By Tim Carpenter, Kansas Reflector
TOPEKA — Kansas House fiscal hawks debated Wednesday whether the chamber’s budget bill did enough in the upcoming fiscal year to grapple with the reality of the state spending $500 million more annually than collected in tax revenue.
The GOP-led chamber rejected amendments proposed by Democrats to substantially raise state aid to K-12 special education programs and to earmark $2.5 million to pay cafeteria meals for 30,000 lower-income public school students.
In addition, a House majority blocked a proposal to compel legislators to publicly reveal whenever they signed nondisclosure agreements with a company or organization involved in state economic development projects or contracts.
House Bill 2434, likely to come up for a final House vote Thursday, would spend $10.8 billion from the state general fund in the fiscal year starting July 1. That would be a decline from $10.9 billion in the current fiscal year, but surpass the $10.3 billion spent in fiscal 2025. For comparison, state general fund expenditures in Kansas totaled $6.6 billion in fiscal year 2018.
“We’re moving in the right direction,” said Rep. Troy Waymaster, a Bunker Hill Republican and chairman of the House Appropriations Committee. “It’s going to take some time. It’s going to take awhile to right the ship.”
The Kansas Senate has been developing an alternative budget. Eventually, a compromise bill must be crafted by negotiators from both chambers and presented to Gov. Laura Kelly.
Despite a state rainy day fund with a balance of approximately $2 billion, the governor and legislators from both political parties share anxiety about the combination of massive state income tax cuts and growth in state expenditures.
Rep. Henry Helgerson, a Wichita Democrat known for warning colleagues of budgetary doom, said the House’s unwillingness to align actual expenditures with revenue forecasts was a bad omen. He said it would be unwise to accept a provision in the House bill to allow spending of interest earned on the state’s rainy day fund.
“This is a precursor to a tax increase or it is a precursor to taking the budget stabilization funds and distributing it for continued spending,” he said.
Rep. Sean Tarwater, R-Stilwell, said failure to tame the Legislature’s addiction to its saving account to balance the budget could end badly.
“In a few years, we’re going to be into that rainy day fund in a big way if we’re not careful,” he said.
In response, Waymaster said the 2026 budget would take a step toward bringing revenue and expenditures in line. He said the 2027 Legislature would handle another piece of the financial puzzle by overhauling the formula for funding public schools. House and Senate members ought to make “necessary changes” in the formula to stem the growth rate, he said.
“Are we going to be able to cut it? No, but I think there are some parameters that can be put in place so it’s not just a continual large increase that goes into K-12 annually,” Waymaster said.
Under the House bill, no provision was made for state employee pay increases. It cut 1.5% from operating budgets, excluding the judicial and legislative branches, prisons, state hospitals, law enforcement and public universities. The bill granted KC2026, a nonprofit planning FIFA World Cup events in the Kansas City area, authority to spend $28 million in state funding.
The House package included $5.5 million for the state’s Blueprint for Literacy, $5 million for nuclear research at Kansas State University and $5 million for Alzheimer’s research at the University of Kansas Medical Center.
The bill set aside $10 million until the Kansas Department for Children and Families confirmed candy and soft drinks could no longer be bought with U.S. Supplemental Nutrition Assistance Program, or food stamp, benefits. In addition, $21 million for extension services was frozen until formation of a reorganization plan to better meet needs of the agriculture sector.
The legislation tied strings to $12 million in funding for the six Kansas Board of Regents universities. Each university could claim $2 million by certifying it limited instruction on diversity, equity and inclusion.
“I find it offensive. I stand before you a proud woman of color,” said Rep. Barbara Ballard, D-Lawrence. “It am saddened that some feel that there is no need to know about other races, their history, their contributions to the United States.”
Rep. Jo Ella Hoye, D-Lenexa, offered the amendment authorizing $2.5 million to cover the 30-cent breakfast and 40-cent lunch for lower-income students across the state. Hoye argued the Legislature was struggling to find meaningful relief for families facing higher costs, but the school meal idea was defeated 44-71.
“I’m not saying its not well-intentioned,” said Waymaster, who asserted unqualified students were enrolled in the reduced price program. “That’s what concerns me about putting more money into a program.”
The House budget bill would add $10 million in state aid to $600 million devoted annually to special education in K-12 schools.
Rep. Jarrod Ousley, D-Merriam, offered a pair of amendments — both failed — to raise state spending on special education by $50 million or by $14 million in the upcoming fiscal year. The state is obligated by law to pay 92% of costs incurred by school districts to educate special education students. Currently, the state covers 65% of those costs. The gap, estimated to be at least $225 million per year, must be paid with local property tax revenue collected by school districts.
“If we want to see real property tax relief, this is where it’s at folks,” Ousley said.
Rep. Steven Howe, R-Salina, proposed an unsuccessful budget provision requiring all 165 legislators to notify the Kansas Public Disclosure Commission when signing nondisclosure agreements related to work of the House or Senate. The proviso would focus on NDAs associated with secret economic development incentive deals.
In 2022, Panasonic secured hundreds of millions of dollars in STAR bonds and other incentives to build a car battery plant in De Soto. Legislators interested in the plan’s details had to sign a three-year nondisclosure pact.
“This seeks to shine a little bit of light on what’s going on, but not too much light to where it would violate any confidentiality,” Howe said. “Openness and transparency are the most effective ways to prevent corruption and misconduct.”
