Senate committee advances Department of Revenue budget; approves taxpayer-advocate funding and opens debate on license-plate fees

The Senate Assessment and Taxation Committee took several budget actions March 20 related to the Kansas Department of Revenue and debated how to handle license-plate costs and related fees.

Jacob Crespi, a fiscal analyst with KLRD assigned to the Department of Revenue, reviewed agency requests and LBC changes. Crespi said FY2026 reflects a $17,000 SGF reappropriation, enhancement requests including $4,000,000 for digital license plates and postage and $1,700,000 for driver's license and ID cards, a $920,000 legislative pay shortfall request, and a request for additional FTEs (10.6 requested for FY2026 and 11 for FY2027). He also reported the agency had 1,039.2 FTE positions and 18 funded vacancies at the time of the point-in-time data provided to analysts.

On a personnel item, the committee voted to authorize expenditure for a taxpayer-advocate position within existing department funds for both FY2026 and FY2027. The motion was made by Senator Francisco and seconded by Senator Klump; after debate (Senator Peck said FY2026 was largely elapsed and worried about timing) the chair called the voice vote and announced the motion carried.

A lengthy discussion followed about license-plate costs and a $4 vehicle modernization surcharge currently routed to the State Highway Fund. House language discussed transferring personalized and vanity plate production and postage costs to purchasers and specified a fee (the house language specified $10; the committee discussed $11 and other options). Mavis Cockrell, chief financial officer at KDOR, told the committee that revenue from blackout plates had been spent toward production invoices but sales so far were insufficient to cover all plate costs. Committee members debated alternatives: retain the $4 surcharge for the Department of Revenue, use modernization funds, end the transfer and have the department charge production fees, or reduce the $4 transfer and redirect a portion to counties.

Senator Francisco moved a proviso for FY2027 to end the $4 transfer to the State Highway Fund, reduce the $4 to $1 retained for county treasurers and allow the department to charge a production fee for regular plates (discussion included possible fee levels ranging from about $5 to $10). The motion (as restated to reduce the annual transfer to $1 for counties and allow the department to charge for plates) was seconded by Senator Peck and carried by voice vote. Senator Corson recorded opposition waiting for input from KDOT.

Committee members also discussed an earlier motion to lapse $5,000,000 (an SGF accounting action) to cover a KU Medical Center parking-related item; staff clarified the transaction would be SGF and likely would not alter Revenue's operations aside from accounting presentation. Finally, Senator Klump moved to advance the Department of Revenue budget as amended; Senator Peck seconded and the motion carried by voice vote. The chair closed business and said outstanding plate-policy and KDOT funding questions would move to the Ways and Means Committee for further review.

Votes and outcomes recorded in committee were voice votes; the transcript does not record detailed roll-call tallies.