(a) An allotment system will be applicable to the expenditure of the resources of any state agency, under rules and regulations established as provided in Kan. Stat. Ann. § 75-3706, and amendments thereto, only if in the opinion of the secretary of administration on the advice of the director of the budget, the use of an allotment plan is necessary or beneficial to the state. In making this determination the secretary of administration shall take into consideration all pertinent factors including:

(1) Available resources;

(2) current spending rates;

(3) work loads;

(4) new activities, especially any proposed activities not covered in the agency’s request to the governor and the legislature for appropriations;

(5) the minimum current needs of each agency;

(6) requests for deficiency appropriations in prior fiscal years;

(7) unexpended and unencumbered balances; and

(8) revenue collection rates and prospects.

(b) Whenever for any fiscal year it appears that the resources of the general fund or any special revenue fund are likely to be insufficient to cover the appropriations made against such general fund or special revenue fund, the secretary of administration, on the advice of the director of the budget, shall, in such manner as the secretary may determine, inaugurate the allotment system so as to assure that expenditures for any particular fiscal year will not exceed the available resources of the general fund or any special revenue fund for that fiscal year. When reviewing the resources of the general fund or any special revenue fund for the purposes of issuing an allotment, the secretary shall not take into consideration the balance in the budget stabilization fund.

(c) (1) The allotment system shall not apply to the legislature or to the courts or their officers and employees, or to payments made from the juvenile justice improvement fund, established in Kan. Stat. Ann. § 75-52,164, and amendments thereto, for the development and implementation of evidence-based community programs and practices for juvenile offenders and their families. During the fiscal year ending June 30, 2017, the allotment system provided by this section shall not apply to any item of appropriation for employer contributions for the state of Kansas and participating employers who are eligible employers as specified in Kan. Stat. Ann. § 74-4931(1), (2) and (3), and amendments thereto, under the Kansas public employees retirement system pursuant to Kan. Stat. Ann. § 74-4939, and amendments thereto.

(2) Agencies affected by decisions of the secretary of administration under this section shall be notified in writing at least 30 days before such decisions may become effective and any affected agency may, by written request addressed to the governor within 10 days after such notice, ask for a review of the decision by the finance council. The finance council shall hear appeals and render a decision within 20 days after the governor receives requests for such review.