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Governor's office: ARPA interest transfers reduced; grants office shows rising SGF to replace declining federal grant flows
Summary
Staff for the governor and the governor's chief of staff explained that federal grant flows for programs such as domestic violence and child advocacy centers have declined and the governor's grants office has used state general fund appropriations to keep grants flat; Senate Ways and Means actions removed ARPA interest transfers and the committee
Dylan Dear, fiscal analyst with KLRD, opened a staff overview of the Office of the Governor's budget and alerted the committee that the materials included a blue sheet and an updated green sheet showing Senate Ways and Means Committee actions.
Dear told senators the governor's FY2025 budget for the office showed no supplemental requests and that the governor's office had an increase in federal funds allocation for justice assistance and victim service grants on the federal side. For FY2026, Dear said the federal grants office had a reduction of $3,300,000 largely because ARPA funds were no longer budgeted; the office retained one FTE that had been internally shifted.
Will Lawrence, Governor Kelly's chief of staff, told the committee the governor's office requested no SGF increases for FY2026 for the governor's core office. He said past increases largely offset declining federal funds for domestic-violence and child-advocacy-center grants and referenced SGF additions in recent sessions that replaced federal funds. "That in large part was to offset the reductions from the feds," Lawrence said.
Committee members asked about ARPA interest transfers that had been earmarked for grants. Dear and Will said Senate Ways and Means Committee action had eliminated some ARPA interest allocations. Later in the hearing Adam Prophet, Secretary of Administration, clarified the ARPA balance and said the approximately $27,000,000 figure officials referenced represented the interest balance, not the original prime award, and that almost all of the original ARPA award had been obligated; the interest balance remains available for allocation and has been the subject of House proposals.
The committee did not take a formal vote during the overview; staff indicated the House had added $1,000,000 SGF for domestic-violence prevention grants and $344,845 SGF for child advocacy center grants and that some of those adjustments were made to keep those programs at roughly flat funding compared with the prior year.
