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TOPEKA — Kansas Department of Social and Rehabilitation Services Secretary Don Jordan told lawmakers on Monday that the agency is overspending the fee-fund portion of its budget.

“It’s being spent faster than it’s coming in,” he said.

Jordan said maintaining services at “status quo” levels in fiscal 2012 would require between $11 million and $12 million in additional funding. If lawmakers aren't prepared to approve the added dollars further cuts in services will be necessary.

Agency officials plan to file the proposed SRS budget for fiscal 2012 with the Division of Budget on or before Sept 15.

Jordan said he’ll also outline between $11 million and $12 million in spending cuts as part of the budget proposal so lawmakers will know what would be cut if the extra money isn't approved.

“I can guarantee they will be draconian,” he said, addressing an interim meeting of the Joint Committee on Home and Community Based Services Oversight.

Jordan didn't say what services would be targeted.

“We’re analyzing what can and can’t be done, now,” he said.

He also declined to predict which option – more spending or more cuts in services – would be adopted by the next governor.

Gov. Mark Parkinson is not seeking re-election. His replacement will take office in January.

“Our number one issue will be the replacement of the fee funds,” said Jordan, who has said he will retire in December.

The fee fund – roughly $40 million, annually – is made up of dozens of fees paid to the agency by individuals, insurers, or the federal government.

For example, single parents who have received public assistance and who begin to receive child support payments are expected to reimburse the state. Those payments are deducted from the initial child support payments and deposited in the fee fund.

Child support payments constitute about one-third of the SRS fee fund.

Also, the federal government reimburses the state for assistance provided to unemployable adults once they are found to be eligible for federal disability benefits.

Other social service agencies also are reporting budget shortfalls.

Earlier this month, Kansas Department on Aging Secretary Martin Kennedy said the agency faces a $5 million-to-$6 million shortfall and will ask for a midyear increase in funding.

Without the additional funding, it’s “fairly likely,” Kennedy said, the agency will have to start a waiting list for frail seniors needing Medicaid-funded services designed to keep them in their homes and out of expensive nursing home settings.

Advocates for the frail elderly and for people with mental and physical disabilities said further cuts in spending would harm those who cannot fend for themselves.

“What’s happening is a shame,” said Craig Kaberline, executive director at the Kansas Area Agencies on Aging Association.

“I fully understand what the secretaries (Kennedy and Jordan) are saying and I think they’re right. We have an obligation to provide services to these people,” said Rep. Bob Bethell, R-Alden, chairman of the interim committee. “What I don’t know is where the money is going to come from.”