Treasurer's packet shows Build Kansas transfer frozen and unclaimed-property estimates rising

KLRD fiscal analyst Jacob Crespi presented the Office of the State Treasurer's budget summary and highlighted several programmatic items the committee asked about, including the Build Kansas matching grant fund and unclaimed property estimates.

Crespi said the 2023 legislature authorized a Build Kansas matching grant fund and a $50,000,000 operating transfer initially seeded the fund; the Legislative Budget Committee froze the FY27 transfer and the governor restored half of the transfer, leaving $25,000,000 of the original $50,000,000 still frozen. "As of this current moment... the $50,000,000 transfer in fiscal year 2027 remains frozen," Crespi said.

On unclaimed property, Crespi told the committee that transfers to pay claims totaled $21,400,000 in FY25 and that the agency estimates payouts of $21,700,000 in FY26 and FY27; the FY26 revised estimate includes a $950,000 increase for anticipated claims. "Transfers to pay claims of unclaimed property totaled $21,400,000 in fiscal year 2025," he said.

Shauna Wake, director of operations and fiscal services for the treasurer's office, clarified that Build Kansas distributions follow federal grant approvals and the advisory committee's decisions. On the Star Bonds food sales-tax replacement program, Wake said estimates depend on Department of Revenue figures and district reports, and that distributions are a one-time annual payment.

The treasurer (Treasurer Johnson) noted that some expenditures — such as a $10,000,000 aviation loan — were executed under legislative provisos and that the office is implementing statutory directives rather than making discretionary grant decisions.

Committee members asked several follow-up questions; the panel had limited time and the chair adjourned the meeting.