Committee hears bill to make state budgets automatically continue if legislature and governor fail to enact a new budget

Lawmakers opened a hearing on Senate Bill 14, a proposal that would make the most recent enacted appropriations carry forward automatically into subsequent fiscal years if the legislature and governor fail to enact a new budget by July 1.

The bill, outlined by Jill Walters, first assistant reviser in the Office of the Reviser of Statutes, would preserve existing appropriations for agencies "for the ensuing fiscal years" until they are amended, lapsed or eliminated by subsequent legislative action. Walters said the measure leaves in place existing requirements for agencies that must obtain approvals before expending funds and preserves current processes tied to agency and State Finance Council approvals.

"What Senate Bill 14 does is provides for a continuous budget for the ensuing fiscal years when the legislature and the governor do not enact a new budget bill into law," Walters told the committee. She said the bill also describes procedures for one-time funding and for lapsing or decreasing expenditure limitations when an appropriation has "accomplished its purpose."

Why it matters: supporters said the bill is intended to prevent a government shutdown if lawmakers and the governor cannot agree on a new budget, while opponents warned it could create uncertainty for some programs.

Senate President Masterson, testifying as a proponent, said the measure is an "anti-government shutdown bill" designed to keep state offices open and state employees paid while legislators continue budget negotiations. "It is to protect that job. It's so your constituents don't hit a closed office or somebody gets laid off on July 1," Masterson said.

Opponents raised constitutional, fiscal and practical concerns. Leah Flyter, assistant executive director for advocacy at the Kansas Association of School Boards, said the bill could harm school districts because staff contracts and statutory deadlines for staffing decisions occur before July 1 and because the bill does not explicitly address changes in caseloads or other year-to-year adjustments. "This bill introduces instability and lack of predictability in the K–12 budget process," Flyter said in her written and oral remarks.

Committee members pressed on several technical points in the bill. Walters said the temporary reallocation authority is limited in several ways: reallocations must be justified by anticipated receipts and repaid, the secretary of administration must consider the budget stabilization fund first, and a reallocation limit is set in the bill. During the hearing a member pointed out a numeric clarification: Walters had said "$400,000" but the bill text lists "$400,000,000." Committee discussion also noted the bill authorizes the secretary to publish monthly reports to the Legislature detailing any temporary reallocations.

Several members asked whether the proposal could be construed as binding a future legislature or as ceding constitutionally required appropriation authority to the executive. Walters and proponents said any final legal questions could be resolved by courts if challenged; President Masterson said a future legislature remains free to change appropriations.

No committee vote on final passage or amendment was recorded during the hearing. Several members said they expect amendments and follow-up work; Representative Hoffman said he will offer an amendment to require the continuing-budget mechanism only after the full budget has been vetoed, a change intended to keep the legislatively prescribed budget process intact.

Ending: The committee closed the hearing on Senate Bill 14 after receiving proponent and opponent testimony and signaled a willingness to work the bill further at a future meeting.