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 10, 2025
The Honorable Sean Tarwater, Chairperson
House Committee on Commerce, Labor and Economic Development
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Representative Tarwater:
SUBJECT: Fiscal Note for HB 2304 by House Committee on Commerce, Labor and
Economic Development
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2304 is
respectfully submitted to your committee.
Under current law, the Department of Commerce is required to maintain an economic
development incentive program database to collect and store incentive data from state agencies
charged with administering economic development incentive programs that provide more than
$50,000 of annual incentives. HB 2304 would require the database to be a searchable website or
web page configured to provide comprehensive reports of the incentive data. The information
would be required to be posted on the Department’s Economic Development Incentive Program
database for those programs that commenced prior to July 1, 2025.
The bill would require cities and counties as well as recipients of the incentives to report
local economic development incentive program information to the Department of Commerce.
Providing the information would be a condition of commencing an economic development
incentive program by a city or county on and after July 1, 2025. The information would be due to
the Department within 30 days of the commencement of the program. The cities and counties
would be required to provide annual updates on the programs and the Department would use this
information to prepare a summary report for the Legislature. The Secretary would not be required
to disclose information that would violate the confidentiality provisions of any agreement executed
before July 1, 2025. Currently, it is within the Secretary’s discretion to not disclose information
that would be detrimental to the development of a Sales Tax and Revenue bond project or
jeopardize an economic development incentive project. The bill would require, beginning January
31, 2026, and on or before each January 31 thereafter, the Secretary to report to the Legislature
why the information was not disclosed in the prior fiscal year. The bill would also expand the
definition of an economic development incentive program as described in the bill.
The Honorable Sean Tarwater, Chairperson
Page 2—HB 2304
Estimated State Fiscal Effect
FY 2025 FY 2026 FY 2027
Expenditures
State General Fund -- $389,000 $189,000
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Expenditures -- $389,000 $189,000
Revenues
State General Fund -- -- --
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Revenues -- -- --
FTE Positions -- 2.00 2.00
The Department of Commerce states that beginning in FY 2026 it would require 2.00
positions totaling $189,000 ($94,500 x 2) for salary and wage expenditures from the State General
Fund. The agency would also require one-time expenditures of $200,000 from the State General
Fund in FY 2026 for website designers and consultants as well as to upgrade its Salesforce
software. The Department of Revenue and the Department of Administration indicate the bill
would not have a fiscal effect on agency operations. Any fiscal effect associated with HB 2304 is
not reflected in The FY 2026 Governor’s Budget Report.
The Kansas Association of Counties and the League of Kansas Municipalities indicate the
counties and cities could require additional staff to report data required by HB 2304; however, the
Association and the League are unable to estimate the costs for additional staff.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Sherry Rentfro, Department of Commerce
Jay Hall, Kansas Association of Counties
Wendi Stark, League of Kansas Municipalities
Lynn Robinson, Department of Revenue
Samir Arif, Department of Administration
Brian Reiter, Office of Information Technology Services
Ethan Belshe, Office of the Governor