COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3824S.04P Bill No.:Perfected SS for SB 678 Subject:Kansas City; Law Enforcement Officers and Agencies Type:Original Date:March 2, 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 2025Total Estimated Net
Effect on General
Revenue* $0$0$0
*Oversight notes the changes in this proposal are contingent upon legislative passage and voter
approval of a related joint resolution changing the Missouri Constitution, Article X, Section 21.
Oversight assumes the changes in this bill will not have a fiscal impact without this
constitutional change.
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.04P
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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.04P
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FISCAL ANALYSIS
ASSUMPTION
Due to time constraints, Oversight was unable to receive some agency responses in a timely
manner and performed limited analysis. Oversight has presented this fiscal note on the best
current information that we have or on information regarding a similar bill(s). Upon the receipt
of agency responses, Oversight will review to determine if an updated fiscal note should be
prepared and seek the necessary approval to publish a new fiscal note.
Officials from the City of Kansas City state this proposal could have a significant negative
fiscal impact on the City by increasing substantially the amount the City would be required to
budget for the KCPD.
In response to a previous version, officials from the Kansas City Police Department (KCPD)
stated 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. L.R. No. 3824S.04P
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Officials from the Department of Revenue assume the proposal will have no fiscal impact on
their organization. Oversight does not have any information to the contrary. Therefore,
Oversight will reflect a zero impact in the fiscal note.
Senate Amendment 1
Oversight notes SA1 changes the percentage for additional forces from 26% to one-fourth or
25%. SA1 also specifies the general revenue fund and not any and all revenue collected by the
city.
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). Oversight notes this bill is
not contingent upon passage of SJR 38. If the SJR is not approved by voters, then this proposal
could be subject to the Hancock Amendment and could impact state revenues (dependent upon
legal actions and court decisions). Therefore, upon SJR 38 being passed and approved by the
voters, Oversight will reflect a potential increase in funding costs of $0 or greater than $64.1
million for this proposal.
FISCAL IMPACT – State GovernmentFY 2023FY 2024FY 2025$0$0$0 L.R. No. 3824S.04P
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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
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.
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
City of Kansas City
Kansas City Police Department
Department of Revenue L.R. No. 3824S.04P
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Julie MorffRoss StropeDirectorAssistant DirectorMarch 2, 2022March 2, 2022