The Rundown with Kansas Legislative Division of Post Audit
Division of the Budget: Evaluating the Accuracy of Certain Economic Impact Statements [March 2022]
Mar 30, 2022
Legislative Post Audit
Since 2008, state law required state agency officials to complete an economic impact statement for every new or amended Kansas Administrative Regulation. In 2018, amendments to state law significantly changed the economic impact statement process. We found that most economic impact statements (84%) submitted from 2018 to 2020 did not have a cost estimate because agencies either believed there was no cost or did not report one. Additionally, several economic impact statements we reviewed had small errors or inconsistencies. We found the Division of the Budget’s review appeared to have little effect on agencies’ economic impact statements. The division's review process also did not include two requirements in state law. We also reviewed a state law requiring agencies to hold a public hearing for any economic impact statements that had two-year compliance costs exceeding $3 million. From 2018 to 2020, only two economic impact statements had a two-year cost that exceeded the $3 million threshold. However, were unable to fully evaluate the impact of adjusting the $3 million threshold because of how agencies reported costs.