News – Page 34

Income Taxation of Social Security Benefits

Chardae Caine
Fiscal Analyst
Chardae.Caine@klrd.ks.gov
785-296-3183

Edward Penner
Senior Economist
Edward.Penner@klrd.ks.gov
785-296-0733

Federal Income Tax Treatment of Social Security Benefits

Up to 50 percent of Social Security benefits are subject to the federal income tax if a taxpayer’s combined income, including 50 percent of Social Security benefits, exceeded a statutory threshold. The taxable amount is the lesser of 50 percent of benefits or 50 percent of the amount by which the combined income exceeded the statutory threshold.

A secondary threshold can result in as much as 85 percent of Social Security benefits being taxable. The Social Security Administration reports that approximately 40 percent of people receiving Social Security benefits must pay income tax on their benefits.

Kansas Income Tax Treatment of Social Security Benefits

Kansas uses federal adjusted gross income (AGI) as the starting point for the Kansas income taxation. Accordingly, income subject to federal tax is generally subject to the Kansas income tax. However, the Kansas Legislature created a modification to federal AGI for Kansas income tax purposes to exclude Social Security benefits from Kansas income tax after a certain threshold.

The Kansas exclusion of certain Social Security benefit income from Kansas income tax applies uniformly to taxpayers regardless of the taxpayer’s filing status. The chart on the next page illustrates the current threshold at which Social Security benefits become taxable in Kansas.

Kansas taxation of social security benefits.

Income Tax Treatment in Other StatesCurrently, 37 states have no income tax or do not include Social Security benefits in their calculation for taxable income. The remaining 12 states approach Social Security benefits in various ways.

Colorado allows taxpayers to subtract a portion of Social Security income if they are 55 or older. Taxpayers aged 65 and older pay no income tax on Social Security benefits.
Minnesota provides subtraction for taxpayers with income below $81,180 filing single, or $103,930 for those filing jointly.
Missouri allows full exemption if the taxpayer is 62 years of age or older and has income less than $85,000 filing single, or less than $100,000 for those filing jointly.
Montana does not have age or income stipulations. The state does encourage taxpayers to complete a worksheet to determine their state taxable amount.
Nebraska allows taxpayers below an indexed income level to deduct all federally taxable Social Security benefits. Income above that level must follow federal guidelines.
North Dakota allows taxpayers to deduct benefits if their AGI is less than $50,000 filing single, or less than $100,000 for those filing jointly.
West Virginia exempts benefits for taxpayers whose income does not exceed $50,000 filing single, or $100,000 for those filing jointly.

Recent Kansas Legislative Considerations

The 2021 and 2022 Kansas Legislatures have considered legislation that would further or entirely exempt Social Security income; however, no such legislation has been enacted into law.

In 2021, the Senate Committee of the Whole twice advanced legislation that would have exempted all Social Security benefits from Kansas income tax.

In 2022, the Conference Committee for the Senate Committee on Assessment and Taxation and House Committee on Taxation advanced legislation that would have increased the threshold up to $85,000 for tax year 2023 and increase the threshold by $5,000 for all tax years thereafter.

Streamlined Sales and Use Tax

Eric Adell
Research Analyst
Eric.Adell@klrd.ks.gov
785-296-4404

Edward Penner
Senior Economist
Edward.Penner@klrd.ks.gov
785-296-0733

The Streamlined Sales and Use Tax Agreement (SSUTA) is a multi-state cooperative agreement intended to simplify the administration of state sales tax systems and encourage remote sellers to collect and remit sales and use taxes. Since 2003, 24 states have enacted SSUTA-conforming laws. Kansas was the first state with effective conforming legislation.

Historical Context

The SSUTA was an outgrowth of the Streamlined Sales Tax Project, created in 1999 in response to questions over states’ right to collect sales taxes from remote sellers (out-of state and/or internet retailers). With the growth of internet sales, states were seeking to combat revenue losses resulting from the shifting sales tax base and ensure equity between remote retailers and brick-and-mortar stores.

The U.S. Supreme Court ruled in National Bellas Hess, Inc. v. Illinois (1967) that collection of sales tax required a retailer to have physical contact with the state, and in Quill Corp. v. North Dakota (1992) that remote sellers, though liable for state sales taxes, could not be required to collect taxes where they lack sufficient physical presence, as requiring compliance with multiple state sales tax systems imposes an undue burden on interstate commerce in violation of the Commerce Clause.

The SSUTA is an attempt in part to remove this burden by creating a streamlined and simplified tax system in which states and retailers could voluntarily participate.

Relevant Legislation and Recent Events

SB 472 (2002) and HB 2005 (2003) enacted provisions bringing Kansas into conformity with the SSUTA (KSA 79-3666 through 79-3682).

The Bellas Hess and Quill rulings were overturned in the 2018 South Dakota v. Wayfair, Inc. ruling that remote sellers can be required to collect sales tax if they have “sufficient economic nexus” in the state. South Dakota’s participation in the SSUTA was one of the reasons given by the Court as evidence the South Dakota law did not violate the Commerce Clause.

Kansas began requiring registration of remote sellers in 2019. Prior to 2021, Kansas was one of three states without a provision requiring marketplace facilitators (entities facilitating internet sales through a physical or digital marketplace) to collect and remit sales tax; 2021 SB 50 required marketplace facilitators with more than $100,000 of annual sales sourced into Kansas to collect and remit sales taxes.

Streamlined Conformity Requirements

To provide a simplified tax system, the SSUTA requires member states to agree to certain rules in the administration of their sales and use taxes. These requirements include, among other things, rules related to sourcing of taxable sales, uniform definitions, and the retention of certain proceeds by certified service providers.

Destination Sourcing

The SSUTA generally requires member states to adopt statutes requiring destination sourcing for sales tax purposes. This requirement means that for taxable sales where the purchased product or service is not received by the purchaser at the business location of the seller, the tax will be applied and collected as if the sale occurs where the product or service is received by the purchaser.

Uniform Definitions

The SSUTA includes a library of definitions and generally requires that, if a member state uses a term appearing in the library of definitions within its sales and use tax statutes, it must use the definition of that term provided for by the SSUTA library of definitions. This provision does not require a state to use all terms in the library of definitions, but does require uniformity in the definition of those terms if they are used.

Certified Service Providers

To reduce compliance burdens on remote sellers, the SSUTA provides for Certified Service Providers (CSPs) to perform sales and use tax functions on behalf of sellers. Member states are generally required to allow CSPs to retain 5 percent of the first $500,000 of tax owed to the state and 2 percent of all additional tax owed to the state each year. In 2021, CSPs retained $2.0 million of sales and use tax that otherwise would have been due to the state of Kansas.

Streamlined Sales and Use Tax Agreement Member States

Autonomous Vehicle Regulation

Eric Adell
Research Analyst
Eric.Adell@klrd.ks.gov
785-296-4404

Jill Shelley
Principal Research Analyst
Jill.Shelley@klrd.ks.gov
785-296-8085

“Autonomous vehicle” is a term used to define a vehicle capable of operating without the intervention of a human driver and with the use of an automated driving system (ADS). A vehicle with an ADS is designed to perform the entire dynamic driving task without human intervention within the operating conditions for that specific ADS, known as its operational design domain.

The term “dynamic driving task” refers to operational and tactical functions required to operate a motor vehicle on a highway in traffic. If an ADS-equipped vehicle cannot perform the dynamic driving task properly, it must come to a state of minimal risk condition (a safe state to which an ADS brings a vehicle when a failure renders the system unable to perform the entire dynamic driving task).

Prior to SB 313, enacted in 2022, no statute authorized operation in Kansas for autonomous vehicles, and actions by and equipment for a human driver were required, implicitly prohibiting the use of a vehicle with an ADS for both individuals and businesses within Kansas.

Autonomous Vehicle Legislation in Kansas

SB 313, a bill concerning autonomous motor vehicles, authorizes use of an ADS-equipped vehicle in autonomous mode if it meets certain criteria as defined by law. The owner of a driverless-capable vehicle who intends to use an ADS must submit a law enforcement interaction plan to the Kansas Highway Patrol (KHP), and the vehicle must be registered and titled as driverless-capable.

It is also lawful for ADS-equipped vehicles to perform the dynamic driving task while a conventional human driver is present as long as the human driver can respond to requests to intervene, has a driver’s license and insurance, operates the vehicle according to manufacturer’s requirements, and can regain control of the vehicle when prompted.

The new law authorizes on-demand driverless-capable vehicle networks, which are transportation network companies (TNCs), to use driverless-capable vehicles for transporting people or goods. These include transportation for hire as well as public transportation. The provisions of the Transportation Network Company Services Act, as well as the Uniform Act Regulating Traffic on Highways, apply to driverless-capable vehicles to the extent practicable, but provisions that by their nature apply only to a human driver do not apply.

The bill also establishes an Autonomous Vehicle Advisory Committee to report activities and recommendations for use and regulation of ADS-equipped vehicles by July 1 of every year, starting in 2023 and ending in 2027. Its membership includes legislators, designees of certain organizations including trade and municipal organizations, and representatives of law enforcement and certain state agencies.

Legislation in Other States

All but six states (Alaska, Missouri, Montana, Rhode Island, Virginia, and Wyoming) and the District of Columbia have legislation or executive orders regarding autonomous vehicles. Of the states authorizing testing or full autonomous vehicle use, 9 authorize use of autonomous vehicle technology through either executive orders or rules and regulations authority, and 27 have statutory authorization; California, Hawaii, and Washington authorize such use through both statutory and executive authority.

Authorizations in six states permit only a study, define terms, or authorize funding relating to autonomous vehicles. Twenty-one states regulate what is known as truck platooning, in which a human truck driver leads two or more trucks that are linked via vehicle-to-vehicle communications and following the lead truck closely. These trailing vehicles must have a conventional driver in the truck to intervene as necessary and operate the vehicle where platooning is not authorized or prudent.

The map above identifies states that have legislation or executive action that authorizes use of autonomous vehicles. This authorization can vary widely, from testing to full deployment without a human driver. Autonomous vehicle testing sometimes involves trials at private lots or at universities, but the majority of tests are conducted on public roads and highways with conventional drivers who can intervene as the vehicle operates.
A more complete description of state laws and executive actions regulating autonomous vehicles is available in the KLRD memorandum “State Regulation of Autonomous Vehicles.” (http://www.kslegresearch.org/KLRD-web/Publications/Transportation/memo_shelley_marshall_autonomous_vehicles.pdf)

Autonomous Vehicle Regulation in the U.S.

Traffic Enforcement Using Cameras

Jill Shelley
Principal Research Analyst
Jill.Shelley@klrd.ks.gov
785-296-8085

Eric Adell
Research Analyst
Eric.Adell@klrd.ks.gov
785-296-4404

Cameras are statutorily authorized for use by municipalities in 36 states and the District of Columbia for enforcement of traffic laws, most commonly in enforcement related to speeding, full stops at red lights, and passing school buses that are stopped with the stop arm extended. State laws authorize municipalities or certain municipalities to use such cameras under certain circumstances. Toll agencies, including the Kansas Turnpike Authority, also use video enforcement for toll collection.

Kansas law is silent on the use of cameras to enforce any statutes included in the Uniform Act Regulating Traffic on Highways or similar city ordinances. Bills have been introduced, but not enacted, in Kansas in recent years to authorize cameras on school buses to identify any vehicle passing a school bus stopped with the stop arm extended and lights flashing: 2021-2022 HB 2154, 2019-2020 SB 472 and HB 2532, 2017-2018 HB 2040, and 2016 HB 2470.

Proponents generally state camera enforcement can help reduce behaviors that put lives and property at risk and act as a force multiplier for law enforcement agencies. Opponents have stated enforcement without a law enforcement officer present is unmerited and enforcement from images could be used for surveillance or to raise revenues for the local government.

Costs of Crashes

The map on the following page shows the uses for which states authorize traffic enforcement cameras.

Information in the 2020 Kansas Traffic Crash Facts Annual Accidents Facts Book published by the Kansas Department of Transportation ― which notes 52,469 total crashes, 426 fatalities, and 15,997 people injured in 2020 ― includes the following about types of violations that traffic cameras are most frequently used to enforce in other states:

Estimated costs of $6.2 billion for 30,386 crashes involving driver infractions;
4,599 crashes that were speed related, 88 fatalities, 2,071 injured, with associated economic costs of $1.6 billion; and
1,275 crashes in work zones, 2 fatalities, 409 injured, and associated costs of $110 million.

Each crash can have more than one contributing factor, but driver inattention was most common (11,397 crashes). Other top driver contributing circumstances noted were right of way violations (No. 2, noted for 5,901 crashes), driving too fast for conditions (No. 3, 3,978 crashes), and running a red light (No. 12, 1,185 crashes).

School bus violations. The April 2022 Kansas One Day Stop Arm Violation Count found, for the 2,669 buses of 184 districts participating, 882 instances of a vehicle passing when the stop arm was extended.

State Policy Choices

States crafting policy for use of such cameras have many policy choices, such as:

Which entities can use camera enforcement;
In what capacities contractors can be involved;
Whether a traffic violation documented with use of a camera will be a criminal or a civil offense;
Whether a law enforcement officer or another type of government employee must review images before notices of violation are sent;
Whether information about camera-enforced violations can be used for insurance purposes or determining whether the driver’s license should be restricted or suspended;
Whether the images can be used for any purpose other than enforcement of the specific violation;
What elements must be present in, or omitted from, the image (e.g., an image of the driver);
The image retention period; and
Whether and how information is made available to drivers about the presence of enforcement cameras.

Additional sources include:

National Conference of State Legislatures (NCSL), “State School Bus Stop-Arm Camera Laws,” (https://www.ncsl.org/research/transportation/state-school-bus-stop-arm-camera-laws.aspx)
NCSL, “Traffic Safety Review: State Speed and Red-Light Camera Laws and Programs,” (https://www.ncsl.org/research/transportation/traffic-safety-review-state-speed-and-red-light-camera-laws-and-program.aspx)
Kansas State Department of Education, “School Bus Stop Arm Violation Surveys,” Kansas 2022 results. (https://www.ksde.org/Agency/Fiscal-and-Administrative-Services/School-Finance/School-Bus-Safety/School-Bus-Safety-Illegal-Passing-Information)

Authorized Use of Cameras for Law Enforcement in the U.S.

Electric Vehicle Charging Stations in Rural Kansas

Kate Smeltzer
Research Analyst
Kate.Smeltzer@klrd.ks.gov
785-296-4407

James Fisher
Managing IT Analyst
James.Fisher@klrd.ks.gov
785-296-6490

Electric Vehicle Adoption and Industry Growth

Globally, the automotive industry plans to invest $330 billion in electrification by 2023 and offer up to 130 electrified vehicle models in the United States. Nationally, hybrid vehicle sales in 2021 comprised 5.4 percent of total sales, and Zero Emission Vehicles, such as plug-in hybrids, and fuel cells, represented 4.1 percent.

Historically, successful new technologies, like television, cellphones, and LED light bulbs, were slow to sell until they reached the 5.0 percent adoption rate, at which point adoption began to occur at a much higher rate as demand become unpredictable.

The increasing demand for electric vehicles could also lead to a demand for more charging stations to help power these vehicles and alleviate driver “range anxiety,” as they would be capable of driving further without fear of running out of power for the vehicle.

As of 2022, nearly 6,763 electric/hybrid vehicles are registered in Kansas. This is less than 1.0 percent of vehicles registered in the state. Kansas will play a role in the expansion of charging station infrastructure in order to facilitate interstate travel and commerce.

Charging Station Expansion and Funding

It is estimated that $39.0 billion in investments are needed by 2030 for public charging infrastructure to meet the accompanying demand for electric vehicles in the United States.

As of 2022, the Edison Electric Institute (EEI), an association that represents all U.S. investor-owned electric companies, has invested nearly $3.7 billion in programs and projects to accelerate the electronic vehicle (EV) charging station infrastructure implementation process. The EEI estimates nearly 140,000 EV fast- charging stations will be needed to accommodate the projected 26 million EVs that are expected to be on U.S. roads by 2030.

In December 2021, the U.S. Department of Transportation and the U.S. Department of Energy created a new department called the Joint Office of Energy and Transportation (Office), which will support and ensure production of electric vehicle charging networks nationwide.

In February 2022, the Office announced that $5.0 billion will be made available for electric vehicle charging under the National Electric Vehicle Infrastructure (NEVI) Formula Program, which was established in the Infrastructure Investments and Jobs Act.

As of September 27, 2022, all 50 states including the District of Columbia and Puerto Rico have been approved to move forward with the construction of EV fast-charging stations covering approximately 75,000 miles of highway across the country.

The NEVI Formula funding can also be used for other projects that are directly related to charging of a vehicle, such as:

Upgrade of existing and construction of new EV charging infrastructure;
Operation and upkeep costs of EV charging stations;
Installation of on-site electrical service equipment;
Community and stakeholder engagement;
Workforce development;
EV charging station signage;
Data sharing activities; and
Mapping analysis.

Kansas EV Charging Programs and Funding

On September 16, 2022, the Kansas Department of Transportation’s Charge Up Kansas NEVI plan was approved and is set to receive $39.5 million over the course of the next five years. This program will include direct current fast chargers as well as EV charging corridors.

In Kansas, the corridors included will reside along I-70, I-35, I-135, U.S. 400 and U.S. 81 from I-70 north to the Nebraska state line.

When completed, approximately 1,600 miles of Kansas interstates and highways will have fast charging stations available for public use.

Tracking Broadband Availability in Kansas

James Fisher
Managing IT Analyst
James.Fisher@klrd.ks.gov
785-296-6490

Kate Smeltzer
Research Analyst
Kate.Smeltzer@klrd.ks.gov
785-296-4407

Heather O’Hara
Principal Research Analyst
Heather.OHara@klrd.ks.gov
785-296-7792

Education, precision agriculture, and health care are just a few of the possibilities broadband internet enables, and a lack of connectivity can impact the economic well-being of individuals across the country.

According to the Federal Communications Commission (FCC), in 2021, 23.36 percent of rural residents lacked fixed broadband with download speeds of 25 megabits per second (mbps) and upload speeds of 3 mbps (25/3) and fourth generation wireless networks (4g) with advertised median speeds of 10/3.

Further, the FCC has acknowledged that past maps are not as granular and accurate as policymakers would like. This means the published statistics on availability could be very different and could potentially impact funding for expansion of broadband.

Broadband Maps

The current broadband availability map is created using FCC Form 477 data. This form is used to collect information on the deployment of broadband and telephone services from service providers at a census block level. If a single home in a census block is reported as being served, then the entire census block will appear as though it was served in some capacity.

The map above shows the number of fixed residential broadband providers (including cable, fiber, fixed wireless, satellite, and ADSL) in a given area of the state. It indicates that over 99.0 percent of the state is served by 3 or more providers offering speeds of at least 25/3.

In 2018, Connected Nation, a nonprofit organization, engaged with the Information Network of Kansas to develop a statewide broadband map. The data collected was more granular than FCC form 477 data, but had other issues, which include:

10 providers refused to participate;
6 providers were non-responsive; and
2 providers submitted granular data for only 1 of the services they offered.

The map is shown here:

At the time, Kansas had 88 broadband providers, and 70 submitted granular/location level data. In instances where a provider did not participate, form 477 data was used. The Connected Nation data shows 17.0 percent of Kansans do not have access to broadband internet with speeds of at least 25/3 when only relying on the provided granular data. If the supplemented Form 477 data is included, this number drops to 3.4 percent.

Changes to Federal Data Collection

In June 2022, the FCC began collecting information from broadband providers about the precise locations where their services are provided. The window to collect this more granular data closed on September 2, 2022.

On September 12, 2022, the FCC opened up a challenge period for states, tribal governments, and local governments to review the data collected. The FCC released pre-production drafts of the new National Broadband Map on November 18, 2022. The Map uses more granular, specific location-level information about broadband service.

The release of this pre-production map also starts the public challenge period. The FCC has encouraged the public to test and submit ISP speeds using the updated FCC Speed Test App.

The pre-production residential services map of Kansas indicates the state is 100.0 percent covered by providers with an advertised speed of at 25/3 or greater. If only examining providers using terrestrial technology (excludes satellite and cellular technology, but includes fixed wireless), the percentage of the state covered by 25/3 or greater is 98.8 percent (see map below). The Office of Broadband Development (Office), within the Kansas Department of Commerce has expressed concerns of the inadequacy of the pre-production map, and noted it overestimates available service.

What This Means for Broadband in Kansas

More accurate maps could help give a better idea where grant funding should be utilized to incentivize the build out broadband infrastructure. These incentives are relevant to businesses considering service in less dense areas, where it is challenging to recover the cost of establishing the service.

Wind Turbine Light Mitigating Technology

Lindsay Archer
Research Analyst
Lindsay.Archer@klrd.ks.gov
785-296-4440

Heather O’HaraPrincipal Research AnalystHeather.O’Hara@klrd.ks.gov785-296-7792

In 2021, Kansas was ranked among the top five states in total wind energy generation, with the third-largest share of electricity generated from wind power, following closely behind Iowa and South Dakota. In early 2022, the state had nearly 8,250 megawatts of installed wind generating capacity.

Wind turbines have certain safety requirements in place to ensure they can be seen at night. One requirement is the installation of red lights on turbine blades, which present as circulating red dots in the horizon.

As the number of wind turbines increase, so do the number of red lights visible in the night sky. New technologies have arisen to mitigate potential lighting concerns, such as Aircraft Detection Lighting Systems (ADLS).

ADLS

Aircraft Detection Lighting Systems, sometimes referred to as Aviation Detection Lighting Systems, are radar-based systems that prevent wind turbine lights from turning on unless an aircraft is approaching or descending toward a wind facility. With ADLS, the Federal Aviation Administration (FAA) requires lighting to be activated and flashing if an aircraft is at or below 1,000 feet above the tallest wind turbine and is approaching a 3-mile perimeter around the facility.

FAA Approval/Standards

The FAA has issued guidance to wind developers to ensure aviation and wildlife safety regarding turbine lighting and visibility in its Advisory Circular AC/7460-1M titled, “Obstruction Marking and Lighting” (https://www.faa.gov/regulations_policies/advisory_circulars/index.cfm/go/document.current/documentnumber/70_7460-1) dated effective November 16, 2020.

The Circular includes standards for turbine paint for all turbines and light color and strobe specifications for turbines at or greater than 500 feet above ground level. All vendors offering light mitigating technologies must be certified by the FAA, and every project requesting such technology must submit a request to the FAA, which evaluates each request on a turbine-by-turbine basis.

The FAA may deny the request based on factors such as proximity to military training areas, airports, or low-altitude flight routes.

As of October 2022, ADLS is the only FAA approved light mitigating technology available to wind projects.

Light Mitigating Technology in Other States

Multiple states have instituted light mitigation requirements for wind turbines in recent years, among them are Colorado and North Dakota.

Colorado

Colorado’s SB 22-110, effective August 10, 2022, applies prospectively and requires new wind-powered energy generation facilities to install light mitigating technology if vertical construction of the first turbine in the facility began on or after April 1, 2022. The bill defined technology as FAA-approved sensor-based systems that are designed to detect approaching aircraft and that deactivate when it is safe to do so.

North Dakota

North Dakota’s Public Service Commission established rules requiring turbines constructed after June 5, 2016, to have light mitigating technology. Enacted legislation soon followed in 2017 requiring every wind energy conversion facility that had been issued a certificate of site compatibility by the Commission before June 5, 2016, to be equipped with a functioning light mitigating technology system that complies with Commission rules by December 31, 2021.

Emerging Technologies

Though ADLS is the only FAA-approved light mitigating technology currently available, new technologies may soon be used more widely. Companies have emerged offering alternative technology that dims FAA-approved obstruction lighting fixtures when the prevailing visibility conditions are favorable, returning the lights to full intensity when visibility conditions lessen or deteriorate.

It is unclear whether or when this type of technology will be approved by the FAA, and, if approval is received, whether FAA standards will need to be amended to accommodate for the addition.

Capital Improvements Funding in Higher Education

Brianna Horton
Fiscal Analyst
Brianna.Horton@klrd.ks.gov
785-296-6684

Shirley Morrow
Principal Fiscal Analyst
Shirley.Morrow@klrd.ks.gov
785-296-3542

The Kansas Board of Regents (Board) policy definition of “deferred maintenance” is annual maintenance and necessary renewal of facilities systems and components that have been postponed, delayed, or deferred, to a future budget cycle or until funds are available.

The 2020 Report on State University Building Inventory, Space Utilization, and Facilities Condition published by the Board notes that the estimated renewal costs to address deferred maintenance for mission-critical buildings is approximately $1.2 billion. The Board defines “mission critical” as those buildings that are predominately used for the academic and research mission of the state universities and the infrastructure that directly supports these buildings.

Educational Building Fund

The Educational Building Fund (EBF) was established in 1941 primarily for the construction of new buildings at state universities. The EBF receives revenue from a mill levy on all tangible property in the state that is subject to ad valorem taxation.
Currently, the fund is primarily used for deferred maintenance projects at state universities. The Board calculates EBF appropriations using an adjusted square footage formula that considers the gross square footage, building age, and complexity of the physical plant.

For FY 2023, the Board transferred $41.0 million from the EBF to state universities. Allocations to the state universities can be found in the table below.

Kansas State University	$12,259,000
University of Kansas	11,016,700
University of Kansas Medical Center	4,612,500
Wichita State University	4,501,800
Fort Hays State University	3,107,800
Pittsburg State University	3,025,800
Emporia State University	2,476,400
Total	$41,000,000

Kansas Board of Regents Policy

The Board approved a new policy in June 2021 for university building maintenance. Beginning in FY 2023, and each year thereafter, each university must calculate a maintenance assessment as a percentage of the professionally estimated replacement cost of mission critical buildings according to an assessment schedule, culminating in a sustainable 2.0 percent of current replacement value as approved by the Board on an annual basis.

Utilizing each university’s Deferred Maintenance Projects Fund, expenditures must be itemized using a standard template for the Board’s review annually.

Each state university must identify and expend campus funds (excluding EBF allocations) annually for the purpose of addressing annual maintenance according to a prioritized assessment plan reviewed by the Board.

Funding for the maintenance assessment may include contributions from university, state, federal, and philanthropic sources.

It is the stated intent of the Board to use the 2.0 percent of current replacement value funds to annually maintain the buildings in proper working order and focus the use of the Educational Building Funds on strategic projects to reduce the backlog of deferred maintenance. The Board voted to allow the universities a six-year escalator to ultimately arrive at the 2.0 percent current replacement value.

2022 Legislative Action

House Sub. for Sub. for SB 267 (2022) appropriated $35.0 million from the State General Fund (SGF) to the Board for the state universities facilities capital renewal initiative in FY 2023.

Specifically, expenditures must be made for non-recurring commitments for the purpose of increasing annual investment in deferred maintenance to eliminate the backlog and adequately maintain state education institution campuses.

Additionally, all projects using these funds require a $1-to-$1 match from either the state education institution or private moneys.

The Board approved the allocation of the funds according to the adjusted square footage formula used by the Board since 2007 to allocate EBF dollars, reflected below:

Kansas State University	$10,465,000
University of Kansas	9,404,500
University of Kansas Medical Center	3,937,500
Wichita State University	3,843,000
Fort Hays State University	2,653,000
Pittsburg State University	2,583,000
Emporia State University	2,114,000
Total	$35,000,000

House Sub. for Sub. for SB 267 also appropriated $10.0 million SGF for the demolition of buildings. These funds may only be used for the demolition or razing of buildings on postsecondary educational institutions and must be expended by the end of FY 2025. Of the $10.0 million, $750,000 is allocated for Washburn University.

At the time of publication of this article, the Board has approved $9.0 million of projects from the fund. The division of approved funds by state universities can be found in the table below.

Kansas State University	$3,602,000
University of Kansas	1,613,000
Pittsburg State University	1,500,000
Emporia State University	1,000,000
University of Kansas Medical Center	750,000
Wichita State University	500,000
Total	$8,965,000

Workforce Development Programs

Elaina Rudder
Research Analyst
Elaina.Rudder@klrd.ks.gov
785-296-4395

Chardae Caine
Fiscal Analyst
Chardae.Caine@klrd.ks.gov
785-296-3183

The Kansas Department of Commerce provides a variety of workforce development programs.

KANSASWORKS

KANSASWORKS is the state’s public workforce assistance system, and it is designed to:

Help Kansans searching for job opportunities;
Help Kansans improve job skills; and
Help employers attract, recruit, and retain employees.

Workforce Centers

There are 26 workforce centers located throughout the state and 2 mobile workforce centers. Workforce centers provide services to both job seekers and employers. The centers assist job seekers by helping create resumes and conduct job searches, providing assistance with interviewing and evaluating job offers, and providing workshops to improve job skills.

Services for employers include recruiting, screening and referring applicants, providing a location to host job fairs, and highlighting opportunities available at the employer’s business.

Mobile workforce centers provide services in regions of the state that lack a permanent workforce center or face unusually high demand for workforce center assistance due to mass layoffs, business closures, natural disasters, or demographic shifts. Services offered are similar to those at permanent workforce center locations and feature computer labs and internet access.

On-the-job Training

The KANSASWORKS On-the-job Training (OJT) program aims to support local businesses that need to train and retrain skilled workers. The OJT program provides a pathway for job seekers to earn wages while learning new job skills and begin new careers. The OJT program also provides employers funds to offset up to 50.0 percent of training costs.

My Reemployment Plan

The Legislature passed Senate Sub. for Sub. for HB 2196 (2021), which implemented the My Reemployment Plan (MRP) program. Claimants who receive three weeks of unemployment payments become part of MRP. These claimants must create or upload their resume and create a job search plan in KANSASWORKS within 14 days of receiving notice of MRP eligibility. Claimants who don’t fulfill the two requirements and who are not exempt from MRP will be denied unemployment benefits until such requirements are completed.

Registered Apprenticeship

The Office of Registered Apprenticeship (Office) within the Department of Commerce is designed to support apprenticeships across multiple industries that will benefit employers and job seekers by incorporating on-the-job learning, technical instruction, mentorship, and long-term employment opportunities. As of September 1, 2022, Kansas has 212 recognized apprenticeship programs with around 3,500 apprentices.

The 2022 Legislature added $500,000 from the Economic Development Initiatives Fund for the Registered Apprenticeship Program for FY 2023.

Workforce Development and Education

Kansas Promise Scholarship

HB 2064 (2021) established the Kansas Promise Scholarship Act, which provides scholarships for Kansas residents to attend Kansas community colleges and Kansas technical colleges to study:

Information technology and security;
Physical and mental health care;
Early childhood education and development;
Advanced manufacturing and building trades; or
Courses designated by the institution as Promise eligible and in the areas of agriculture; food and natural resources; education and training; law, public safety, corrections, and security; or distribution and logistics.

The amount of a student’s scholarship for each semester is the aggregate of the amount of tuition and related fees or costs of the institution minus the aggregate amount of all other aid awarded to the student. The scholarship may be used for up to a total of 68 credit hours or $20,000, whichever occurs first, per student lifetime.

Other Tuition Assistance Programs

State funding is also used for the Accelerating Opportunity: Kansas (AO-K) program and Career and Technical Education (CTE).

The AO-K program delivers career and technical education simultaneously with adult basic skills instruction. Students participating in the AO-K program complete short-term certificate programs aligned with labor market needs, leading to industry-endorsed credentials and job opportunities.

The CTE program pays the tuition of high school students taking approved technical courses offered by Kansas technical and community colleges.

WERX at Wichita State University

Get to WERX is a three-year program at Wichita State University (WSU). Students have the opportunity for full-time, paid employment with the National Institute for Aviation Research (NIAR) WERX program while completing WSU Tech’s Aviation Maintenance Technology program and earning credits towards a Bachelor of Applied Sciences in Organizational Leadership and Learning at WSU. Students who complete the program and maintain employment with NIAR WERX are eligible for tuition reimbursement. There is an employment commitment of five years.

Workforce Aligned with Industry Demand (AID)

The Kansas Department of Commerce and Kansas Board of Regents developed Workforce AID to address skills gaps currently challenging companies across the state. Through the Workforce AID program, employers are able to define what skills and credentials their employees need to be successful. Then, training providers, like community colleges, create curriculum designed to deliver those necessary skills and credentials.

Briefing Book 2023

This publication contains briefs on timely topics that may be relevant during the current Legislative Session. Previous Briefing Book articles and more in-depth resources and memoranda continue to be updated with the latest information and are available on the Kansas Legislative Research Department website.

For this and future editions, the Briefing Book has been redesigned and refocused to be a more concise and useful resource for legislators. Articles have a standard length of two pages to efficiently convey the most important points about each topic, and more graphics are included to illustrate large amounts of data in a concise format. The topics covered are also especially topical and timely in nature; previous Briefing Book articles that provided introductory overviews of broader government topics have been moved to the KLRD website.

The goal of these changes is to provide a publication that is compact, easy to read, and relevant to even the most veteran lawmakers as a new session begins in the Statehouse.

Cover: Stearman by Coy Avon Seward, 1930. Used with permission from Spencer Museum of Art, University of Kansas, Gift of Charles L. Stansifer in memory of his wife Mary Ellen Love Stansifer and her father Clarence M. Love, 2002.0170.