KDADS secretary outlines behavioral-health investments, IDD waiver and $221M rural health award

Laura Howard, secretary of the Kansas Department for Aging and Disability Services, told the Legislative Public Health and Welfare Committee that KDADS will press ahead on behavioral-health expansion, long-term services modernization and rural health projects after the agency received a $221,000,000 first‑year award under the federal rural health transformation program.

The presentation outlined KDADS accomplishments and 2026 priorities, including crisis funding and staffing for state hospitals, a CCBHC technical‑assistance initiative, the roll‑out of a community support waiver for certain IDD services, and planned contracts using rural health transformation money to support behavioral health and aging services.

Howard said Kansas was selected for a multi‑state technical‑assistance program led by the Ballmer Group and that the initiative will bring roughly $72,000,000 in support across three states to scale Certified Community Behavioral Health Clinics (CCBHCs). "It's one thing to develop CCBHCs. It's another thing to really scale those, to sustain those, and to make sure that they're really having an impact," Howard said.

She said KDADS administered about $26,000,000 in crisis funding statewide to establish crisis services and reported continued success on the 988 hotline, with a statewide average answer rate of about 90 percent. Howard told the committee she expects conversations this session about increasing dedicated funding for 988 — noting a recommendation that annual funding be raised from $10,000,000 to $13,000,000 to cover growing demand.

On state hospitals, Howard described efforts to recruit and retain staff, citing a 2024 pay plan that allowed sign‑on and retention incentives. She told legislators the South Central Regional Mental Health Hospital is scheduled to begin admissions in January 2027, with 104 licensed beds (about half licensed for acute psychiatric care and half for forensic services) and an initial staffing plan that anticipates roughly 400 positions.

Lawmakers pressed Howard on high contract‑nursing costs at existing facilities. She confirmed KDADS will include requests in the budget process to address shortfalls, and said the opening of the South Central hospital will be a key point to reassess capacity and demand across other state hospitals.

Howard described the agency's work to modernize IDD waiver services and comply with federal CMS requirements, including conflict‑free case management and the CMS settings rule. She said KDADS will release the proposed community support waiver for public comment "this month," and, after public input and adjustments, will submit the waiver to CMS for approval. "We have been on regular calls with CMS and actually we've gotten very positive feedback about the progress Kansas has made on its whole corrective action plan," Howard said.

KDADS also told the committee that ARPA enhanced FMAP funds were used for workforce capacity, including direct‑service worker career ladders, apprenticeship pathways and pilot projects. Howard highlighted an Employment First pilot in which nearly 200 people with disabilities obtained competitive integrated employment, at about $14 per hour for roughly 21 hours per week.

On rural health transformation, Howard said the federal program (referred to in the presentation as "HR 1") created a large fund and that Kansas' application was awarded $221,000,000 for the first budget period — more than the $200,000,000 all states were asked to assume in planning. The award covers five initiative areas and roughly 40–45 projects. KDHE will lead coordination; KDADS will play an advisory role and lead contracting for behavioral health and aging projects. Howard cautioned that the award is a cooperative agreement and that future budget periods will depend on satisfactory performance.

Howard closed by listing KDADS' 2026 budget priorities: reappropriations to complete the South Central hospital construction (about $70,000,000 carryover requested), funds to avoid HCBS waiver waiting lists, and continuing support for contract staffing where needed. She also said KDADS will pursue legislation to create a civil monetary penalty reinvestment fund for quality improvements and hopes to codify the MHIT (Mental Health in Schools) program into statute.

During committee questioning, senators asked about the sustainability of crisis and 988 funding, staffing for the new hospital, measures of improvement in population mental health, and the tight timeline for obligating rural health funds. Howard answered with data and process explanations and offered to provide more detailed outcome metrics and workforce plans.

The committee scheduled KDHE Secretary Stanek to appear at the next meeting to discuss oversight of the rural health funds; the chair adjourned the session.