The Kansas Department of Transportation announced Tuesday it plans to transfer more than $95-million out of the State Highway Fund on the orders of the State’s Governor.
Gov. Sam Brownback announced an allotment plan today that will include that transfer of $95.7 million out of the highway fund. The plan is to address budget shortfalls in the fiscal year 2015.
In a news release from the Governor’s office is said plan was based on a recommendation from Budget Director Shawn Sullivan, the Governor will implement an allotment as provided in K.S.A. 75-3722. Sullivan subsequently notified Secretary of Administration Jim Clark to notify state agencies of the allotment.
“I appreciate Shawn’s hard work in identifying efficiencies and cost savings across state government,” said Governor Brownback. “These first steps are a down payment in resolving the immediate budget issue. I look forward to presenting a full budget proposal and policy recommendations to the legislature in January. Our job now is to address this situation through good fiscal governance while maintaining our investment in education, sustaining funding for public safety and allowing T-WORKS to be completed.”
In addition, a 3 percent reduction from KDOT’s operations budget will be included in a rescission bill that will be considered by the 2015 Legislature.
That reduction amounts to a proposed $7.8 million out of an operations budget of $260 million.
KDOT said in a news release that the reduction will impact that agency’s salary budget but there will be no layoffs or salary reductions.
KDOT also said project announced under the T-WORKS transportation program will continue as planned.
Projects already let under the 10-year program have cost less than planned, federal and state revenues have been higher than anticipated, and bond rates have been more favorable than expected.
The Governor’s allotment plan and recommendation letters may be found at http://budget.ks.gov/
“It is important for us to take these actions now to address the projected shortfall and minimize the effect of budget reductions to state agencies in this fiscal year,” Sullivan said.