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Senate committee advances Commerce budget with reappropriations, EDIF reallocation and vacancy‑lapse proviso
Summary
The Senate Commerce Committee approved the department’s FY2027 budget as amended, voting to reappropriate carryover funds for MRO contracts and home‑based childcare, allocate $1 million to a towns grant program, reallocate EDIF dollars to public broadcasting with a Smoky Hills proviso, and extend vacancy‑lapse language to Commerce EDIF and SGF accounts.
The Senate Commerce Committee on Wednesday advanced the Kansas Department of Commerce budget for fiscal 2027 after approving several amendments that reallocate existing funds and add targeted program dollars.
Senator Owens, the committee vice chair, moved to reappropriate previously approved funds — including $34,000,000 for MRO contracts, $500,000 for home‑based childcare tied to 2024’s Senate Bill 28 and $50,000 for Advantage Kansas — and to add enhancements such as a $1,000,000 towns grant program. "My first is to add the $34,000,000 for the MROs," Owens said when introducing the proposal. The committee divided the question so members could vote separately on reappropriations and enhancements; the reappropriation portion passed by voice vote.
The committee also approved the $1,000,000 towns grant enhancement. Committee discussion clarified the grant would target small communities, with the printed materials indicating a population threshold and a maximum award per community of $10,000. "The award to any one community would be $10,000," the chair noted during discussion.
A separate amendment redirected EDIF (Economic Development Investment Fund) dollars away from the Kansas Creative Arts Industries Commission and toward public broadcasting. Senator Blue urged the shift, saying rural stations need support and that state tax dollars should prioritize essential local services rather than public art projects: "I don't think that we should be utilizing tax dollars to paint on the side of walls." After discussion about equity among stations, the committee approved a substitute motion to delete $1,000,000 from the Creative Arts Industries EDIF allocation, add $500,000 specifically earmarked for Smoky Hills Public Broadcasting (proviso language), and distribute the remaining $500,000 equally among the other public broadcasting stations (excluding Smoky Hills).
Staff explained the funding mechanics, noting some enhancement requests would require an additional SGF transfer into the EDIF to cover new expenditures beyond the fund’s current adjusted balances. Jacob, a committee staff member, said the governor’s recommendation includes an additional transfer of roughly $5,000,000 to cover enhancement requests in fiscal 2026, but that adding new enhancements would still depend on committee direction.
The committee also moved to apply vacancy‑lapse language from last year’s budget bill (Senate Bill 125, section 149) to Commerce EDIF funds and SGF. The change would cause funding tied to positions vacant for the statutory period (discussed in committee as 180 days) to lapse back to the state general fund and was amended to remove the associated FTEs as well. Supporters framed the amendment as aligning Commerce with other agencies and preventing agencies from retaining funding for unfilled positions. A staff member clarified that the original statutory language applied to SGF-funded positions and that this amendment extends similar lapse treatment to EDIF funds used by Commerce.
Senator Titus moved to restore $2,000,000 in SGF funding for the Level Up Kansas program; staff confirmed that amount was in the agency’s FY2027 request and the committee approved the restoration. Several senators voiced support for the program based on prior testimony about its demonstrated impacts.
With those amendments incorporated, Senator Owens moved that the committee pass out the Kansas Department of Commerce budget for FY2027 "as amended by this committee." The motion was seconded and the committee approved it by voice vote. The chair then adjourned the hearing.
Votes at a glance - Reappropriations (MROs $34,000,000; home‑based childcare $500,000; Advantage Kansas $50,000): approved (voice vote). - Towns grant enhancement ($1,000,000; max $10,000/community): approved (voice vote). - EDIF reallocation: delete $1,000,000 for Creative Arts Industries; add $500,000 EDIF earmarked for Smoky Hills Public Broadcasting; split remaining $500,000 among other stations: approved (voice vote). - Vacancy‑lapse language (extend SB125 §149 treatment to Commerce EDIF/SGF; remove corresponding FTEs where applicable): approved (voice vote). - Restore Level Up Kansas ($2,000,000 SGF): approved (voice vote).
What it means The committee’s actions largely reallocate existing and previously appropriated funds rather than creating new ongoing spending; several items were described as carryforwards or reappropriations of SGF dollars. The EDIF adjustment targets rural public broadcasting support with a direct proviso for Smoky Hills while eliminating a Creative Arts EDIF enhancement for the current bill. The vacancy‑lapse amendment extends a statutory accountability mechanism to Commerce’s EDIF dollars, which supporters said will reduce unspent appropriations tied to unfilled positions.
Next steps The committee passed the Commerce budget out of committee; any further changes would occur in subsequent budget or appropriations proceedings. The chair adjourned the meeting at the close of the committee session.
