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Appropriations panel recommends paying off State Fair bond, delays $750,000 for emergency command center
Summary
The Kansas Legislature Appropriations Committee voted to recommend paying off the outstanding State Fair bond (about $717,000 outstanding at roughly 2.25—2.5% interest) and to delete a $135,000 state general fund subsidy for the fair beginning FY2026, while declining to advance a $750,000 appropriation for a proposed emergency command center and asking the fair to seek outside partners to fund the remainder of an estimated $2 million project.
During the Appropriations Committee hearing, fiscal analyst Luke Drury told members the outstanding State Fair bond balance was "just a bit over $700,000" (about $717,000) and that the current interest rate was roughly 2.25 to 2.5 percent; Drury also said there were no explicit prepayment terms although the agency was checking whether prepayment would be permitted.
Committee members debated whether paying the bond off early would produce net savings and whether state general fund dollars would instead be better applied to higher-cost debt. Senator Fagg said he was "shocked the rate's that low" and cautioned about broader trade-offs; another senator urged Ways and Means to compare opportunities across state borrowing before prioritizing this payoff.
The committee voted, by voice, to recommend paying off the balance due on the bond and noted that the payoff would eliminate ongoing state general fund subsidy that helped cover the State Fair's debt service. Drury provided debt-service estimates for FY2025 of roughly $175,000 in principal and about $12,500 in interest (about $187,500 total), which committee members used in their fiscal calculations.
Separately, the committee considered a planned $2 million emergency command center at the fairgrounds. Drury said $250,000 in ARPA funds had already been approved and the House recommended an additional $750,000 in ARPA interest, bringing federal-related funding to $1 million; the State Fair estimates the total center cost at about $2 million, leaving roughly half to be found from local or other partners. The committee decided not to advance the $750,000 appropriation and instead asked the State Fair to work with county and local partners, law enforcement, and other stakeholders to secure the remaining funds and return with a clearer plan.
The panel also approved deleting a $135,000 state general fund subsidy to the State Fair beginning in FY2026; some members tied that recommendation to the bond payoff, saying eliminating the bond would free roughly $190,000 previously used for debt service and could offset utility or other operating costs at the fair.
Committee members directed Ways and Means to review broader bonding priorities and to consider where state funds could have greater impact if used to retire higher-cost debt. The committee—s recommendations were advanced by voice vote; exact roll-call tallies were not recorded in the hearing transcript.
Ending: Committee members asked staff to confirm whether the bond has been prepaid for FY2025 and requested follow-up language for Ways and Means about bond-payoff recommendations and the State Fair's updated capital plan.
