THE GOVERNOR’S Budget Report

1 THE GOVERNOR'S. Budget Report STATE OF KANSAS. FISCAL YEAR 2023. VOLUME 2. Submitted by Laura Kelly, Governor 1. To the Kansas Legislature THE GOVERNOR'S. Budget Report Volume 2. Agency Detail Fiscal Year 2023. Readers of The FY 2023 Governor's Budget Report can access this information on the Kansas Division of the Budget 's website at Division of the Budget The following Budget staff prepared the information in the Budget documents. Please feel free to contact the Budget analysts regarding further details about their designated agencies. Adam Proffitt, Director Julie Thomas, Deputy Director John Kirk, Principal Analyst Leyton Gunn, Senior Analyst Health Care Stabilization Department of Administration Department of Corrections Board of Accountancy Office of Info. Technology services Correctional Facilities Hearing Instrument Examiners Administrative Hearings Juvenile Correctional Facilities Kansas Guardianship Program Governmental Ethics Emergency Medical services Budget System Administrator Judiciary State Fire Marshal Children's Initiatives Fund Judicial Council Kansas Highway Patrol Veterans Affairs Office Capital Budget Jeff Arpin, Principal Analyst Department of Transportation Performance Based Budgeting KPERS Debt Service Board of Mortuary Arts Financial Disclosure/Reporting Cheri Froetschner, Principal Analyst Governor & Lieutenant Governor Board of Indigents Defense Legislative Agencies Sheena Ward, Principal Analyst Abstracters Board of Examiners Department of Education Behavioral Sciences State Banking Commissioner School for the Blind Board of Optometry Department of Credit Unions School for the Deaf Board of Regents Board of Healing Arts Regents Universities Attorney General Konnie Leffler.

2 Principal Analyst Historical Society Insurance Department KS Corporation Commission State Library Adjutant General Citizens Utility Ratepayer Board Sentencing Commission Kansas Bureau of Investigation Board of Barbering Federal Funds Department of Wildlife & Parks Board of Cosmetology Secretary of State Bill Schafer, Principal Analyst Jennifer Ouellette, Principal Analyst Veterinary Examiners Board of Nursing Human Rights Commission Peace Officers Standards & Training Board of Pharmacy Department of Commerce Department of Agriculture Board of Technical Professions Kansas Dental Board Kansas State Fair Dept. for Children & Families Dept. of Health & Environment Kansas Water Office aging & disability services Department of Labor State Water Plan Fund State MH & DD Hospitals Economic Dev. Initiatives Fund Performance Based Budgeting Sean Tomb, Principal Analyst Shelly Davis, Executive Assistant Pooled Money Investment Board Kansas Lottery Racing & Gaming Commission Department of Revenue Board of Tax Appeals Real Estate Appraisal Kansas Real Estate Commission State Treasurer Cash Management SGF Revenue Estimating Expanded Lottery Act Rev.

3 Fund 5. How to Use this Report Agency name or program title. Kansas Lottery The mission Mission. The mission of the Kansas Lottery is to electronic gaming machines at authorized parimutuel produce the maximum amount of revenue for the State racetracks and to enter into management contracts with statement is of Kansas while ensuring the integrity of all games. gaming facility managers to construct and manage four developed by the casinos with state-owned gaming operations. The agency in Operations. Lottery ticket revenues are credited to the location of the casinos must be held to a vote in counties Lottery Operating Fund and transfers are made to other specified by the Act. To date, no parimutuel racetrack accordance with funds according to statute or the appropriation bill. has entered into a contract to place electronic gaming strategic planning First, the Veterans Benefit Lottery Game Fund at the machines at parimutuel racetracks and all four of the Kansas Commission on Veterans Affairs Office state-owned casinos have been constructed and are principles and gives receives a direct transfer of $1,260,000 in FY 2022 from currently operating.

4 The reason for the the Lottery Operating Fund that is not tied to the agency's existence. performance of the Veterans Benefit Game. The Lottery provides review and monitoring to ensure compliance with rules and procedures adopted under These are issue- The State Gaming Revenues Fund then receives the the Kansas Expanded Lottery Act. The Kansas Lottery oriented statements next $ million to finance projects in such areas as is also responsible for collecting and distributing problem gambling and addiction treatment, economic revenue from state-owned gaming operations. that declare what development, corrections, and juvenile detention. an agency intends Details activities Current law provides that $80,000 is spent for problem Goals and Objectives. The goal of the Kansas Lottery to accomplish to gamblers and other addictions. Then percent of the is to provide increasing revenues to the state through the of the agency or balance is transferred to the Economic Development sale of lottery products and the operation of electronic fulfill its mission.

5 Program. It Initiatives Fund, percent to the Correctional gaming machines and casino operations in an effective includes divisions Institutions Building Fund, and percent to the and responsible manner. Objectives associated with Objectives are Juvenile Detention Facilities Fund. Any receipts to the this goal include: or units within the State Gaming Revenues Fund in excess of $ million detailed, agency or are transferred to the State General Fund at the Develop and improve all lottery games to quantifiable, time- program and other conclusion of the year. enhance game sales and increase revenue transfers. specific statements organizations that The 2018 Legislature allowed the Kansas Lottery to sell of activities related work with the lottery tickets from vending machines and requires that Create efficiency through constant monitoring to the goal. They agency or up to $ million in net profits tied to lottery ticket and improvement of internal procedures. vending machines to be used for mental health are targets for program.

6 Programs at the Department of Human services . Once Promote continuing efforts to ensure the specific agency or the mental health program transfers reach $ million, integrity of lottery products, personnel, program actions. then the remaining net profits will flow to the State retailers, and operations. Gaming Revenues Fund. Provide a system of review to ensure the General operations of the agency are under the direction integrity of electronic gaming devices and the of the Executive Director, who is appointed by the accurate reporting of net gaming revenues. Governor and subject to Senate confirmation. A five- Indicates the legal member Commission appointed by the Governor Statutory History. Article 15 of the Kansas Constitution authority for the advises the Executive Director about operation of the was amended in 1986 to allow the operation of a state Lottery, establishment of policies, and approval of an lottery. KSA 74-8701 et seq. constitutes the Kansas agency or program operating Budget .

7 The Commission must meet at least Lottery Act. The Lottery is established by KSA 74- and its activities. four times each year. 8703, and the powers and duties of the Executive Director are outlined in KSA 74-8704 and KSA 74- The Kansas Expanded Lottery Act allows the Kansas 8706. The Kansas Expanded Lottery Act is established Lottery to enter into contracts to place state-owned in KSA 74-8733 et seq. 6. How to Use this Report Details expenditure information Kansas Lottery about the agency by program. Includes FY 2021 FY 2022 FY 2022 FY 2023 FY 2023. the actual year, Reflects Actual Base Budget Gov. Rec. Base Budget Gov. Rec. current year, expenditures by Expenditures by Program Administration 3,038,850 3,694,838 3,694,838 3,778,579 3,778,579. the agency's request, program. Information Techology 1,114,783 1,404,654 1,504,654 1,538,530 1,538,530 and the Governor's Sales 2,070,552 2,535,328 2,535,328 2,589,063 2,589,063 recommendation. Program pages do Security 475,487 529,781 529,781 541,161 541,161.

8 Not contain this Cost Of Sales 60,684,735 59,080,200 59,080,200 58,845,000 58,845,000 Expenditures Expanded Lottery Expenses 286,541,174 307,280,780 307,280,780 308,232,638 308,232,638 are divided by both information. Marketing 6,064,223 6,691,187 6,691,187 6,708,661 6,708,661. Total Expenditures $359,989,804 $381,216,768 $381,316,768 $382,233,632 $382,233,632 objects of expenditure and by Expenditures by Object Salaries & Wages 6,504,696 7,420,968 7,420,968 7,611,032 7,611,032 funding. Contractual services 296,534,150 316,491,900 316,491,900 317,417,900 317,417,900. Commodities 320,172 737,200 737,200 737,200 737,200. Capital Outlay 84,900 1,602,700 1,702,700 467,500 467,500 Non-expense items Debt Service -- -- -- -- -- are shown for Subtotal: State Operations $303,443,918 $326,252,768 $326,352,768 $326,233,632 $326,233,632. Aid to Local Governments 11,096,672 11,964,000 11,964,000 12,000,000 12,000,000 illustration but are Other Assistance 39,556,706 37,000,000 37,000,000 38,000,000 38,000,000 not reported in state Subtotal: Operating Expenditures $354,097,296 $375,216,768 $375,316,768 $376,233,632 $376,233,632.

9 Capital Improvements -- -- -- -- -- Budget totals. Total Reportable Expenditures $354,097,296 $375,216,768 $375,316,768 $376,233,632 $376,233,632. Non-expense Items 5,892,508 6,000,000 6,000,000 6,000,000 6,000,000. Total Expenditures by Object $359,989,804 $381,216,768 $381,316,768 $382,233,632 $382,233,632. Expenditures by Fund State General Fund -- -- -- -- -- Water Plan Fund -- -- -- -- -- EDIF -- -- -- -- -- Children's Initiatives Fund -- -- -- -- -- Building Funds -- -- -- -- -- Other Funds 359,989,804 381,216,768 381,316,768 382,233,632 382,233,632. Total Expenditures by Fund $359,989,804 $381,216,768 $381,316,768 $382,233,632 $382,233,632. FTE Positions Total number of Non-FTE Unclassified Permanent -- -- -- -- -- Total Positions positions in the agency or program, representing the sum of FTE and Non-FTE. Unclassified FY 2020 FY 2021 FY 2022 FY 2023. Performance Measures Actual Actual Estimate Estimate Permanent positions. Receipts from the sale of lottery tickets $273,873,345 $326,178,103 $317,600,000 $319,600,000.

10 Lottery ticket transfer target $69,127,789 $76,526,260 $76,850,000 $77,250,000. Regular lottery ticket prize payments $166,527,213 $200,187,234 $194,944,000 $197,324,000. State-owned gaming facility revenue $338,090,179 $373,435,081 $398,800,000 $400,000,000. Performance measures are outcome and output statements that measure agency or program objectives. They are used to aid in determining whether the agency or program is achieving its objectives, reaching its goals, and ultimately accomplishing its mission. They are based on the Governor's recommendations. 7. Table of Contents General Government Agencies Department of Administration .. 16. Administration .. 18. Office of Chief Counsel .. 20. Office of Accounts & Reports .. 22. Office of Systems Management .. 24. Budget Analysis .. 26. Office of Personnel services .. 28. Office of Financial Management .. 30. Office of Procurement & Contracts .. 32. Office of Facilities & Property Management .. 34. Printing, Central Mail & Surplus.