This bill proposes to amend the Kansas Constitution to allow the state legislature to borrow money by pledging the state's full faith, credit, and taxing power. Currently, the state is restricted in its ability to issue certain types of debt, such as general obligation bonds, which are often used to secure lower interest rates. If passed, the legislature would gain the authority to decide when and how to incur this debt, provided they determine it is cost-effective and efficient for the state. The change would also give the legislature control over all rules regarding the issuance of public debt, including the types of bonds that can be sold. This amendment would not take effect until the 2026 legislative session.
HB 2622 modifies requirements for municipal lease-purchase agreements in Kansas, primarily affecting cities and towns entering long-term leases for land or buildings. It requires voter approval via petition if payments exceed 3% of a municipality’s annual budget (excluding debt service) for non-county entities, or $100,000 annually for counties/schools, after a 5% voter petition is filed within 30 days of public notice. The bill mandates that agreements specify cash purchase costs, interest rates, and non-capital charges, and repeals prior provisions. This gives voters a direct role in approving significant lease deals that impact local budgets.
HB 2458 requires local governments in Kansas (such as cities, counties, and townships) to obtain voter approval or elected body authorization before levying property taxes or issuing bonds, except for certain existing tax types. The bill mandates that any new tax levy or bond issuance must be approved by a majority of voters in a special election or by the elected governing body. Key provisions amend existing laws to add this approval requirement, ensuring local tax and debt decisions require direct public input. This directly affects all taxing jurisdictions seeking to raise funds through property taxes or bonds. The bill does not change current tax types covered under K.S.A. 72-5142.
HB 2292 creates a "STAR bonds food sales tax revenue replacement fund" to compensate cities and counties with STAR bond districts established before December 31, 2022, for lost food sales tax revenue. It requires the state to transfer funds from the general fund to this replacement fund, which then pays cities/counties the amount of food sales tax revenue they would have collected at the 6.5% rate (instead of the reduced rate) for the period January 2024 through June 2025, and monthly thereafter. The bill extends the sunset date of the STAR bonds financing act to July 1, 2031, ensuring ongoing funding for these districts.
SB 7 increases the maximum bond limits Kansas townships can issue based on their population size. Townships with under 5,000 residents can now issue bonds up to 1% of their property value, those with 5,000-10,000 residents up to 5%, and larger townships (over 10,000 residents) up to 10% - replacing previous fixed limits. It also specifically raises the bond limit for fire department improvements. This bill directly affects all Kansas townships seeking to fund infrastructure projects through bond financing.
HB 2211 provides financial compensation to cities and counties with STAR bond districts established before December 31, 2022, for lost food sales tax revenue. The bill creates a "STAR bonds food sales tax revenue replacement fund" to pay districts the difference between actual tax revenue collected and what would have been collected at a 6.5% state sales tax rate on food sales. Starting in July 2025, the state will calculate and transfer these funds monthly from the general fund to the replacement fund, which then pays eligible districts. Payments continue until all bond obligations for the district are fully covered, after which no further payments are made.
