House Bill 2237 would raise state employee award cap, authorize hiring and retention bonuses and require reporting

Jill Walters, first assistant reviser with the Office of the Revisor of Statutes, briefed the Committee on Appropriations on House Bill 2237, which would amend KSA 75-3705 by increasing the monetary cap on employee awards from $3,500 to $10,000 and authorizing appointing authorities to provide hiring, recruitment and retention bonuses.

Walters said the existing statute authorizes non-monetary awards and caps monetary awards at $3,500 annually; the bill would permit higher monetary awards but require gubernatorial approval for awards above $3,500 for executive-branch employees. The bill would also repeal authority for agency rules and regulations under the current program and require each state agency to submit an annual report by Aug. 1 to the secretary of administration detailing awards and bonuses paid in the previous fiscal year; the secretary must compile those reports for the House Appropriations and Senate Ways and Means committees.

Secretaries and agency leaders testified in support of the bill. The secretary of the Kansas Department of Corrections, appearing in favor, said the change would give agencies flexibility to recruit and retain staff and help those agencies compete with other employers. Secretary Jeff Samuda (testimony) said “recognition can often lead to strengthening an employee’s commitment to the agency.”

Officials from state hospitals described a pilot of bonuses that began July 1 under a proviso. Ashley Byram, superintendent at Osawatomie State Hospital, said the pilot increased the share of direct-care staff who were state employees from 39% to 64% and that “pickup shift” bonuses helped stabilize staffing and reduce use of agency nursing. Dr. Lindsey Dinkel, superintendent at Larned State Hospital, said vacancy rates at her facility decreased from about 45% to 36% and that the hospitals were able to convert some contract nursing hours to state employees; she told the committee the agency observed higher FTE hiring levels in the current fiscal year than in the prior three years.

Adam Proffitt, secretary of the Department of Administration, described policy safeguards included in the bill: removing the current linkage of awards to the IRS “discretionary” definition so agencies can offer sign-on and retention bonuses, requiring governor approval for awards over $3,500, and maintaining that bonuses must be paid from existing agency resources unless the legislature provides additional funding. He said the reporting requirement will give the secretary and the legislature transparency to monitor trends and any overuse of bonuses by particular agencies.

Committee members asked about fiscal exposure and requested historical detail on prior-year bonus payments. Secretary Proffitt said, excluding the 24/7 facilities on a different program, fiscal-year-to-date bonus payments across agencies were about $600,000, concentrated in one (unnamed in testimony) agency; he said his staff will provide itemized department-level data to the committee.

The hearing produced proponent testimony and discussion of implementation mechanics and safeguards; no committee vote on the bill occurred during this session.