Whenever I run kml to layer or kml to geodatabase, if I reproject the layer to state plane, the result is offset. If I create a layer in WGS 84 and then project, I do not see the same offset. Sometimes, the layer is about 4 feet off toward the southwest, but other times, the change is not uniform. Is there any way around this?
Sounds like a WGS84 ↔ NAD83 datum transformation issue. Are you projecting twice - adding a layer to a map with a different projection and then also using the project tool? could cause problems.