Budget Narrative & Schedules

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Budget Narrative & Schedules The Governor’s Budget Report Volume 1 Recommendations and Budget Schedules Fiscal Year 2002 In Memory of Gloria M. Timmer 1951—2000 This issue of The Governor’s Budget Report is dedicated to the memory of Gloria M. Timmer. Gloria worked in the Division of the Budget as a Principal Budget Analyst from May 1988 to June 1991. In July 1991, she was appointed by Governor Finney as the first woman Budget Director for the State of Kansas. She was re-appointed by Governor Graves and continued to serve as Director until May 1998. V O T E R S OF K A N S A S Attorney Commissioner Secretary State Legislature General of Insurance Governor of State Treasurer Judiciary Legislative Kansas Health Care Lt. Governor Judicial Coordinating Council Bureau of Stabilization Fund Investigation Board of Governors Council Legislative Research Board of Education Revisor of Statutes Department of Education Division of Legislative Division of the Budget Adjutant General School for School for Post Audit the Blind the Deaf Department of Department of Department of Department of Department on Department of Commerce & Corrections & Health & Administration Aging Agriculture Housing Institutions Environment Department of Department of Juvenile Social & Department of Department of Department of Human Justice Rehabilitation Wildlife & Revenue Transportation Resources Authority Services and Parks Institutions Kansas State University Board of Regents Emporia State KSU Extension Systems & Fort Hays State Agricultural Research Programs University of Kansas Pittsburg State KSU Veterinary Medical Center University of Kansas Medical Center Wichita State Board of Citizens’ Kansas Public Governmental Racing & Indigents’ Board of Tax Corporation Utility Technology Employees Ethics Kansas Inc. Gaming Defense Appeals Commission Ratepayer Enterprise Retirement Commission Commission Services Board Corporation System Emergency Commission State Guardianship Arts Medical State Library on Veterans’ Historical State Lottery Fire Marshal Program Commission Services Affairs Society Board Animal Highway Sentencing Human Rights Conservation State Fair Wheat Parole Board Health Water Office Patrol Commission Commission Commission Board Commission Department Behavorial Hearing Aid Department of Securities Abstracters Accountancy Barbers Cosmetology Dental Healing Arts Sciences Dispensers Credit Unions Commissioner Real Estate Real Estate Technical Veterinary Bank Mortuary Arts Nursing Optometry Pharmacy Appraisal Commission Professions Examiners Commissioner Board Overview The Governor’s revised budget recommendations for In public education the Governor proposes adding $50 FY 2001 and new recommendations for FY 2002 to the base budget per pupil. Total spending on special outline a finance plan for Kansas that prioritizes education increases by $19.0 million. However, the education. In addition, the budget includes increases Governor proposes an alternative special education for social services, continuation of the comprehensive reimbursement system that finances costs based on a transportation plan, and the provision of vital services two-tiered pupil weighting system. The in public safety and water quality. All of these recommendations also include $4.0 million to move recommendations are funded from existing resources, the at-risk weighting to .1 and $3.0 million from the and the required State General Fund ending balance is Children’s Initiatives Fund to enhance Parents as maintained. Teachers and four-year-old at-risk programs. One year ago Kansas confronted a very tight fiscal Higher education benefits from second year funding of situation. In response, the approved FY 2000 State the Kansas Higher Education Coordination Act. The General Fund budget was scaled back by $67.8 Governor also recommends switching university million, and spending growth in FY 2001 was budgets to a State General Fund operating grant rather curtailed to 0.4 percent. That careful management of than the current formula driven budgets. the state’s resources now allows Kansas to proceed toward FY 2002 with a stable fiscal base. The budget fully funds medical, nursing home, and foster care caseloads. The Governor recommends enhanced appropriations for Home and Community FY 2001 Recommendations Based Service programs to allow greater access to these services. The current year budget recommendations closely follow the budget plan developed by the Governor and The budget recommendations continue the ten-year the 2000 Legislature. For FY 2001, the Governor comprehensive transportation program. The State recommends a revised total budget of $9.16 billion, General Fund demand transfer to the State Highway with $4.43 billion from the State General Fund. Fund is calculated at the statutory 9.5 percent of sales Previously approved amounts totaled $8.79 billion, tax receipts. However, the actual amount of the with $4.41 billion from the State General Fund. Key transfer is reduced by $24.7 million to account for revisions include medical and foster care caseload operational reductions in the Department of increases, expenditure authority shifts from FY 2000 Transportation. into FY 2001, and increases in available federal funds. Details of the revisions can be found in Schedule 8 at For all classified employees, the Governor the back of this volume. recommends a 3.0 percent base salary increase, 1.5 percent to begin June 10 and another 1.5 percent to begin December 9. For unclassified employees the FY 2002 Recommendations Governor includes a corresponding funding pool to be awarded on the basis of merit. The Governor For the coming fiscal year that begins July 1, 2001, the recommends increases in addition to the basic pay plan Governor proposes a total budget of $9.15 billion, of for officers in the corrections system, juvenile justice which $4.66 billion is from the State General Fund. system, and highway patrol. Faculty at Regents The State General Fund portion of the budget grows universities will also be eligible for additional by 5.2 percent over FY 2001. Education increases increases through second year funding of the Higher account for the greatest share of the proposed spending Education Coordination Act. The budget allocates increase, followed by a higher transportation demand resources to allow the KPERS employer contribution transfer, SRS and Aging caseloads, and state employee rate to rise and to resume payments into the KPERS salary costs. Death and Disability Group Insurance Fund. Financing. All of the Governor’s recommendations revenue projections are built on the expectation of were made and the budget built using the November further growth. The Gross State Product is projected Consensus Revenue Estimate. FY 2001 begins with to rise 4.8 percent in 200l and another 4.8 percent in an unencumbered cash balance in the State General 2002. Personal income growth is also expected to be Fund of $378.0 million. The estimating group then 4.8 percent in both 2001 and 2002. Inflation is projects FY 2001 receipts to be $4.49 billion, a 6.7 projected to drop to 2.8 percent in 2001 and drop again percent growth over the previous year. For FY 2002, to 2.5 percent in 2002. the estimating group projects 2.4 percent growth for total receipts of $4.58 billion. The Governor’s budget Budget Preparation. This budget is the product of a fits within these available resources, leaving a balance careful planning process to assure that each tax dollar at the end of FY 2002 of 7.5 percent of expenditures. is appropriately spent. The process began immediately following the 2000 Legislative Session and involved The consensus revenue projections are adjusted continuous monitoring of all state revenues, discussion slightly by the Governor’s recommendation to stop of program and policy options, and a review of agency treating Homestead Property Tax Refunds as priorities. The Governor directed agencies to submit expenditures. Instead the Governor proposes that the current service budget requests by September 15. A refunds be deducted from revenue as they are paid out. current service level assumes that appropriations approved by the 2000 Legislature will be continued The Governor’s budget plans for the continued receipt with adjustments made for one-time expenditures, new and use of federal funds through the Kansas requirements, and slight inflation. Agencies were also Intergovernmental Transfer Program. Current directed to submit a reduced resource package that estimates indicate that the state could draw down as proposed ways in which their current service budget much as $100.0 million in FY 2001 and $88.0 million could be reduced by 2.0 percent, if necessary. in FY 2002. Agencies also had the opportunity to ask for enhancements to their current service request. Children’s Initiatives Fund. In FY 2001, $30.0 million of tobacco settlement receipts transfer to the The Division of the Budget reviewed agency requests Children’s Initiatives Fund. In FY 2002, another and returned initial recommendations to the agencies $40.0 million will transfer. The Governor suggests no in November. The Governor made final changes to the current year appropriations from this recommendations after reviewing each budget request, fund. The Governor’s FY 2002 recommendations the Division of the Budget adjustments, and agency track closely with the recommendations of the appeals. Children’s Cabinet. The FY 2002 proposal does continue ongoing programs, but targets the largest Long-Term Budget Plan. The table on the following share of the fund resources for
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