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Committee hears details on new Office of Early Childhood; governor proposes CIF moves and $1.3M net SGF increase
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Summary
Jennifer Light (KLRD) and the transition director outlined the governor39s FY2027 proposal to consolidate early childhood programs under a new Office of Early Childhood (House Bill 2045), including transfers of CIF/Key Fund programs and a $1.3 million net SGF operating increase; senators pressed for details on director pay, CIF sustainability and possible TANF or other fund alternatives.
The Senate Ways and Means Committee opened a budget hearing on the proposed Office of Early Childhood and the governor39s FY2027 recommendation to move multiple programs and funding streams under the new agency created by House Bill 2045.
Jennifer Light of the Kansas Legislative Research Department (KLRD) told the committee the governor39s package requests $224.9 million in FY2027 for the new office and a net increase of $1.3 million in state general funds to stand up operations. "The top five items are dealing with the changes from other state agencies" and the request folds many existing programs and positions into the office, she said. Light identified five program areas that will sit in the new agency: administration, the ombudsman program, the Kansas Children39s Cabinet, home visiting and childcare.
Committee members pressed presenters on financing and long‑term fiscal risk. Senator Peck asked whether the approved $208,000 director salary is comparable to similar positions and how much of that figure is benefits; Jennifer said she would provide a benefits breakdown. Transition staff explained the $208,000 request "includes benefits" and that the salary component nets to about $160,000, comparable to other agency directors.
Lawmakers also focused on the governor39s proposal to move Children's Initiatives Fund (CIF) programs and pull Key Fund resources into a master account used for tobacco settlement proceeds. Jennifer said the governor proposes that programs remaining in other agencies for FY2027 would be funded from SGF rather than CIF, and estimated roughly $10 million in SGF would be needed to backfill those programs (including infant/toddler services, a pre‑K pilot and SIDS network grants). "My understanding is that it's about $10,000,000 that would be moving to SGF money in the governor's recommendation," she said.
Senator Owens warned about the historical pattern of using the Key Fund as a flexible funding source, citing an on‑the‑record floor estimate that prior legislatures have taken about $200 million from the Key Fund between 2001 and 2018. Transition staff acknowledged the Key Fund balance is declining and said some program funding moves reflect a desire to avoid a negative ending balance in the Key Fund in 2027.
Operational questions included FTE transfers and net staffing: presenters said 87 positions would transfer from existing agencies, one new FTE (the ombudsman) would be added, and the office would report a net decrease of about five FTEs after lapsing unnecessary positions. The transition director also described two provisos the governor requests: one to allow the director and budget staff to transfer funds across accounts during the transition year and another to make the director eligible for the CAPERS deferred compensation program.
The committee asked staff to follow up with requested details on TANF funding options, a director salary/benefits breakdown, historic Key Fund withdrawals, and the investment placement of the Key Fund (questions about whether the fund sits under KPERS or PMIB were raised). Presenters offered to provide that follow‑up and said the panel should reconvene for detailed budget markup next week.
The hearing closed with the chair asking members to submit written provisos and language changes before the committee reconvenes to begin work on Senate Bill 315.
