Kansas Board of Regents
Diane C. Duffy, Vice-President, Finance & Administration
Kelly Oliver, Director, Finance
Andy Tompkins, University and College Officials, Senior Staff
January 16, 2013
Governor’s Budget Recommendations
The purpose of this memorandum is to provide you with a quick, “first blush” of some of the details
contained in the Governor’s budget recommendations. The Governor’s budget documents were made
available this morning at 9:30am and can be found at http://budget.ks.gov/gbr.htm.
For FY 2013, the Governor recommends SGF expenditures of $771.8 million and $775.3 million in FY
2014, an increase of $3.5 million. In addition, the Governor recommends a budget for FY 2015 of $776.2
million a net increase of $9 million. The Governor recommends appropriating funds for both FY 2014
and FY 2015. The recommended SGF base appropriations are held flat in both FY 2014 and FY 2015
except for minor benefit rate and debt service adjustments at the state universities and Board Office. It
also includes the elimination of funding for the Technical Education Authority in FY 2015 ($679,979)
because it sunsets at the end of FY 2014. The Governor recommends the following targeted
enhancements for FY 2014 and FY 2015:
•
KSU School of Architecture’s Facilities Construction and Remodeling – $1.0 million in FY 2014
and $1.5 million in FY 2015 from the State General Fund to begin the four-phase process of
remodeling and rebuilding the School’s buildings. The Governor notes that KSU’s School of
Architecture has a nationally recognized program, and the upgrade will have a total cost of
approximately $75 million.
•
KUMC Health Education Building Construction - a total of $10 million from the State General
Fund with $3.0 million appropriated in FY 2014 and $7.0 million in FY 2015. The Governor
notes that construction of the new facility will provide space for 25 additional medical students
each year as well as classes for other health care professionals. Also, the Governor recommends
$35 million in bonding authority and mentions the total cost of the building will be approximately
$75 million. With regard to the FICA refund of approximately $25 million, the Governor
recommends putting the FICA refund in the SGF and appropriates $10 million from the SGF.
•
PSU Polymer Science Program – the Governor includes an additional $500,000 SGF in FY 2014
that was agreed to in the 2012 Session.
Also, the Governor recommends bonding authority, as the Board requested, for KSU School of Business
Building Construction ($50 million in bonding authority); KSU Resident Hall Construction and
Renovation ($45 million in bonding authority), KU School of Business Building Construction ($66
million in bonding authority), and KU McCollum Resident Hall Replacement ($49 million in bonding
authority). These projects are not financed with state funds.
The table at the end of the memorandum summarizes the Boards’ request for FY 2014 and the Governor’s
recommendations for FY 2014 and FY 2015.
Board’s System Requests and the Governor’s Recommendations
Board’s Request – 1.7% Postsecondary Education System Inflationary Increase based on HEPI ($12.3
million). The Governor does not include this item in his recommendations.
Board’s Request for Salary Increase for State University Employees ($7.4 million). The Governor does
not include this item in his recommendations
Board’s Request – Student Financial Assistance
•
1.7% Student Financial Assistance HEPI Increase ($455,600). The Governor does not include this
item in his recommendations.
•
Kansas Comprehensive Grant Backfill from Loss of Federal Funds ($800,000). The Governor
does not include this item in his recommendations.
•
Revamped Technical Education Workforce Grant ($400,000). The Governor does not include this
item in his recommendations.
Board’s Request for Adult Education Budget Increase to Meet Foresight 2020 Goal ($400,000). The
Governor does not include this item in his recommendations.
Board’s Request to Increase State Funding for EPSCoR ($1,000,000). The Governor does not include
this item in his recommendations.
Board’s Request for Transfer and Articulation Web Portal and Process ($741,496). The Governor does
not include this item in his recommendations.
Board’s Targeted Institutional/Sector Investments and the Governor’s Recommendations
Board’s Request to Close the Gap in the Tiered Technical Education Formula ($8,000,000). The
Governor does not include this item in his recommendations.
Board’s Request for Washburn University/KBI Crime Lab Partnership ($920,000). The Governor does
not include this item in his recommendations.
Board’s Request for ESU Honors College ($1,000,000). The Governor does not include this item in his
recommendations.
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Kansas Board of Regents
Page 2
Board’s Request for Information Systems Engineering ($760,111) and Kansas Academy of Math and
Science Expansion ($248,000). The Governor does not include this item in his recommendations.
Board’s Request to Strengthen the College of Architecture, Planning, and Design at KSU. The Governor
recommends $1.0 million in FY 2014 and $1.5 million in FY 2015 from the State General Fund
Board’s Request to Complete the Funding of Polymer Chemistry Program Enhancement at PSU.
The Governor included an additional $500,000 SGF in FY 2014 that was agreed to in the 2012 Session
Board’s Request to Create the Kansas Center for CTE Instructor Development and Innovation at PSU.
The Governor does not include this item in his recommendations.
Board’s Request for KU- KUMC Health Education Building ($1 million SGF, $15 million FICA, and $30
million bonding authority). The Governor recommends a total of $10 million from the State General
Fund with $3.0 million appropriated in FY 2014 and $7.0 million in FY 2015.
Board’s Request for KUMC Increased Funding ($2.8 million). The Governor does not include this item in
his recommendations.
Board’s Request for Advanced Education in General Dentistry, Physician Assistant Program, and
Physical Therapy Program ($2,745,600). The Governor does not include this item in his
recommendations.
State Universities Rehabilitation and Repair (total of $35 million). The Governor concurs with the
Board’s request and includes $35,000,000 from the EBF in his recommendations for rehabilitation and
repair projects.
Governor’s Recommendation not included in Board’s Request
The Governor recommends elimination of $679,979 from the Board Office for the Technical Education
Authority line item. The Authority sunsets at the end of FY 2014; therefore, the Governor did not include
funding for FY 2015. (Staff note: The Board has requested the introduction of legislation to extend the
sunset provision to FY 2017. The Authority itself is a small amount of the expenditure of the
appropriation; a majority of the funds are spent on infrastructure to support Career Technical Education,
including the Governor’s CTE Initiative.)
Aspects of the Budget Where There is No Recommended Change
•
The Governor makes no change to the multi-year appropriations that were made to the
Department of Commerce for the Regents Research Initiative - $5 million SGF for the KUMC
Cancer Center, $5 million SGF for KSU Animal Health Research, and $5 million SGF for
aviation research at WSU. He also continues support in the Department of Commerce budget for
the 10 year engineering expansion program with $10.5 million in FY 2014 and FY 2015.
•
Continue EDIF spending on equipment for technical colleges and eligible community colleges
($2.7 million), technology innovation and internship ($179,284), and community college
competitive grants ($500,000) in FY 2014 and FY 2015.
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Kansas Board of Regents
Page 3
•
Continue EDIF spending on EPSCoR program ($993,265), KSU-ESARP ($299,295) and
WSU/WATC - National Center for Aviation Training ($4,981,537) in FY 2014 and FY 2015
•
Continue the SGF transfer for the Faculty of Distinction Program, in accordance with statute.
•
Continue at current levels the Board’s student financial assistance programs.
•
Recommends the longevity bonus program for eligible classified employees, but provides no
additional funding.
•
For both FY 2014 and FY 2015, $5.2 million in federal funding would be available for Kan-ed.
No KUSF appropriations will be provided.
Other Aspects of the State Budget of Interest to the Board
•
Governor recommends a cap on the Bioscience Authority initiatives of $10 million in FY 2014
rather than $35 million. He recommends the transfer return to $35 million in FY 2015.
•
No general salary increase or “step movement” for state employees is recommended for FY 2014
and FY 2015.
•
Major revenue assumptions in the Governor’s FY 2014/2015 budget recommendations include
retaining the 6.3% sales tax rate ($262.3 million) and eliminating the mortgage deduction on the
state income tax, which generates $162.5 million.
Board staff will continue to comb through the budget details and update you on the budget as it moves
through the legislative process. If we can provide any additional information, please don’t hesitate to let
us know.
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Kansas Board of Regents
Page 4
Kansas Board of Regents
FY 2014 Higher Education Unified Appropriation Request
Board Approved, September 20, 2012
Governor's FY 2014 and FY 2015 Recommendations, January 16, 2013
Line Item
Block Grant Inflation Increase (HEPI 1.7%)
Salary Increase for State University Employees (1% GU est.)
State Student Financial Assistance Programs
1.7% Student Financial Assistance HEPI Increase
Kansas Comprehensive Grant backfill from loss of Federal Funds
Revamped Technical Education Workforce Grant
Adult Education Budget Request to Meet Foresight 2020 Goal
Increase State Funding for EPSCoR
Board’s Transfer & Articulation Web Portal and Process
Two-Yr Colleges Close the Gap in the Tiered Technical Education
Formula
Governor’s CTE Initiative
Washburn University/KBI Crime Lab Partnership
ESU - Establish an Honors College
FHSU - Information Systems Engineering
FHSU - Kansas Academy of Math and Science - Expand Summer
Academy
KSU - Strengthen the College of Architecture, Planning, Design
PSU - Complete the funding of the Polymer Chemistry Program
PSU - Create the Kansas Center for CTE Instructor Development and
Innovation
KUMC Health Education Building
KUMC – Increase Funding for Medical Center
WSU - Support Aviation Research and Workforce Training
Advanced Education in General Dentistry Program--Full Funding for
Both Years of the Program
Physician Assistant Program--Increase Annual Student Cohort by 25%
from 48 to 60 Students Per Year
Physical Therapy Program--Increase Annual Cohort by 50% from 40 to
60 Students Per Year
Benefit Rate Adjustments - State Universities & Board Office
Debt Service Adjustments - State Universities & Board Office
Eliminate Funding for the Technical Education Authority, because of
sunset provision
Total
Board Request
FY 2014
$12,325,000
$7,400,000
Gov Rec
FY 2014
Gov Rec
FY 2015
$455,600
$800,000
$400,000
$500,000
$1,000,000
$741,496
$8,000,000
Board's
Supportive of
CTE Initiative
$920,000
$1,000,000
$760,111
$248,000
$5,000,000
$500,000
$1,000,000
$500,000
$1,500,000
$500,000
$1M plus $15M
from FICA refund
$2,800,000
Board's
Supportive of
Industry Request
$3,000,000
$7,000,000
$1,245,600
$750,000
$750,000
$395,427
($162,874)
$694,683
($3,580,933)
($679,979)
$47,095,807
$4,732,553
$4,933,771