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 264 by Senate Committee on Ways and Means In accordance with KSA 75-3715a, the following fiscal note concerning SB 264 is respectfully submitted to your committee. SB 264 would remove noncooperation with child support from disqualifications for child care subsidies. Estimated State Fiscal Effect FY 2025 FY 2026 FY 2027 Expenditures State General Fund -- -- -- Fee Fund(s) -- -- -- Federal Fund -- $759,924 $2.1 million Total Expenditures -- $759,924 $2.1 million Revenues State General Fund -- -- -- Fee Fund(s) -- -- -- Federal Fund -- -- -- Total Revenues -- -- -- FTE Positions -- -- -- According to the Department for Children and Families (DCF), enactment of SB 264 would result in an increase in expenditures for child care benefits by $759,924 for FY 2026 and $2.1 The Honorable Beverly Gossage, Chairperson Page 2—SB 264 million beginning in FY 2027, all from the federal Child Care Development Fund (CCDF). These expenditures would continue in the out-years. Historical data shows an average of six cases are denied and three cases are closed monthly due to noncooperation. Based on benefits being drawn for 24 months, the estimated monthly increase in child care subsidy cases would be 59 for FY 2026 and 167 for FY 2027 and beyond. The projected increase in cases related to the removal of the requirement for Child Support Services cooperation is based only on historical information. It has been reported there could be eligible families who are not applying because of this requirement. However, there is no data to measure this information. DCF receives CCDF discretionary funds to support the Child Care Subsidy Program. These funds are required to be obligated within two years and liquidated in the third. There is currently a balance of funds available, but budgeted expenditures are exceeding revenues. Additional state funds, program reductions, or changes to the subsidy program would be needed once the current revenue balance is exhausted to provide and maintain these services in future years. Any fiscal effect associated with SB 264 is not reflected in The FY 2026 Governor’s Budget Report. Sincerely, Adam C. Proffitt Director of the Budget cc: Kim Holter, Department for Children & Families