneys. Beginning with the FY 2008 budget cycle, the Authority and the Division of the Budget agreed to allow the Authority to develop a budget recommendation in lieu of the Division’s allocation process.
A budget subcommittee of the Authority meets in summer to develop a SWPF budget proposal. The budget is presented to the full Authority at its August meeting. The Authority-approved budget is used by the state agencies to develop their budgets.
The Governor’s budget includes recommended expenditures for the SWPF when it is presented to the Legislature each January.
by Luke Drury
Senior Fiscal Analyst
785-296-7250