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 14, 2025
The Honorable Beverly Gossage, Chairperson
Senate Committee on Public Health and Welfare
300 SW 10th Avenue, Room 142-S
Topeka, Kansas 66612
Dear Senator Gossage:
SUBJECT: Fiscal Note for SB 132 by Senate Committee on Federal and State Affairs
In accordance with KSA 75-3715a, the following fiscal note concerning SB 132 is
respectfully submitted to your committee.
SB 132 would establish the Kansas Office of Early Childhood within the Executive Branch,
to be administered under the direction and supervision of the Executive Director of Early
Childhood. The Director would be appointed by the Governor, subject to confirmation by the
Senate. Existing early childhood programs currently housed within the Kansas Department for
Children and Families (DCF), the Kansas Department of Education (KSDE) and Kansas
Children’s Cabinet and Trust Fund, and the Kansas Department of Health and Environment
(KDHE) would be transferred to the agency. The agency would include the Division of Child
Care, the Division of Home Visitation, the Division of Head Start Collaboration, and the Kansas
Children’s Cabinet. The bill would update all relevant statutory references to the office and
director. The Office would be required to facilitate and coordinate interagency cooperation
towards the goal of serving children and families with a variety of other state agencies. All duties,
responsibilities, requirements, and powers of the agency and the Director would be detailed in the
bill and new funds would be created for agency operations. An interagency transition team would
be appointed by the Governor on or after July 1, 2025, with the full transition to the consolidated
agency to be completed by July 1, 2026.
In addition to establishing the Office, SB 132 would include extensive amendments to
current child care statutes. The bill would amend requirements for child care homes and centers,
including changes to required staff and provider qualifications and training, licensing and data
system requirements, and facility requirements. The bill would eliminate annual license fees for
conducting a child care facility. The development and operation of pilot programs designed to
increase the availability or capacity of child care facilities in the state would be authorized by the
Secretary of Health and Environment and after July 1, 2026, by the Director of the Office of Early
Childhood. The bill would also update regulations for youth development programs and school-
age programs. The Honorable Beverly Gossage, Chairperson
Page 2—SB 132
According to DCF, enactment of SB 132 would result in a reduction of agency expenditures
totaling $151.0 million, including $16.4 million from the State General Fund, beginning in FY
2027. The corresponding revenue sources for these expenditures would also be reduced from the
agency budget. A total of 14.00 positions are currently associated with these programs. The bill
indicates the Office may enter into agreements with DCF for the administration of child care
subsidy payments. DCF notes that any such agreements would require that DCF determine an
applicant’s eligibility according to KSA 39-709. The agency assumes this function would remain
with DCF to allow the continuation of a single worker process for all assistance programs.
Similarly, support functions needed to determine, monitor, and maintain eligibility would also
continue within DCF. The agency states these support services and functions include the Kansas
Eligibility Enforcement System, the electronic benefits transfer system to make assistance funds
available on an Electronic Benefit Transfer card for child care and other programs, and other
contracts used to verify eligibility information.
The following table details the reduction in expenditures with the transfer of the identified
DCF programs and related operations based on FY 2026 Governor’s Budget Recommendations:
DCF Program Name All Funds SGF
Employment Eligible Child Care ($109,981,630) ($11,275,294)
TANF Child Care (4,000,000) (4,000,000)
Child Care Quality (13,125,504) --
Workforce Registry (1,100,000) (1,100,000)
Healthy Families America (3,150,000) --
Kansas Early Head Start Home Visitation (5,204,002) --
Kansas Early Head Start Child Care Partnership (7,536,462) --
Transfer to KDHE Child Care Licensing (5,786,449) --
Transfer KSDE Kansas Coordinating Council (12,000) --
Head Start Collaboration (120,608) (30,153)
CCDF Administration (504,300) --
EES Community Collaboration (106,408) --
Operations (335,892) --
Total ($150,963,255) ($16,405,447)
DCF has identified the following budgeted programs that would be moved to the Office:
Child Care Assistance, Child Care Quality, Workforce Registry, Head Start Collaboration Office,
Healthy Families America, Kansas Early Head Start Child Care Partnership, and Kansas Early
Head Start Home Visitation. Child Care Assistance would include employment eligible assistance
as well as those eligible through Temporary Assistance for Needy Families (TANF). Additionally,
the DCF budget includes federal Child Care and Development Fund (CCDF) amounts that are
transferred to KDHE for child care licensing and to KSDE for the Kansas Coordinating Council
that would be transferred to the agency. The listed programs include salaries and other operating
costs for 3.00 positions, including two positions assigned to Child Care Quality and a Head Start
Collaboration Coordinator. The estimates include costs for child care subsidy payment expenses.
However, the costs related to eligibility staff and supporting resources have not been included as
it is assumed DCF would continue to provide the eligibility determination services. The Honorable Beverly Gossage, Chairperson
Page 3—SB 132
In addition to direct services, the agency would expect certain support services to be
transferred to the Office. These services include 11.00 positions. CCDF Administration performs
administrative, and policy activities related solely to programs funded with CCDF. There are 7.00
positions associated with this program. Economic and Employment Services (EES) Collaboration
includes 1.00 position funded with the CCDF. DCF Operations includes 3.00 positions. These
positions perform administrative support functions such as federal reporting; writing, awarding,
and monitoring grants and contracts being transferred; budget preparation; and completing
payables and purchasing. It is assumed DCF staff would continue to provide services related to
child care subsidy such as eligibility determination and ongoing case management as discussed
previously. Therefore, no reductions for expenses or positions were calculated for this work. If
DCF does not maintain these functions, there would be additional savings related to those staff
and support services. Additionally, the agency notes the estimate does not include other indirect
costs. These costs are allocated based on the makeup of caseload and work performed by eligibility
workers. As their work and caseloads are assumed to continue, there would be no change in the
allocation method for indirect costs.
KDHE estimates that enactment of SB 132 would result in a reduction in revenue totaling
$9.8 million in FY 2026 and $16.7 million in FY 2027 for the transfer of programs and the related
funding streams. Associated expenditures that are based on these revenue sources would also
move to the Office.
KDHE states that child care licensing (CCL) is primarily funded by interagency contract
funds between KDHE and DCF. These funds originate as federal CCDF program funds and are
contracted to KDHE on a three-year cycle to carry out the health and safety portion of the state’s
early childhood care plan. The current interagency contract runs through FY 2026. CCL also
receives a State General Fund appropriation which is used to fund approximately 10.0 percent of
total CCL operations. KDHE estimates a State General Fund reduction of $531,212 and a CCDF
reduction of $5.8 million would occur in FY 2026 related to the transfer of the CCL program.
There are currently 41.00 positions in the CCL program. Because the bill would eliminate
application fees beginning in FY 2026, KDHE estimates this would reduce program revenue by at
least $329,420 in future years. While these fees have been eliminated the past few years, the lost
revenue has been replaced by other funding sources. One-time costs for a new child care licensing
system design and implementation required by the bill are estimated to be $289,293 for FY 2025
as the work would need to be completed prior to July 1, 2025. KDHE reports there are other
support positions funded by CCL funds outside of the CCL program that would need to be
continued to be covered by the agency. This includes portions of salaries for Bureau of Family
Health leadership positions, rules and regulations positions, administrative support positions, and
some IT positions as necessary and totals approximately $478,757 annually.
Home visiting programs at KDHE include Maternal, Infant and Early Childhood Home
Visiting and Universal Home Visiting (UHV) through the Maternal and Child Health block grant.
The transfer of these programs would result in a reduction of associated expenditures as well as
state and federal funds that support these programs, as these funding streams would be moved to
the agency. The estimate for the total reduction in revenues is $3.5 million in FY 2026 and $10.4
million in FY 2027. There are currently 7.65 positions associated with these programs. This
estimate is based on historic awards and federal estimates and is for the remaining grant cycle in The Honorable Beverly Gossage, Chairperson
Page 4—SB 132
FY 2026 and the full year in FY 2027. KDHE states that Part C services would not move to the
new agency. The agency also notes that because the UHV program is funded through Title V and
those funds would not be moving, they would continue to be distributed to KDHE and KDHE
would pass them on to the Office to fulfill UHV needs in the state. KDHE reports there are other
support positions funded by program funds outside of the home visiting programs that would need
to be continued to be covered by the agency. This includes portions of salaries for Bureau of
Family Health leadership positions, rules and regulations positions, administrative support
positions, and some IT positions as necessary and totals approximately $110,000 annually.
KSDE states that enactment of SB 132 would not have a fiscal effect on the agency. After
July 1, 2026, the agency would no longer be involved in the administration and operation of the
Parent Education Program. School districts operating an approved Parent Education Program
would be eligible to receive a state funded grant. The Office would provide technical advice and
assistance, application for the parent education grant, studies, materials, procedures, and personnel
available to school districts.
According to the Department of Corrections, the Kansas Department of Administration,
and the Kansas Board of Regents, enactment of SB 132 would not result in a fiscal effect for the
agencies. The Division of the Budget assumes the reported agency specific savings related to the
enactment of SB 132 would not result in statewide savings as most program duties and
responsibilities would be transferred to the newly established Office of Early Childhood. In
addition to program expenditures, the salary and benefits for the Executive Director is likely to be
in the range of $100,000 to $125,000 based on similar positions in other state agencies. The
estimates reported in this fiscal note do not include expenditures related to any new duties or new
administrative costs that may occur with enactment of the bill, as those costs cannot be estimated
at this time. Any fiscal effect associated with SB 132 is not reflected in The FY 2026 Governor’s
Budget Report, although expenditures for existing programs are included as discussed above.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Amy Penrod, Department of Health & Environment
Gabrielle Hull, Department of Education
Kim Holter, Department for Children & Families
Jennifer King, Department of Corrections
Becky Pottebaum, Board of Regents
Samir Arif, Department of Administration