Legislative analysts say human‑services caseloads rise overall but SGF shifts partly offset costs
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Summary
Legislative Research presented revised human‑services caseload estimates showing a $431 million increase in total FY26 spending but a $68.9 million decline in state general fund (SGF) use, with KanCare driving projected SGF growth in FY27.
Amanda Prosser of Legislative Research told the Committee on Appropriations that the human‑services consensus group revised its caseload estimates for state fiscal 2026 and projected figures for 2027, drawing on input from the Division of Budget, the Department for Children and Families (DCF), the Kansas Department of Health and Environment (KDHE) and the Kansas Department for Aging and Disability Services (KDADS).
Prosser said the FY26 revised estimate is $431,000,000 above the budget approved by the 2025 Legislature — a 7.4% increase across all funds — while the state general fund portion declines by $68,900,000 (3.7%). She said FY27 total expenditures are projected to increase $246,200,000 (3.9%), with an SGF increase of $26,800,000 above the revised FY26 estimate.
On foster care, Prosser said the FY26 revised estimate is $339,000,000, including $263,000,000 SGF, and is intended to serve about 5,400 children per month. Major cost drivers include case management, direct placement payments to foster families and facilities, child‑placing agency administration, and higher rates for residential and group‑home care for children with greater needs. She said the SGF increase for FY26 is largely attributable to an executive order shifting SSI and SSA funds to SGF for the current year.
Prosser described KanCare medical as the largest component of human‑services spending: FY26 combined spending is estimated at $5.8 billion (including $1.4 billion SGF) and FY27 spending is projected at $6.0 billion with $1.5 billion in SGF. She noted pending KDHE policy actions — including a state plan amendment to remove the inmate exclusion for incarcerated youth — and KDADS proposals such as funding for transitional services, a behavioral‑health pilot and $12,100,000 (all funds) in FY27 (including $4,600,000 SGF) for specialty PRTFs subject to legislative approval.
Prosser also summarized drivers in non‑MCO KDHE expenditures (including changes to the Healthcare Access Improvement Program, HCAAP, which is SGF‑neutral) and KDADS non‑KanCare programs (PACE, nursing facilities, waivers and state hospitals). She concluded that total human‑services caseload expenditures are estimated at $6.3 billion in FY26, including $1.8 billion (28%) from the SGF, and that modest SGF growth is expected in FY27 largely because of KanCare medical.
Prosser offered to provide follow‑up detail and answered several committee questions in the meeting and by promised written follow‑up.
