Commerce outlines FY2025–26 budget; lawmakers question EDIF and broadband cuts

Kansas Department of Commerce staff outlined the agency's revised fiscal 2025 estimate and its fiscal 2026 request to a legislative budget review committee and highlighted reappropriations, federal grant adjustments and enhancement requests for tourism, broadband and workforce programs.

Shardae Cain, senior fiscal analyst for the Kansas Legislative Research Department, summarized the numbers, saying the department's 2025 revised estimate was about $290.1 million, roughly $12.8 million (4.6%) above the approved amount, driven in part by carryover reappropriations and federal grants. Cain told the committee the department carried about $5.9 million in unspent EDIF reappropriations into FY2025; the Legislative Budget Committee deleted those reappropriations in its recommendation.

Commerce director of legislative affairs Rachel Willis told the committee the agency has focused on business recruitment, small-business support, international trade missions and broadband deployment. "We are no longer a state that's lagging behind in economic development. We are leading and setting new expectations, for states and regions across the country," Willis said. She highlighted last year's results: about $3.5 billion in capital investment commitments and more than 5,300 jobs facilitated by business development staff.

Key items lawmakers questioned - Reappropriations: Cain said the department had nearly $5.9 million of reappropriated funds in FY2025, of which roughly $3 million had already been spent. The largest carryover was the Love Kansas talent-attraction marketing campaign, which launched in July and did work with local communities and higher-education institutions. - EDIF adjustments: For FY2026 the department requested a range of enhancements, including programs for Sunflower Summer (tourism), a mobile visitor center, expanded arts grants, broadband grant analysts and international trade initiatives. Committee staff said the LBC deleted about $4.3 million of EDIF for FY2026 across various Commerce programs; the deletions showed up on staff green-sheet comparisons. - Broadband and staffing: Willis and Cain said the Office of Broadband Development manages multiple federal programs (86 active projects at the time of the hearing) and a staff of about 12. Willis warned that removing state dollars that support that office would limit its capacity to apply for and administer federal grant programs; she said federal grants alone did not cover all staff costs.

Commerce also described enhancement requests for workforce and tourism programs: an extension of the Sunflower Summer tourism program, marketing for World Cup tourism, funding for health-care upskilling and mobile visitor centers, and support for a Bombardier project in Wichita tied to federal defense contracting. Cain told the committee the department's FY2026 request totaled about $190.4 million, a decline of roughly $80.7 million from the approved base driven by one-time federal projects dropping out of the baseline.

Lawmakers said they will continue the discussion in subsequent sessions and asked Commerce to return for further questions on EDIF priorities, broadband staffing and the distribution of reappropriated funds. The committee recessed with plans to continue budget deliberations on Commerce the following day.

Clarifying details - FY2025 revised estimate for Commerce: $290,100,000 (Shardae Cain). - FY2026 agency request: $190,400,000, a decrease of about $80,700,000 (Shardae Cain). - Reappropriations carried into FY2025: about $5,900,000; about $3,000,000 had been spent to date (Rachel Willis / Shardae Cain). - LBC deletion of FY2026 EDIF: approximately $4,300,000 (staff green-sheet summary). - Broadband: Commerce reported a broadband development office with roughly 12 staff, 86 active projects and about $66.01 million dedicated to programs expected to serve more than 100,000 homes or businesses by FY2026 (Rachel Willis / Shardae Cain).

Speakers (attributed in this article) - Shardae Cain — Senior Fiscal Analyst, Kansas Legislative Research Department (staff/government) - Rachel Willis — Director of Legislative Affairs, Kansas Department of Commerce (government) - Representative Curtis — State Representative (government) - Representative Rogers — State Representative (government) - Committee Chair — Committee chair (unnamed; government)

Authorities []

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