SESSION OF 2024
SUPPLEMENTAL NOTE ON SENATE BILL NO. 552
As Amended by Senate Committee on Ways
and Means
Brief*
SB 552, as amended, would create the Kansas Campus
Restoration Act authorizing the Kansas Board of Regents
(Board) to adopt rules and regulations relating to deferred
maintenance and demolition of facilities at postsecondary
institutions. The bill would allow transfers from the State
General Fund (SGF) to the Kansas Campus Restoration
Fund and require annual reports be submitted to the
Legislature.
Definitions
The bill would define the following terms :
●“Educational mission-critical facilities” would
include, but not be limited to, any facility of
research or economic generation capacity that the
Board deems essential. This definition does not
include auxiliary or athletic-funded facilities.
●“State of good repair” would be a building meeting
industry standard, which shall be presented to the
Joint Committee on State Building Construction for
review and comment.
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org Deferred Maintenance
The bill would create the Kansas Campus Restoration
Fund within the state treasury, and funding would be
administered by the Board.
The bill would require that a deferred maintenance
account be created for each postsecondary educational
institution for the purpose of making capital improvement
expenditures from the fund.
The bill would require that all expenditures from such
account require a match of non-state moneys on a $1-for-$1
basis from either the institution or private moneys.
The bill would not require a match for community
colleges, technical colleges, the municipal university, the
institute of technology, or from the state educational
institutions’ deferred maintenance accounts for the use of
demolition or razing.
The bill would require, on or before the 10th day of each
month, the Director of Accounts and Reports to transfer from
the SGF to the fund interest earnings based on:
●The average daily balance of moneys in the
Kansas campus restoration fund for the preceding
month; and
●The net earnings rate for the Pooled Money
Investment Portfolio for the preceding month.
Funding
The bill would require the Director of Accounts and
Reports to transfer $32.7 million from the SGF to the fund
annually from July 1st, 2025, until July 1st 2035, or as soon
as moneys are available after each date.
2- 552 The bill would require the Board to distribute an
aggregate amount of $30.0 million from the fund among each
state educational institution’s deferred maintenance account,
in accordance with the campus restoration plan developed
and approved by the Board starting in FY 2026 through FY
2036.
The bill would require that the Board credit $100,000
from the remaining $2.7 million in each fiscal year to each
community college, technical college, and municipal
university in fiscal years 2026 through 2036.
Reporting and Planning
The bill would require that each postsecondary
institution develop and submit a report to the Board detailing
a plan for rehabilitating, remodeling, or renovating existing
facilities, or building new facilities. The plan should include a
list of facilities for demolition or razing and a plan to bring any
buildings into a state of good repair. This plan must also
include satellite campuses, such as Kansas State Salina and
University of Kansas Edwards campus. All institution plans
would subject to approval by the Board.
The bill would require that the Board develop a
comprehensive Kansas Campus Restoration Plan that
includes all facilities from each institution, and the Board may
require a reduction of total campus square footage in a
project associated with such plan.
The bill would authorize the Board to adopt any rules or
regulations necessary to implement and administer the
provisions of the Kansas Campus Restoration Act.
Additionally, the Board would be required to submit to the
Legislature an an annual report on or before the first day of a
regular session on the progress of the Kansas Campus
Restoration Plan. This report would be submitted to the
Senate Committee on Ways and Means, House Committee
3- 552 on Appropriations, House Committee on Higher Education
Budget, and Joint Committee on State Building Construction.
Background
The bill was introduced by the Senate Committee on
Ways and Means at the request of Senator Billinger.
Senate Committee on Ways and Means
In the Senate Committee hearing, proponent testimony
was provided by representatives from the Kansas Board of
Regents, the University Contractors Association of Kansas,
and the Kansas Association of Community Colleges.
The representative from the Board stated there are
currently three funding streams to address deferred
maintenance: educational building fund, SGF, and university
investment. The representative stated that there are currently
500 buildings that are mission critical and provided an update
on current funding.
The representative from the University Contractors
Association of Kansas stated that deferred maintenance is
the second largest liability for the State of Kansas and that
50.0 percent of the buildings are more than 50 years old. The
representative stated that to address the problem it will take
the educational building fund and support from the
Legislature.
The representative from Kansas Association of
Community Colleges stated this funding would help complete
necessary renovations and assist with the upkeep of older
buildings.
Written-only testimony was provided by a representative
from Washburn University.
4- 552 No other testimony was provided.
The Senate Committee amended the bill to :
●Amend KSA 74-3201b to include the term
“institution of technology” in reference to Washburn
University in the definition of “post-secondary
educational institution”;
●Change the language referencing post-secondary
educational institutions to state educational
institutions for reporting purposes only requiring the
six state universities to submit a restoration plan to
the Board for approval;
●Include language requiring the Board and each
community college, technical college, institute of
technology, and municipal university submit a
report on expenditures and moneys received from
the fund; and
●Include language that reports will be submitted to
the Board and other aforementioned legislative
committees.
Fiscal Note
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Kansas Board of
Regents indicates enactment of the bill would provide $32.7
million from the SGF for deferred maintenance and demolition
of facilities at all public higher education institutions in
Kansas. The board estimates expenditures of $127,000 from
the SGF for FY 2025 and FY 2026 for 1.0 FTE position
responsible for reviewing each institution’s plan. The Board
indicates that of the $127,000 for the additional FTE position,
$119,000 would be for salaries and wages and $8,000 would
be for other operating expenditures.
The Division of Budget notes that the bill provides $30.0
million SGF to be distributed by the board to the state
5- 552 universities each fiscal year, while each community college,
technical college, and municipal university would receive
$100,000 each fiscal year for deferred maintenance and
demolition of faculties beginning in FY 2026 through FY 2036.
Any fiscal effect associated with enactment of the bill is not
reflected in The FY 2025 Governor’s Budget Report.
Deferred maintenance; board of regents; campus
6- 552