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 11, 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 2295 by House Committee on Education In accordance with KSA 75-3715a, the following fiscal note concerning HB 2295 is respectfully submitted to your committee. Under current law, school districts are entitled to receive appropriations from the State General Fund of $0.06 for each meal served under an approved school lunch program each school year. HB 2295 would add language to current law that would also entitle school districts to receive $0.40 for each meal served for reduced-priced school meals. School boards would be prohibited from collecting funds from students participating in the reduced-price school meals program. According to the Department of Education, the following data represents reduced-price meals during the last two school years: Reduced-Price Meals Served & Cost FY 2023 Number Cost Total Reduced-Price Breakfasts 1,633,556 $0.30 $ 490,067 Reduced-Price Lunches 3,755,854 0.40 1,502,342 Total 5,389,410 $1,992,409 FY 2024 Number Cost Total Reduced-Price Breakfasts 1,348,321 $0.30 $ 404,496 Reduced-Price Lunches 3,161,671 0.40 1,264,668 Total 4,509,992 $1,669,164 The Honorable Susan Estes, Chairperson Page 2—HB 2295 Based upon the above data and that the removal of the required copay for reduced-price meals, the number of students and meals served would likely increase. The Department notes that during the COVID-19 pandemic, the number of meals increased over 50.0 percent when all students were served at no charge to the student. The Department estimates that a FY 2026 appropriation totaling $3.0 million from the State General Fund would likely cover all students under the provisions of the bill with these assumptions. Future costs would be approximately $3.0 million each year. The Division of the Budget notes that the Governor’s FY 2026 budget recommendations include expenditures totaling $5.5 million for covering reduced-price meals at no cost to the student. The discrepancy in the cost between the Governor’s recommendation and the Department’s estimate is attributed to different estimates in the projected growth in the amount of meals taken by students should the policy be enacted. However, the policy would be the same to cover the same at-risk student’s reduced-price meals at no cost to the student. Sincerely, Adam C. Proffitt Director of the Budget cc: Gabrielle Hull, Department of Education Angie Stallbaumer, Kansas Association of School Boards