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 20, 2025
The Honorable Adam Smith, Chairperson
House Committee on Taxation
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Representative Smith:
SUBJECT: Fiscal Note for HB 2278 by Representative Woodard, et al.
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2278 is
respectfully submitted to your committee.
For tax year 2026, HB 2278 would increase the property tax exemption from the statewide
school levy for residential property from $75,000 to $110,000. For tax year 2027 and in each
subsequent year, the amount of the exemption would be adjusted to reflect the average percentage
change in statewide residential valuation for the preceding ten years. The Director of Property
Valuation would be required to calculate the percentage change, as outlined in the bill.
According to the Department of Revenue, the increase in the property tax exemption would
reduce revenues to the School District Finance Fund by $61.3 million in FY 2027, $71.8 million
in FY 2028, $83.0 million in FY 2029, $94.8 million in FY 2030, and $107.3 million in FY 2031.
The Division of the Budget notes that because the School District Finance Fund partially finances
State Foundation Aid, a corresponding increase to the State General Fund appropriation for State
Foundation Aid would be needed each year in order to fund the approved Base State Aid Per Pupil
in the school finance formula. Any fiscal effect associated with HB 2278 is not reflected in The
FY 2026 Governor’s Budget Report.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Lynn Robinson, Department of Revenue
Gabrielle Hull, Department of Education