Division of the Budget Landon State Office Building Phone: (785) 296-2436 900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov Topeka, KS 66612 http://budget.kansas.gov Adam C. Proffitt, Director Laura Kelly, Governor Division of the Budget February 1, 2024 The Honorable Ken Rahjes, Chairperson House Committee on Agriculture and Natural Resources 300 SW 10th Avenue, Room 112-N Topeka, Kansas 66612 Dear Representative Rahjes: SUBJECT: Fiscal Note for HB 2564 by House Committee on Appropriations In accordance with KSA 75-3715a, the following fiscal note concerning HB 2564 is respectfully submitted to your committee. HB 2564 would establish the Kansas Farm-to-Food Bank Program administered by the Department of Agriculture. The goal of the program would be to help expand the availability of nutritious locally grown, raised, or produced foods for the Kansas emergency food system. The program would acquire Kansas agricultural food products from agricultural entities or aggregators and distribute the products to the emergency food system. The program would use funds to purchase Kansas agricultural food products or facilitate the donation of Kansas agricultural food products, including harvesting, packing and transportation. Expenditures for the program would be subject to appropriation and would dedicate not less than 75.0 percent of available funds to acquisition and distribution of Kansas agricultural food products. Estimated State Fiscal Effect FY 2024 FY 2025 FY 2026 Expenditures State General Fund -- $1,000,000 $1,000,000 Fee Fund(s) -- -- -- Federal Fund -- -- -- Total Expenditures -- $1,000,000 $1,000,000 Revenues State General Fund -- -- -- Fee Fund(s) -- -- -- Federal Fund -- -- -- Total Revenues -- -- -- FTE Positions -- -- -- The Honorable Ken Rahjes, Chairperson Page 2—HB 2564 The Department of Agriculture estimates that the enactment of HB 2564 would increase total expenditures by $1.0 million, all from the State General Fund, which would fund state grants to eligible organizations. The Department notes that funding for the program is included in the Governor’s recommendation for FY 2025 for the agency. In addition, any administrative expenses would be negligible and any funds appropriated by the Legislature would be used for awarding grants. The Division of the Budget notes that because the grant program would be codified with HB 2564, state aid expenditures for the program would be expected to be ongoing after FY 2025. Any fiscal effect associated with HB 2564 is reflected in The FY 2025 Governor’s Budget Report. Sincerely, Adam C. Proffitt Director of the Budget cc: Lita Biggs, Department of Agriculture