Appropriations committee advances budget recommendations for multiple state agencies; KU Medical Center cancer center, KBI headquarters and scholarship changes,

The Committee on Appropriations met and introduced three bills before approving budget committee recommendations for several state agencies, including the Kansas Department of Labor, the Kansas Insurance Department, the Kansas Public Employees Retirement System (CAPERS), the University of Kansas, the University of Kansas Medical Center (KUMC) and the Kansas Bureau of Investigation (KBI).

Representative Francis introduced three bill requests: RS 0580 to change the specialty medical loan program and specialty medical loan repayment fund, RS 0802 on behalf of the Department of Administration relating to employee award and recognition and hiring/recruitment/retention bonuses, and 25 RS 0556 to establish the Kansas Technical College Operating Grant Fund administered by the Kansas Board of Regents. All three bill introductions were seconded and carried by voice vote, with the committee recording the introductions as officially made.

The committee then heard a sequence of budget report-outs and made motions to adopt the budget committee recommendations for each agency.

Department of Labor Chairperson Walsinger summarized the Department of Labor revised 2025 estimate as $2,159,400,000 in expenditures and 446.3 full-time equivalent positions, including $17.8 million from the state general fund (SGF) and $193.8 million from the Unemployment Insurance Trust Fund. Walsinger said the agency expects higher unemployment payments in 2025 and requested transfers into unemployment benefits and capital outlay items such as replacement of air‑conditioning units at the Topeka office. The budget committee deleted a $1,000,000 reappropriation for unemployment system training but then added back $445,000 (including $267,000 SGF) to replace three AC units at the Southwest Topeka office and added $1,000,000 from the Kansas Sheltered Workshop Transition Fund to administer a transition grant program required by SB 15 (2024).

Members questioned higher estimates tied to increased claims, hybrid remote-work arrangements, and ongoing customer‑service hold times. Representative Rogers asked whether agencies had returned to in‑office staffing; Walsinger said agencies reported hybrid schedules, and Walsinger said the governor’s office will follow up. Representative Tarwater and others noted the new unemployment system rollout and higher call volume after layoffs and federal identity‑theft safeguards.

Chairperson Walsinger moved the budget committee recommendations for the Department of Labor for fiscal years 2025 and 2026; the motion was seconded by Representative Amick and passed by voice vote.

Kansas Insurance Department Walsinger reported the Kansas Insurance Department requested a revised 2025 estimate of about $44 million from special revenue funds. The department projects increased payments to local units from the State Firefighters Relief Fund, higher building rental and one‑time building improvement payments, and added contractual and forensic accounting services associated with securities work. The revised estimate included a small decrease in FTEs attributable to SB 356 (which restructured exam fees and established an examination cap).

Members asked about the near‑term increase in contractual services and the $467,000 one‑time building improvement payment; Walsinger said some costs were for repaving a parking lot and landscaping tied to a move to a rented building. Committee members also discussed the insurance fee fund balance (growing after the legislature stopped prior sweeps to SGF), and testimony from the insurance commissioner about reducing fees to bring balances down.

Walsinger moved the budget committee recommendations for the Insurance Department for fiscal years 2025 and 2026; the motion was seconded by Representative Turk and passed by voice vote.

CAPERS (Kansas Public Employees Retirement System) Walsinger summarized CAPERS (sometimes referred to as KPERS in public discussion) budget requests and noted the agency’s 2025 revised estimate of $85.8 million in operating expenditures and ongoing funding for a pension administration modernization project (a five‑year project with total estimated cost of $74.9 million). The committee also heard a discussion about prior proposals to eliminate CAPERS 3; Walsinger cautioned that eliminating CAPERS 3 and moving those participants into CAPERS 2 would create a substantial fiscal impact. Walsinger later noted a corrected figure: a one‑time cost of $440 million and an ongoing annual cost of about $65 million if CAPERS 3 were eliminated and participants moved to CAPERS 2.

Walsinger moved the budget committee recommendations for CAPERS for fiscal years 2025 and 2026; the motion was seconded by Representative Sutton and passed by voice vote.

University of Kansas (KU) Chairman Howe presented the University of Kansas revised estimate for 2025 of approximately $1.2 billion, including $201 million SGF, citing increases for capital projects, deferred maintenance, salaries and the Board of Regents allocations for capital renewal and student financial aid. Howe described a reappropriation for an airborne electromagnetic survey of the Ogallala aquifer focused on groundwater management district No. 1 in western Kansas; the committee restored a $760,809 reappropriation for that survey.

Members extensively discussed needs‑based student financial aid. Vice Chair Williams and others asked whether the “need‑based” pot of money for Regent universities was restricted to Kansas students and whether it was statutorily required to be needs based. Howe said the state comprehensive grant program has statutory residency/need requirements, but a separate pot of money for regent institutions (authorized in recent years) has been administered with board discretion and may not have the same statutory restrictions; the reviser indicated they would check statutory language. Committee members suggested adding proviso language in the budget to ensure needs‑based aid is delivered to Kansas students across all Regent institutions.

Howe moved the budget committee recommendations for the University of Kansas for fiscal years 2025 and 2026; the motion was seconded by Representative Amick and passed by voice vote.

University of Kansas Medical Center (KUMC) Howe reported KUMC’s revised 2025 estimate of $726.2 million including $215.4 million SGF, with increases for the KU Medical Center Cancer Center, research grants and graduate medical education. For 2026 the agency requested $631 million (including $128 million SGF), a decrease largely because a $75 million SGF contribution to the cancer center in 2025 was a one‑time appropriation intended to be matched by private funds.

The committee considered a package of adjustments that (1) consolidated several specialty scholarships/loan accounts into a single specialty medical scholarship and loan account, producing a net new addition of $2.4 million for a total of $4.3 million for specialty medical scholarships/loans in 2026 intended to support service obligations in rural and underserved areas; (2) added proviso language tying restoration of SGF funds for the MyChart medical‑records portal to proof that parental rights had been restored in accordance with Kansas law if SGF were used for MyChart; and (3) discussed a bonding request for the KU Cancer Center. Howe and others said the cancer center project’s total cost is roughly $550 million; the legislature previously provided $75 million SGF and the university requests additional bonding authority (a $100 million bonding ask was noted) to complete the project. Committee members asked for detailed cost breakdowns before committing large bonding authority.

Howe moved the budget committee recommendations for KUMC for fiscal years 2025 and 2026; the motion was seconded by Representative Amick and passed by voice vote.

Kansas Bureau of Investigation (KBI) Chairman Anderson reported a 2025 revised estimate of about $67 million (including $52.3 million SGF) and a 2026 request of $158.4 million (including $144 million SGF). The 2026 request contained six enhancement requests, including a proposed new KBI headquarters at $93 million SGF. The Legislative Budget Committee (LBC) deleted the $93 million headquarters request; the Appropriations Budget Committee restored parts of the LBC deletions for priority items (including $500,000 for an offender registration replacement and funding for lab infrastructure and two IT positions) and added language recommending that KBI continue working with the legislature and Department of Administration to find suitable leased space rather than immediately authorizing a large SGF capital outlay. Anderson stressed the committee wanted more discussion before authorizing a major capital outlay.

Anderson moved the budget committee recommendations for the KBI for fiscal years 2025 and 2026; the motion was seconded by Representative Hoye and passed by voice vote.

Votes at a glance - RS 0580 (specialty medical loan changes): introduced by Representative Francis; seconded by Representative Turk; outcome: bill introduced (voice vote). - RS 0802 (employee award/retention bonus authority): introduced by Representative Francis; seconded by Representative Turk; outcome: bill introduced (voice vote). - 25 RS 0556 (Kansas Technical College Operating Grant Fund): introduced by Chairman Howe; seconded by Representative Helgerson; outcome: bill introduced (voice vote). - Department of Labor budget recommendations (FY2025–26): motion by Chairperson Walsinger; seconded by Representative Amick; outcome: approved by voice vote; note: committee added and deleted several line items described above. - Kansas Insurance Department budget recommendations (FY2025–26): motion by Chairperson Walsinger; seconded by Representative Turk; outcome: approved by voice vote. - CAPERS (KPERS) budget recommendations (FY2025–26): motion by Chairperson Walsinger; seconded by Representative Sutton; outcome: approved by voice vote. Walsinger noted a one‑time cost of $440 million and annual cost of $65 million would attach to eliminating CAPERS 3 and moving participants to CAPERS 2. - University of Kansas budget recommendations (FY2025–26): motion by Chairman Howe; seconded by Representative Amick; outcome: approved by voice vote. - University of Kansas Medical Center budget recommendations (FY2025–26): motion by Chairman Howe; seconded by Representative Amick; outcome: approved by voice vote; committee added proviso language and consolidated specialty scholarship accounts as described above. - KBI budget recommendations (FY2025–26): motion by Chairman Anderson; seconded by Representative Hoye; outcome: approved by voice vote; committee removed the $93 million immediate headquarters appropriation and directed further work with the legislature on leased space.

Why this matters: The committee approved base budgets and a mix of one‑time and ongoing adjustments that affect state general fund exposure, university capital projects, law enforcement infrastructure, retirement‑system options and rural medical workforce programs. Several members asked for follow‑up detail (cost breakdowns for KU Cancer Center bonding, statutory language and proviso language for needs‑based aid, and administration plans for state facility leasing) before final budget actions on the floor.

Looking ahead: Committee members signaled they will request more documentation and possible proviso language during the budget‑writing process, and leadership said the changed calendar and compressed subcommittee time this year will be reviewed for future sessions.