COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3824S.03I Bill No.:SB 678 Subject:Kansas City; Law Enforcement Officers and Agencies Type:Original Date:January 10, 2022Bill Summary:This proposal modifies provisions relating to funding for the Kansas City
Police Department.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025
General Revenue*
$0 or (Could exceed
than $64,100,000)
$0 or (Could exceed
$64,100,000)
$0 or (Could exceed
$64,100,000)
Total Estimated Net
Effect on General
Revenue
$0 or (Could exceed
than $64,100,000)
$0 or (Could exceed
$64,100,000)
$0 or (Could exceed
$64,100,000)
*Oversight notes this bill is not contingent upon passage of SJR38. Therefore, Oversight will
reflect a potential impact to General Revenue if the state is required to pay for this additional
local funding requirement
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 3824S.03I
Bill No. SB 678
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January 10, 2022
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on FTE 000
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Local Government*$0 $0$0
*Offsetting increase in costs (additional appropriation) to the City of Kansas City and an increase
in funding to the Kansas City Police Department L.R. No. 3824S.03I
Bill No. SB 678
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FISCAL ANALYSIS
ASSUMPTION
Officials from the City of Kansas City has not responded to Oversight’s request for fiscal
impact.
Officials from the Kansas City Police Department (KCPD) state in §84.730 it shall be the duty
of the board, on the fifteenth day of January of each year, to prepare, in writing, a budget
estimating the sum of money which will be necessary for the next fiscal year, to enable the board
to discharge the duties hereby imposed upon it, and to meet the expenses of the police
department, which it shall forthwith certify to the governing body of such city, and the budget
shall itemize purposes of expenditure by organization units, activities, functions, and character
classes in not less detail than "personal services", "contractual services", "commodities", and
"capital outlays", and shall in any event be prepared in form and detail similar to the form and
detail in which budgets for the various departments of such city government are prepared. The
governing body of the city is hereby required to appropriate the total amount so certified, payable
out of the revenue of the city after first having deducted the amount necessary to pay the interest
on the indebtedness of the city, the amount necessary for lighting the city, and any sum required
by law to be placed to the credit of the sinking fund of the city, and if the board shall be required
to call out extra police force and the expense thereof shall not have been contemplated in their
estimate for the fiscal year during which the extra police force is called out, it shall immediately
certify the expense of such additional force, and the additional amount so required shall be
appropriated for that purpose, except that in no event shall the governing body of the city be
required to appropriate for the use of the police board in any fiscal year an amount in excess of
one-fifth of the general revenue fund of such year.
Based on information provided to Kansas City, Missouri Police Department by the Kansas City,
Missouri Finance Department, FY 2021-22 revenues, all sources, are $1,763,471,697. The City
excludes over $1 Billion of total revenues when applying the current one-fifth statutory
limitation in 84.730, making it appear that the City is funding the KCPD at a higher percentage.
The change proposed in this legislation would require the percentage limitation to be applied to
all City revenue sources, not just the revenue sources the City identifies as GR. This statutory
change is consistent with Spink V Kemp, 365 Mo. 368, 283 S.W. 2d 502 which determined that
all City revenue sources had to be used in applying the percentage limitation.
According to KCPD’s Appropriated Budget for 2021-22, $256,773,275 is appropriated for FY
2022. Oversight assumes this appropriated budget reflects the current 20% statutory limitation
when additional forces are needed by the KCPD. This proposal suggests a 25% limitation which
when applied would yield $320,966,594 (($256,773,275/.20) x .25). This would be an increase in
funding to the KCPD of $64,193,319 ($320,966,594-$256,773,275). However, the proposal L.R. No. 3824S.03I
Bill No. SB 678
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includes all revenue collected by the City and not just what is labeled as GR. Therefore, the
funding could be greater than $64.1 million available to the KCPD should additional forces be
needed.
Oversight has requested information from the City of Kansas City as well as additional
information from the KCPD regarding their response. Upon the receipt of this information,
Oversight will review to determine if an updated fiscal note should be prepared and seek the
necessary approval to publish a new fiscal note if needed. Therefore, Oversight will reflect a
potential increase in funding costs of $0 or greater than $64.1 million for this proposal.
Oversight notes this bill is not contingent upon passage of SJR 38. Therefore, if SJR is not
approved by voters, the state may be required to pay for this local funding requirement change.
FISCAL IMPACT – State GovernmentFY 2023FY 2024FY 2025GENERAL REVENUECost – Cost to the state if SJR 38 is not
approved by voters and the state must
pay for increase in funding to KCPD
$0 or (Could
exceed
$64,100,000)
$0 or (Could
exceed
$64,100,000)
$0 or (Could
exceed
$64,100,000)
ESTIMATED NET EFFECT TO
THE GENERAL REVENUE FUND
$0 or (Could
exceed
$64,100,000)
$0 or (Could
exceed
$64,100,000)
$0 or (Could
exceed
$64,100,000)
FISCAL IMPACT – Local GovernmentFY 2023FY 2024FY 2025LOCAL POLITICAL
SUBDIVISIONS
Cost - City of Kansas City – potential
increase in appropriation funding
$0 or (Could
exceed
$64,100,000)
$0 or (Could
exceed
$64,100,000)
$0 or (Could
exceed
$64,100,000)
Revenue – Kansas City Police
Department - potential increase in
appropriation funding
$0 or Could
exceed
$64,100,000
$0 or Could
exceed
$64,100,000)
$0 or Could
exceed
$64,100,000)
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS
$0$0 $0 L.R. No. 3824S.03I
Bill No. SB 678
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FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
Under current law, the city of Kansas City is required to provide one-fifth of its general revenue
per fiscal year to fund the Kansas City Board of Police. This act increases such funding to one-
fourth of the city's general revenue and provides that the general revenue fund shall include all
revenue collected by the city regardless of whether the revenue is from a tax, fee, or other source
of funding and regardless of whether the revenue is deposited into another fund other than
general revenue.
This act contains an emergency clause.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Kansas City Police Department
Julie MorffRoss StropeDirectorAssistant DirectorJanuary 10, 2022January 10, 2022