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 19, 2025
The Honorable Susan Estes, Chairperson
House Committee on Education
300 SW 10th Avenue, Room 218-N
Topeka, Kansas 66612
Dear Representative Estes:
SUBJECT: Fiscal Note for HB 2138 by House Committee on Education
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2138 is
respectfully submitted to your committee.
HB 2138 would allow a local board of education to make a new annual tangible property
tax levy of up to two mills. Allowable expenditures from the proceeds of the levy could be used
for school safety and security expenditures, as well as to make buildings compliant with the
Americans with Disabilities Act. In addition, the proceeds could be used for paying a portion of
the principal and interest on bonds issued by cities with respect to any redevelopment district
established prior to July 1, 2025, for projects on school property located within the school district.
The new levy would have to be approved by the local board of education. The approval would be
subject to a protest petition, signed by not less than 10.0 percent of the qualified electors of the
school district. If the protest petition is filed with the county election officer within 40 calendar
days after publication of the school board resolution, the levy would have to be approved by
electors at either a special elector or the next general election.
Any levy of the tax provided by the bill would be considered part of a school district’s
aggregate capital outlay levy. The levy would be equalized in the determination of a school
district’s Capital Outlay State Aid payment by the Department of Education.
The enactment of the bill would allow up to an additional two-mill tax levy in addition to
a district’s current levy for capital outlay expenditures. This additional tax levy would provide
additional revenues for necessary projects. Any fiscal effect would be dependent on the number
of school districts that would choose to levy the new tax and if any of the applicable school districts
would qualify for state equalization payments for Capital Outlay State Aid. A fiscal effect cannot The Honorable Susan Estes, Chairperson
Page 2—HB 2138
be estimated. However, the Department notes that during FY 2025, 213 school districts applied
to participate in the Safe and Secure Schools Grant Program. In this program, $5.0 million of state
funding was available and the Department reports that school district requests exceeded $12.0
million in projects. It would be likely some of these districts would choose to fund projects through
this new available mill levy with the enactment of the bill. Any fiscal effect associated with HB
2138 is not reflected in The FY 2026 Governor’s Budget Report.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Gabrielle Hull, Department of Education
Lynn Robinson, Department of Revenue
Angie Stallbaumer, Kansas Association of School Boards