Introduction to the State Budget Process

In Kansas, the fiscal year (FY) begins on July 1 of each year. The State of Kansas uses an executive budget in that the budgetary recommendations of the Governor are embodied in appropriation bills, which are introduced, considered, and amended by the Legislature.

Interim

Most state agencies are required by law to submit budget requests no later than October 1. Customarily, the deadline specified by the Director of the Budget is September 15. Agency budget requests are submitted to the Division of the Budget and the Kansas Legislative Research Department (KLRD) at the same time.

KSA 75-3717(f) requires select agencies, of a primarily regulatory nature, to submit a budget request for one year in addition to the current and budget year. These are known as the Biennial Budgets.

The Director of the Budget, an appointee of the Governor, is directed by law to review the detailed requests submitted by the various state agencies and to make initial recommendations that are transmitted to agencies in November. An agency is then authorized to appeal those initial recommendations to the Governor. By law, Judicial Branch budgets are exempt from review by the Director. By practice, Legislative Branch budgets are not reviewed.

Legislative Session

After reviewing agency appeals, the Governor makes budgetary recommendations in The Governor’s Budget Report. This report is provided to the Legislature in January at the beginning of the legislative session.

KLRD prepares a Budget Analysis describing agency budgets and comparing changes between the agency’s request, what the previous Legislature approved, and what The Governor’s Budget Report includes. This Budget Analysis is typically published approximately three weeks after the Director submits The Governor’s Budget Report.

Identical appropriation bills reflecting the Governor’s recommendation are introduced in both chambers. Agency budgets receive simultaneous consideration by the House Committee on Appropriations and the Senate Committee on Ways and Means.

Consideration by the First Chamber and Second Chamber

The chairpersons of the House Committee on Appropriations and the Senate Committee on Ways and Means appoint budget committees (House) or subcommittees (Senate) to consider appropriations for various agencies. In recent years, the Senate Committee on Ways and Means has assigned consideration of budgets to Senate policy committees.

After reviewing these bills, budget committees and subcommittees draft reports detailing the amendments supported by the budget committee or subcommittee. Once the report is prepared, it is presented to the corresponding full committee. The full committee may further amend the recommendations or it may adopt the report as submitted. The recommendations of the committee are considered by the full chamber, which also may adjust (through floor amendments) or adopt the recommendations.

Conference Committee Action

After consideration of an appropriation bill by the second chamber, the bill typically goes to a conference committee to reconcile differences between the House and Senate versions.

Omnibus Appropriations Bill

The Legislature typically adjourns its regular session in early April, then returns for a wrap-up session roughly 21/2 weeks following the first adjournment. During the wrap-up session, the Legislature takes action on a number of items of unfinished business, including the Omnibus Appropriations Bill. The Omnibus Appropriations Bill is designed to make technical adjustments to the appropriation bills passed earlier in the legislative session and to address the fiscal impact of legislation passed during the session. The Omnibus Appropriations Bill is usually one of the last bills passed each session.

Consensus Revenue Estimating Process

Since 1974, a consensus approach, involving the Legislative Branch, Executive Branch, and three consulting economists (Currently contracted from the University of Kansas, Kansas State University, and Wichita State University), has been utilized for estimating revenue estimates to the State General Fund (SGF).

These consensus revenue estimates are used by both the Governor and the Legislature to determine funding available for budget requests. The law requires that on or before December 4 and April 20 of each year, the Director of the Budget and the Director of Legislative Research prepare a joint estimate of revenue to the SGF for current and ensuing fiscal years.

The spring estimate is typically presented to a joint meeting of the House Committee on Appropriations and the Senate Committee on Ways and Means, which use those projections to determine appropriate adjustments to make in the Omnibus Appropriations Bill.

Budget Stabilization Fund

The Legislative Budget Committee is charged with developing and recommending a method to fund the Budget Stabilization Fund based on a review of criteria outlined in statute. In FY 2025, no additional transfers will be made to the Budget Stabilization Fund except interest revenue on the fund balance.

In FY 2025, the balance of the fund exceeds $1.8 billion.

KLRD Budget Publications

For more information on the State budget, find the following budget publications and resources on KLRD website:

• Kansas Fiscal Facts;
• Budget Overview PowerPoint and written guides; and
• KLRD Budget Visualization Dashboard.