Governor Kelly Signs Balanced Budget, Makes Record Investment in Rainy Day Fund, Expands Workforce, and Supports Kansas Businesses

~~Budget Expands Mental Health Care Services and Continues Efforts to
Repair the Foster Care System~~

TOPEKA – Today, Governor Laura Kelly signed the state’s budget, House Bill 2184, which allocates funding for Fiscal Year 2023, Fiscal Year 2024, and Fiscal Year 2025. The budget allows the state to continue its path of economic growth through targeted investments in workforce development, health care, and affordable housing.

“This budget advances the mission of my administration, to make Kansas the best place to raise a family,” Governor Laura Kelly said. “Thanks to our laser-sharp focus on growing the economy, we have a record surplus that we can use to make critical investments in health care, affordable housing, our foster care system, and other essential services everyday Kansans rely on.”

The budget:

  • Prepares Kansas for the future: Adds $600 million to the Rainy Day Fund, putting the balance at a record $1.6 billion. When Governor Kelly first came into office, the Rainy Day Fund was empty. Now Kansas is in a much better position to weather future economic storms.
  • Saves taxpayers money by paying off debt: Sets aside funds to pay off the remaining $53 million for reservoir debt at Milford and Perry Lakes, Governor Kelly’s budget will save taxpayers nearly $30 million in future interest payments. The budget also pays in cash for the state’s share of the proposed new veterans home in Topeka – saving close to $10 million in interest.
  • Invests in Kansas workers: Ramps up funding for the recently formed Office of Registered Apprenticeship and invests in a college internship program to encourage the next generation of Kansans to stay in the state post-graduation.
  • Grows the Kansas workforce by investing in higher education: Provides over $20 million in new funding for need-based scholarships, allowing more Kansas kids to affordably attend college. The Governor’s budget also makes historic investments in our community colleges by appropriating $14 million to advance technical education and grow partnerships between business and education. It also provides over $150 million in new funding for our state universities to advance initiatives critical to the Kansas economy and workforce—including developing new manufacturing training facilities at Kansas State University and Pittsburg State University, providing cybersecurity and teacher training at Emporia State, and funding the joint Wichita Biomedical Campus at Wichita State University and the University of Kansas.
  • Restores Kansas’ historic downtowns and attracts business to the state: Assists communities in rehabilitating downtown buildings to attract local businesses and restore pride in historic downtown.
  • Expands affordable housing: Provides $20 million to the Housing Revolving Loan Program to expand housing stock across the state, especially in rural Kansas.
  • Continues to repair Kansas’ foster care system: Invests over $17 million to increase placement rates for foster homes and prepare foster kids to be successful adults, for family preservation services, for after-school club activities, and for driving lessons for youth in foster care. The Governor’s budget also makes investments in training foster homes and parents to be able to accommodate youth with high acuity needs and funding for evidence-based programing for juvenile youth.
  • Expands mental and physical health care and increases reimbursements for providers: Lowers out-of-pocket health care costs for KanCare recipients for certain procedures. It also includes over $100 million to the current KanCare program to eliminate disparities in services for low-income Kansans, adds funding for mental health, improves care for the elderly, and supports network capacity by filling in gaps currently not covered by Medicaid. It also provides millions of dollars for uninsured individuals in need of substance use disorder treatments.
  • Invests in IT infrastructure and cybersecurity: Modernizes IT systems across state government and provides additional cybersecurity measures at state agencies, including funding to update the state’s antiquated unemployment system.

Governor Kelly also line-item vetoed aspects of the budget. Find more information and her veto messages here.