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 January 22, 2025 The Honorable Virgil Peck, Chairperson Senate Committee on Agriculture and Natural Resources 300 SW 10th Avenue, Room 144-S Topeka, Kansas 66612 Dear Senator Peck: SUBJECT: Fiscal Note for SB 36 by Senate Committee on Agriculture and Natural Resources In accordance with KSA 75-3715a, the following fiscal note concerning SB 36 is respectfully submitted to your committee. SB 36 would amend current law pertaining to conservation districts. The bill would increase the cap on the amount of funding disbursed by the Division of Conservation in the Department of Agriculture to conservation districts from $25,000 to $50,000 beginning in FY 2026, subject to appropriations. Additionally, the bill would provide an increased matching basis for state funding disbursed to conservation districts ($2 state funding to $1 county funding) based on amounts allocated by the board of county commissioners for districts; however, the total amount disbursed could not exceed the newly established cap of $50,000 per district. The Department of Agriculture estimates that the enactment of the bill could increase state aid to conservation districts in the agency’s Division of Conservation. The Department indicates that the FY 2025 appropriation from the State Water Plan Fund (SWPF) totaling $3.5 million provided an average of $33,359 per disbursement to each district. These disbursements to conservation districts occurred on July 10, 2024 (beginning of FY 2025). For FY 2026, the Governor recommends a $4.3 million appropriation from the SWPF and a $1.0 million transfer from the 2024 HB 2302 Projects Fund in the Kansas Water Office for state aid to conservation districts. The Department notes that the appropriation and transfer could increase state aid to conservation districts in FY 2026; however, any state aid to conservation districts would be subject to the ultimately legislative-approved appropriation and the matching county commissions allocations to conservation districts. As a result, a fiscal effect for FY 2026 cannot be estimated. The Honorable Virgil Peck, Chairperson Page 2—SB 36 The Kansas Association of Counties indicates that enactment of the bill could increase counties allocations to conservation districts to meet the new match amount; however, a fiscal effect cannot be estimated. Any fiscal effect associated with SB 36 is not reflected in The FY 2026 Governor’s Budget Report. Sincerely, Adam C. Proffitt Director of the Budget cc: Lita Biggs, Department of Agriculture Wendi Stark, League of Kansas Municipalities Jay Hall, Kansas Association of Counties