Appropriations committee approves multiple agency budgets, introduces governor's supplemental appropriation

The House Committee on Appropriations on Jan. 26 introduced the governor's supplemental and "mega" appropriation bill (RS 26RS2792) and voted to approve budgets and recommendations for a slate of state agencies, including the Office of Administrative Hearings, the Pooled Money Investment Board, the Kansas Public Disclosure Commission, and several fee-funded regulators.

Chairperson Walsinger opened the meeting by moving to introduce the governor's supplemental package, RS 26RS2792, a motion seconded by Representative Helgerson and entered by voice vote. The committee then proceeded through a series of agency budget report-outs scheduled for the week.

The Office of Administrative Hearings (OAH) presented a revised 2026 estimate of $2,100,000 and 14 FTEs, a decline the chair attributed to salary reclassification. "The mission of the Office of Administrative Hearings is to conduct efficient, fair, and impartial hearings for constituents and other affected parties," Chairperson Walsinger said while outlining caseload figures. Staff said caseloads vary: 2025 averaged about 492 cases per judge, with agency estimates of 478 for 2026 and 499 for 2027. After members questioned performance measures and office location, the committee approved the OAH budgets.

Members pressed the Pooled Money Investment Board (PMIB) for detail on balances and yields. Dylan, committee staff, summarized the portfolio and projections: "The '25 is 4.72%. The '26 projection is 3.9%, and the '27 projection is 3.3%," he said, noting most interest income accrues to the state general fund and that statutory restrictions require a conservative, laddered investment approach. The committee approved PMIB's budgets for 2026 and 2027 as presented.

The Kansas Public Disclosure Commission (formerly Government Ethics Commission after HB 2206) reported a 2026 revised estimate of $889,151 (about 8.5 FTE). Members raised concerns about turnover in agency leadership and asked staff where litigation receipts and legal fees are recorded; staff said legal recoveries flow through the tort/tort-fee fund and pledged to provide more detail. The committee approved the commission's budget.

Several fee-funded boards also appeared. The Board of Accountancy's budget was approved after members heard the board's status as a fee-funded oversight body for about 3,800 licensed CPAs. The Board of Veterinary Examiners reported roughly 1,813 licensed veterinarians and that six of 14 statutory fee limits are now met; members debated whether raising statutory fee limits is warranted absent declining fund balances or other indicators. The Citizens Utility Ratepayer Board (CURB) requested increases tied to legislative post-audit recommendations — including IT and professional services — and the committee approved those recommendations after questions on salary and contractual-service increases.

At the Kansas Corporation Commission briefing, Mosier noted IT consolidation into administration and explained that certain ARPA funds tied to municipal natural-gas utilities were being dispersed to three towns after paperwork was completed. The committee approved the KCC budgets for 2026 and 2027 with the special committee's recommended adjustments.

A notable discussion involved the Kansas Department of Credit Unions (KDCU) and reliance on National Credit Union Administration (NCUA) services. KDCU initially requested funding for examiner training and third-party software and funding to fill two vacant examiners. The special committee had deleted those requests for the current year but the House budget committee added contingent language requiring KDCU to report by Jan. 11 on NCUA support; if NCUA does not provide the services, KDCU may use fee-fund resources. The committee approved the KDCU budget as amended.

The Office of the State Bank Commissioner described higher-than-expected participation in the Kansas Earned Wage Access Services Act (HB 2560). The agency reported 20 registered providers and five pending applications as of Sept. 2025 and requested $157,670 and two FTEs to carry out licensing, examinations and enforcement; after debate the committee approved those positions and funding.

Throughout the meeting members requested follow-up information on several items, including statutorily required allocations of litigation recoveries, pooled-money investment totals and interest earned, and the rationale and accounting for various fee-fund increases. The chair said staff would supply requested details in subsequent meetings.

The committee did not complete all scheduled reports and recessed until Tuesday at 9 a.m.; the chair said the goal is to finish the remaining report-outs by Feb. 10.