Appropriations conference committee presents offer merging HB 2007 into SB 125; key funding differences remain

At a Committee on Appropriations conference meeting, committee staff presented an initial offer that merges the contents of House Bill 2,007 into Senate Bill 125 and lists dozens of funding changes and unresolved differences between the House and Senate, staff said.

"What this does is it takes the contents of House Bill 2,007 and merges it into SB 125," committee staff member Dylan said, summarizing the committee's starting point for negotiations. Dylan said the claims portion of SB 125 will not appear on the conference list because those items already passed both chambers, but other items were added or dropped as a result of the merge.

The proposal lists specific funding differences the two chambers must reconcile. Major disagreements and new additions noted by staff included:

- Talent grant fund: House position — $1,500,000 from the Economic Development Initiative Fund (EDIF); Senate position — $3,000,000 from ARPA funds. (House modified language to clarify funding.)

- Tuberculosis control and prevention: Senate position — $96,000; House position (from SB 125) — $1,500,000.

- Adult virtual school credits: language directing $354,000 from existing funds to Central Plains USD 112 to purchase 500 adult virtual school credits for fiscal 2026; House proposed adding the language, Senate did not.

- Fort Hays State University professional workforce development: House deleted $750,000 SGF that would have duplicated a 2025 appropriation; the Senate did not recommend deleting the funding.

- Quindaro Ruins Task Force: House proposes $40,000 SGF for a historical study and language authorizing task-force appointments and a report to the House Committee on Appropriations and Senate Committee on Ways and Means by Jan. 12; the Senate did not recommend adding the funding or language.

- Kansas State University veterinary diagnostic laboratory bonding: House added language authorizing $130,000,000 in bonding authority for a Manhattan campus facility; the Senate did not recommend adding that language.

- State Finance Council human services caseloads: House proposes adding $10,000,000 SGF to be appropriated to the State Finance Council and released upon a consensus Human Services caseload committee recommendation; the Senate did not recommend adding the funding or language.

- Lansing Correctional Facility pay differential: A governor's budget amendment (GBA) would add $4,100,000 SGF to be released to the Department of Corrections upon certification by the Secretary of Corrections that an entry-level correctional officer pay differential is necessary at Lansing; the House position was to adopt the GBA; the Senate did not take action on it.

Committee staff ran through additional item-by-item differences across many agencies and programs, noting the House or Senate position for each line item. Staff also flagged a set of four broad areas they said must be resolved before the conference can conclude: the treatment of EDIF (Economic Development Initiative Fund) items, higher education proposals, what portion of ARPA interest is available for appropriation, and water-related funding.

"We have 4 kind of, I'm gonna call it major issues left," Senator Masherson said during the discussion; Dylan agreed those four areas — EDIF, higher education, ARPA interest and water — would need consensus to move forward. Dylan told the committee the most recent estimate for ARPA interest available for appropriation was "about $35,000,000."

Members raised substantive questions on specific items during the offer. Representative Ballard questioned the practical effect of language eliminating diversity, equity and inclusion (DEI) activities from certain offices, asking, "If you're eliminating these positions, are you releasing the people that are holding these positions?" President Masterson replied that the language removes the DEI activity, not necessarily the employee positions, and that administrators could reassign staff as long as they certify they are no longer participating in the DEI activities targeted by the language.

On the Kansas Bureau of Investigation (KBI) headquarters item, staff said there remains uncertainty about scope and location; options under discussion included renovating a downtown Topeka building, using the former Minnegar's facility, or a combination of both. Staff recommended adding language requiring a definitive plan and cost estimate and reporting to the Legislative Budget Committee and the Joint Committee on Building Construction during the interim before any SGF appropriation for a new KBI facility proceeds.

Other technical clarifications noted by staff included: the Fort Hays item would double-fund a 2026 appropriation unless deleted; the Build Kansas aviation jobs fund lacks an anticipated $50,000,000 transfer in the House proposal, which staff said could affect collateral availability for proposed loans; and some federal funds already permit hiring positions (8.1 FTEs or 30 positions) so explicit state funding for those positions was unnecessary, the staff said.

The committee did not take a formal vote during the meeting; staff presented the offer and answered members' questions. Committee members said they will meet again to continue negotiations and exchange counteroffers; staff said they would coordinate via the floor process before reconvening the conference.

The offer as presented will now be the basis for further negotiations between House and Senate conferees on the items listed, many of which include differing funding sources (SGF, EDIF, ARPA, pooled money investment board) and reporting or certification requirements that conferees must resolve before final passage.